U.S. Defense Stocks Surge 250%, Major 1 Trillion Won Capital Increase on the Horizon

On February 26, Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) entered into an underwriting agreement with a syndicate led by Robert W. Baird & Co. to sell approximately 14.29 million shares of common stock at $82.11 per share, granting the underwriters an option to purchase up to 2.14 million additional shares. The offering is scheduled to close on March 2.

In a separate filing, the company set the public offering price at $84.00 per share, targeting gross proceeds of about $1.2 billion (roughly KRW 1.5–1.6 trillion). Net proceeds will be used to expand defense-related programs; invest in facilities and R&D; fund the acquisitions of Nomad and Orbit and future M&A; and support general corporate purposes.

In its Q4 2025 results released on February 23, Kratos reported revenue of $345.1 million, representing approximately 22% organic growth year-over-year. Both its Unmanned Systems and Government Solutions segments delivered double-digit sales increases.

Headquartered in San Diego, Kratos is a defense technology firm supplying hardware and software—such as satellite ground systems, unmanned aerial, ground, and maritime systems, rockets and propulsion, and microwave electronics—to defense, national security, and commercial markets.

As demand from the U.S. government and allied nations for advanced space, unmanned systems, and electronic warfare capabilities accelerates, small- and mid-sized defense contractors like Kratos are increasingly turning to equity offerings to secure capital for major facility investments, R&D initiatives, and M&A.