The strong beat and raised guidance, combined with a record backlog and elevated book-to-bill, signal accelerating defense demand. Monitor Q2 results for margin expansion and further contract awards; the stock may re-rate higher if cash flow inflection materializes in H2.
Price Chart
Executive Summary
KTOS reported Q1 2026 revenue of $371.0M (beat consensus $345.3M by 7.4%) and adjusted EPS of $0.16 (beat $0.13 by 23.1%), driven by 22.6% YoY growth and strong bookings. Full-year 2026 guidance was raised to $1.70-1.76B revenue and $170-176M adjusted EBITDA, reflecting defense spending tailwinds and the Orbit acquisition. Record backlog of $2.01B and 1.6x book-to-bill underscore momentum.
Key Financial Metrics
Key Facts
- Q1 revenue $371.0M vs consensus $345.3M; adjusted EPS $0.16 vs $0.13
- Organic revenue growth 15.8%; Unmanned Systems organic growth 30.9%
- Consolidated book-to-bill 1.6x; backlog $2.01B (up from $1.57B in Dec 2025)
- Full-year 2026 guidance raised: revenue $1.70-1.76B, adjusted EBITDA $170-176M
- Cash used in operations $27.4M; free cash flow use $43.1M due to working capital and capex
Financial Impact
Revenue beat by $25.7M, EPS beat by $0.03; guidance raise implies ~$60M incremental revenue at midpoint
Risk Factors
- Negative free cash flow due to heavy capex and working capital investment
- Execution risk on rapid production ramp and new facility build-outs
- Potential supply chain disruptions or parts shortages
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3289287 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 26, 2026 5w ago | Insider Cluster | $53.69 $47.02 | ▼ −12.42% | ▼ −11.91% | $43.07 (−19.78%) |
Aug 20, 2026 6w ago | Insider Cluster | $57.17 $47.46 | ▲ +16.98% | ▲ +16.71% | $43.07 (+24.66%) |
Aug 19, 2026 6w ago | Insider Cluster | $56.18 $47.46 | ▼ −15.52% | ▼ −15.52% | $43.07 (−23.34%) |
Aug 17, 2026 6w ago | 144 | $61.99 $47.59 | ▼ −23.23% | ▼ −21.92% | $43.07 (−30.52%) |
Aug 17, 2026 6w ago | Press Release | $63.29 $47.62 | ▼ −24.76% | ▼ −22.78% | $43.07 (−31.95%) |
Aug 7, 2026 7w ago | Insider Cluster | $62.42 $48.20 | ▼ −22.78% | ▼ −21.87% | $43.07 (−31.00%) |
Jul 17, 2026 10w ago | Insider Cluster | $45.94 $63.29 | ▲ +37.77% | ▲ +33.65% | $43.07 (−6.25%) |
Jul 17, 2026 10w ago | Insider Cluster | $45.94 $63.29 | ▲ +37.77% | ▲ +33.65% | $43.07 (−6.25%) |
Jul 10, 2026 11w ago | Insider Cluster | $46.96 $62.42 | ▲ +32.92% | ▲ +29.74% | $43.07 (−8.28%) |
Jul 2, 2026 13w ago | Insider Cluster | $55.35 $46.17 | ▼ −16.59% | ▼ −16.17% | $43.07 (−22.19%) |
US Market Status
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