Kratos to make Elroy Air Chaparral cargo drones in Sacramento

Kratos Defense & Security Solutions (NASDAQ: KTOS) announced it will manufacture Elroy Air's Chaparral autonomous cargo aircraft at its expanding Sacramento, California facility, with the first production aircraft planned for late 2026.

Kratos is the exclusive U.S. manufacturer of the Chaparral and will fulfill all U.S. customer orders. The company said it expects to add more than 50 employees to its current Sacramento workforce of over 450, bringing the regional headcount to more than 500. New positions will span aircraft technicians, composite manufacturing specialists, assemblers, engineers, and program management roles.

The Chaparral is a hybrid-electric, vertical takeoff and landing autonomous cargo aircraft capable of transporting more than 500 pounds of payload with a range of up to 450 miles, without requiring traditional airport infrastructure. It is designed for commercial middle-mile logistics and military resupply operations.

Elroy Air has previously reported a demand pipeline exceeding 1,400 aircraft, representing more than $5 billion in potential revenue. Customers in that pipeline include Bristow Group, Barq Group, SLI, and FedEx. The company has also supported programs with the U.S. Army, U.S. Marine Corps, and U.S. Air Force for more than six years. Elroy Air has separately announced plans to become a publicly traded company.

Steve Fendley, President of Kratos' Unmanned Systems Division, said, "As demand continues to build, our expanding Sacramento facility is well positioned to support both commercial and defense customers while creating additional high-value aerospace jobs in California."

Dr. Andrew Clare, CEO of Elroy Air, said, "Partnering with Kratos lets us build American-made autonomous cargo drones right here in California, at the pace our customers need."

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