Kratos Defense & Security Solutions, Inc.
KTOS Industrials Aerospace & Defense
Kratos Defense & Security Solutions, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.3 billion, up 18.5% from fiscal 2024. In the quarter to June 2026, revenue grew 30.5%, EPS was flat, free cash flow grew 12.4% and total debt fell 42.2%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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Kratos Defense & Security Solutions, Inc. (KTOS) Altman Z-score
Kratos Defense & Security Solutions, Inc.'s Altman Z-score for fiscal 2025 is 16.42, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 16.42 | 11.96 |
| FY2024 | 4.45 | 1.70 |
| FY2023 | 2.75 | 1.24 |
| FY2022 | 1.51 | (1.15) |
| FY2021 | 2.67 | (0.73) |
| FY2020 | 3.39 | 1.31 |
| FY2019 | 2.09 | 0.20 |
| FY2018 | 1.89 | 0.88 |
| FY2017 | 1.01 | 0.87 |
| FY2016 | 0.14 | (0.04) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.39 | — | 0.46 | |
| Retained earnings / total assets | (0.26) | — | −0.36 | |
| EBIT / total assets | 0.01 | — | 0.03 | |
| Market value of equity / total liabilities | 26.23 | — | 15.74 | |
| Sales / total assets | 0.55 | — | 0.55 | |
| Altman Z-score | Safe zone | 16.42 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 6.20 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| KTOS Kratos Defense & Security Solutions, Inc. | 16.4× |
| LOAR Loar Holdings Inc. compare | 5.1× |
| AVAV AeroVironment, Inc. compare | 4.8× |
| HXL Hexcel Corporation compare | 4.7× |
| MOG.A Moog Inc. compare | 4.0× |
| DRS Leonardo DRS, Inc. compare | 3.7× |
| PL Planet Labs PBC compare | 3.4× |
| HII Huntington Ingalls Industries, Inc. compare | 2.8× |
| SARO StandardAero, Inc. compare | 2.7× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets