Kratos Defense & Security Solutions (KTOS) 10-Q 7 Aug 24 2024 Q2 Quarterly report Financial data

COVER

COVER - shares	6 Months Ended
	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-34460
Entity Registrant Name	KRATOS DEFENSE & SECURITY SOLUTIONS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3818604
Entity Address, Address Line One	1 Chisholm Trail
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Round Rock
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78681
City Area Code	512
Local Phone Number	238-9840
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	KTOS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		150,999,300
Entity Central Index Key	0001069258
Current Fiscal Year End Date	--12-29
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 308,200,000	$ 72,800,000
Accounts receivable, net	131,700,000	128,800,000
Unbilled receivables, net	206,700,000	200,400,000
Inventoried costs	154,800,000	156,200,000
Prepaid expenses	28,800,000	16,000,000
Other current assets	21,000,000	20,000,000
Total current assets	851,200,000	594,200,000
Property, plant and equipment, net	271,200,000	243,600,000
Operating lease right-of-use assets	41,800,000	45,700,000
Goodwill	568,900,000	569,100,000
Intangible assets, net	58,100,000	62,400,000
Other assets	123,000,000	117,500,000
Total assets	1,914,200,000	1,632,500,000
Current liabilities:
Accounts payable	58,800,000	63,100,000
Accrued expenses	35,300,000	35,400,000
Accrued compensation	63,300,000	64,700,000
Accrued interest	1,100,000	1,700,000
Billings in excess of costs and earnings on uncompleted contracts	80,900,000	101,800,000
Current portion of operating lease liabilities	11,700,000	12,100,000
Other current liabilities	21,200,000	13,700,000
Total current liabilities	272,300,000	292,500,000
Long-term debt, net of current portion	179,500,000	219,300,000
Operating lease liabilities, net of current portion	34,100,000	37,800,000
Other long-term liabilities	99,000,000	84,400,000
Total liabilities	584,900,000	634,000,000
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest	0	22,500,000
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 0 shares outstanding at June 30, 2024 and December 31, 2023	0	0
Common stock, $0.001 par value, 195,000,000 shares authorized; 150,729,318 and 129,286,964 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	200,000	0
Additional paid-in capital	1,998,600,000	1,654,500,000
Accumulated other comprehensive income	1,500,000	1,700,000
Accumulated deficit	(671,000,000)	(680,200,000)
Total stockholders’ equity	1,329,300,000	976,000,000
Total liabilities and stockholders’ equity	$ 1,914,200,000	$ 1,632,500,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Preferred Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	5,000,000	5,000,000
Shares outstanding (in shares)	0	0
Common Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	195,000,000	195,000,000
Shares issued (in shares)	150,729,318	129,286,964
Shares outstanding (in shares)	150,729,318	129,286,964

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Total revenues	$ 300.1	$ 256.9	$ 577.3	$ 488.7
Total costs	222.9	193	429.1	365.4
Gross profit	77.2	63.9	148.2	123.3
Selling, general and administrative expenses	54.5	47.3	108.9	95.1
Research and development expenses	10.2	9.9	19.8	20.1
Restructuring expenses and other	0	0	0	0.9
Operating income	12.5	6.7	19.5	7.2
Other expense:
Interest income (expense), net	0.1	(5.1)	(2.7)	(10.4)
Other income (expense), net	0.1	0.2	(0.1)	(0.1)
Total other income (expense), net	0.2	(4.9)	(2.8)	(10.5)
Income (loss) before income taxes	12.7	1.8	16.7	(3.3)
Provision for income taxes	4.8	2.2	7.5	2.9
Net income (loss) from consolidated operations	7.9	(0.4)	9.2	(6.2)
Less: Net income attributable to noncontrolling interest	0	2.3	0	3.5
Net income (loss) attributable to Kratos	$ 7.9	$ (2.7)	$ 9.2	$ (9.7)
Basic income (loss) per common share attributable to Kratos (in dollars per share)	$ 0.05	$ (0.02)	$ 0.06	$ (0.08)
Diluted income (loss) per common share attributable to Kratos (in dollars per share)	$ 0.05	$ (0.02)	$ 0.06	$ (0.08)
Basic weighted average common shares outstanding (in shares)	151.8	129.1	146.4	128.9
Diluted weighted average common shares outstanding (in shares)	153.5	129.1	147.5	128.9
Service revenues
Total revenues	$ 106.5	$ 103.7	$ 213	$ 195.3
Total costs	77	80	156.2	148.2
Product sales
Total revenues	193.6	153.2	364.3	293.4
Total costs	$ 145.9	$ 113	$ 272.9	$ 217.2

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss) from consolidated operations	$ 7.9	$ (0.4)	$ 9.2	$ (6.2)
Change in unrealized cash flow hedge (net of taxes of $0.1 million and $0.5 million for the three and six month period ended June 30, 2024 and $0.6 million and $0.6 million for the three and six month period ended June 25, 2023)	0	1.8	1.3	1.8
Change in cumulative translation adjustment	(0.6)	1.6	(1.5)	1.9
Comprehensive income (loss) from consolidated operations	7.3	3	9	(2.5)
Less: Comprehensive income attributable to noncontrolling interest	0	2.3	0	3.5
Comprehensive income (loss) attributable to Kratos	$ 7.3	$ 0.7	$ 9	$ (6)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Statement of Comprehensive Income [Abstract]
Tax effect of change in unrealized cash flow hedge	$ 0.1	$ 0.5	$ 0.6	$ 0.6

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Millions	Total	Redeemable Noncontrolling Interest	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance, beginning of period at Dec. 25, 2022		$ 11.2
Redeemable Noncontrolling Interest
Net income (loss)		3.5
Balance, end of period at Jun. 25, 2023		14.7
Balance, beginning of period (in shares) at Dec. 25, 2022			126,000,000
Balance, beginning of period at Dec. 25, 2022	$ 936.3		$ 0	$ 1,608.4	$ (0.8)	$ (671.3)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	12.6			12.6
Issuance of common stock for employee stock purchase plan and stock options (in shares)			300,000
Issuance of common stock for employee stock purchase plan and stock options	2.9			2.9
Restricted stock issued and related taxes (in shares)			500,000
Restricted stock issued and related taxes	(3.4)			(3.4)
Gain on interest rate swap contract	1.8
Net income (loss)	(9.7)					(9.7)
Other comprehensive income (loss), net of tax	3.7				3.7
Changes in noncontrolling interest (in shares)			800,000
Changes in noncontrolling interest	3.2	0		3.2
Balance, end of period (in shares) at Jun. 25, 2023			127,600,000
Balance, end of period at Jun. 25, 2023	945.6		$ 0	1,623.7	2.9	(681)
Balance, beginning of period at Mar. 26, 2023		12.4
Redeemable Noncontrolling Interest
Net income (loss)		2.3
Balance, end of period at Jun. 25, 2023		14.7
Balance, beginning of period (in shares) at Mar. 26, 2023			126,700,000
Balance, beginning of period at Mar. 26, 2023	931.2		$ 0	1,610	(0.5)	(678.3)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	6			6
Restricted stock issued and related taxes (in shares)			100,000
Restricted stock issued and related taxes	(0.8)			(0.8)
Gain on interest rate swap contract	1.8
Net income (loss)	(2.7)					(2.7)
Other comprehensive income (loss), net of tax	3.4				3.4
Changes in noncontrolling interest (in shares)			800,000
Changes in noncontrolling interest	8.5			8.5
Balance, end of period (in shares) at Jun. 25, 2023			127,600,000
Balance, end of period at Jun. 25, 2023	$ 945.6		$ 0	1,623.7	2.9	(681)
Balance, beginning of period at Dec. 31, 2023		22.5
Balance, end of period at Jun. 30, 2024		0
Balance, beginning of period (in shares) at Dec. 31, 2023	129,286,964		129,300,000
Balance, beginning of period at Dec. 31, 2023	$ 976		$ 0	1,654.5	1.7	(680.2)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	15.8			15.8
Issuance of common stock for employee stock purchase plan and stock options (in shares)			300,000
Issuance of common stock for employee stock purchase plan and stock options	3.6			3.6
Restricted stock issued and related taxes (in shares)			1,300,000
Restricted stock issued and related taxes	(17.1)			(17.1)
Issuance of common stock for equity raise (in shares)			19,200,000
Issuance of common stock for equity raise	330.7		$ 0.2	330.5
Gain on interest rate swap contract	1.3				1.3
Net income (loss)	9.2					9.2
Other comprehensive income (loss), net of tax	(1.5)				(1.5)
Changes in noncontrolling interest (in shares)			600,000
Changes in noncontrolling interest	$ 11.3	(22.5)		11.3
Balance, end of period (in shares) at Jun. 30, 2024	150,729,318		150,700,000
Balance, end of period at Jun. 30, 2024	$ 1,329.3		$ 0.2	1,998.6	1.5	(671)
Balance, beginning of period at Mar. 31, 2024		22.5
Balance, end of period at Jun. 30, 2024		0
Balance, beginning of period (in shares) at Mar. 31, 2024			150,000,000
Balance, beginning of period at Mar. 31, 2024	1,306.1		$ 0.2	1,982.7	2.1	(678.9)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	6.6			6.6
Restricted stock issued and related taxes (in shares)			100,000
Restricted stock issued and related taxes	(2)			(2)
Gain on interest rate swap contract	0
Net income (loss)	7.9					7.9
Other comprehensive income (loss), net of tax	(0.6)				(0.6)
Changes in noncontrolling interest (in shares)			600,000
Changes in noncontrolling interest	$ 11.3	$ (22.5)		11.3
Balance, end of period (in shares) at Jun. 30, 2024	150,729,318		150,700,000
Balance, end of period at Jun. 30, 2024	$ 1,329.3		$ 0.2	$ 1,998.6	$ 1.5	$ (671)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023
Operating activities:
Net income (loss) from consolidated operations	$ 9.2	$ (6.2)
Adjustments to reconcile net income (loss) from consolidated operations to net cash used in operating activities:
Depreciation and amortization	19.7	15.8
Deferred income taxes	0.1	0.1
Amortization of lease right-of-use assets	6	5.5
Stock-based compensation	15.8	12.6
Amortization of deferred financing costs	0.3	0.3
Provision for doubtful accounts	0	0.9
Changes in assets and liabilities:
Accounts receivable	(3)	(10.7)
Unbilled receivables	(6.4)	(7.1)
Inventoried costs	2.1	(20)
Prepaid expenses and other assets	(18.8)	(9.7)
Operating lease liabilities	(6.1)	(5.2)
Accounts payable	(3.6)	2.2
Accrued expenses	0	7.2
Accrued compensation	(1.5)	2
Accrued interest	(0.6)	(0.1)
Billings in excess of costs and earnings on uncompleted contracts	(21)	11.2
Income tax receivable and payable	4.4	0.6
Other liabilities	1.4	(1.6)
Net cash used in operating activities	(2)	(2.2)
Investing activities:
Cash paid for acquisitions, net of cash acquired	(11.5)	0
Proceeds from sale of assets	0	8.3
Capital expenditures	(29.3)	(18.9)
Net cash used in investing activities	(40.8)	(10.6)
Financing activities:
Proceeds from the issuance of common stock, net of issuance costs	330.7	0
Borrowing under credit facility	10	34
Repayment under credit facility and term loan	(47.5)	(53.5)
Payments under finance leases	(0.7)	(0.8)
Payments of employee taxes withheld from share-based awards	(17.1)	(3.4)
Proceeds from shares issued under equity plans	3.6	2.9
Net cash provided by (used in) financing activities	279	(20.8)
Net cash provided (used)	236.2	(33.6)
Effect of exchange rate changes on cash and cash equivalents	(0.8)	0.5
Net increase (decrease) in cash and cash equivalents	235.4	(33.1)
Cash and cash equivalents at beginning of period	72.8	81.3
Cash and cash equivalents at end of period	308.2	48.2
Significant non-cash investing and financing activities:
Financing lease obligation incurred	16.8	0.1
Capital expenditures included in accounts payable and accrued expenses	2.5	1.6
Common stock issuance for purchase of noncontrolling interests	$ 11.3	$ 10.7

