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Dec 29, 2024
Kratos Q4 2024 Earnings Report
Kratos reported a solid Q4 2024 with revenue growth and improved profitability.
Key Takeaways
Kratos Defense & Security Solutions posted Q4 2024 revenue of $283.1 million, reflecting a 3.4% growth year-over-year. The company achieved a net income of $3.9 million and an adjusted EPS of $0.13. Free cash flow for the quarter was $32.0 million, and the book-to-bill ratio stood at 1.5 to 1. Revenue growth was driven by strong performance in Unmanned Systems and Government Solutions, partially offset by declines in Space and Satellite businesses.
Revenue grew 3.4% year-over-year to $283.1 million.
Net income rose to $3.9 million from $2.4 million in Q4 2023.
Adjusted EPS was $0.13, up from $0.12 in Q4 2023.
Free cash flow reached $32.0 million, supported by strong operating cash flow.
Revenue by Segment
Forward Guidance
Kratos expects 10% organic revenue growth in 2025, with plans for significant investments in production and R&D to support future contracts.
Positive Outlook
- Projected 10% organic revenue growth in 2025.
- Expansion in hypersonics, drone, and rocket programs.
- Investment in manufacturing and production facilities.
- Continued strong backlog and new contract awards.
- Positioning for 13-15% revenue growth in 2026.
Challenges Ahead
- Dependency on government contracts and budget approvals.
- Potential impact of Continuing Resolution Authorization (CRA) on new contracts.
- Ongoing supply chain and production cost pressures.
- Increased capital expenditure requirements for growth initiatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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