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Kratos vs. CurtissWright: Who Holds the Edge in the Defense Space?
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Key Takeaways
Kratos expands with new UAVs, defense partnerships and strategic manufacturing agreements.
CurtissWright boosts 2025 outlook with EPS growth, revenue gains and expanded buybacks.
CW shows stronger ROE and valuation appeal, while KTOS leads in stock price performance.
As rising global security threats are driving higher defense spending, major defense equipment providers like Kratos Defense & Security Solutions Inc. (KTOS - Free Report) and CurtissWright Corporation (CW - Free Report) are drawing investor focus. Both companies are capitalizing on the heightened demand for advanced defense technologies, which range from unmanned systems to mission-critical hardware.
Kratos enjoys its niche in unmanned systems, tactical drones, hypersonics, space and microwave electronics. On the other hand, CurtissWright delivers a broad mix of engineered products, including flight test equipment, power electronics, actuation systems and nuclear power solutions. With a diversified portfolio and established government ties, CW holds a strong foothold in critical industries like commercial aerospace and power, beyond defense.
As nations invest in next-generation defense platforms, both KTOS and CW stand to benefit. Now, let’s take a closer look to determine which of these stocks presents a stronger edge in the defense space.
Key Takeaways for KTOS
Recent Achievements: In September 2025, Kratos and GE Aerospace began altitude testing of the GEK800 small engine, designed to power the next generation of affordable unmanned aerial systems and collaborative combat aircraft.
Kratos also signed a five-year strategic manufacturing agreement with Elroy Air. Under this agreement, the company will be the exclusive U.S. manufacturing partner for the Chaparral hybrid electric autonomous VTOL cargo drone, supporting large-scale production for logistics and military resupply.
In the same month, Kratos also partnered with Taiwan’s National Chung-Shan Institute of Science and Technology to unveil the Mighty Hornet IV Attack UAV, an upgraded version of the MQM 178 target drone. The UAV combines high speed and advanced maneuverability and will be marketed internationally, expanding Kratos’ footprint in global defense markets. These recent developments should position the company for strong growth in both domestic and global defense markets.
Financial Stability: Kratos ended the second quarter of 2025 with cash and cash equivalents of $784 million, up from $264 million at the end of the first quarter. Its long-term debt totaled $233 million with no significant near-term maturities, reflecting a solid financial position. This strong balance sheet enhances the company’s ability to fund ongoing operations and support future growth initiatives.
Challenges to Note: Like many defense companies, Kratos faces ongoing supply-chain constraints, particularly limited access to raw materials. Further, labor shortages and rising material costs, particularly in the current tariff-related uncertainty environment, could put pressure on profit margins and slow project timelines for this company.
Key Takeaways for CW
Recent Achievements: In September 2025, CurtissWright announced a $200 million expansion of its 2025 share repurchase program, which is now expected to result in record annual share repurchases exceeding $450 million. This showcases its strong commitment to shareholder value as well as the company’s confidence in its financial strength.
In August 2025, CurtissWright’s UK-based nuclear business entered into a strategic partnership with Rolls-Royce SMR to deliver critical safety systems for its Small Modular Reactor (SMR) technology. Curtiss-Wright will provide design, qualification, testing and supply of the non-programmable diverse Reactor Protection Systems for a global fleet of Rolls-Royce SMRs. This partnership should strengthen KTOS’ prowess in the expanding nuclear energy market.
Financial Stability: CW ended the second quarter of 2025 with cash and cash equivalents of $0.33 billion compared with $0.23 billion at the end of the first quarter. Its long-term debt stood at $0.96 billion, with no notable near-term maturities. This indicates a relatively strong financial position, at least in the short term. This strong balance sheet enhances the company’s ability to fund ongoing operations and support future growth initiatives.
Challenges to Note: CurtissWright faces challenges from labor shortages, as an aging workforce and high attrition rate in the aerospace-defense industry among younger employees could slow production and affect quality. The company’s reliance on complex manufacturing equipment also carries the risk of delays and higher repair costs in the event of any failures. Additionally, supply-chain disruptions, including material shortages and tariffs, may limit production and affect deliveries to major aerospace customers.
How do EPS Estimates Compare for KTOS & CW?
The Zacks Consensus Estimate for KTOS’ 2025 earnings per share (EPS) indicates year-over-year growth of 4.1%, while that for revenues implies growth of 15.7%. The company’s near-term EPS estimates (except the third quarter of 2025) improved over the past 60 days.
Image Source: Zacks Investment Research
For CW, the Zacks Consensus Estimate for 2025 EPS implies year-over-year growth of 18.4%, while that for revenues indicates growth of 9.6%. The company’s near-term EPS estimates have improved over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: KTOS vs. CW
KTOS has outperformed CW over the past year. Shares of KTOS gained 263.8% compared with CW’s 59.4% growth.
Image Source: Zacks Investment Research
CW’s Valuation More Attractive Than KTOS
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) multiple of 9.59X compared with CW’s P/S F12M of 5.45X, making CW relatively more attractive from a valuation standpoint.
Image Source: Zacks Investment Research
CW’s ROE Better Than KTOS
A comparison of Return on Equity (ROE) shows that CW is more efficient at generating profits from its equity than KTOS.
Conclusion
Both Kratos and CurtissWright are positioned to capture growth from rising defense budgets and modernization efforts.
