Kratos Defense & Security Solutions secured a $49 million contract from the Naval Surface Warfare Center, Port Hueneme Division to produce up to 36 Oriole solid rocket motors and three thrust‑vector control nozzle kits. The funded base award for the rockets is $39,077,237, with an option for the nozzle kits valued at $10,136,009.
The Oriole system is a low‑cost, rapid‑turn‑around launch vehicle that the Navy uses for sub‑orbital target and experimental hypersonic test programs. By adding this contract to its portfolio, Kratos expands its solid‑rocket motor business and reinforces its propulsion systems strategy.
The award adds a multi‑year revenue opportunity to Kratos’ backlog, which stood at $1.573 billion as of December 28, 2025. The company’s record opportunity pipeline of $13.7 billion and strong book‑to‑bill ratio signal continued demand for its propulsion solutions.
Dave Carter, president of Kratos Defense & Rocket Support Services, said the Oriole rocket motor and TVC kit systems deliver critical capability to Navy and DoD customers, supporting operational needs and test objectives on accelerated timelines.
Investors’ reaction was muted, with concerns about valuation and short interest outweighing the positive contract news, despite the contract’s contribution to Kratos’ revenue and backlog growth.
Kratos’ broader outlook remains upbeat, with the company reporting a record backlog and a growing opportunity pipeline. The company’s focus on affordable, mission‑relevant launch vehicle solutions positions it to capture additional contracts in the hypersonic and sub‑orbital testing markets.
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