KTOSKRATOS DEFENSE & SECURITY SOLUTIONS, INC.

Guided Missiles & Space Vehicles & Parts

Revenue: $1.3B; 19% YoY
Operating margin: 1.9%; 26% YoY
EBITDA: $73M; 4.9% YoY
Market cap: $7.7B
Employees: 4,300; $313K revenue each
Net debt / EBITDA: -15.7×; −$1.1B net debt
AI in 10-K: 0.8; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 1 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashYes
-191% of net income
Cash flow under 80% of net income
Dilutive SBCNo
3% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
21% of assets
Over 40% of assets
Shareholder dissentNo
90% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$313K · 31st pct
Bottom quartile of its SIC industry
Quiet on AINo
0.8 per 10K words · 31st pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 15.7× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$7.7B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$135M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$812M	$898M	$1.0B	$1.1B	$1.3B	19%
Operating income	$28M	−$3M	$31M	$29M	$26M	12%
Net income	−$2M	−$37M	−$9M	$16M	$22M	35%
Operating cash flow	$35M	−$26M	$65M	$50M	−$42M	185%
Capex	$47M	$45M	$52M	$58M	$95M	64%
Stock-based comp	$26M	$26M	$25M	$30M	$36M	19%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $135M · 286
Net: −$135M

Pay vs performance

No pay-versus-performance disclosure yet.