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies All references to the “Company” and “Kratos” refer to Kratos Defense & Security Solutions, Inc., a Delaware corporation, and its subsidiaries. (a) Basis of Presentation The information as of June 30, 2024 and for the three and six months ended June 30, 2024 and June 25, 2023 is unaudited. The condensed consolidated balance sheet as of December 31, 2023 was derived from the Company’s audited consolidated financial statements at that date. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. The results have been prepared in accordance with the instructions to Form 10-Q and do not necessarily include all information and footnotes necessary for presentation in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s audited annual consolidated financial statements for the fiscal year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 13, 2024 (the “Form 10-K”). Interim operating results are not necessarily indicative of operating results expected in subsequent periods or for the year as a whole. Certain prior year items have been reclassified to be consistent with current year presentation. (b) Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its 100% owned subsidiaries. All inter-company transactions have been eliminated in consolidation. On June 21, 2024, the Company purchased the remaining 9.95% interest in KTT CORE, Inc., a Delaware corporation formerly known as KTT CORE, LLC (“KTT Core”) which previously had been reported as a majority owned subsidiary. KTT Core is now a 100% owned subsidiary. See Note 11 for further information related to the redeemable noncontrolling interest. (c) Fiscal Year The Company has a 52/53 week fiscal year ending on the last Sunday of the calendar year. The three month periods ended June 30, 2024 and June 25, 2023 consisted of 13-week periods. The six month periods ended June 30, 2024 and June 25, 2023 consisted of 26-week periods. There are 52 calendar weeks in the fiscal year ending on December 29, 2024 and 53 calendar weeks in the fiscal year ending December 31, 2023. (d) Use of Estimates There have been no significant changes in the Company’s accounting estimates for the six months ended June 30, 2024 as compared to the accounting estimates described in the Form 10-K. (e) Fair Value of Financial Instruments The Company uses forward exchange contracts to manage foreign currency risks associated with certain transactions, specifically forecasted materials and salaries paid in foreign currencies. The Company also has entered into an interest rate swap contract in order to mitigate the exposure to interest rate movements associated with the Company’s Term Loan A. These derivative instruments are measured at fair value using observable market inputs such as interest rates. Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy. At June 30, 2024, the derivative instruments were included in other current assets and other assets on the Company's condensed consolidated balance sheets. The carrying amounts and the related fair values of the Company’s derivative instruments measured at fair value on a recurring basis at June 30, 2024, are presented in Note 15. The carrying value of all financial instruments, including cash equivalents, accounts receivable, unbilled receivables, accounts payable, accrued expenses, billings in excess of cost and earnings on uncompleted contracts, income taxes payable and long and short-term debt, approximated their estimated fair values at June 30, 2024 and December 31, 2023 due to the short-term nature of these instruments. (f) Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which expands reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. ASU 2023-07 also requires all segment profit or loss and assets disclosures to be provided on an annual and interim basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning one year later. The amendments must be applied retrospectively to all prior periods presented. The Company is currently evaluating the impact of the adoption of ASU 2023-07 on its consolidated financial statements; however, the standard is not expected to have an impact on the Company’s consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the impact of the adoption of ASU 2023-09; however, the standard is not expected to have an impact on the Company’s consolidated financial position, results of operations or cash flows.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisitions	Acquisitions Sierra Technical Services, Inc. On October 3, 2023, the Company entered into an agreement to acquire all of the outstanding equity securities of aerial target drone designer Sierra Technical Services, Inc. (“STS”) pursuant to which the Company (i) issued 866,026 shares of Kratos common stock valued at $12.8 million on October 3, 2023 and (ii) agreed to issue up to an additional 979,038 shares of Kratos common stock valued at $14.5 million pursuant to certain holdback and earn-out provisions, in each case, to the former stockholders of STS. The Company recorded net assets of $12.6 million and goodwill of $10.7 million related to the STS acquisition. Significant assets of STS acquired by the Company included accounts receivable of $11.0 million, and identified intangibles (contracts and backlog) of $14.0 million. Significant liabilities of STS assumed by the Company included deferred revenue of $11.4 million. The allocation of the total consideration for the STS acquisition to the tangible and identifiable intangible assets acquired and liabilities assumed is preliminary until the Company obtains final information regarding their fair values. However, the Company does not expect any adjustment to such allocations to be material to the Company's condensed consolidated financial statements. The operating results of the STS acquisition have been included in the Company’s results of operations from the effective date of the acquisition. The amount of net sales and earnings of STS included in the condensed consolidated statement of operations for the year ended December 31, 2023 are not material. Had the acquisition occurred as of December 26, 2022, net sales, net income from consolidated operations, net income attributable to Kratos, and basic and diluted net income per share attributable to Kratos on a pro forma basis for the year ended December 31, 2023 would not have been materially different than the reported amounts. STS is included in the US segment.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition The Company has adopted the FASB ASU 2014-09, Revenue from Contracts with Customers , and the related amendments, which are codified into Accounting Standards Codification (“ASC”) 606 (“ASC 606”). To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in each contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Once the contract is identified and determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the relative standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected-cost-plus-margin approach, under which the Company forecasts the expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. For the majority of contracts, the Company satisfies the underlying performance obligations over time as the customer obtains control or receives benefits as work is performed on the contract. The Company generally recognizes revenue over time as work is performed on long-term contracts because of the continuous transfer of control to the customer. For U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay for costs incurred plus a reasonable profit and take control of any work in process. Similarly, for non-U.S. government contracts, the customer typically controls the work in process as evidenced either by contractual termination clauses or by our rights to payment of the transaction price associated with work performed to date on products or services that do not have an alternative use to the Company. As a result, under ASC 606, revenue is recognized over time using the cost-to-cost method (cost incurred relative to total estimated cost at completion). Remaining Performance Obligations The Company calculates revenues from remaining performance obligations as the dollar value of the remaining performance obligations on executed contracts. On June 30, 2024, the Company had approximately $1,302.7 million of remaining performance obligations. The Company expects to recognize approximately 35% of the remaining performance obligations as revenue in fiscal year 2024, an additional 41% in fiscal year 2025, and the balance thereafter. Contract Estimates Due to the nature of the work required to be performed on many performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables, and requires significant judgment. On a quarterly basis, the Company conducts its contract cost Estimate at Completion (“EAC”) process by reviewing the progress and execution of outstanding performance obligations within its contracts. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about the ability and cost to achieve the schedule (e.g., the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g., to estimate increases in wages and prices for materials and related support cost allocations), execution by subcontractors, the availability and timing of funding from customers and overhead cost rates, among other variables. In addition, certain of the Company’s long-term contracts contain award fees, incentive fees, or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones, or cost targets and can be based upon customer discretion. Variable consideration is estimated at the most likely amount to which the Company is expected to be entitled. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current, and forecasted) that is reasonably available. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications are considered to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. As a result of the EAC process, any quarterly adjustments to revenues, cost of sales, and the related impact to operating income are recognized as necessary in the period they become known. These adjustments may result from positive program performance, and may result in an increase in operating income during the performance of individual performance obligations, if it is determined the Company will be successful in mitigating the risks surrounding the technical, schedule and cost aspects of those performance obligations or realizing related opportunities. Likewise, these adjustments may result in a decrease in operating income if it is determined the Company will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net sales, cost of sales, and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods. A significant change in one or more of these estimates could affect the profitability of one or more of the Company’s contracts. When estimates of total costs to be incurred on a performance obligation exceed total estimates of revenue to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined. No cumulative catch-up adjustment on any one contract was material to the Company’s unaudited condensed consolidated financial statements for the three and six-month periods ended June 30, 2024, and June 25, 2023. Likewise, total cumulative catch-up adjustments were not material for the three and six-month periods ended June 30, 2024, and June 25, 2023. Contract Assets and Liabilities For each of the Company’s contracts, the timing of revenue recognition, customer billings, and cash collections results in a net contract asset or liability at the end of each reporting period. Fixed-price contracts are typically billed to the customer either using progress payments, whereby amounts are billed monthly as costs are incurred or work is completed, or performance based payments, which are based upon the achievement of specific, measurable events or accomplishments defined and valued at contract inception. Cost-type contracts are typically billed to the customer on a monthly or semi-monthly basis. Contract assets consist of unbilled receivables, primarily related to long-term contracts where revenue recognized under the cost-to-cost method exceeds amounts billed to customers. Unbilled receivables are classified as current assets and, in accordance with industry practice, include amounts that may be billed and collected beyond one year due to the long-term nature of many of the Company’s contracts. Accumulated contract costs in unbilled receivables include direct production costs, factory and engineering overhead, production tooling costs, and, for government contracts, recovery of allowable general and administrative expenses. Unbilled receivables also include certain estimates of variable consideration described above. The Company’s contracts that give rise to contract assets are not considered to include a significant financing component as the payment terms are intended to protect the customer in the event the Company does not perform on its obligations under the contract. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to the satisfaction of the Company’s performance obligations on the contract. These amounts are recorded as contract liabilities until such performance obligations are satisfied, either over time as costs are incurred or at a point in time when deliveries are made. The Company’s contracts that give rise to contract liabilities do not include a significant financing component as the underlying advance payments received are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. Net contract assets and liabilities are as follows (in millions): June 30, 2024 December 31, 2023 Net Change Contract assets $ 206.7 $ 200.4 $ 6.3 Contract liabilities $ 80.9 $ 101.8 $ (20.9) Net contract assets $ 125.8 $ 98.6 $ 27.2 Contract assets increased $6.3 million during the six months ended June 30, 2024, primarily due to higher unbilled receivables, net during the six months ended June 30, 2024. There were no significant impairment losses related to any receivables or contract assets arising from the Company’s contracts with customers during the six months ended June 30, 2024. Contract liabilities decreased $20.9 million during the six months ended June 30, 2024, primarily due to revenue recognized in excess of payments received on these performance obligations. For the three and six months ended June 30, 2024, the Company recognized revenue of $25.8 million and $69.2 million, respectively, that was previously included in the contract liabilities that existed at December 31, 2023. For the three and six months ended June 25, 2023 the Company recognized revenue of $12.4 million and $33.6 million, respectively, that was previously included in the contract liabilities that existed at December 25, 2022. At June 30, 2024, approximately $2.9 million in billed receivables and $1.5 million in unbilled receivables remained outstanding related to a training solutions program that was terminated for convenience (“T for C”) by the customer in 2019. In July 2024, the $2.9 million receivable was collected. The remaining unbilled receivable amount is subject to negotiation and settlement with the customer, which negotiations are currently expected to commence in the second half of 2024. Disaggregation of Revenue The following series of tables presents the Company’s revenue disaggregated by several categories. For the majority of contracts, revenue is recognized over time as work is performed on the contract. Revenue by contract type was as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Kratos Government Solutions Fixed price $ 139.7 $ 132.5 $ 285.4 $ 259.5 Cost plus fee 58.2 59.9 116.8 105.6 Time and materials 16.4 12.4 29.9 23.5 Total Kratos Government Solutions 214.3 204.8 432.1 388.6 Unmanned Systems Fixed price 71.7 39.0 115.6 75.9 Cost plus fee 12.6 10.5 26.1 18.6 Time and materials 1.5 2.6 3.5 5.6 Total Unmanned Systems 85.8 52.1 145.2 100.1 Total Revenues $ 300.1 $ 256.9 $ 577.3 $ 488.7 Revenue by customer was as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Kratos Government Solutions U.S. Government (1) $ 129.2 $ 129.5 $ 264.3 $ 244.0 International (2) 41.3 47.9 92.0 92.9 U.S. Commercial and other customers 43.8 27.4 75.8 51.7 Total Kratos Government Solutions 214.3 204.8 432.1 388.6 Unmanned Systems U.S. Government (1) 66.2 49.1 122.0 94.9 International (2) 18.8 2.4 21.2 4.3 U.S. Commercial and other customers 0.8 0.6 2.0 0.9 Total Unmanned Systems 85.8 52.1 145.2 100.1 Total Revenues $ 300.1 $ 256.9 $ 577.3 $ 488.7 (1) Sales to the U.S. Government include sales from contracts for which the Company is the prime contractor, as well as those for which the Company is a subcontractor and the ultimate customer is the U.S. Government. Each of the Company’s segments derives substantial revenue from the U.S. Government. These sales include foreign military sales contracted through the U.S. Government. (2) International sales include sales from contracts for which the Company is the prime contractor, as well as those for which the Company is a subcontractor and the ultimate customer is an international customer. These sales include direct sales with governments outside the U.S. and commercial sales with customers outside the U.S.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets (a) Goodwill The carrying amounts of goodwill as of June 30, 2024 and December 31, 2023 by reportable segment are as follows (in millions): As of June 30, 2024 KGS US Total Gross value $ 683.6 $ 138.6 $ 822.2 Less accumulated impairment 239.5 13.8 253.3 Net $ 444.1 $ 124.8 $ 568.9 As of December 31, 2023 KGS US Total Gross value $ 683.6 $ 138.8 822.4 Less accumulated impairment 239.5 13.8 253.3 Net $ 444.1 $ 125.0 $ 569.1 (b) Purchased Intangible Assets The following table sets forth information for finite-lived and indefinite-lived intangible assets (in millions): As of June 30, 2024 As of December 31, 2023 Gross Accumulated Net Gross Accumulated Net Acquired finite-lived intangible assets: Customer relationships $ 80.9 $ (64.0) $ 16.9 $ 80.9 $ (62.8) $ 18.1 Contracts and backlog 53.1 (41.0) 12.1 53.1 (38.8) 14.3 Developed technology and technical know-how 33.7 (28.8) 4.9 33.7 (28.2) 5.5 Trade names 3.8 (2.9) 0.9 3.8 (2.7) 1.1 In-process research and development 16.8 (0.4) 16.4 16.8 (0.3) 16.5 Total finite-lived intangible assets 188.3 (137.1) 51.2 188.3 (132.8) 55.5 Indefinite-lived trade names 6.9 — 6.9 6.9 — 6.9 Total intangible assets $ 195.2 $ (137.1) $ 58.1 $ 195.2 $ (132.8) $ 62.4 Consolidated amortization expense related to intangible assets subject to amortization was $2.2 million and $1.4 million for the three months ended June 30, 2024 and June 25, 2023, respectively, and $4.3 million and $3.0 million for the six months ended June 30, 2024 and June 25, 2023, respectively. The estimated future amortization expense of acquired intangible assets with finite lives as of June 30, 2024 is as follows (in millions): Amount 2024 $ 4.2 2025 8.9 2026 9.1 2027 7.4 2028 4.5 Thereafter 17.1 Total $ 51.2

