Risk Sleuth
KTOS · 10-K filed 23 Feb 2026 · year to 28 Dec 2025

Kratos Defense & Security Solutions

31 named things its latest annual report says its results depend on, each in the company's own words. 23 of them are also named by other companies we've read.

Read the filing on SEC.gov ↗

Customers

U.S. Government

earns from · 68%named as a risk
In fiscal 2025, 2024 and 2023, we generated 68%, 67% and 69%, respectively, of our total revenues from contracts with the U.S. Government (including all branches of the U.S. military and FMS), either as a prime contractor or a subcontractor.Risk factors (Item 1A)

Also named by ADI, AIR, APH, ASTS, ATI, AVAV, AWK, BA and 46 more

U.S. Navy

earns from · 17.7%named as a risk
In fiscal 2025 and 2024, the U.S. Air Force accounted for 12.6% and 15.2% respectively, of our total revenues and the U.S. Navy accounted for 17.7% and 14.7%, respectively, of our total revenues.Risk factors (Item 1A)

Also named by BWXT, CW, GD, HEI, HII

U.S. Air Force

earns from · 12.6%named as a risk
In fiscal 2025 and 2024, the U.S. Air Force accounted for 12.6% and 15.2% respectively, of our total revenues and the U.S. Navy accounted for 17.7% and 14.7%, respectively, of our total revenues.Risk factors (Item 1A)

Also named by ACHR

U.S. Space Development Agency

earns from · $116.7 million
In 2024, we received a number of contract awards including a $48 million contract for geolocation global support services, a $116.7 million contract from the U.S. Space Development Agency for Ground System to support advanced fire control missions and a $579 million single award IDIQ for Space Form Satcom C2 System.Business (Item 1)

Also named by ASTS, GD

Suppliers

Unmanned aerial system engines and parachutes suppliers

depends onnamed as a risk
We primarily rely on our suppliers to provide the engines and parachutes for landing the unmanned aerial systems.Risk factors (Item 1A)

Partners and platforms

GE Aerospace

depends on
The teaming agreement expands on the MOU and provides the framework for Kratos and GE Aerospace to develop, manufacture, test, and field the GEK800 engine, as well as collaborate on other low-cost expendable turbofan engines.Business (Item 1)

Also named by ATI, BKR, BRK/B, HWM, WWD

Northrop Grumman

earns from
Kratos’ teammate Northrop Grumman was competitively awarded the U.S. Marine Corps’ Marine Air-Ground Task Force Uncrewed Expeditionary Tactical Aircraft (MUX TACAIR) Collaborative Combat Aircraft (CCA), which combines Northrop Grumman’s uncrewed capabilities and autonomous leadership with Kratos’ Valkyrie uncrewed aerial system to work alongside crewed fighters to provide air dominance in high-threat environments.Business (Item 1)

Also named by LHX, LMT, RBC

Rafael

Investments related to the Company’s Prometheus venture with Rafael and the new turbofan production facility in Oklahoma related to our arrangement with GE Aerospace are expected to begin to ramp up during 2026.Business (Item 1)

Places

International revenue

earns from · 20% of our total revenuenamed as a risk
Our international business represents 20% of our total revenue for the year ended December 28, 2025, which may be impacted by changes in foreign national priorities and government budgets and may be further impacted by global economic conditions and fluctuations in foreign currency exchange rates.Risk factors (Item 1A)

Also named by KLAC

Foreign subsidiaries

operates in · 13% of our total revenuesnamed as a risk
As of December 28, 2025, approximately 12% of our consolidated assets, based on book value, and 13% of our total revenues for the year ended December 28, 2025, were attributable to foreign subsidiaries, which do not guarantee our indebtedness.Risk factors (Item 1A)

Israel

operates innamed as a risk
In addition, our microwave electronics business, which is based in Israel, may suffer disruption or damage from acts of terrorism, or other conflicts in that geographic region.Risk factors (Item 1A)

