Kratos reports record $2.6 billion backlog as third quarter 2026 revenue surges 36%

Kratos Defense & Security Solutions reported third quarter 2026 revenue of $471.8 million, up 35.7% year-over-year, alongside a record consolidated book-to-bill ratio of 2.2 to 1.0. While the company reported a slight GAAP net loss, adjusted profitability expanded significantly as the company scales production for hypersonic and space programs.

Key Highlights

• Organic revenue growth reached 23.2% consolidated, led by the Government Solutions (KGS) segment's 35.8% organic increase.
• Defense Rocket Systems saw massive expansion with 149.0% organic growth, while Turbine Technologies grew 27.1%.
• Total bookings reached $1.037 billion for the quarter, bringing the total consolidated backlog to $2.65 billion.
• Management increased full-year 2026 Adjusted EBITDA guidance to $176–$180 million and projected 2027 revenues of $2.1–$2.2 billion.