Kratos Reports Double-Digit Revenue Growth in Q4 2019
Kratos Defense & Security Solutions reported its Fourth Quarter (Q4) 2019, reporting $185.1 million in revenue, a 12.6% increase over Q4 2018. The company reported Q4 2019 net income of $3 million.
For the full year 2019, Kratos’ Government Solutions Division (KGS) reported revenues of $556.1 million, an increase of 14.6% over full year 2018. The company said KGS revenues increased organically 3.8%, or $18.5 million, from full year 2018, reflecting revenue growth across all divisions. Kratos said the Space and Satellite business, however, experienced expected lower volumes in revenues and increased margins, which it attributed to the ongoing transition from a hardware to software solution.
Kratos President and CEO Eric DeMarco said that approximately approximately 25% of Kratos business is in unmanned systems; 30% in space and satellite communications; and 45% in C5ISR, including microwave electronics and electronic warfare, training solutions, missile systems, missile defense, radars, hypersonic systems, and turbine technologies.
The company highlighted that its space and satellite business won a position on a $5.1 billion U.S. Army Global Tactical Advanced Communications Systems or GTACS, a multiple award Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle. Kratos expects the GTACS contract to be a key element of the anticipated future organic growth trajectory of its space and satellite business.