Kratos Defense & Security Solutions Completes $575M Stock Offering to Fuel Defense Sector Expansion

Kratos Defense & Security Solutions (NASDAQ: KTOS) has successfully closed a $575 million public offering, pricing shares at $38.50 each. The transaction, which involved nearly 15 million shares, netted approximately $556 million after fees. This capital raise positions Kratos to accelerate growth in the defense and national security sectors, with funds earmarked for scaling programs, strategic acquisitions, and debt reduction.

The company's stock has been a standout performer, surging 128% over the past year and gaining 73% year-to-date. Analyst sentiment remains bullish, with Goldman Sachs and Truist among firms upgrading KTOS and setting price targets as high as $52. The Optimism follows a strong Q1 2025 earnings report, where Kratos posted EPS of $0.12 and revenue growth of 9.2%.

CEO Eric DeMarco framed the offering as a strategic MOVE to capitalize on a global recapitalization of advanced weapon systems. "We're at the forefront of a generational shift in defense technology," DeMarco noted, emphasizing Kratos' role in shaping the sector's future.