Kratos Defense & Security Solutions (KTOS) stock surged 8.99% in pre-market trading on Monday, following the company's announcement of a major contract win for its hypersonic technology programs.
The company was awarded a five-year, $1.45 billion contract from the Office of the Under Secretary of Defense for Research and Engineering (OUSD R&E) to support the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program. This contract represents the single largest award in Kratos' history and is expected to be a significant driver of the company's future organic growth.
Under the MACH-TB 2.0 program, Kratos will lead a team of subcontractors to provide systems engineering, assembly, integration, testing, mission planning, and launch services for hypersonic flight testing. The program aims to accelerate the development and fielding of hypersonic technologies for the U.S. military by increasing affordable flight test capacity and reducing overall risks and time associated with hypersonic development.
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