Inventoried Costs

Inventoried Costs	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventoried Costs	Inventoried Costs Inventoried costs, consisted of the following components (in millions): June 30, 2024 December 31, 2023 Raw materials $ 84.9 $ 78.0 Work in process 66.0 72.9 Finished goods 3.9 5.3 Total inventoried costs $ 154.8 $ 156.2

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Net Income (Loss) per Common Share	Net Income (Loss) per Common Share The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings per Share (“Topic 260”) . Under Topic 260, basic net income (loss) per common share attributable to the Kratos shareholders is calculated by dividing net income (loss) attributable to Kratos by the weighted-average number of common shares outstanding during the reporting period. Diluted net income (loss) per common share reflects the effects of potentially dilutive securities. Diluted net income per share for the three and six months ended June 30, 2024 include the dilutive effect of an aggregate of 1.6 million and 1.1 million shares, respectively, of the Company’s common stock granted to employees under stock-based compensation plans. Diluted net loss per share for the three and six months ended June 25, 2023 exclude the dilutive effects of awards granted to employees under stock-based compensation plans of 1.0 million and 1.2 million shares, respectively, because their inclusion would have been anti-dilutive.

Leases

Leases	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Leases	Leases The Company leases certain facilities, office space, vehicles and equipment. Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using an incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. The Company has operating lease arrangements with lease and non-lease components. The non-lease components in these arrangements are not significant when compared to the lease components. For all operating leases, the Company accounts for the lease and non-lease components as a single component. Variable lease payments are generally expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases is recognized on a straight-line basis over the lease term. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The components of lease expense were as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Amortization of right of use assets - finance leases $ 0.8 $ 0.7 $ 1.6 $ 1.5 Interest on lease liabilities - finance leases 0.8 0.8 1.6 1.5 Operating lease cost 3.6 3.4 7.1 6.7 Short-term lease cost 0.2 0.3 0.6 0.5 Variable lease cost (cost excluded from lease payments) — 0.1 — 0.1 Sublease income (0.1) — (0.1) — Total lease cost $ 5.3 $ 5.3 $ 10.8 $ 10.3 The components of leases on the balance sheet were as follows (in millions): June 30, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 41.8 $ 45.7 Current portion of operating lease liabilities $ 11.7 $ 12.1 Operating lease liabilities, net of current portion $ 34.1 $ 37.8 Finance leases: Property, plant and equipment, net $ 60.5 $ 45.4 Other current liabilities $ 1.7 $ 1.3 Other long-term liabilities $ 66.6 $ 50.9 Cash paid for amounts included in the measurement of lease liabilities was as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Finance lease - cash paid for interest $ 0.8 $ 0.8 $ 1.6 $ 1.5 Finance lease - financing cash flows $ 0.4 $ 0.4 $ 0.7 $ 0.8 Operating lease - operating cash flows (fixed payments) $ 3.6 $ 3.6 $ 7.2 $ 6.6 Other supplemental noncash information (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Operating lease liabilities arising from obtaining right-of-use assets $ 2.1 $ 4.5 $ 2.3 $ 6.4 Finance lease liabilities arising from obtaining right-of-use assets $ 16.4 $ 0.1 $ 16.8 $ 0.1 June 30, 2024 June 25, 2023 Weighted-average remaining lease term (in years): Operating leases 4.43 4.76 Finance leases 14.34 15.08 Weighted-average discount rate: Operating leases 5.01 % 4.95 % Finance leases 6.35 % 6.41 % The maturity of lease liabilities is (in millions): Operating Leases Finance Leases 2024 (1) $ 7.2 $ 3.5 2025 12.4 6.0 2026 10.7 6.3 2027 9.7 6.5 2028 6.5 6.6 Thereafter 4.4 81.4 Total lease payments 50.9 110.3 Less: imputed interest (5.1) (42.0) Total present value of lease liabilities $ 45.8 $ 68.3 (1) Excludes the six months ended June 30, 2024.
Leases	Leases The Company leases certain facilities, office space, vehicles and equipment. Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using an incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. The Company has operating lease arrangements with lease and non-lease components. The non-lease components in these arrangements are not significant when compared to the lease components. For all operating leases, the Company accounts for the lease and non-lease components as a single component. Variable lease payments are generally expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases is recognized on a straight-line basis over the lease term. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The components of lease expense were as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Amortization of right of use assets - finance leases $ 0.8 $ 0.7 $ 1.6 $ 1.5 Interest on lease liabilities - finance leases 0.8 0.8 1.6 1.5 Operating lease cost 3.6 3.4 7.1 6.7 Short-term lease cost 0.2 0.3 0.6 0.5 Variable lease cost (cost excluded from lease payments) — 0.1 — 0.1 Sublease income (0.1) — (0.1) — Total lease cost $ 5.3 $ 5.3 $ 10.8 $ 10.3 The components of leases on the balance sheet were as follows (in millions): June 30, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 41.8 $ 45.7 Current portion of operating lease liabilities $ 11.7 $ 12.1 Operating lease liabilities, net of current portion $ 34.1 $ 37.8 Finance leases: Property, plant and equipment, net $ 60.5 $ 45.4 Other current liabilities $ 1.7 $ 1.3 Other long-term liabilities $ 66.6 $ 50.9 Cash paid for amounts included in the measurement of lease liabilities was as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Finance lease - cash paid for interest $ 0.8 $ 0.8 $ 1.6 $ 1.5 Finance lease - financing cash flows $ 0.4 $ 0.4 $ 0.7 $ 0.8 Operating lease - operating cash flows (fixed payments) $ 3.6 $ 3.6 $ 7.2 $ 6.6 Other supplemental noncash information (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Operating lease liabilities arising from obtaining right-of-use assets $ 2.1 $ 4.5 $ 2.3 $ 6.4 Finance lease liabilities arising from obtaining right-of-use assets $ 16.4 $ 0.1 $ 16.8 $ 0.1 June 30, 2024 June 25, 2023 Weighted-average remaining lease term (in years): Operating leases 4.43 4.76 Finance leases 14.34 15.08 Weighted-average discount rate: Operating leases 5.01 % 4.95 % Finance leases 6.35 % 6.41 % The maturity of lease liabilities is (in millions): Operating Leases Finance Leases 2024 (1) $ 7.2 $ 3.5 2025 12.4 6.0 2026 10.7 6.3 2027 9.7 6.5 2028 6.5 6.6 Thereafter 4.4 81.4 Total lease payments 50.9 110.3 Less: imputed interest (5.1) (42.0) Total present value of lease liabilities $ 45.8 $ 68.3 (1) Excludes the six months ended June 30, 2024.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes A reconciliation of the total income tax provision to the amount computed by applying the statutory federal income tax rate of 21% to income (loss) from continuing operations before income taxes for the three and six months ended June 30, 2024 and June 25, 2023 is as follows (in millions): For the Three Months Ended For the Six Months Ended June 30, June 25, June 30, June 25, Income tax expense (benefit) at federal statutory rate $ 2.7 $ 0.4 $ 3.5 $ (0.7) Nondeductible expenses and other 2.4 1.7 5.0 3.3 Stock compensation - excess tax shortfalls (windfalls) (0.1) 0.3 (0.6) 0.7 Federal impact of research & development tax credits (0.2) (0.2) (0.4) (0.4) Provision for income taxes $ 4.8 $ 2.2 $ 7.5 $ 2.9 The Company calculates its interim income tax provision in accordance with ASC Topic 270, “Interim Reporting,” and ASC Topic 740, “Accounting for Income Taxes.” Prior to 2022, the Company calculated the provision for income taxes during the interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. The Company determined that since small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate, the historical method used prior to 2022 would not provide a reliable estimate for the six months ended June 30, 2024 and June 25, 2023. Therefore, a discrete effective tax rate method was used to calculate taxes for the six months ended June 30, 2024 and June 25, 2023. As of June 30, 2024, the Company had $25.4 million of unrecognized tax benefits. Included in the balance of unrecognized tax benefits at June 30, 2024 are $22.8 million that, if recognized, would impact the Company’s effective income tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. For the six months ended June 30, 2024 and June 25, 2023, the Company recorded an expense of $0.1 million. For the six months ended June 30, 2024 and June 25, 2023, there was no material benefit recorded related to the removal of interest and penalties. The Company believes that it is reasonably possible that as much as $0.1 million of the liabilities for uncertain tax positions will expire within the next twelve months due to the expiration of various applicable statutes of limitations. On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”), was signed into law. Among other things, the IRA imposes a 15% corporate alternative minimum tax for tax years beginning after December 31, 2022, levies a 1% excise tax on net stock purchases after December 31, 2022, and provides tax incentives to promote clean energy. The IRA is not expected to have a material impact on our results of operations or financial position. The Organization for Economic Co-operation and Development (OECD) has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2), with certain aspects of Pillar 2 effective January 1, 2024 and other aspects effective January 1, 2025. While it is uncertain whether the U.S. will enact legislation to adopt Pillar 2, certain countries in which we operate have adopted legislation, and other countries are in the process of introducing legislation to implement Pillar 2. Pillar 2 had no impact on our 2024 effective tax rate and we do not currently expect Pillar 2 to have a material impact on our effective tax rate or our consolidated results of operation, financial position, and cash flows going forward.

