Kratos Defense Plans $500M Stock Offering for National Security

Kratos Defense & Security Solutions announced plans to raise $500 million through an underwritten offering of common stock, with an option for underwriters to purchase an additional $75 million in shares. The proceeds will be used to fund investments and capital expenditures for critical national security programs, strategic acquisitions, debt reduction, and general corporate purposes. The offering is supported by a shelf registration statement filed with the SEC and managed by Baird, RBC Capital Markets, Truist Securities, and Raymond James. Despite the capital raise diluting existing shareholders, Kratos aims to strengthen its presence in defense and national security markets, capitalizing on recent program awards and pipeline opportunities. The stock dropped around 6-7% in after-hours trading following the announcement but remains up over 60% year-to-date. Analyst consensus rates the stock as an 'Outperform,' though some price targets suggest potential downside from current levels.