NASDAQ$KTOS

Kratos Defense & Security Solutions Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Kratos reported a solid Q4 2024 with revenue growth and improved profitability.

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.

Headline financials

Total Revenue

$283M

Previous: $274M+3.4%
EPS (adj)

$0.13

Previous: $0.12+8.3%
Adjusted EBITDA

$25.2M

No prior period
Capital Expenditures

-$13.6M

Previous: -$19.3M+29.5%
Net Income

$3.9M

Previous: $2.4M+62.5%
Operating Income

$3M

Previous: $12.1M-75.2%
Gross Profit

$29.4M

Previous: $67.5M-56.4%
R&D Expense

$10.6M

Previous: $8M+32.5%

Revenue & EPS history

Kratos · Revenue · Quarterly

$283M

Q4 2024+3.4%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Kratos · $275M total across 2 segments · Q3 2023

  • Kratos Government Solutions
    $218M
  • Unmanned Systems
    $56.7M

Forward guidance

Kratos expects 10% organic revenue growth in 2025, with plans for significant investments in production and R&D to support future contracts.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Uncertain macroeconomic environment affecting defense spending.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-1.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+4.3%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+19.6%

Q2 2016

Best reaction

-25.9%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-3.9%-1.2%
Q4 2025-8.6%-8.6%-19.6%
Q3 2025-14.2%-12.2%-15.2%
Q1 2025-5.2%-6.3%+12.2%
Q4 2024+5.2%+5.7%+22.9%
Q3 2024+7.0%+12.3%+15.3%
Q2 2024-3.0%-3.6%+3.6%
Q1 2024+4.4%+4.4%+9.4%
Q4 2023+13.3%+13.0%-5.4%
Q3 2023+0.2%+3.3%+13.4%
Q2 2023+13.0%+17.0%+10.3%
Q1 2023+6.7%+0.8%+5.9%
Q4 2022+14.1%+11.2%+16.8%
Q3 2022+0.1%+0.2%-8.2%
Q2 2022-2.5%-4.9%-20.6%
Q1 2022-13.9%-17.4%-9.5%
Q4 2021-8.6%+13.5%+27.4%
Q3 2021-5.5%-1.1%-10.6%
Q2 2021-11.8%-8.3%-10.0%
Q1 2021+3.4%-0.5%+0.4%
Q4 2020-8.5%-10.0%-13.4%
Q3 2020-1.8%+4.8%+11.3%
Q2 2020+5.7%+5.8%+6.7%
Q1 2020+16.2%+8.6%+28.1%
Q4 2019-25.9%-19.7%-35.6%
Q3 2019+5.2%+12.2%-2.5%
Q2 2019-13.9%-20.6%-18.9%
Q1 2019+13.1%+22.0%+42.1%
Q4 2018-2.8%-2.0%-9.1%
Q3 2018+14.8%+19.2%+5.4%
Q2 2018-4.8%-1.9%+2.5%
Q1 2018+5.8%+4.4%+8.8%
Q4 2017-7.8%-8.6%-14.1%
Q3 2017-7.6%-6.1%-14.0%
Q2 2017-10.9%-11.8%-1.1%
Q1 2017+17.2%+18.8%+40.5%
Q4 2016-1.2%-10.4%-4.9%
Q3 2016+8.3%+3.2%+43.3%
Q2 2016+19.6%+24.2%+56.4%
Q1 2016-14.4%
Q4 2015+10.6%
Q3 2015-3.4%
Q2 2015-6.2%
Q1 2015-2.4%
Q4 2014-0.2%
Q3 2014-12.7%
Q2 2014+4.6%
Q1 2014+2.5%
Q4 2013-6.4%
Q3 2013-15.0%
Q2 2013+3.5%
Q1 2013-0.9%
Q4 2012-3.6%
Q1 2011-3.6%
Q3 2012-13.7%
Q2 2012-8.0%
Q1 2012-3.8%
Q4 2009+13.4%
Q4 2011+13.4%
Q3 2010-9.8%
Q3 2011-9.8%
Q2 2010-16.8%
Q2 2011-16.8%
Q4 2010-16.8%
Q1 2010-0.4%

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