Kratos Defense & Security Solutions Secures $227.6 Million Contract for Unmanned Aerial Systems
On March 6, 2025, Kratos Defense & Security Solutions, Inc. (KTOS) announced the exercise of a contract option worth $59,338,010 for 70 additional BQM-177A Subsonic Aerial Target (SSAT) aircraft. This new order comes as part of the Full Rate Production (FRP) Lot 6, bringing the total value of FRP Lots 4 through 6 to $177,702,962.
According to the press release, Kratos is a leading provider of high-performance, jet-powered unmanned aerial systems (UAS) for the defense, national security, and global markets. The BQM-177A SSAT is a critical component of the U.S. Navy’s developmental test and evaluation programs, designed to simulate advanced threat aircraft for testing the capabilities of missile defense systems, fighter aircraft, and radar systems.
Impact on Kratos Defense & Security Solutions
The contract extension represents a significant milestone for Kratos Defense & Security Solutions. With the exercise of the remaining contract option for Lot 7, the total contract value will reach $227,647,890. This substantial revenue influx reinforces Kratos’ position as a key player in the defense industry and provides a strong foundation for continued growth.
Impact on the World
The production of additional BQM-177A SSAT aircraft will contribute to the ongoing advancement of military technology and the development of more sophisticated defense systems. These targets will help military organizations around the world prepare for potential threats by enabling them to test and evaluate their capabilities against advanced aerial adversaries. Furthermore, the continued investment in UAS technology will create new job opportunities and contribute to the growth of the defense industry as a whole.
Conclusion
Kratos Defense & Security Solutions’ recent contract extension for 70 additional BQM-177A Subsonic Aerial Targets represents a significant achievement for the company and the defense industry as a whole. With a total contract value of $227.6 million, this order reinforces Kratos’ position as a leading provider of high-performance UAS and further cements their role in the development of advanced defense systems. As these targets are integral to military testing and evaluation programs, their production will contribute to the ongoing advancement of military technology and create new opportunities for growth in the defense sector.
- Kratos Defense & Security Solutions secures $59.3 million contract for 70 additional BQM-177A Subsonic Aerial Targets
- Total contract value reaches $227.6 million with the exercise of the remaining option for Lot 7
- BQM-177A SSAT plays a critical role in military testing and evaluation programs
- Continued investment in UAS technology creates new job opportunities and growth in the defense industry
