Kratos Strengthens Its Position as a Popular Radar Manufacturer

As global demand for advanced radar systems continues to rise, Kratos Defense & Security Solutions, Inc. KTOS stands to benefit from this expanding market. Growing geopolitical tensions, modernization of defense forces and the increasing need for surveillance and missile detection systems are driving countries to invest heavily in radar technologies.

Kratos plays an important role in the radar industry through its design and production of advanced hardware and subsystems for ground-based radar systems. The company supports major U.S. Department of Defense radar programs, with its reliable systems used around the world. Its products include protective enclosures for radar electronics, custom assemblies, mobility platforms and structural components like array frames. With fully integrated facilities for fabrication, assembly and testing, Kratos ensures high quality and efficiency in its radar solutions. These strengths make it a trusted partner in delivering advanced and durable radar technologies for defense applications.

In October 2025, Kratos received a contract from the U.S. Navy to begin developing an organic sustainment capability for its AN/SPY-1 radar systems. Known internally as Project Anaconda, the agreement has an estimated value of up to $175 million across multiple phases. Through this project, Kratos will help the Navy maintain and upgrade its radar systems that are essential for missile detection and defense operations. This achievement reflects the company’s growing role as a popular radar manufacturer in the United States.

Peers Maintain Strong Market Presence

The global radar systems market is expanding as countries invest more in surveillance, air defense and missile detection technologies. Major defense players like RTX Corporation RTX and Lockheed Martin Corp. LMT are also positioned to benefit from this trend alongside Kratos.

RTX’s product portfolio consists of varied radars, such as AN/TPY-2, AN/APG-79, APG-82(V)1, GhostEye MR and a few more, which enjoy solid demand in the global military radar market. In Oct. 2025, RTX’s business segment, Raytheon, has been chosen by the German government to supply its SPY-6(V)1 radar for installation on eight of its F127 frigates under a proposed Foreign Military Sales contract with the U.S. Navy.

LMT’s radars are the choice of more than 45 nations across six continents. Its product portfolio consists of varied radars like TPY-4, AN/APY-9 Radar, AN/TPQ-53 Radar System, SPY-7, TPS-77 and Sentinel A4. In July 2025, LMT successfully delivered the first Aegis System Equipped Vessel shipset, comprised of four AN/SPY-7(V)1 radar antennas, to the Japan Ministry of Defense.

KTOS’ Price Performance, Valuation and Estimates

Shares of KTOS have gained 291.7% in the past year compared with the industry’s 36.3% growth.

The company shares are trading at a premium, with its forward 12-month Price/Sales being 11.19X compared with its industry’s average of 10.13X.

The Zacks Consensus Estimate for KTOS’ 2025 earnings has moved south over the past 60 days.

KTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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