Debt

Debt	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt (a) 2022 Credit Facility On February 18, 2022, the Company completed the refinancing of its then-outstanding $90 million revolving credit facility and $300 million 6.5% Senior Secured Notes, with a new 5-year $200 million Revolving Credit Facility and 5-year $200 million Term Loan A (collectively, the “2022 Credit Facility”). The Company incurred debt issuance costs of $3.3 million associated with the 2022 Credit Facility. As of June 30, 2024, the Company has made an aggregate of $10.0 million in principal payments on Term Loan A and has no amounts outstanding under the Revolving Credit Facility, with $200.0 million remaining in borrowing capacity, less approximately $6.9 million of letters of credit outstanding. The 2022 Credit Facility is governed by a Credit Agreement (the “Credit Agreement”), which establishes the 5-year senior secured credit facility which is comprised of the $200 million Revolving Credit Facility (which includes sub-facilities for the incurrence of up to $10.0 million of swingline loans and the issuance of up to $50.0 million of Letters of Credit) and the $200 million Term Loan A. The Credit Agreement contemplates uncommitted incremental credit facilities of up to $200 million (which amount would be reduced by the aggregate amount of any and all incremental credit facilities actually established under the Credit Agreement) plus additional uncommitted incremental capacity subject to a limitation based on the Company’s pro forma total net leverage ratio (including any such additional uncommitted incremental capacity). Borrowings under the revolving credit facility and the term loan credit facility may take the form of base rate loans or Secured Overnight Financing Rate (“SOFR”) loans. Base rate loans under the Credit Agreement will bear interest at a rate per annum equal to the sum of the Applicable Margin (as defined in the Credit Agreement) from time to time in effect plus the highest of (i) the Agent’s (as defined in the Credit Agreement) prime lending rate, as in effect at such time, (ii) the Federal Funds Rate (as defined in the Credit Agreement), as in effect at such time, plus 0.50%, (iii) the Adjusted Term SOFR (as defined in the Credit Agreement) for a one-month tenor in effect on such day, plus 1.00% and (iv) 1.00%. SOFR loans will bear interest at a rate per annum equal to the sum of the Applicable Margin from time to time in effect plus the Adjusted Term SOFR for an Interest Period (as defined in the Credit Agreement) selected by the Company of one, three or six months. The Applicable Margin varies between 1.25% and 2.25% per annum for SOFR loans and between 0.25% and 1.25% per annum for base rate loans, and is based on the Company’s total net leverage ratio from time to time. Mandatory amortization on the Term Loan A is 2.5% in each of the first and second years and 5.0% in each of the third, fourth and fifth years, with the remaining outstanding balance due at maturity. The Credit Agreement contains certain covenants, which include, but are not limited to, restrictions on indebtedness, liens, fundamental changes, restricted payments, asset sales, and investments, and places limits on various other payments. The Company was in compliance with the covenants contained in the Credit Agreement as of June 30, 2024. On April 28, 2023, the Company entered into an interest rate swap contract to hedge U.S. dollar-one month Term SOFR in order to fix the interest rate movements associated with the Company’s Term Loan A. The initial hedge amount was $195.0 million and amortizes in accordance with Term Loan A. The swap is at a fixed rate of one-month term SOFR of 3.721% and settles monthly on the last day of each calendar month. The swap has an effective date of May 1, 2023 and terminates on May 1, 2026. Refer to Note 15 for further discussion of the accounting treatment of the swap arrangement. Term Loan and Revolving Credit Debt Term loan and revolving credit debt and the current period interest rates are as follows (in millions): June 30, 2024 December 31, 2023 Term Loan A $ 190.0 $ 192.5 Revolving credit facility — 35.0 Total debt 190.0 227.5 Less current portion 10.0 7.5 Total long-term debt, less current portion 180.0 220.0 Less long-term unamortized debt issuance costs - term loans 0.5 0.7 Total long-term debt, net of unamortized debt issuance costs - term loans $ 179.5 $ 219.3 Unamortized debt issuance costs - revolving credit facility $ 0.5 $ 0.7 Current period interest rate 6.7 % 7.7 % Future long-term debt principal payments at June 30, 2024 were as follows (in millions): 2024 $ 7.5 2025 10.0 2026 10.0 2027 162.5 $ 190.0

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Segment Information	Segment Information The Company operates in two reportable segments. The KGS reportable segment is comprised of an aggregation of KGS operating business units, including the Company’s microwave electronics products, space, satellite and cyber, training solutions, C5ISR/modular systems, turbine technologies and defense and rocket support systems operating segments. The US reportable segment consists of the Company’s unmanned aerial, unmanned ground, unmanned seaborne and command, control and communications system business. The KGS and US segments provide products, solutions and services for mission critical national security programs. KGS and US customers primarily include national security related agencies, the U.S. Department of Defense (the “DoD”), intelligence agencies and classified agencies, and to a lesser degree, international government agencies and domestic and international commercial customers. The Company organizes its reportable segments based on the nature of the products, solutions and services offered. Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts. In the following table, total operating income from continuing operations of the reportable business segments is reconciled to the corresponding consolidated amount. The reconciling item Corporate activities includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, the employee stock purchase plan and restricted stock units), the effects of items not considered part of management’s evaluation of segment operating performance, merger and acquisition expenses, corporate costs not allocated to the segments, and other miscellaneous corporate activities. Revenues, depreciation and amortization, and operating income generated by the Company’s reportable segments for the three and six month periods ended June 30, 2024 and June 25, 2023 are as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Revenues: Kratos Government Solutions Service revenues $ 104.7 $ 102.2 $ 209.3 $ 192.4 Product sales 109.6 102.6 222.8 196.2 Total Kratos Government Solutions $ 214.3 $ 204.8 $ 432.1 $ 388.6 Unmanned Systems Service revenues 1.8 1.5 3.7 2.9 Product sales 84.0 50.6 141.5 97.2 Total Unmanned Systems 85.8 52.1 145.2 100.1 Total revenues $ 300.1 $ 256.9 $ 577.3 $ 488.7 Depreciation and amortization: Kratos Government Solutions $ 6.9 $ 5.9 $ 13.0 $ 11.8 Unmanned Systems 3.5 2.0 6.7 4.0 Total depreciation and amortization $ 10.4 $ 7.9 $ 19.7 $ 15.8 Operating income: Kratos Government Solutions $ 15.5 $ 11.6 $ 32.1 $ 19.3 Unmanned Systems 3.6 1.2 3.2 0.6 Corporate activities (6.6) (6.1) (15.8) (12.7) Total operating income $ 12.5 $ 6.7 $ 19.5 $ 7.2

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interest	6 Months Ended
	Jun. 30, 2024
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interest	Redeemable Noncontrolling Interest On February 27, 2019, the Company acquired 80.1% of the issued and outstanding shares of capital stock of Florida Turbine Technologies Inc., a Florida corporation (“FTT Inc.”), and 80.1% of the membership interests in KTT Core, a Delaware limited liability company, for an aggregate purchase price of approximately $60 million. On February 18, 2022, the capital stock of FTT Inc. was conveyed to KTT Core for organizational purposes such that FTT Inc. is now a wholly owned subsidiary of KTT Core. In connection with the Company’s acquisition of FTT Inc., and KTT Core, (i) beginning in January 2024, the holders (the “Holders”) of the minority interests in KTT Core (the “Minority Interests”) had an annual right (the “Put Right”) to sell all of the Minority Interests to the Company at a purchase price based on a specified multiple of the trailing 12 months EBITDA of KTT Core and its subsidiaries (the “Acquired Companies”), subject to adjustment as set forth in the Exchange Agreement entered into by and among the Company, the Acquired Companies and the Holders, as amended on February 18, 2022 (the “Exchange Agreement”). On June 13, 2022, the Company entered into an Equity Purchase Agreement (the “Equity Purchase Agreement”) to acquire an additional 9.95% (the “Purchased Shares”) of the issued and outstanding shares of capital stock of KTT Core (together with its wholly-owned subsidiaries including FTT Inc.), a majority owned subsidiary of the Company, for an aggregate estimated purchase price of approximately $6.4 million, to be paid in shares of Kratos common stock. Pursuant to the Equity Purchase Agreement, the Company paid consideration of $2.7 million, paid in 190,258 shares of its common stock, based upon Kratos’ trading price on the date of distribution. Following the closing of the transactions contemplated by the Equity Purchase Agreement, the Company owned 90.05% of KTT Core. On April 7, 2023, the final aggregate purchase price, as updated to reflect the actual 2022 operating results and to reflect the market price of Kratos common stock on the day of issuance, was determined and 828,128 shares of Kratos common stock were issued to the Holders of the Minority Interests with a value of $10.7 million. On March 22, 2024, the Holders notified Kratos of their intent to sell their remaining Minority Interests through the Holders’ exercise of the Put Right. On June 21, 2024, the Company acquired the remaining 9.95% of the issued and outstanding shares of capital stock of KTT Core for an aggregate purchase price of approximately $22.5 million, which was comprised of approximately $11.25 million in cash and 583,700 shares of Kratos common stock valued at $11.25 million based on Kratos’ 90 day average trading price ending on day immediately prior to the date of acquisition. Following the closing of the transaction the Company owned 100% of KTT Core.

