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Segment Information
 12 Months Ended
Dec. 28, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
 
The Company operates in two reportable segments. The KGS reportable segment is comprised of an aggregation of KGS operating segments, including DRSS, ME, ST&C, MS, and KTT. The US reportable segment consists of the Company’s unmanned aerial, unmanned ground, unmanned seaborne and command, control and communications system products. The KGS and US segments provide products, solutions and services for mission critical National Security programs. KGS and US customers primarily include National Security related agencies, the DoW, intelligence agencies and classified agencies, and to a lesser degree, international government agencies and domestic and international commercial customers.

There were not any significant intersegment sales, cost of sales and profit for the years ended December 28, 2025, December 29, 2024, and December 31, 2023.

The Company’s chief operating decision maker is the President and Chief Executive Officer. The chief operating decision maker uses segment operating income (loss) predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The chief operating decision maker also uses segment operating income (loss) to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
(a)    Summary Operating Results

The tables below provide information about the Company’s reportable segments. In these tables total segment operating income (loss) of the reportable business segments is reconciled to the corresponding consolidated amount. “Unallocated amounts” includes costs for merger and acquisition expenses, stock-based compensation expenses, interest income (expense), net, and other income (expense) items not considered part of management’s evaluation of segment operating income (loss). See footnote 1(e) for segment revenues disaggregated by contract type, customer and geographic region. The summary operating results for the Company’s reportable segments for the years ended December 28, 2025, December 29, 2024, and December 31, 2023, are as follows (in millions):
Year Ended December 28, 2025
Kratos
GovernmentUnmanned
SolutionsSystemsTotals
Service revenues$460.3 $8.7 $469.0 
Product sales594.5 283.3 877.8 
Total revenues
1,054.8 292.0 1,346.8 
Cost of service revenue350.1 6.7 356.8 
Cost of product sales447.6 234.5 682.1 
Total cost of sales
797.7 241.2 1,038.9 
Selling, general & administrative expenses158.8 45.9 204.7 
Research & development expenses37.7 2.3 40.0 
Total segment operating income
60.6 2.6 63.2 
Reconciliation of segment operating income
Unallocated amounts:
Merger and acquisition related expenses
(2.1)
Stock compensation expense
(35.5)
Interest income (expense), net
5.9
Other income (expense), net
2.5
Income before income taxes$34.0 

Revenues from foreign customers were approximately $267.7 million or 20% of total revenue for the year ended December 28, 2025. Revenues from any one foreign country did not exceed 10% of total revenues. Assets of foreign subsidiaries in the KGS segment were $300.5 million as of December 28, 2025. Assets from any one foreign country did not exceed 10% of total assets.
Year Ended December 29, 2024
Kratos
GovernmentUnmanned
SolutionsSystemsTotals
Service revenues$416.3 $7.1 $423.4 
Product sales449.5 263.4 712.9 
Total revenues
865.8 270.5 1,136.3 
Cost of service revenue304.7 5.3 310.0 
Cost of product sales322.3 216.8 539.1 
Total cost of sales
627.0 222.1 849.1 
Selling, general & administrative expenses146.1 41.3 187.4 
Research & development expenses36.1 4.2 40.3 
Total segment operating income
56.6 2.9 59.5 
Reconciliation of segment operating income
Unallocated amounts:
Merger and acquisition related expenses
(0.7)
Stock compensation expense
(29.8)
Interest income (expense), net
(3.0)
Other income (expense), net
0.5
Income before income taxes$26.5 

Revenues from foreign customers were approximately $226.6 million or 20% of total revenue for the year ended December 29, 2024. Revenues from any one foreign country did not exceed 10% of total revenues. Assets of foreign subsidiaries in the KGS segment were $223.2 million as of December 29, 2024. Assets from any one foreign country did not exceed 10% of total assets.
Year Ended December 31, 2023
Kratos
GovernmentUnmanned
SolutionsSystemsTotals
Service revenues$395.9 $6.7 $402.6 
Product sales429.0 205.5 634.5 
Total revenues
824.9 212.2 1,037.1 
Cost of service revenue298.3 4.9 303.2 
Cost of product sales301.9 163.4 465.3 
Total cost of sales
600.2 168.3 768.5 
Selling, general & administrative expenses136.7 36.6 173.3 
Research & development expenses35.3 3.1 38.4 
Total segment operating income (loss)
52.7 4.2 56.9 
Reconciliation of segment operating income (loss)
Unallocated amounts:
Merger and acquisition related expenses
(0.4)
Stock compensation expense
(25.4)
Interest income (expense), net
(20.5)
Other income (expense), net
0.5
Income before income taxes
$11.1 
Revenues from foreign customers were approximately $202.0 million or 19% of total revenue for the year ended December 31, 2023. Revenues from any one foreign country did not exceed 10% of total revenues. Assets of foreign subsidiaries in the KGS segment were $204.6 million as of December 31, 2023. Assets from any one foreign country did not exceed 10% of total assets.
(b)    Capital Expenditures (in millions):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Kratos Government Solutions$57.3 $30.5 $26.9 
Unmanned Systems37.9 27.3 24.9 
Total reportable segment capital expenditures95.2 57.8 51.8 
Corporate capital expenditures0.1 0.4 0.6 
Total capital expenditures$95.3 $58.2 $52.4 
(c)     Depreciation and Amortization (in millions):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Kratos Government Solutions$32.1 $27.1 $24.1 
Unmanned Systems15.0 13.2 9.1 
Total depreciation and amortization
$47.1 $40.3 $33.2 

(d)    Reportable Segment Assets are as follows (in millions):
December 28, 2025December 29, 2024
Kratos Government Solutions
$1,472.9 $1,250.4 
Unmanned Systems
438.7 385.7 
Total reportable segment assets
1,911.6 1,636.1 
Corporate assets(1)
555.6 314.8 
Total assets
$2,467.2 $1,950.9 
(1)Corporate assets primarily include cash and cash equivalents, deferred income tax assets, and property, plant and equipment used in our corporate operations.

Assets of foreign subsidiaries in the KGS segment were $300.5 million, $223.2 million and $204.6 million as of December 28, 2025, December 29, 2024 and December 31, 2023, respectively.