Also named by AIOT, AKAM, AMAT, AMGN, APP, ASTS, AVY, BSX and 31 more

Indiana

operates in
These investments include unmanned jet powered aircraft such as Kratos Valkyrie ahead of potential contract award; a hypersonic system fabrication and integration facility including for Kratos Zeus solid rocket missiles (SRMs) and Erinyes hypersonic flight systems in Indiana; the procurement of long lead items for 60 Oriole and 60 Zeus SRM’s for ballistic missile defense related, hypersonic or other expected customer missions; relocation and expansion of our small turbojet engine production capacity in Michigan; establishment of a planned small turbofan jet engine production facility in Oklahoma; expansion of our existing microwave electronics manufacturing facility in Israel, establishment of an additional microwave electronics facility in Israel, including a space qualified facility; expansion of our machining, milling, casting, 3D printing and additive manufacturing capable facility in the United States to support our jet engine and other hardware product and system manufacturing requirements; establishment of a new facility related to the Sentinel intercontinental ballistic missile (ICBM) program; expansion of our unmanned jet drone manufacturing capability; and expansion of existing and construction of additional classified facilities for certain programs and contracts.Business (Item 1)

Also named by ELV, OHI, SNDA

Hazards

Explosive and flammable materials

named as a risk
From time to time, these activities may result in incidents that could cause us to temporarily shut down or otherwise disrupt some manufacturing processes, causing production delays and resulting in liability for workplace injuries and/or fatalities.Risk factors (Item 1A)

Commodities and inputs

Aluminum

depends onnamed as a risk
Particularly, the market for electronic components is experiencing increased demand and a global shortage of semiconductors, creating substantial uncertainty regarding our suppliers’ continued production of key components for our products, and the supply for certain raw materials such as aluminum and resins, and the availability of certain parts and extrusions, and the availability for milling activities has, in each case, continued to experience shortages and delays which is impacting our C5ISR business.Risk factors (Item 1A)

Also named by AAON, ACHR, ALSN, AYI, BA, BALL, BF/B, BWA and 59 more

Semiconductors

depends onnamed as a risk
Particularly, the market for electronic components is experiencing increased demand and a global shortage of semiconductors, creating substantial uncertainty regarding our suppliers’ continued production of key components for our products, and the supply for certain subcomponents and parts is impacting our C5ISR business, and the shortage of qualified vendors which supply certain ancillary parts for our aerial targets have resulted in cost increases.Business (Item 1)

Also named by AAPL, AIOT, ARW, AXON, CARR, CAT, CIEN, CSCO and 16 more

Conflict minerals (tantalum, tin, gold, tungsten)

depends onnamed as a risk
The rule can affect sourcing at competitive prices and availability in sufficient quantities of certain minerals used in the manufacture of our products, including tantalum, tin, gold and tungsten.Risk factors (Item 1A)

Also named by GNTX, ILMN, ISRG, RVTY, TPR, VSH, WAT

Israeli Shekel

exposed to its pricenamed as a risk
For instance, in our Israeli business, we are paid in USD for work performed but our cost of sales (payroll, materials, subcontract costs, etc.) are paid in Israeli Shekel.Market risk (Item 7A)

Also named by AIOT, AMAT, INTC, VPG, VSH

Regulators

Defense Contract Audit Agency (DCAA)

subject tonamed as a risk
U.S. Government agencies, including the Defense Contract Audit Agency (“DCAA”), routinely audit and investigate government contracts and government contractors’ administrative processes and systems.Risk factors (Item 1A)

Also named by ACN, BA, CACI, CDRE, FLR, HII, LDOS, LMT and 6 more

Federal Aviation Administration

subject to
For example, certain aspects of our business are subject to further regulation by additional U.S. government authorities, including (i) the Federal Aviation Administration, which regulates airspace for all air vehicles in the U.S. National Airspace System, (ii) the National Telecommunications and Information Administration and the Federal Communications Commission, which regulate the wireless communications upon which our UAS business depend in the United States and (iii) the Defense Trade Controls of the U.S. Department of State that administers the International Traffic in Arms Regulations, which regulate the export of controlled technical data, defense articles and defense services.Business (Item 1)