Stockholders_ Equity _ Common S

Stockholders’ Equity – Common Stock	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Stockholders’ Equity – Common Stock	Stockholders Equity - Common StockOn February 27, 2024, the Company sold 19,166,667 shares of its common stock at a public offering price of $18.00 per share in an underwritten offering. The Company received gross proceeds of approximately $345.0 million. After deducting underwriting fees and other offering expenses, the Company received approximately $331.2 million in net proceeds. The Company expects to use the net proceeds of this public equity offering to facilitate its long-term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated capital expenditures for expansion of current sole-source/single award programs and high probability pipeline opportunities, initiate or accelerate production or integration of unmanned drone, hypersonic or other systems in anticipation of customer contract awards, further strengthen its balance sheet in anticipation of upcoming customer and partner decisions and source selection on additional large, new program and contract opportunities, for general corporate purposes, including paydown of debt, and to pay fees and expenses in connection with this public equity offering. During the three months ended March 31, 2024, the Company used $45 million of the proceeds from this public equity offering to pay down amounts outstanding under its Revolving Credit Facility.

Significant Customers

Significant Customers	6 Months Ended
	Jun. 30, 2024
Risks and Uncertainties [Abstract]
Significant Customers	Significant Customers Revenue from the U.S. Government, which includes foreign military sales contracted through the U.S. Government, includes revenue from contracts for which the Company is the prime contractor as well as those for which the Company is a subcontractor and the ultimate customer is the U.S. Government. The KGS and US segments have substantial revenue from the U.S. Government. Sales to the U.S. Government amounted to approximately $195.4 million and $178.6 million, or 65% and 70% of total Kratos revenue, for the three months ended June 30, 2024 and June 25, 2023, respectively, and $386.3 million and $338.9 million, or 67% and 69% of total Kratos revenue, for the six months ended June 30, 2024 and June 25, 2023, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In addition to commitments and obligations in the ordinary course of business, the Company is subject to various claims, pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of the Company’s business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its unaudited condensed consolidated financial statements. An estimated loss contingency is accrued in the unaudited condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated, and such amount is deemed material. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing litigation contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including but not limited to the procedural status of the matter in question, the presence of complex or novel legal theories, and the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against it may be unsupported, exaggerated or unrelated to possible outcomes and, as such, are not meaningful indicators of its potential liability. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. The amount of ultimate loss may differ from these estimates. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies. Whether any losses finally determined in any claim, action, investigation or proceeding could reasonably have a material effect on the Company’s business, financial condition, results of operations or cash flows will depend on a number of variables, including the timing and amount of such losses; the structure and type of any remedies; the monetary significance any such losses, damages or remedies may have on the condensed consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. Legal and Regulatory Matters U.S. Government Cost Claims The Company’s contracts with the DoD are subject to audit by the Defense Contract Audit Agency (“DCAA”). As a result of these audits, from time to time the Company is advised of claims concerning potential disallowed, overstated or disputed costs. For example, during the course of recent audits of the Company’s contracts, the DCAA is closely examining and questioning certain of the established and disclosed practices that it had previously audited and accepted. The Company’s personnel regularly scrutinize costs incurred and allocated to contracts with the U.S. Government for compliance with regulatory standards. For those Company subsidiaries and fiscal years which have not yet been audited by the DCAA or for those audits which are in process which have not yet been completed by the DCAA, the Company cannot reasonably estimate the range of loss, if any, that may result given the inherent difficulty in predicting regulatory action, fines and penalties, if any, and the various remedies and levels of judicial review available to the Company in the event of an adverse finding. As a result, the Company has not recorded any liability related to these matters. Other Litigation Matters The Company is subject to normal and routine litigation arising from the ordinary course and conduct of business and, at times, as a result of mergers, acquisitions and dispositions. Such disputes include, for example, commercial, employment, intellectual property, environmental, and securities matters. The aggregate amounts accrued related to these matters are not material to the total liabilities of the Company. The Company intends to defend itself in any such matters and does not currently believe that the outcome of any such matters will have a material adverse impact on the Company’s financial condition, results of operations or cash flows.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The Company’s derivative portfolio consists of forward exchange contracts used to manage foreign currency risks and an interest rate swap contract to hedge U.S. dollar-one month Term SOFR in order to mitigate the exposure to interest rate movements associated with the Company’s Term Loan A. Derivative financial instruments are recognized on the condensed consolidated balance sheets as either assets or liabilities and are measured at fair value. Forward Exchange Contracts Changes in the fair values of the foreign currency exchange contracts are recorded each period in earnings. As of June 30, 2024, the Company did not use hedge accounting for its foreign currency exchange contracts. The notional value of the Company’s foreign currency exchange contracts at June 30, 2024 was $18.4 million. At June 30, 2024, the fair value amounts of the foreign currency exchange contracts were a $0.1 million asset and a $0.2 million liability. The net gain from these forward exchange contracts was $0.0 million and $0.1 million for the three and six months ended June 30, 2024, respectively, and is included in other expense. The notional value of the Company’s foreign currency exchange contracts at December 31, 2023, was $9.3 million. At December 31, 2023, the fair value amounts of the foreign currency exchange contracts were a $0.3 million asset and a $0.1 million liability. Cash Flow Hedge On April 28, 2023, the Company entered into an interest rate swap contract with an initial notional amount of $195.0 million to manage the variability of cash flows associated with the Term Loan A. The interest rate swap contract matures on May 1, 2026 and requires periodic interest rate settlements. The swap is at a fixed SOFR of 3.721% and settles monthly on the last day of each calendar month. The Company has designated the interest rate swap contract as a cash flow hedge and assesses the hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative. Changes in fair value (gains and losses) related to derivative financial instruments that qualify as cash flow hedges are deferred in Accumulated Other Comprehensive Income (Loss) (“AOCI”) until the underlying transaction is reflected in earnings. The net gain reclassed from AOCI from the interest rate swap reflected in earnings was $0.7 million and $1.5 million for the three and six months ended June 30, 2024, respectively, and is recorded as an offset to interest expense. The net gain reclassed from AOCI from the interest rate swap reflected in earnings was $0.4 million for the three and six months ended June 25, 2023, respectively, and is recorded as an offset to interest expense. The fair value of this derivative represents the discounted value of the expected future discounted cash flows for the interest rate swap, based on the amortization schedule and the current forward curve for the remaining term of the contract, as of the date of each reporting period (in millions): June 30, 2024 December 31, 2023 Notional Value Fair Value Notional Value Fair Value Interest rate swap contract designated as a cash flow hedge, net of taxes $ 187.5 $ 2.0 $ 192.5 $ 0.7

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 7.9	$ (2.7)	$ 9.2	$ (9.7)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		During the fiscal quarter ended June 30, 2024, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 105b-1 trading arrangement" (as those terms are defined in Item 408 of Regulation S-K), except as described in the table below: Name Title Action Applicable Date Expiration Date Rule 10b5-1 Trading Arrangement? (Y/N) (1) Aggregate Number of Securities Subject to Trading Arrangement David Carter President, Defense and Rocket Support Services Adopted 5/20/2024 6/30/2025 Y 40,000 (2) Maria Cervantes De Burgreen Vice President & Corporate Controller Adopted 6/06/2024 6/06/2025 Y 19,528 (2) Steven Fendley President, Unmanned Systems Adopted 5/20/2024 8/31/2025 Y 84,000 (2) Thomas Mills President, C5ISR Systems Adopted 5/31/2024 2/28/2025 Y 32,099 (2) Stacy Rock President, Kratos Turbine Technologies Adopted 5/22/2024 9/30/2025 Y 52,000 (2) (1) Denotes whether the trading arrangement is intended to satisfy the affirmative defense of Rule 10b5-1(c). (2) This number represents the maximum number of shares of our common stock that may be sold pursuant to the trading arrangement. The number of shares actually sold will depend on the satisfaction of certain conditions set forth in the trading arrangement.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
David Carter [Member]
Trading Arrangements, by Individual
Name	David Carter
Title	President, Defense and Rocket Support Services
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	5/20/2024
Expiration Date	6/30/2025
Arrangement Duration	406 days
Aggregate Available	40,000	40,000
Maria Cervantes De Burgreen [Member]
Trading Arrangements, by Individual
Name	Maria Cervantes De Burgreen
Title	Vice President & Corporate Controller
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	6/06/2024
Expiration Date	6/06/2025
Arrangement Duration	365 days
Aggregate Available	19,528	19,528
Steven Fendley [Member]
Trading Arrangements, by Individual
Name	Steven Fendley
Title	President, Unmanned Systems
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	5/20/2024
Expiration Date	8/31/2025
Arrangement Duration	468 days
Aggregate Available	84,000	84,000
Thomas Mills [Member]
Trading Arrangements, by Individual
Name	Thomas Mills
Title	President, C5ISR Systems
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	5/31/2024
Expiration Date	2/28/2025
Arrangement Duration	273 days
Aggregate Available	32,099	32,099
Stacy Rock [Member]
Trading Arrangements, by Individual
Name	Stacy Rock
Title	President, Kratos Turbine Technologies
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	5/22/2024
Expiration Date	9/30/2025
Arrangement Duration	496 days
Aggregate Available	52,000	52,000