Although Kratos has a stronger financial position and better share price performance, CurtissWright, with its diversified portfolio, robust ROE and favorable valuation, compared with the former, might appeal more to those seeking long-term reliability.
Image: Bigstock
Kratos vs. CurtissWright: Who Holds the Edge in the Defense Space?
Key Takeaways
As rising global security threats are driving higher defense spending, major defense equipment providers like Kratos Defense & Security Solutions Inc. (KTOS - Free Report) and CurtissWright Corporation (CW - Free Report) are drawing investor focus. Both companies are capitalizing on the heightened demand for advanced defense technologies, which range from unmanned systems to mission-critical hardware.
Kratos enjoys its niche in unmanned systems, tactical drones, hypersonics, space and microwave electronics. On the other hand, CurtissWright delivers a broad mix of engineered products, including flight test equipment, power electronics, actuation systems and nuclear power solutions. With a diversified portfolio and established government ties, CW holds a strong foothold in critical industries like commercial aerospace and power, beyond defense.
As nations invest in next-generation defense platforms, both KTOS and CW stand to benefit. Now, let’s take a closer look to determine which of these stocks presents a stronger edge in the defense space.
Key Takeaways for KTOS
Recent Achievements: In September 2025, Kratos and GE Aerospace began altitude testing of the GEK800 small engine, designed to power the next generation of affordable unmanned aerial systems and collaborative combat aircraft.
Kratos also signed a five-year strategic manufacturing agreement with Elroy Air. Under this agreement, the company will be the exclusive U.S. manufacturing partner for the Chaparral hybrid electric autonomous VTOL cargo drone, supporting large-scale production for logistics and military resupply.
In the same month, Kratos also partnered with Taiwan’s National Chung-Shan Institute of Science and Technology to unveil the Mighty Hornet IV Attack UAV, an upgraded version of the MQM 178 target drone. The UAV combines high speed and advanced maneuverability and will be marketed internationally, expanding Kratos’ footprint in global defense markets. These recent developments should position the company for strong growth in both domestic and global defense markets.
Financial Stability: Kratos ended the second quarter of 2025 with cash and cash equivalents of $784 million, up from $264 million at the end of the first quarter. Its long-term debt totaled $233 million with no significant near-term maturities, reflecting a solid financial position. This strong balance sheet enhances the company’s ability to fund ongoing operations and support future growth initiatives.
Challenges to Note: Like many defense companies, Kratos faces ongoing supply-chain constraints, particularly limited access to raw materials. Further, labor shortages and rising material costs, particularly in the current tariff-related uncertainty environment, could put pressure on profit margins and slow project timelines for this company.
Key Takeaways for CW
Recent Achievements: In September 2025, CurtissWright announced a $200 million expansion of its 2025 share repurchase program, which is now expected to result in record annual share repurchases exceeding $450 million. This showcases its strong commitment to shareholder value as well as the company’s confidence in its financial strength.
In August 2025, CurtissWright’s UK-based nuclear business entered into a strategic partnership with Rolls-Royce SMR to deliver critical safety systems for its Small Modular Reactor (SMR) technology. Curtiss-Wright will provide design, qualification, testing and supply of the non-programmable diverse Reactor Protection Systems for a global fleet of Rolls-Royce SMRs. This partnership should strengthen KTOS’ prowess in the expanding nuclear energy market.
Financial Stability: CW ended the second quarter of 2025 with cash and cash equivalents of $0.33 billion compared with $0.23 billion at the end of the first quarter. Its long-term debt stood at $0.96 billion, with no notable near-term maturities. This indicates a relatively strong financial position, at least in the short term. This strong balance sheet enhances the company’s ability to fund ongoing operations and support future growth initiatives.
Challenges to Note: CurtissWright faces challenges from labor shortages, as an aging workforce and high attrition rate in the aerospace-defense industry among younger employees could slow production and affect quality. The company’s reliance on complex manufacturing equipment also carries the risk of delays and higher repair costs in the event of any failures. Additionally, supply-chain disruptions, including material shortages and tariffs, may limit production and affect deliveries to major aerospace customers.
How do EPS Estimates Compare for KTOS & CW?
The Zacks Consensus Estimate for KTOS’ 2025 earnings per share (EPS) indicates year-over-year growth of 4.1%, while that for revenues implies growth of 15.7%. The company’s near-term EPS estimates (except the third quarter of 2025) improved over the past 60 days.
Image Source: Zacks Investment Research
For CW, the Zacks Consensus Estimate for 2025 EPS implies year-over-year growth of 18.4%, while that for revenues indicates growth of 9.6%. The company’s near-term EPS estimates have improved over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: KTOS vs. CW
KTOS has outperformed CW over the past year. Shares of KTOS gained 263.8% compared with CW’s 59.4% growth.
Image Source: Zacks Investment Research
CW’s Valuation More Attractive Than KTOS
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) multiple of 9.59X compared with CW’s P/S F12M of 5.45X, making CW relatively more attractive from a valuation standpoint.
Image Source: Zacks Investment Research
CW’s ROE Better Than KTOS
A comparison of Return on Equity (ROE) shows that CW is more efficient at generating profits from its equity than KTOS.
Conclusion
Both Kratos and CurtissWright are positioned to capture growth from rising defense budgets and modernization efforts.
Although Kratos has a stronger financial position and better share price performance, CurtissWright, with its diversified portfolio, robust ROE and favorable valuation, compared with the former, might appeal more to those seeking long-term reliability.
Both KTOS and CW carry a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here.