Kratos Defense & Security Solutions announced a letter of intent to purchase 60 Zeus solid‑rocket motors from L3Harris Technologies. The order consists of 40 Zeus 1 units and 20 Zeus 2 units, each 32.5 inches in diameter and designed for high‑performance hypersonic applications. The motors are fully compatible with existing launch infrastructure, allowing Kratos to accelerate its hypersonic test and flight programs, including the U.S. Department of Defense’s MACH‑TB 2.0 program.
The Zeus family of motors is an internally developed, cost‑effective alternative to legacy government surplus motors. By securing this order, Kratos expands its inventory ahead of customer demand, a strategy that has enabled the company to deliver ready‑now systems and align with Secretary Hegseth’s acquisition reform priorities. The order also boosts L3Harris’s annual production rate of Zeus motors by more than 50%, underscoring the partnership’s importance to both companies’ hypersonic portfolios.
Kratos’s Q3 2025 earnings, released the day before the order announcement, showed revenue of $347.6 million and earnings per share of $0.14, exceeding analyst expectations. The company raised its full‑year 2025 revenue guidance to $1.310–$1.330 billion, reflecting confidence in continued demand for hypersonic solutions. The Zeus motor order adds a new, high‑margin revenue stream that will help sustain the company’s growth trajectory and support its $1.45 billion MACH‑TB 2.0 contract.
Management highlighted the strategic significance of the order. President and CEO Eric DeMarco said the purchase “is a direct reflection of Kratos’ long‑standing approach: investing our own capital to build capability, capacity, and inventory ahead of customer need.” He added that the order aligns with the Department of Defense’s focus on affordable, rapid‑deployment hypersonic systems. L3Harris President Ken Bedingfield noted the company’s pride in supporting Kratos’s production increases and the broader hypersonic market.
The market has reacted positively to Kratos’s recent performance. Analysts have upgraded the company’s outlook following the earnings beat and the new order, citing strong demand in the hypersonic sector and the company’s disciplined cost management. The order reinforces Kratos’s competitive position and signals continued momentum in a high‑growth defense niche.
The order’s financial value is not disclosed, but the 60‑unit commitment represents a substantial addition to Kratos’s revenue mix and supports its strategy of delivering affordable, high‑performance propulsion solutions to U.S. national security customers.
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