Kratos Defense & Security Solut (KTOS) concentration risks

The company's concentration profile is dominated by a high-share reliance on U.S. Government contracts. In fiscal 2025, the U.S. Government accounted for 68% of total revenues, consistent with 67% in 2024 and 69% in 2023. This is a mixed-character exposure: it is structural in that the business is built around defense and government technology programs, but also carries a dependency character in that contract awards, budget appropriations, and program continuations are ultimately determined by government procurement decisions rather than commercial market dynamics. Within the government total, the U.S. Navy accounted for 17.7% of total revenues and the U.S. Air Force accounted for 12.6% of total revenues, each a low share by disclosed size. These service-branch breakdowns indicate the government exposure is spread across multiple departments rather than concentrated in a single agency, which partially mitigates the risk of any one branch's budget changes dominating the revenue line. On balance, the overall government dependency at 68% of revenues is the dominant concentration to monitor, while the individual service-branch exposures — Navy at 17.7% and Air Force at 12.6% — are relatively contained. Budget cycles, continuing resolutions, and program-specific funding decisions at the federal level are the primary variables that can move results, rather than individual customer or supplier idiosyncrasies.

For the engine’s reasoning on KTOS’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.