Kratos Defense & Security Solutions opened a 55,000‑square‑foot hypersonic manufacturing and payload‑integration plant in Princess Anne, Maryland on January 13 2026. The new facility sits adjacent to NASA’s Wallops Flight Facility, a strategic location that streamlines logistics for launch and hypersonic testing. It is designed to support the company’s $1.45 billion Multi‑Service Advanced Capability Hypersonics Test Bed (MACH‑TB 2.0) contract and other hypersonic programs, providing advanced manufacturing, specialized integration areas, and enhanced testing equipment.
The plant represents a key step in Kratos’ vertically integrated platform strategy. By bringing vehicle production, payload integration, and testing under one roof, the company can increase test cadence and deliver more affordable flight‑test opportunities for hypersonic technologies. The facility also reinforces Kratos’ focus on “attritable mass” – low‑cost, expendable systems that can be produced at scale – a differentiator that has attracted significant defense contracts.
Kratos’ recent financial performance underscores the strategic importance of the new plant. The company reported a 15–20 % revenue growth outlook for 2026, driven by strong demand for drones and hypersonics, and a backlog of $1.508 billion as of March 2025. The $1.45 billion MACH‑TB 2.0 contract is a major portion of that backlog, and the new facility is expected to accelerate production and reduce unit costs, supporting the company’s goal of scaling multiple $1 billion franchises while maintaining cost advantages for the Department of Defense.
Management highlighted the facility’s role in Kratos’ broader strategy. Dave Carter, President of the Defense & Rocket Support Services Division, said the investment “enables us to increase production capacity, streamline payload integration processes, and respond even more rapidly to the growing demand for affordable hypersonic flight testing.” CEO Eric DeMarco added that the plant “is another example of Kratos’ strategy of making upfront commitments to rapidly develop and field relevant national‑security hardware, products and systems, and invest in growing the U.S. defense industrial base.”
Analysts have upgraded Kratos in light of the facility’s impact on the company’s execution pipeline. The new plant is cited as a key driver behind the firm’s upward‑revised revenue guidance and the strong consensus of “Strong Buy” ratings from multiple analysts, reflecting confidence in Kratos’ ability to convert its contract wins into scalable production.
Beyond corporate growth, the facility is expected to create high‑skill jobs in the Princess Anne region, contributing to local economic development. Kratos plans to use the plant to support future hypersonic and drone programs, positioning the company as a central player in the U.S. defense hypersonics effort.
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