Kratos expands orders while quarterly operations turn to a loss
US defence technology company Kratos increased quarterly sales and expanded its backlog, but its operating result moved into a loss. The business continued to consume cash as it invested in expansion. Acquisitions contributed to revenue growth and higher amortisation expenses. Management expects a full-year free-cash outflow and has deferred its following-year cash-flow guidance until late February.
Economics & Markets··Midday
Quarterly revenue and order backlog expand
US defence technology producer Kratos increased third-quarter revenue and its order backlog while recording an operating loss. Revenue reached 471.8 million dollars. Its backlog stood at 2.65 billion dollars, compared with 2.08 billion dollars at the end of the preceding quarter.[1], [2]
Revenue growth was about 36 per cent, or 23 per cent excluding acquisitions. New orders were 2.2 times quarterly sales, meaning incoming business exceeded twice the value of revenue booked during the period.[1]
Higher expenses push the operating result into loss
The operating result under accounting principles moved from a profit of 7.1 million dollars a year earlier to a loss of 4.9 million dollars. Selling and administrative expenses increased 45 per cent. Amortisation costs rose following acquisitions, while adjusted earnings before interest, tax, depreciation and amortisation increased.[1]
Expansion continues to consume cash
Kratos used 29.4 million dollars of free cash during the quarter and expects full-year outflow of 110–120 million dollars. Stock sales supplied 1.35 billion dollars in the first nine months. Management deferred its 2027 operating and free-cash-flow guidance until late February, while investment spending is expected to continue weighing on cash flow through next year.[1]
