Shares of Kratos Defense & Security Solutions Inc (NASDAQ: KTOS) surged 5.17% in pre-market trading on Thursday, following the company's Q4 2024 earnings call that highlighted a robust growth outlook overshadowing ongoing challenges.
The defense contractor reported a 9.1% organic revenue growth in 2024 and forecasted a 10% increase for 2025 and an impressive 13-15% growth rate for 2026. This optimistic outlook is fueled by several large new program awards, including a $1.5 billion hypersonic area contract, positioning Kratos for significant future revenue growth.
Furthermore, the company is expanding its facilities and capabilities to meet the increasing demand, such as establishing a new hypersonic production campus. Additionally, Kratos' partnership with Rafael to establish the Prometheus Energetics Joint Venture is expected to significantly enhance its production capabilities and market position, contributing to future growth prospects.