Also named by ACHR, AIR, ALK, AMT, AVAV, BA, BRK/B, CCI and 27 more

Laws and programs

One Big Beautiful Bill Act (OBBBA)

earns from · $156 billion
This reconciliation bill appropriated an additional $156 billion for defense spending and national security priorities and is expected to result in increased investment by the DoW in defense modernization projects and increasing weapons and armaments production capacity.Business (Item 1)

Also named by AA, ABR, ADI, ADM, ALB, AMAT, AMGN, AMKR and 121 more

MACH-TB 2.0

earns from · $1.45 billion
Subsequent to the successful initial flights of the Zeus SRM's and the Erinyes hypersonic system, Kratos was awarded the Mach TB 2.0 hypersonic system related contract, the largest contract in Kratos history with an estimated value of $1.45 billion, if all options are exercised over a five-year period.Business (Item 1)

International Traffic in Arms Regulations (ITAR)

subject tonamed as a risk
A violation of ITAR or other applicable trade regulations could have a material adverse effect on our business, financial condition and results of operations.Risk factors (Item 1A)

Also named by ACHR, ADI, AIR, ALSN, APH, AVAV, CDRE, CLS and 29 more

CERCLA

subject tonamed as a risk
We have incurred, and may incur in the future, liabilities under CERCLA and other environmental laws at our current or former facilities, adjacent or nearby properties or offsite disposal locations.Risk factors (Item 1A)

Also named by AA, AAOI, ALB, AN, APD, APLD, ATI, AWK and 27 more

Cybersecurity Maturity Model Certification (CMMC)

subject tonamed as a risk
Failure to achieve CMMC certification will prevent bidding on new or follow-on contracts, creating significant contract risk.Cybersecurity (Item 1C)

Also named by ADI, AVAV, BWXT, GE, HEI, HLIO, HON, HWM and 15 more

Budget Control Act of 2011

subject tonamed as a risk
The budget environment, including budget caps mandated by the Budget Control Act of 2011 (the “BCA”) for fiscal years 2022 and 2023, which was reinstituted with established budget caps for 2024 and 2025 under The Fiscal Responsibility Act of 2023, and uncertainty surrounding the debt ceiling and the appropriations process, remain significant short and long-term risks for the Company.Risk factors (Item 1A)

Also named by DGX, DVA

National Industrial Security Program Operating Manual (NISPOM)

subject tonamed as a risk
If for some reason one or more of our facility security clearances is invalidated or terminated, we would not be able to continue to perform on classified contracts at that facility and would not be able to enter into new classified contracts, which could adversely affect our revenues.Risk factors (Item 1A)

Also named by TTMI

Small Business Administration set-aside program

subject tonamed as a risk
An increase in the amount of procurements under the SBA set-aside program, or other similar governmental programs, may impact our ability to bid on new procurements as a prime contractor, limit our opportunity to work as a subcontractor or restrict our ability to compete on incumbent work that is placed in the set-aside program.Risk factors (Item 1A)

Also named by LDOS

BQM-167 / BQM-177 / Sentinel (GBSD) / MACH-TB 2.0 programs

earns fromnamed as a risk
We believe that the USAF BQM-167, USN BQM-177, GBSD (also known as Sentinel) and the MACH-TB 2.0 programs could represent a large portion of our future revenues in the coming years, and the loss, cancellation, or delay of any of these programs could adversely affect our future results.Risk factors (Item 1A)

GSA contracts and GWACs

earns fromnamed as a risk
If we were to lose our position as prime contractor on one or more of these contracts, we could lose substantial revenues and our operating results could suffer.Risk factors (Item 1A)

Federal Acquisition Regulations

subject to
the Federal Acquisition Regulations and supplemental agency regulations, which comprehensively regulate the formation, administration, and performance under government contracts;Business (Item 1)

Also named by ADI, AVAV, IEX, MTSI

Technology

Unmanned Systems segment (UAS/UGS market)

earns from · 21.7% of our total revenuenamed as a risk
For the fiscal year ended December 28, 2025, our US segment accounted for 21.7% of our total revenue.Risk factors (Item 1A)