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Feb 25, 2026 4:01 PM

Kratos Lands $61.1M Navy Drone Deal—Analysts Eye 17% Upside

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) secured a major contract modification from the U.S. Navy, further solidifying its position as a critical provider of target drone technology. 

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$61 Million Modification

The $61.1 million agreement covers the full-rate production of 70 BQM-177A Subsonic Aerial Targets and underscores the company’s expanding influence within the Department of Defense's procurement pipeline. 

The BQM-177A serves as the Navy's primary Subsonic Aerial Target (SSAT). These drones replicate the flight characteristics and radar signatures of modern enemy subsonic ...