Kratos Defense & Security Solutions Inc (NASDAQ:KTOS) shares are rising Thursday after securing a $68.3 million deal for a hypersonic materials testing facility.
What Happened: Kratos received a contract through the Department of War’s Industrial Base Analysis and Sustainment Program to design and construct an advanced mid-tier arc jet and coupled fiber laser facility for assessing hypersonic materials.
The completed facility will fill critical gaps in U.S. Defense Industrial Base capabilities by delivering important testing infrastructure for thermal protection systems deployed in hypersonic vehicles. The capability will enhance national testing infrastructure, serving all branches of the U.S. Armed Forces and Department of War while linking basic screening methods used in labs and companies to large government arc jet testing centers.
Featuring a 20-25 MW arc jet capability paired with a 200 kW fiber laser system, the facility is anticipated to significantly expand opportunities for material evaluation supporting hypersonic and strategic national defense initiatives.
“This new facility will provide a vital capability for advancing hypersonic technology development while alleviating the current testing bottleneck at existing facilities,” said Eric DeMarco, president and CEO of Kratos. “Once the facility is complete, Kratos will offer more cost-effective and readily available testing options, with Kratos also helping accelerate the development of critical defense technologies.”
DeMarco noted that Project Helios exemplifies Kratos’ strategy to make internal investments and rapidly deliver mission-critical capabilities to the warfighter while generating multi-year, long-term value for stakeholders. Demand for these specialized testing capabilities is expected to persist for decades due to ongoing needs in developing and advancing hypersonic-related materials.
KTOS Price Action: Kratos shares are having a good day, up 5.56% at $88.92 at the time of publication on Thursday, according to Benzinga Pro. The stock’s been bouncing between $84.87 and $89.89 in Thursday’s session with more than 1.5 million shares changing hands. The stock is currently 20.3% below its 52-week high and is sitting 13.8% above its 50-day moving average.
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