Kratos Unmanned Systems
Kratos Defense subsidiary producing the XQ-58A Valkyrie collaborative combat aircraft.
Last refreshed: 10 May 2026 · Appears in 1 active topic
Timeline for Kratos Unmanned Systems
Reported $82.6M Q1 revenue up 30.9% organically
Drones: Industry & Defence: Kratos beats Q1, raises guidance, stock falls 5.3%- What does Kratos Unmanned Systems make?
- Kratos Unmanned Systems (KUS) is the drone division of Kratos Defense, primarily known for producing the XQ-58A Valkyrie, a low-cost attritable autonomous combat aircraft for the US Air Force. KUS had Q1 2026 revenue of $82.6 million, up 30.9% organically.Source: Kratos Defense Q1 2026 earnings
- How many Valkyrie aircraft can Kratos produce per year?
- Kratos is targeting approximately 40 Valkyries per year by end-2027. This compares unfavourably with Anduril's Arsenal-1 facility, rated at 150 YFQ-44A Fury aircraft per year already. A second lot of 12 aircraft entered production in early 2026.Source: Kratos Q1 2026 earnings call
- Why did Kratos stock fall after beating earnings?
- Kratos beat Q1 2026 analyst estimates, with revenue of $371 million against $344.6 million expected, but its stock fell 5.3% after the earnings release. Analysts cite the production gap versus Anduril's Arsenal-1 facility and concerns about CCA down-selection risk as the underlying pressure.Source: Kratos Defense Q1 2026 earnings release
Background
Kratos Unmanned Systems (KUS) is the unmanned aerial vehicle division of Kratos Defense and Security Solutions, a San Diego-based mid-cap defence contractor. KUS is responsible for developing and producing the XQ-58A Valkyrie, the US Air Force's flagship low-cost attritable autonomous combat aircraft programme. The division has grown rapidly on the strength of Valkyrie activity, with Q1 2026 revenue of $82.6 million, up 30.9% organically, inside Kratos's total Q1 revenue of $371 million .
Kratos opened a second lot of twelve XQ-58A aircraft in early 2026 and is targeting approximately 40 Valkyries per year by end-2027, a rate that lags Anduril's Arsenal-1 facility in Columbus, Ohio, which is rated at 150 YFQ-44A Fury aircraft per year. The production gap has become a central data point in analyst assessments of future CCA (Collaborative Combat Aircraft) down-selection risk.
KUS revenue of roughly $20 million within the $82.6 million quarterly total suggests Valkyrie remains a modest share of the division's output, with the remainder coming from other unmanned platforms and services. Kratos's broader hedge includes a hypersonics ramp expected to contribute $400 million in 2026 and $700 million in 2027.