An insider at Kratos Defense & Security Solutions, Inc., an American technology firm specializing in national security, defense, and commercial markets, has sold 9,823 shares of its Nasdaq-listed common stock, KTOS, for roughly $1.22 million.
The transaction recorded in the aerospace company’s latest filing with the U.S. Securities and Exchange Commission (SEC) comes as KTOS hit a 52-week high after closing Friday’s trading session at $112.66. This marked a remarkable 277.32% growth for the stock over the past 12 months, underscoring strong investor confidence in its market position.
Kratos Defense President Sells ~10,000 Shares for $1.2M
Between January 7th and 8th, David Carter, President of the Defense and Rocket Support Services Division (DRSS) at Kratos, sold 9,823 KTOS shares, netting $1,228,116 from the transaction. He sold the shares at prices ranging from $91.70 to $ 109.20, and the transactions were executed under a pre-arranged 10b5-1 trading plan adopted by the company in June 2025.
A 10b5-1 trading plan is a written agreement between a corporate insider and a brokerage firm that establishes predetermined trading instructions for company stock, allowing insiders to buy or sell shares at specified times, prices, and quantities. It is designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, providing an affirmative defense against insider trading allegations if the plan is established when the insider does not have access to material non-public information (MNPI).
This also follows a series of previous stock sales by Carter. Last month, he sold 4,000 shares for $305,192 at average prices between $75.31 and $77.41. In October and November 2025, he offloaded 4,000 shares each, earning him $411,231 and $294,558, respectively. Following the latest sale, the insider now owns 81,816 KTOS shares, valued at $8.62 million, representing a 9.03% decrease in his position over the past year. Carter, who has over 45 years of experience in defense, including in the U.S. Navy and at DTI Associates and Haverstick Consulting, is a 10% owner of Kratos and leads the company’s work in hypersonic missiles. He joined Kratos in 2007 following its acquisition of Haverstick.
Kratos Q3 2025 Revenue Beats Estimates, Up 26% YoY
Kratos Defense & Security Solutions reported Q3 2025 financial results in November. The U.S. government defense contractor reported revenues of $347.6 million, beating analysts’ expectations of $323.01 million, operating income of $7.1 million, net income of $8.7 million, and adjusted EBITDA of $30.8 million during the third quarter. The company had a net margin of 1.56% and a return on equity of 3.14%, with its quarterly revenue up 26% compared to Q3 2024.
This growth was fueled by a 35.8% surge in the firm’s Unmanned Systems segment and a 20% growth in the Kratos Government Solutions (KGS) segment, which alone reported revenues of $260.4 million, with notable gains made in defense rocket systems, space, training, and cyber divisions.
The company also announced it has increased its full-year 2026 organic revenue growth forecast to 15%. This is 20% above its 2025 forecast, with projected EBITDA margin expansion. Additionally, Kratos provided a preliminary 2027 organic revenue growth target of 18%, which is 23% above the 2026 forecast.
Northrop Grumman, Kratos Win $231.5M USMC Uncrewed Aircraft Contract
On Thursday, Kratos announced that global aerospace, defense, and security firm Northrop Grumman has been awarded a $231.5 million, 24-month contract by the U.S. Marine Corps for the Marine Air-Ground Task Force Uncrewed Expeditionary Tactical Aircraft (MUX TACAIR) and Collaborative Combat Aircraft (CCA) programs. Under the partnership, Kratos will integrate its Valkyrie uncrewed drone with Northrop Grumman’s Advanced Mission Kit (AMK) and Prism software to enhance the Department of the Navy’s air dominance in high-threat environments.
Northrop Grumman will provide the Marine Corps with an AMK with sensors and software-based technologies tailored for uncrewed aircraft, along with the open-architecture autonomy software Prism for autonomous operations. Kratos’ Valkyrie drone, featuring a modular airframe capable of carrying customizable payloads, will adapt according to the U.S. Navy’s CCA program. The unmanned aircraft can be used for various missions, including strike, electronic warfare, reconnaissance, and decoy operations.
Kratos Backs Trump Warning on Defense Firms Prioritizing Profits Over Security
Meanwhile, Kratos expressed its support for President Donald Trump’s policy that recommends investments in national security capabilities over stock buybacks by defense contractors. On Wednesday, the President issued stern warnings to U.S. defense companies, demanding they halt stock buybacks and dividends, cap executive pay at $5 million annually, and accelerate military equipment production. He accused leading defense firms of prioritizing shareholder returns over national defense requirements, calling the situation “unacceptable” and stating it will no longer be “allowed” or “tolerated.”
Trump specifically targeted Raytheon (RTX), labelling the defense contractor as the “least responsive” to the Department of War’s needs and the most aggressive in spending on shareholders rather than serving the military. He warned that the company would no longer be allowed to conduct stock buybacks unless it significantly increased investment in plants and equipment. The President announced an immediate restriction on dividends and stock buybacks for all contractors unless they improve delivery timelines and production capacity, citing the need to build a “dream military.”
The announcement triggered immediate market reactions, with defense stocks dropping sharply initially, but rebounded during after-hours trading after Trump declared an increase in the U.S. defense budget for the 2027 fiscal year to $1.5 trillion. He attributed the funding to revenue generated from tariffs.
Kratos has long operated under a different capital allocation structure than many of its defense industry peers. Instead of returning capital to shareholders through stock buybacks or dividends, the company chose to reinvest in development, production, inventory, and infrastructure. This approach has enabled it to self-fund and be first-to-market with capabilities in unmanned systems, hypersonics, propulsion, space, and defense electronics.
Kratos Defense & Security Solutions (KTOS) closed the Friday, January 9 trading session at $113.70 – up 4.97% on the day.
