Kratos Defense stock price declines following $1 billion stock offering

LootboxPhobia · 2026-02-27T05:30:40+00:00

Kratos Defense & Security Solutions announces plans to underwrite a $1 billion common stock offering, with the stock price falling by 4.7%. The proceeds will be used for customer and project acquisitions, expanding operational scale, and other general purposes, expected to depend on market conditions.

LootboxPhobia

2026-02-27 05:30:40

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Investing.com – Kratos Defense & Security Solutions (NASDAQ:KTOS) stock fell 4.7% after hours on Thursday, after the company announced plans to issue $1 billion worth of common stock through an underwritten offering.

The defense technology company stated that underwriters will have a 30-day option to purchase up to an additional $150 million worth of shares. All shares in this offering will be sold by Kratos under a shelf registration statement filed with the U.S. Securities and Exchange Commission.

Kratos said it expects to use the net proceeds to fund acquisitions related to customers and projects. The company also plans to use the funds for investments and capital expenditures to expand operations related to existing projects, recently awarded contracts, and potential opportunities in major national security priorities. The remaining proceeds will be used for general corporate purposes, including paying expenses related to this offering.

Baird, Raymond James, RBC Capital Markets, and Truist Securities are serving as joint book runners for the offering. The proposed offering is subject to market and other conditions.

Kratos Defense & Security Solutions is a technology company providing services to the defense, national security, and commercial markets. Its business areas include satellite virtualization ground systems, jet-powered unmanned aerial vehicle systems, hypersonic aircraft and rocket systems, and microwave electronic products for missiles, radar, and space systems.

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