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The information as of June 30, 2024 and for the three and six months ended June 30, 2024 and June 25, 2023 is unaudited. The condensed consolidated balance sheet as of December 31, 2023 was derived from the Company’s audited consolidated financial statements at that date. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. The results have been prepared in accordance with the instructions to Form 10-Q and do not necessarily include all information and footnotes necessary for presentation in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s audited annual consolidated financial statements for the fiscal year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 13, 2024 (the “Form 10-K”). Interim operating results are not necessarily indicative of operating results expected in subsequent periods or for the year as a whole.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its 100% owned subsidiaries. All inter-company transactions have been eliminated in consolidation. On June 21, 2024, the Company purchased the remaining 9.95% interest in KTT CORE, Inc., a Delaware corporation formerly known as KTT CORE, LLC (“KTT Core”) which previously had been reported as a majority owned subsidiary. KTT Core is now a 100% owned subsidiary. See Note 11 for further information related to the redeemable noncontrolling interest.
Fiscal Year	Fiscal Year The Company has a 52/53 week fiscal year ending on the last Sunday of the calendar year. The three month periods ended June 30, 2024 and June 25, 2023 consisted of 13-week periods. The six month periods ended June 30, 2024 and June 25, 2023 consisted of 26-week periods. There are 52 calendar weeks in the fiscal year ending on December 29, 2024 and 53 calendar weeks in the fiscal year ending December 31, 2023.
Use of Estimates	Use of Estimates There have been no significant changes in the Company’s accounting estimates for the six months ended June 30, 2024 as compared to the accounting estimates described in the Form 10-K.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company uses forward exchange contracts to manage foreign currency risks associated with certain transactions, specifically forecasted materials and salaries paid in foreign currencies. The Company also has entered into an interest rate swap contract in order to mitigate the exposure to interest rate movements associated with the Company’s Term Loan A. These derivative instruments are measured at fair value using observable market inputs such as interest rates. Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy. At June 30, 2024, the derivative instruments were included in other current assets and other assets on the Company's condensed consolidated balance sheets. The carrying amounts and the related fair values of the Company’s derivative instruments measured at fair value on a recurring basis at June 30, 2024, are presented in Note 15. The carrying value of all financial instruments, including cash equivalents, accounts receivable, unbilled receivables, accounts payable, accrued expenses, billings in excess of cost and earnings on uncompleted contracts, income taxes payable and long and short-term debt, approximated their estimated fair values at June 30, 2024 and December 31, 2023 due to the short-term nature of these instruments.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which expands reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. ASU 2023-07 also requires all segment profit or loss and assets disclosures to be provided on an annual and interim basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning one year later. The amendments must be applied retrospectively to all prior periods presented. The Company is currently evaluating the impact of the adoption of ASU 2023-07 on its consolidated financial statements; however, the standard is not expected to have an impact on the Company’s consolidated financial position, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently evaluating the impact of the adoption of ASU 2023-09; however, the standard is not expected to have an impact on the Company’s consolidated financial position, results of operations or cash flows.
Net Income (Loss) per Common Share	Net Income (Loss) per Common Share The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings per Share (“Topic 260”) . Under Topic 260, basic net income (loss) per common share attributable to the Kratos shareholders is calculated by dividing net income (loss) attributable to Kratos by the weighted-average number of common shares outstanding during the reporting period. Diluted net income (loss) per common share reflects the effects of potentially dilutive securities. Diluted net income per share for the three and six months ended June 30, 2024 include the dilutive effect of an aggregate of 1.6 million and 1.1 million shares, respectively, of the Company’s common stock granted to employees under stock-based compensation plans. Diluted net loss per share for the three and six months ended June 25, 2023 exclude the dilutive effects of awards granted to employees under stock-based compensation plans of 1.0 million and 1.2 million shares, respectively, because their inclusion would have been anti-dilutive.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Net Contract Assets (Liabilities)	Net contract assets and liabilities are as follows (in millions): June 30, 2024 December 31, 2023 Net Change Contract assets $ 206.7 $ 200.4 $ 6.3 Contract liabilities $ 80.9 $ 101.8 $ (20.9) Net contract assets $ 125.8 $ 98.6 $ 27.2
Schedule of Disaggregation of Revenue	The following series of tables presents the Company’s revenue disaggregated by several categories. For the majority of contracts, revenue is recognized over time as work is performed on the contract. Revenue by contract type was as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Kratos Government Solutions Fixed price $ 139.7 $ 132.5 $ 285.4 $ 259.5 Cost plus fee 58.2 59.9 116.8 105.6 Time and materials 16.4 12.4 29.9 23.5 Total Kratos Government Solutions 214.3 204.8 432.1 388.6 Unmanned Systems Fixed price 71.7 39.0 115.6 75.9 Cost plus fee 12.6 10.5 26.1 18.6 Time and materials 1.5 2.6 3.5 5.6 Total Unmanned Systems 85.8 52.1 145.2 100.1 Total Revenues $ 300.1 $ 256.9 $ 577.3 $ 488.7 Revenue by customer was as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Kratos Government Solutions U.S. Government (1) $ 129.2 $ 129.5 $ 264.3 $ 244.0 International (2) 41.3 47.9 92.0 92.9 U.S. Commercial and other customers 43.8 27.4 75.8 51.7 Total Kratos Government Solutions 214.3 204.8 432.1 388.6 Unmanned Systems U.S. Government (1) 66.2 49.1 122.0 94.9 International (2) 18.8 2.4 21.2 4.3 U.S. Commercial and other customers 0.8 0.6 2.0 0.9 Total Unmanned Systems 85.8 52.1 145.2 100.1 Total Revenues $ 300.1 $ 256.9 $ 577.3 $ 488.7 (1) Sales to the U.S. Government include sales from contracts for which the Company is the prime contractor, as well as those for which the Company is a subcontractor and the ultimate customer is the U.S. Government. Each of the Company’s segments derives substantial revenue from the U.S. Government. These sales include foreign military sales contracted through the U.S. Government. (2) International sales include sales from contracts for which the Company is the prime contractor, as well as those for which the Company is a subcontractor and the ultimate customer is an international customer. These sales include direct sales with governments outside the U.S. and commercial sales with customers outside the U.S.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The carrying amounts of goodwill as of June 30, 2024 and December 31, 2023 by reportable segment are as follows (in millions): As of June 30, 2024 KGS US Total Gross value $ 683.6 $ 138.6 $ 822.2 Less accumulated impairment 239.5 13.8 253.3 Net $ 444.1 $ 124.8 $ 568.9 As of December 31, 2023 KGS US Total Gross value $ 683.6 $ 138.8 822.4 Less accumulated impairment 239.5 13.8 253.3 Net $ 444.1 $ 125.0 $ 569.1
Schedule of Intangible Assets (Finite-Lived)	The following table sets forth information for finite-lived and indefinite-lived intangible assets (in millions): As of June 30, 2024 As of December 31, 2023 Gross Accumulated Net Gross Accumulated Net Acquired finite-lived intangible assets: Customer relationships $ 80.9 $ (64.0) $ 16.9 $ 80.9 $ (62.8) $ 18.1 Contracts and backlog 53.1 (41.0) 12.1 53.1 (38.8) 14.3 Developed technology and technical know-how 33.7 (28.8) 4.9 33.7 (28.2) 5.5 Trade names 3.8 (2.9) 0.9 3.8 (2.7) 1.1 In-process research and development 16.8 (0.4) 16.4 16.8 (0.3) 16.5 Total finite-lived intangible assets 188.3 (137.1) 51.2 188.3 (132.8) 55.5 Indefinite-lived trade names 6.9 — 6.9 6.9 — 6.9 Total intangible assets $ 195.2 $ (137.1) $ 58.1 $ 195.2 $ (132.8) $ 62.4
Schedule of Intangible Assets (Indefinite-Lived)	The following table sets forth information for finite-lived and indefinite-lived intangible assets (in millions): As of June 30, 2024 As of December 31, 2023 Gross Accumulated Net Gross Accumulated Net Acquired finite-lived intangible assets: Customer relationships $ 80.9 $ (64.0) $ 16.9 $ 80.9 $ (62.8) $ 18.1 Contracts and backlog 53.1 (41.0) 12.1 53.1 (38.8) 14.3 Developed technology and technical know-how 33.7 (28.8) 4.9 33.7 (28.2) 5.5 Trade names 3.8 (2.9) 0.9 3.8 (2.7) 1.1 In-process research and development 16.8 (0.4) 16.4 16.8 (0.3) 16.5 Total finite-lived intangible assets 188.3 (137.1) 51.2 188.3 (132.8) 55.5 Indefinite-lived trade names 6.9 — 6.9 6.9 — 6.9 Total intangible assets $ 195.2 $ (137.1) $ 58.1 $ 195.2 $ (132.8) $ 62.4
Schedule of Future Amortization Expense of Acquired Intangibles	The estimated future amortization expense of acquired intangible assets with finite lives as of June 30, 2024 is as follows (in millions): Amount 2024 $ 4.2 2025 8.9 2026 9.1 2027 7.4 2028 4.5 Thereafter 17.1 Total $ 51.2

Inventoried Costs (Tables)

Inventoried Costs (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventoried Costs	Inventoried costs, consisted of the following components (in millions): June 30, 2024 December 31, 2023 Raw materials $ 84.9 $ 78.0 Work in process 66.0 72.9 Finished goods 3.9 5.3 Total inventoried costs $ 154.8 $ 156.2

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Lease Cost	The components of lease expense were as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Amortization of right of use assets - finance leases $ 0.8 $ 0.7 $ 1.6 $ 1.5 Interest on lease liabilities - finance leases 0.8 0.8 1.6 1.5 Operating lease cost 3.6 3.4 7.1 6.7 Short-term lease cost 0.2 0.3 0.6 0.5 Variable lease cost (cost excluded from lease payments) — 0.1 — 0.1 Sublease income (0.1) — (0.1) — Total lease cost $ 5.3 $ 5.3 $ 10.8 $ 10.3 Cash paid for amounts included in the measurement of lease liabilities was as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Finance lease - cash paid for interest $ 0.8 $ 0.8 $ 1.6 $ 1.5 Finance lease - financing cash flows $ 0.4 $ 0.4 $ 0.7 $ 0.8 Operating lease - operating cash flows (fixed payments) $ 3.6 $ 3.6 $ 7.2 $ 6.6 Other supplemental noncash information (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Operating lease liabilities arising from obtaining right-of-use assets $ 2.1 $ 4.5 $ 2.3 $ 6.4 Finance lease liabilities arising from obtaining right-of-use assets $ 16.4 $ 0.1 $ 16.8 $ 0.1 June 30, 2024 June 25, 2023 Weighted-average remaining lease term (in years): Operating leases 4.43 4.76 Finance leases 14.34 15.08 Weighted-average discount rate: Operating leases 5.01 % 4.95 % Finance leases 6.35 % 6.41 %
Schedule of Balance Sheet Information	The components of leases on the balance sheet were as follows (in millions): June 30, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 41.8 $ 45.7 Current portion of operating lease liabilities $ 11.7 $ 12.1 Operating lease liabilities, net of current portion $ 34.1 $ 37.8 Finance leases: Property, plant and equipment, net $ 60.5 $ 45.4 Other current liabilities $ 1.7 $ 1.3 Other long-term liabilities $ 66.6 $ 50.9
Schedule of Maturities of Operating Lease Liabilities	The maturity of lease liabilities is (in millions): Operating Leases Finance Leases 2024 (1) $ 7.2 $ 3.5 2025 12.4 6.0 2026 10.7 6.3 2027 9.7 6.5 2028 6.5 6.6 Thereafter 4.4 81.4 Total lease payments 50.9 110.3 Less: imputed interest (5.1) (42.0) Total present value of lease liabilities $ 45.8 $ 68.3 (1) Excludes the six months ended June 30, 2024.
Schedule of Maturities of Financing Lease Liabilities	The maturity of lease liabilities is (in millions): Operating Leases Finance Leases 2024 (1) $ 7.2 $ 3.5 2025 12.4 6.0 2026 10.7 6.3 2027 9.7 6.5 2028 6.5 6.6 Thereafter 4.4 81.4 Total lease payments 50.9 110.3 Less: imputed interest (5.1) (42.0) Total present value of lease liabilities $ 45.8 $ 68.3 (1) Excludes the six months ended June 30, 2024.

