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Can Kratos' New Rocket Motor Campus Expand Propulsion Capacity?
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Key Takeaways
Kratos' Prometheus venture plans SRM production in 2027 at a roughly 500-acre Indiana campus.
Kratos and RAFAEL committed up to $175 million for facilities, property, equipment and personnel.
Kratos expects its Prometheus investment to ramp up in 2026 as manufacturing infrastructure is developed.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is expanding its solid rocket motor capabilities through Prometheus Energetics, a joint venture focused on producing solid rocket motors (SRMs) and other energetics. The venture is being established on an approximately 500-acre site near the U.S. Navy and Army facility in Crane, IN.
Prometheus is designed to develop a state-of-the-art energetics manufacturing campus and related facilities. Kratos Defense and RAFAEL have committed up to $175 million in capital for the venture, covering the manufacturing facilities, property, equipment and personnel needed for the planned operations.
The project is expected to add production capacity for SRMs as the facility moves toward operations. Following construction and completion of RAFAEL’s technology transfer and certification, Prometheus is expected to begin SRM production in 2027. Kratos also expects its investment in the venture to ramp up during 2026, supporting the development of the planned manufacturing infrastructure.
The new capacity could strengthen Kratos’ position in propulsion and rocket systems by adding another manufacturing base for solid rocket motors. The company already highlights Zeus solid rocket motors among its technology offerings, while its broader investment program includes facilities and equipment aimed at supporting future program requirements. As Prometheus progresses toward production, the new campus could expand Kratos’ ability to support solid rocket motor demand and future defense programs.
Companies Expanding Solid Rocket Motor Capabilities
The growing focus on solid rocket motor capacity is encouraging defense companies to expand propulsion manufacturing capabilities. Northrop Grumman Corporation (NOC - Free Report) and Lockheed Martin Corporation (LMT - Free Report) are also involved in solid rocket motor development and production.
Northrop Grumman is expanding solid rocket motor manufacturing capacity across its U.S. facilities, supporting defense and space propulsion programs.
Lockheed Martin is advancing solid rocket motor production through new manufacturing capacity and development efforts focused on strengthening the domestic propulsion supply chain.
Earnings Estimates for KTOS Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 50.91% and 37.06%, respectively.
Image Source: Zacks Investment Research
KTOS Stock Is Trading at a Discount
Kratos is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 3.87X compared with the industry average of 7.12X.
Image Source: Zacks Investment Research
KTOS Stock Price Performance
Over the past three months, Kratos shares have fallen 18.9% compared with the industry’s 20.5% decline.
View the Zacks #1 Rank List
Image: Bigstock
Can Kratos' New Rocket Motor Campus Expand Propulsion Capacity?
Key Takeaways
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is expanding its solid rocket motor capabilities through Prometheus Energetics, a joint venture focused on producing solid rocket motors (SRMs) and other energetics. The venture is being established on an approximately 500-acre site near the U.S. Navy and Army facility in Crane, IN.
Prometheus is designed to develop a state-of-the-art energetics manufacturing campus and related facilities. Kratos Defense and RAFAEL have committed up to $175 million in capital for the venture, covering the manufacturing facilities, property, equipment and personnel needed for the planned operations.
The project is expected to add production capacity for SRMs as the facility moves toward operations. Following construction and completion of RAFAEL’s technology transfer and certification, Prometheus is expected to begin SRM production in 2027. Kratos also expects its investment in the venture to ramp up during 2026, supporting the development of the planned manufacturing infrastructure.
The new capacity could strengthen Kratos’ position in propulsion and rocket systems by adding another manufacturing base for solid rocket motors. The company already highlights Zeus solid rocket motors among its technology offerings, while its broader investment program includes facilities and equipment aimed at supporting future program requirements. As Prometheus progresses toward production, the new campus could expand Kratos’ ability to support solid rocket motor demand and future defense programs.
Companies Expanding Solid Rocket Motor Capabilities
The growing focus on solid rocket motor capacity is encouraging defense companies to expand propulsion manufacturing capabilities. Northrop Grumman Corporation (NOC - Free Report) and Lockheed Martin Corporation (LMT - Free Report) are also involved in solid rocket motor development and production.
Northrop Grumman is expanding solid rocket motor manufacturing capacity across its U.S. facilities, supporting defense and space propulsion programs.
Lockheed Martin is advancing solid rocket motor production through new manufacturing capacity and development efforts focused on strengthening the domestic propulsion supply chain.
Earnings Estimates for KTOS Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 50.91% and 37.06%, respectively.
Image Source: Zacks Investment Research
KTOS Stock Is Trading at a Discount
Kratos is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 3.87X compared with the industry average of 7.12X.
Image Source: Zacks Investment Research
KTOS Stock Price Performance
Over the past three months, Kratos shares have fallen 18.9% compared with the industry’s 20.5% decline.
Image Source: Zacks Investment Research
KTOS’ Zacks Rank
Kratos currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.