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Mar 30
Kratos Q1 2025 Earnings Report
Reported first quarter 2025 financial results, including Revenues of $302.6 million, Operating Income of $6.6 million, Net Income attributable to Kratos of $4.5 million, Adjusted EBITDA of $26.7 million and a consolidated book to bill ratio of 1.2 to 1.0.
Key Takeaways
Kratos Defense & Security Solutions reported strong first quarter 2025 results with revenue growth of 9.2% year-over-year, driven by organic growth in both Unmanned Systems and Kratos Government Solutions segments. The company achieved a consolidated book-to-bill ratio of 1.2 to 1.0, indicating future revenue potential. Operating income and net income also saw increases compared to the prior year period.
Total revenues for Q1 2025 were $302.6 million, a 9.2% increase from Q1 2024.
GAAP Net Income attributable to Kratos was $4.5 million, resulting in GAAP EPS of $0.03.
Adjusted EPS for Q1 2025 was $0.12, an increase from $0.11 in Q1 2024.
Consolidated book-to-bill ratio was 1.2 to 1.0 for the first quarter of 2025.
Kratos
Kratos
Kratos Revenue by Segment
Revenue by Segment
Unmanned Systems Revenue
CapyFin.comKratos Government Solutions Revenue
CapyFin.com Forward Guidance
Kratos is providing initial second quarter 2025 guidance and reaffirming its full year 2025 financial guidance range, citing increased confidence based on clearer defense funding and priorities, a strong book-to-bill ratio, and anticipated strong performance in the latter half of the year.
Positive Outlook
- Government full year fiscal 2025 CRA and funding now being put in place.
- Potential additional $150 billion defense related 2025 Reconciliation Bill progressing.
- Potential for a $1 trillion fiscal 2026 U.S. National Security Budget.
- Forecasted approximately 10 percent year over year organic revenue growth in 2025.
- Forecasted approximately 14 percent year over year organic revenue growth in 2026.
Challenges Ahead
- Forecasting lower June revenues and EBITDA due to facility move in Israel-based microwave electronics business.
- Assumes current forecasted business mix, employee sourcing, hiring and retention challenges.
- Assumes manufacturing, production and supply chain disruptions.
- Assumes parts shortages and related continued significant cost and price increases.
- Elevated investments for capital expenditures for property, plant and equipment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income