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of Reconciliation of Income Tax Benefit at Statutory Rate to Income Tax Provision	A reconciliation of the total income tax provision to the amount computed by applying the statutory federal income tax rate of 21% to income (loss) from continuing operations before income taxes for the three and six months ended June 30, 2024 and June 25, 2023 is as follows (in millions): For the Three Months Ended For the Six Months Ended June 30, June 25, June 30, June 25, Income tax expense (benefit) at federal statutory rate $ 2.7 $ 0.4 $ 3.5 $ (0.7) Nondeductible expenses and other 2.4 1.7 5.0 3.3 Stock compensation - excess tax shortfalls (windfalls) (0.1) 0.3 (0.6) 0.7 Federal impact of research & development tax credits (0.2) (0.2) (0.4) (0.4) Provision for income taxes $ 4.8 $ 2.2 $ 7.5 $ 2.9

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Long-Term Debt and the Current Period Interest Rates	Term loan and revolving credit debt and the current period interest rates are as follows (in millions): June 30, 2024 December 31, 2023 Term Loan A $ 190.0 $ 192.5 Revolving credit facility — 35.0 Total debt 190.0 227.5 Less current portion 10.0 7.5 Total long-term debt, less current portion 180.0 220.0 Less long-term unamortized debt issuance costs - term loans 0.5 0.7 Total long-term debt, net of unamortized debt issuance costs - term loans $ 179.5 $ 219.3 Unamortized debt issuance costs - revolving credit facility $ 0.5 $ 0.7 Current period interest rate 6.7 % 7.7 %
Schedule of Future Long-Term Debt Principal Payments	Future long-term debt principal payments at June 30, 2024 were as follows (in millions): 2024 $ 7.5 2025 10.0 2026 10.0 2027 162.5 $ 190.0

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Segment Revenues, Depreciation and Amortization, and Operating Income	Revenues, depreciation and amortization, and operating income generated by the Company’s reportable segments for the three and six month periods ended June 30, 2024 and June 25, 2023 are as follows (in millions): Three Months Ended Six Months Ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 Revenues: Kratos Government Solutions Service revenues $ 104.7 $ 102.2 $ 209.3 $ 192.4 Product sales 109.6 102.6 222.8 196.2 Total Kratos Government Solutions $ 214.3 $ 204.8 $ 432.1 $ 388.6 Unmanned Systems Service revenues 1.8 1.5 3.7 2.9 Product sales 84.0 50.6 141.5 97.2 Total Unmanned Systems 85.8 52.1 145.2 100.1 Total revenues $ 300.1 $ 256.9 $ 577.3 $ 488.7 Depreciation and amortization: Kratos Government Solutions $ 6.9 $ 5.9 $ 13.0 $ 11.8 Unmanned Systems 3.5 2.0 6.7 4.0 Total depreciation and amortization $ 10.4 $ 7.9 $ 19.7 $ 15.8 Operating income: Kratos Government Solutions $ 15.5 $ 11.6 $ 32.1 $ 19.3 Unmanned Systems 3.6 1.2 3.2 0.6 Corporate activities (6.6) (6.1) (15.8) (12.7) Total operating income $ 12.5 $ 6.7 $ 19.5 $ 7.2

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The fair value of this derivative represents the discounted value of the expected future discounted cash flows for the interest rate swap, based on the amortization schedule and the current forward curve for the remaining term of the contract, as of the date of each reporting period (in millions): June 30, 2024 December 31, 2023 Notional Value Fair Value Notional Value Fair Value Interest rate swap contract designated as a cash flow hedge, net of taxes $ 187.5 $ 2.0 $ 192.5 $ 0.7

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	Jun. 21, 2024
KTT CORE, LLC
Business Acquisition [Line Items]
Noncontrolling interest owned (as a percent)	9.95%

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023	Oct. 03, 2023
Business Acquisition [Line Items]
Goodwill	$ 568.9	$ 569.1
Sierra Technical Services, Inc
Business Acquisition [Line Items]
Number of common stock shares acquired (in shares)			866,026
Business acquisition, common stock value acquired			$ 12.8
Number of additional common shares to be acquired (in shares)			979,038
Additional equity interests issuable			$ 14.5
Net assets			12.6
Goodwill			10.7
Accounts receivable			11
Finite-lived intangible assets acquired			14
Deferred revenue			$ 11.4

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 1,302.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, percentage	35%
Expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, percentage	41%
Expected timing of satisfaction, period	12 years

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 206.7	$ 200.4
Contract assets, net change	6.3
Contract liabilities	80.9	101.8
Contract liabilities, net change	(20.9)
Net contract assets	125.8	$ 98.6
Net contract assets, net change	$ 27.2

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Contract assets, net change				$ 6.3
Contract liabilities, net change				(20.9)
Revenue recognized		$ 25.8	$ 12.4	69.2	$ 33.6
Contract assets		206.7		206.7		$ 200.4
Subsequent event
Disaggregation of Revenue [Line Items]
Proceeds from receivable collected	$ 2.9
T for C | Billed revenues
Disaggregation of Revenue [Line Items]
Contract assets		2.9		2.9
T for C | Unbilled revenues
Disaggregation of Revenue [Line Items]
Contract assets		$ 1.5		$ 1.5

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Disaggregation of Revenue [Line Items]
Total Revenues	$ 300.1	$ 256.9	$ 577.3	$ 488.7
Kratos Government Solutions
Disaggregation of Revenue [Line Items]
Total Revenues	214.3	204.8	432.1	388.6
Kratos Government Solutions | U.S. Government
Disaggregation of Revenue [Line Items]
Total Revenues	129.2	129.5	264.3	244
Kratos Government Solutions | International
Disaggregation of Revenue [Line Items]
Total Revenues	41.3	47.9	92	92.9
Kratos Government Solutions | U.S. Commercial and other customers
Disaggregation of Revenue [Line Items]
Total Revenues	43.8	27.4	75.8	51.7
Unmanned Systems
Disaggregation of Revenue [Line Items]
Total Revenues	85.8	52.1	145.2	100.1
Unmanned Systems | U.S. Government
Disaggregation of Revenue [Line Items]
Total Revenues	66.2	49.1	122	94.9
Unmanned Systems | International
Disaggregation of Revenue [Line Items]
Total Revenues	18.8	2.4	21.2	4.3
Unmanned Systems | U.S. Commercial and other customers
Disaggregation of Revenue [Line Items]
Total Revenues	0.8	0.6	2	0.9
Fixed price | Kratos Government Solutions
Disaggregation of Revenue [Line Items]
Total Revenues	139.7	132.5	285.4	259.5
Fixed price | Unmanned Systems
Disaggregation of Revenue [Line Items]
Total Revenues	71.7	39	115.6	75.9
Cost plus fee | Kratos Government Solutions
Disaggregation of Revenue [Line Items]
Total Revenues	58.2	59.9	116.8	105.6
Cost plus fee | Unmanned Systems
Disaggregation of Revenue [Line Items]
Total Revenues	12.6	10.5	26.1	18.6
Time and materials | Kratos Government Solutions
Disaggregation of Revenue [Line Items]
Total Revenues	16.4	12.4	29.9	23.5
Time and materials | Unmanned Systems
Disaggregation of Revenue [Line Items]
Total Revenues	$ 1.5	$ 2.6	$ 3.5	$ 5.6

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Goodwill [Line Items]
Gross value	$ 822.2	$ 822.4
Less accumulated impairment	253.3	253.3
Net	568.9	569.1
KGS
Goodwill [Line Items]
Gross value	683.6	683.6
Less accumulated impairment	239.5	239.5
Net	444.1	444.1
US
Goodwill [Line Items]
Gross value	138.6	138.8
Less accumulated impairment	13.8	13.8
Net	$ 124.8	$ 125

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023	Dec. 31, 2023
Acquired finite-lived intangible assets:
Gross Value	$ 188.3		$ 188.3		$ 188.3
Accumulated Amortization	(137.1)		(137.1)		(132.8)
Net Value	51.2		51.2		55.5
Total intangible assets, Gross value	195.2		195.2		195.2
Total intangible assets, Net value	58.1		58.1		62.4
Aggregate amortization expense for finite-lived intangible assets	2.2	$ 1.4	4.3	$ 3
Trade names
Acquired finite-lived intangible assets:
Indefinite-lived trade names	6.9		6.9		6.9
Customer relationships
Acquired finite-lived intangible assets:
Gross Value	80.9		80.9		80.9
Accumulated Amortization	(64)		(64)		(62.8)
Net Value	16.9		16.9		18.1
Contracts and backlog
Acquired finite-lived intangible assets:
Gross Value	53.1		53.1		53.1
Accumulated Amortization	(41)		(41)		(38.8)
Net Value	12.1		12.1		14.3
Developed technology and technical know-how
Acquired finite-lived intangible assets:
Gross Value	33.7		33.7		33.7
Accumulated Amortization	(28.8)		(28.8)		(28.2)
Net Value	4.9		4.9		5.5
Trade names
Acquired finite-lived intangible assets:
Gross Value	3.8		3.8		3.8
Accumulated Amortization	(2.9)		(2.9)		(2.7)
Net Value	0.9		0.9		1.1
In-process research and development
Acquired finite-lived intangible assets:
Gross Value	16.8		16.8		16.8
Accumulated Amortization	(0.4)		(0.4)		(0.3)
Net Value	$ 16.4		$ 16.4		$ 16.5

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Intangible Asset Amortization (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2024	$ 4.2
2025	8.9
2026	9.1
2027	7.4
2028	4.5
Thereafter	17.1
Net Value	$ 51.2	$ 55.5

Inventoried Costs (Details)

Inventoried Costs (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 84.9	$ 78
Work in process	66	72.9
Finished goods	3.9	5.3
Total inventoried costs	$ 154.8	$ 156.2

Net Income (Loss) per Common _2

Net Income (Loss) per Common Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Stock options and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS (in shares)	1.6	1	1.1	1.2

Leases - Lease Expense (Details

Leases - Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Leases [Abstract]
Amortization of right of use assets - finance leases	$ 0.8	$ 0.7	$ 1.6	$ 1.5
Interest on lease liabilities - finance leases	0.8	0.8	1.6	1.5
Operating lease cost	3.6	3.4	7.1	6.7
Short-term lease cost	0.2	0.3	0.6	0.5
Variable lease cost (cost excluded from lease payments)	0	0.1	0	0.1
Sublease income	(0.1)	0	(0.1)	0
Total lease cost	$ 5.3	$ 5.3	$ 10.8	$ 10.3

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Operating leases:
Operating lease right-of-use assets	$ 41.8	$ 45.7
Current portion of operating lease liabilities	11.7	12.1
Operating lease liabilities, net of current portion	34.1	37.8
Finance leases:
Property, plant and equipment, net	60.5	45.4
Other current liabilities	1.7	1.3
Other long-term liabilities	$ 66.6	$ 50.9
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net	Property, plant and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities

Leases - Cash Paid (Details)

