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Globe and Mail
7 days ago
- Business
- Globe and Mail
Kratos Defense's Segment Strengthens Role in Critical Defense Domain
Kratos Defense & Security Solutions, Inc. ( KTOS ) is steadily growing its presence in the defense technologies space through its Kratos Government Solutions (KGS) segment. KGS provides a wide range of advanced systems like C5ISR solutions, satellite communications, microwave products, space and cyber systems, turbine technologies and defense rocket support services, which support U.S. and allied military missions. KGS also delivers secure, reliable communication networks and advanced satellite ground systems. These are critical for ensuring uninterrupted intelligence, surveillance and reconnaissance operations. The segment also develops hypersonic-related technologies and is a prime contractor for the MACH TB (Multi-Service Advanced Capability Hypersonic Test Bed) program. As global security challenges rise and defense modernization speeds up, KGS' products and services are expected to gain more traction. Moreover, the recent acquisition of certain assets from Norden Millimeter, Inc. has further improved KGS's microwave and Radio Frequency Capabilities, allowing it to offer even stronger defense solutions. In the second quarter of 2025, KGS revenues rose 29.9% from the previous year to $278.3 million, supported by growth across all business areas and benefits from the Norden acquisition. This result highlights KGS' solid performance and should play a key role in Kratos Defense's long-term growth story. Peers Warranting a Look As defense priorities include secure communications, advanced missile and electronic support, other defense contractors like Lockheed Martin Corporation ( LMT ) and RTX Corporation ( RTX ) also warrant a look. Lockheed Martin provides advanced systems for surveillance, reconnaissance and battle management. One of its key programs includes the Command Control Battle Management Communications, which is the first battle management system capable of integrating across domains. RTX focuses on providing integrated defense systems, radar and missile warning systems that improve situational awareness and threat detection. Its Intelligence, Surveillance and Reconnaissance systems and multi-mission sensors are critical to both U.S. and international defense operations. KTOS' Price Performance, Valuation and Estimates Shares of KTOS have gained 229.7% in the past year compared with the industry 's 45.8% growth. Image Source: Zacks Investment Research The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 7.12X compared with its industry's average of 10.13X. The Zacks Consensus Estimate for KTOS' third-quarter 2025 earnings has moved south in the past 60 days, while the same for the fourth quarter has remained unchanged. KTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis Report
Yahoo
31-07-2025
- Business
- Yahoo
Leonardo (DRS) Sees 42% Profit Jump as Defense Demand Grows
Leonardo DRS, Inc. (NASDAQ:DRS) is one of the best military tech stocks to buy now. Leonardo DRS, Inc. (NASDAQ:DRS) posted strong second-quarter results on July 30, reflecting solid demand for its defense technologies and a sharp rise in profitability. Revenue came in at $829 million, up 10% year-over-year, while net earnings surged 42% to $54 million. The company's adjusted EBITDA rose 17% to $96 million, and diluted EPS increased 43% to $0.20. A dynamic group of air force personnel surrounded by the latest defense products in action. Bookings totaled $853 million, in line with revenue and maintaining a book-to-bill ratio of 1.0x. The company's backlog grew to $8.6 billion, up 9% from a year ago, signaling continued visibility into future revenue. The company raised its 2025 guidance across all key financial metrics, citing strong operational momentum and growing global demand for its technologies. CEO Bill Lynn credited the performance to disciplined execution and increasing interest in the company's advanced systems as nations respond to rising geopolitical tensions. 'Customer demand remains robust as global threats evolve,' Lynn said. 'Our focus is on delivering high-performance, differentiated solutions where they matter most.' Leonardo DRS continues to benefit from long-cycle defense spending and strategic programs tied to modernization and readiness initiatives. Leonardo DRS develops advanced sensors, electronic warfare systems, and power solutions for U.S. and allied military forces. While we acknowledge the potential of DRS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
