Segment Information (Tables)

3 Months Ended

Mar. 29, 2026

Schedule of Segment Revenues, Depreciation and Amortization, and Operating Income

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), net, items not considered part of management’s evaluation of segment operating income. See Note 3 (Revenue Recognition) to these condensed consolidated financial statements for segment revenues disaggregated by contract type, customer and geographic region. The summary operating results for the Company’s reportable segments for the three month periods ended March 29, 2026 and March 30, 2025, are as follows (in millions):


Three Months Ended March 29, 2026	Kratos Government Solutions		Unmanned Systems		Totals
Service revenues	$	131.3	$	2.7	$	134.0
Product sales	157.1		79.9		237.0
Total revenues	288.4		82.6		371.0
Cost of service revenue	97.2		2.1		99.3
Cost of product sales	115.7		66.4		182.1
Total cost of sales	212.9		68.5		281.4

Selling, general & administrative expenses	45.3		12.0		57.3
Research & development expenses	9.9		0.8		10.7
Total segment operating income	20.3		1.3		21.6
Reconciliation of segment operating income
Unallocated amounts:
Merger and acquisition related expenses					$	(1.9)
Stock compensation expense					(15.0)
Interest income (expense), net					4.5
Other income (expense), net					0.6
Income before income taxes					$	9.8

Revenues from foreign customers were approximately $76.4 million or 21% of total revenue for the three months ended March 29, 2026. Revenues from any one foreign country did not exceed 10% of total revenues.


Three Months Ended March 30, 2025	Kratos Government Solutions		Unmanned Systems		Totals
Service revenues	$	100.7	$	1.7	$	102.4
Product sales	138.8		61.4		200.2
Total revenues	239.5		63.1		302.6
Cost of service revenue	74.5		1.2		75.7
Cost of product sales	101.4		51.9		153.3
Total cost of sales	175.9		53.1		229.0

Selling, general & administrative expenses	37.0		11.3		48.3
Research & development expenses	9.6		0.4		10.0
Total segment operating income (loss)	17.0		(1.7)		15.3
Reconciliation of segment operating income
Unallocated amounts:
Merger and acquisition related expenses					$	—
Stock compensation expense					(8.7)
Interest income (expense), net					(0.9)
Other income (expense), net					(0.3)
Income before income taxes					$	5.4

Revenues from foreign customers were approximately $61.1 million or 20% of total revenue for the three months ended March 30, 2025. Revenues from any one foreign country did not exceed 10% of total revenues.


(b) Capital Expenditures (in millions):	Three Months Ended
	March 29, 2026		March 30, 2025
Kratos Government Solutions	$	12.5	$	13.6
Unmanned Systems	6.7		9.0
Total reportable segment capital expenditures	19.2		22.6
Corporate capital expenditures	0.7		—
Total capital expenditures	$	19.9	$	22.6


(c) Depreciation and Amortization (in millions):	Three Months Ended
	March 29, 2026		March 30, 2025
Kratos Government Solutions	$	13.0	$	7.1
Unmanned Systems	3.8		3.3
Total depreciation and amortization	$	16.8	$	10.4


d) Reportable Segment Assets (in millions):	March 29, 2026		December 28, 2025
Kratos Government Solutions	$	2,162.1	$	1,472.9
Unmanned Systems	455.0		438.7
Total reportable segment assets	2,617.1		1,911.6

Corporate assets(1)	1,425.6		555.6
Total assets	$	4,042.7	$	2,467.2

(1)Corporate assets primarily include cash and cash equivalents, deferred income tax assets, and property, plant and equipment used in our corporate operations.