Leases - Cash Paid (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Leases [Abstract]
Finance lease - cash paid for interest	$ 0.8	$ 0.8	$ 1.6	$ 1.5
Finance lease - financing cash flows	0.4	0.4	0.7	0.8
Operating lease - operating cash flows (fixed payments)	$ 3.6	$ 3.6	$ 7.2	$ 6.6

Leases - Weighted Average (Deta

Leases - Weighted Average (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Leases [Abstract]
Operating lease liabilities arising from obtaining right-of-use assets	$ 2.1	$ 4.5	$ 2.3	$ 6.4
Finance lease liabilities arising from obtaining right-of-use assets	$ 16.4	$ 0.1	$ 16.8	$ 0.1
Weighted-average remaining lease term (in years):
Operating leases	4 years 5 months 4 days	4 years 9 months 3 days	4 years 5 months 4 days	4 years 9 months 3 days
Finance leases	14 years 4 months 2 days	15 years 29 days	14 years 4 months 2 days	15 years 29 days
Weighted-average discount rate:
Operating leases	5.01%	4.95%	5.01%	4.95%
Finance leases	6.35%	6.41%	6.35%	6.41%

Leases - Maturities of Operatin

Leases - Maturities of Operating and Financing Lease Liabilities (Details) $ in Millions	Jun. 30, 2024 USD ($)
Operating Leases
2024	$ 7.2
2025	12.4
2026	10.7
2027	9.7
2028	6.5
Thereafter	4.4
Total lease payments	50.9
Less: imputed interest	(5.1)
Total present value of lease liabilities	45.8
Finance Leases
2024	3.5
2025	6
2026	6.3
2027	6.5
2028	6.6
Thereafter	81.4
Total lease payments	110.3
Less: imputed interest	(42)
Total present value of lease liabilities	$ 68.3

Income Taxes - Income Tax Provi

Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit) at federal statutory rate	$ 2.7	$ 0.4	$ 3.5	$ (0.7)
Nondeductible expenses and other	2.4	1.7	5	3.3
Stock compensation - excess tax shortfalls (windfalls)	(0.1)	0.3	(0.6)	0.7
Federal impact of research & development tax credits	(0.2)	(0.2)	(0.4)	(0.4)
Provision for income taxes	$ 4.8	$ 2.2	$ 7.5	$ 2.9

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 25.4
Unrecognized tax benefits that if recognized would impact the effective tax rate for continuing operations	22.8
Expense for interest and penalties	0.1	$ 0.1
Liabilities for uncertain tax positions believed to be reasonably possible to expire within twelve months	$ 0.1

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)		6 Months Ended
	Feb. 18, 2022	Jun. 30, 2024	Apr. 28, 2023
Interest rate swap
Debt Instrument [Line Items]
Fixed interest rate			3.721%
6.5% Notes | Senior notes
Debt Instrument [Line Items]
Long-term debt	$ 300,000,000
Current period interest rate	6.50%
Term Loan A | Interest rate swap
Debt Instrument [Line Items]
Initial hedge amount			$ 195,000,000
Revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings	$ 90,000,000
Revolving credit facility	$ 200,000,000
Revolving credit facility | New Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding borrowings		$ 0
Debt instrument, term (in years)	5 years
National amount	$ 200,000,000
Debt issuance costs	$ 3,300,000
Remaining borrowing capacity		200,000,000
Letters of credit outstanding		6,900,000
Revolving credit facility | New Revolving Credit Facility | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate percentage	0.50%
Revolving credit facility | New Revolving Credit Facility | Adjusted Term SOFR
Debt Instrument [Line Items]
Basis spread on variable rate percentage	1%
Revolving credit facility | New Revolving Credit Facility | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate percentage	1.25%
Revolving credit facility | New Revolving Credit Facility | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate percentage	2.25%
Revolving credit facility | New Revolving Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate percentage	0.25%
Revolving credit facility | New Revolving Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate percentage	1.25%
Revolving credit facility | Term Loan Payment on June 30, 2022
Debt Instrument [Line Items]
Repayments of lines of credit		$ 10,000,000
Secured debt | Term Loan A
Debt Instrument [Line Items]
Debt instrument, term (in years)	5 years
National amount	$ 200,000,000
Secured debt | Term Loan A | First and second Year
Debt Instrument [Line Items]
Line of credit amortization percentage	2.50%
Secured debt | Term Loan A | Third, fourth and fifth year
Debt Instrument [Line Items]
Line of credit amortization percentage	5%
Swing line loan | New Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility	$ 10,000,000
Letter of credit
Debt Instrument [Line Items]
Revolving credit facility	$ 50,000,000

Debt - Long-Term Debt and the C

Debt - Long-Term Debt and the Current Period Interest Rates (Details) - Line of credit - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Total debt	$ 190	$ 227.5
Less current portion	10	7.5
Total long-term debt, less current portion	$ 180	$ 220
Current period interest rate	6.70%	7.70%
Secured debt
Line of Credit Facility [Line Items]
Total debt	$ 190	$ 192.5
Unamortized debt issuance costs	0.5	0.7
Total long-term debt, net of unamortized debt issuance costs - term loans	179.5	219.3
Revolving credit facility
Line of Credit Facility [Line Items]
Total debt	0	35
Unamortized debt issuance costs	$ 0.5	$ 0.7

Debt - Future Long-Term Debt Pr

Debt - Future Long-Term Debt Principal Payments (Details) - Line of credit - Secured debt $ in Millions	Jun. 30, 2024 USD ($)
Debt Instrument [Line Items]
2024	$ 7.5
2025	10
2026	10
2027	162.5
Total debt	$ 190

Segment Information - Narrative

Segment Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of operating segments	2

Segment Information - Segment R

Segment Information - Segment Revenues, Depreciation and Amortization, and Operating (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Segment Reporting Information [Line Items]
Total revenues	$ 300.1	$ 256.9	$ 577.3	$ 488.7
Depreciation and amortization:
Total depreciation and amortization	10.4	7.9	19.7	15.8
Operating income:
Total operating income	12.5	6.7	19.5	7.2
Kratos Government Solutions
Segment Reporting Information [Line Items]
Total revenues	214.3	204.8	432.1	388.6
Unmanned Systems
Segment Reporting Information [Line Items]
Total revenues	85.8	52.1	145.2	100.1
Operating segments | Kratos Government Solutions
Segment Reporting Information [Line Items]
Total revenues	214.3	204.8	432.1	388.6
Depreciation and amortization:
Total depreciation and amortization	6.9	5.9	13	11.8
Operating income:
Total operating income	15.5	11.6	32.1	19.3
Operating segments | Unmanned Systems
Segment Reporting Information [Line Items]
Total revenues	85.8	52.1	145.2	100.1
Depreciation and amortization:
Total depreciation and amortization	3.5	2	6.7	4
Operating income:
Total operating income	3.6	1.2	3.2	0.6
Corporate activities
Operating income:
Total operating income	(6.6)	(6.1)	(15.8)	(12.7)
Service revenues
Segment Reporting Information [Line Items]
Total revenues	106.5	103.7	213	195.3
Service revenues | Operating segments | Kratos Government Solutions
Segment Reporting Information [Line Items]
Total revenues	104.7	102.2	209.3	192.4
Service revenues | Operating segments | Unmanned Systems
Segment Reporting Information [Line Items]
Total revenues	1.8	1.5	3.7	2.9
Product sales
Segment Reporting Information [Line Items]
Total revenues	193.6	153.2	364.3	293.4
Product sales | Operating segments | Kratos Government Solutions
Segment Reporting Information [Line Items]
Total revenues	109.6	102.6	222.8	196.2
Product sales | Operating segments | Unmanned Systems
Segment Reporting Information [Line Items]
Total revenues	$ 84	$ 50.6	$ 141.5	$ 97.2

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interest (Details) - USD ($)					3 Months Ended	6 Months Ended
	Jun. 21, 2024	Apr. 07, 2023	Jun. 13, 2022	Feb. 27, 2019	Jun. 25, 2023	Jun. 25, 2023	Jun. 30, 2024	Dec. 31, 2023
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interest	$ 0						$ 0	$ 22,500,000
Noncontrolling interest, change in redemption value					$ 2,000,000	$ 2,900,000
KTT CORE, LLC
Noncontrolling Interest [Line Items]
Noncontrolling interest owned (as a percent)	9.95%
FTT Inc
Noncontrolling Interest [Line Items]
Percentage of voting interests acquired				80.10%
Aggregate purchase price			$ 6,400,000
KTT CORE, LLC
Noncontrolling Interest [Line Items]
Percentage of voting interests acquired	9.95%		9.95%	80.10%
Aggregate purchase price	$ 22,500,000			$ 60,000,000
Business combination, consideration transferred, equity interests issued and issuable	$ 11,250,000		$ 2,700,000
KTT CORE, LLC | KTT CORE, LLC
Noncontrolling Interest [Line Items]
Percentage of voting interests acquired	9.95%
Business combination, consideration transferred, equity interests issued and issuable	$ 11,250,000	$ 10,700,000
Subsidiary percent owned (as a percent)			90.05%
KTT CORE, LLC | Common Stock
Noncontrolling Interest [Line Items]
Number of shares issued (in shares)	583,700		190,258
KTT CORE, LLC | Common Stock | KTT CORE, LLC
Noncontrolling Interest [Line Items]
Number of shares issued (in shares)		828,128

Stockholders_ Equity _ Common_2

Stockholders’ Equity – Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended	6 Months Ended
	Feb. 27, 2024	Mar. 31, 2024	Jun. 30, 2024	Jun. 25, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares issued in transaction (in shares)	19,166,667
Price per share (in dollars per share)	$ 18
Consideration received on transaction	$ 345
Proceeds from the issuance of common stock, net of issuance costs	$ 331.2		$ 330.7	$ 0
Revolving credit facility
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Proceeds from public equity offering		$ 45

Significant Customers (Details)

Significant Customers (Details) - U.S. Government - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023
Revenue, Major Customer [Line Items]
Sales to the U.S. Government, amount	$ 195.4	$ 178.6	$ 386.3	$ 338.9
Revenue | Government contracts
Revenue, Major Customer [Line Items]
Sales to the U.S. Government, percentage of total revenue (as percent)	65%	70%	67%	69%

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) - Designated as hedging instrument - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Apr. 28, 2023	Jun. 30, 2024	Jun. 25, 2023	Jun. 30, 2024	Jun. 25, 2023	Dec. 31, 2023
Foreign exchange contract
Derivatives, Fair Value [Line Items]
Derivative notional amount		$ 18.4		$ 18.4		$ 9.3
Derivative asset		0.1		0.1		0.3
Derivative liability		0.2		0.2		$ 0.1
Derivative, net gain (loss)		0		0.1
Interest rate swap
Derivatives, Fair Value [Line Items]
Derivative notional amount	$ 195
Derivative, net gain (loss)		$ 0.7	$ 0.4	$ 1.5	$ 0.4
Interest rate of derivatives	3.721%

Derivative Financial Instrume_4

Derivative Financial Instruments - Interest Rate Swap Contracts Designated as Cash Flow Hedge (Details) - Interest rate swap - Designated as hedging instrument - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value	$ 187.5	$ 192.5
Fair Value	$ 2	$ 0.7