Kratos Defense prices $1.2 billion stock offering at $84 per share

Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) announced the pricing of an underwritten public offering of 14.3 million shares of common stock at $84.00 per share. The company expects net proceeds of approximately $1.17 billion after deducting underwriting discounts and commissions.

The San Diego-based defense technology company has granted underwriters a 30-day option to purchase up to an additional 2.14 million shares. The offering is expected to close on March 2, 2026, subject to customary closing conditions.

Kratos stated it plans to use the proceeds for capital expenditures to scale operations for Department of Defense and national security customers, invest in new product development, strengthen its balance sheet for anticipated contract awards, fund the recent acquisition of Nomad and pending acquisition of Orbit, and for general corporate purposes.

Baird, Raymond James, RBC Capital Markets and Truist Securities are serving as joint book-running managers for the offering. The shares are being offered under an automatic shelf registration statement on Form S-3ASR that became effective upon filing with the Securities and Exchange Commission on February 26, 2026.

The company operates in defense technology, developing products including satellite ground systems software, unmanned aerial systems, hypersonic vehicles, propulsion systems, and electronic warfare products for military and commercial markets.

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