Kratos Defense & Security Solutions announced a $12.4 million contract from the U.S. Air Force to design the GEK1500 engine, a 1,500‑lb thrust jet intended for small Collaborative Combat Aircraft (CCA). The contract is a joint effort with GE Aerospace, leveraging GE’s propulsion expertise and Kratos’s experience in unmanned systems engines.
The GEK1500 builds on the GEK800 cruise‑missile engine architecture, adding reusability and modular maintenance features that differentiate it from disposable missile engines. By combining the proven GEK800 platform with Kratos’s unmanned‑aircraft focus, the partnership aims to deliver a cost‑effective, mass‑produced engine that can power both drones and future missile systems.
This contract represents a new revenue stream for Kratos and expands its engine‑development portfolio. The agreement includes an option for further risk assessment and performance characterization, indicating potential for follow‑on work and a broader family of engines for various unmanned platforms.
Kratos’s Q4 2025 earnings are scheduled for release on February 23 2026. Analysts expect earnings per share of $0.14 and revenue of approximately $328.25 million. The new contract adds to the company’s guidance, which has been raised to a 13–15 % revenue growth forecast for 2026 versus the 10 % growth forecast for FY 2025.
In Q4 2024, Kratos reported revenue of $283.1 million, a 3.4 % increase from the prior year, and an adjusted EPS of $0.13. The GEK1500 contract supports the company’s trajectory of incremental revenue growth and strengthens its position in the growing unmanned‑systems market.
Other defense contractors are also developing engines for CCAs, but the partnership with GE Aerospace gives Kratos a competitive advantage by combining advanced propulsion technology with a proven unmanned‑systems engine platform.
The GEK1500 contract positions Kratos for future growth in the expanding unmanned‑systems sector, reinforcing its strategy to deliver affordable, high‑performance engines for next‑generation defense platforms.
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