Kratos Defense & Security Solutions (LTS:0JS0) Operating Income: $28 Mil (TTM As of Mar. 2026)


LTS:0JS0 Kratos Defense & Security Solutions Inc LTS:0JS0
72 GF Score
Price $54.47
GF Value $27.78
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Kratos Defense & Security Solutions Operating Income?

Kratos Defense & Security Solutions LTS:0JS0 72 Operating Income is $28 Mil as of Mar. 2026. GuruFocus rates LTS:0JS0 with a GF Score™ of 72/100 and a GF Value™ of $27.78 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Kratos Defense & Security Solutions's Operating Income for the three months ended in Mar. 2026 was $7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $28 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kratos Defense & Security Solutions's Operating Income for the three months ended in Mar. 2026 was $7 Mil. Kratos Defense & Security Solutions's Revenue for the three months ended in Mar. 2026 was $371 Mil. Therefore, Kratos Defense & Security Solutions's Operating Margin % for the quarter that ended in Mar. 2026 was 1.78%.

Warning Sign:

Kratos Defense & Security Solutions Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7.8%.

Kratos Defense & Security Solutions's 5-Year average Growth Rate for Operating Margin % was -7.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kratos Defense & Security Solutions's annualized ROC % for the quarter that ended in Mar. 2026 was 1.26%. Kratos Defense & Security Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.80%.

Kratos Defense & Security Solutions  (LTS:0JS0) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Kratos Defense & Security Solutions's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=26.4 * ( 1 - 0% )/( (1776.5 + 2407.7)/ 2 )
=26.4/2092.1
=1.26 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2467.2 - 130.1 - ( 560.6 - max(0, 311 - 1262.9+560.6))
=1776.5

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4042.7 - 170.7 - ( 1464.3 - max(0, 410.7 - 2310.4+1464.3))
=2407.7

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Kratos Defense & Security Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=26.4/( ( (405.3 + max(115.1, 0)) + (459.6 + max(120, 0)) )/ 2 )
=26.4/( ( 520.4 + 579.6 )/ 2 )
=26.4/550
=4.80 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(164.9 + 188.2 + 56.8) - (130.1 + 73.4 + 91.3)
=115.1

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(194.5 + 225.7 + 91.8) - (170.7 + 108.1 + 113.2)
=120

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Kratos Defense & Security Solutions's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=6.6/371
=1.78 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Kratos Defense & Security Solutions Operating Income Related Terms

Kratos Defense & Security Solutions Operating Income Historical Data

* Premium members only.

The historical data trend for Kratos Defense & Security Solutions's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Kratos Defense & Security Solutions Operating Income Chart

Kratos Defense & Security Solutions Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.70 4.60 31.50 29.70 27.70

Kratos Defense & Security Solutions Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.60 3.70 7.30 10.10 6.60
LTS:0JS0
72GF Score
Kratos Defense & Security Solutions Inc LTS:0JS0
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Kratos Defense & Security Solutions Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $28 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $28 Mil mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Operating Income of $28 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Kratos Defense & Security Solutions and its competitors.
Is Kratos Defense & Security Solutions' Operating Income too high?
Kratos Defense & Security Solutions' current Operating Income is $28 Mil. Overall, Kratos Defense & Security Solutions has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Operating Income compare to SARO and PL?
Kratos Defense & Security Solutions' Operating Income of $28 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Aerospace & Defense company?
A good Operating Income depends on the Aerospace & Defense industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Kratos Defense & Security Solutions and its competitors. Kratos Defense & Security Solutions's current Operating Income is $28 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kratos Defense & Security Solutions stock overvalued right now?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions (LTS:0JS0) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.78, compared to a current price of $54.47 — trading 96.1% above its estimated fair value. The current Operating Income is $28 Mil. Kratos Defense & Security Solutions' overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current Operating Income is $28 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kratos Defense & Security Solutions (LTS:0JS0) Overvalued in 2026?

Based on GuruFocus' analysis, Kratos Defense & Security Solutions stock appears to be overvalued. The current stock price of $54.47 is trading 96.1% above its estimated GF Value™ of $27.78. GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.

Key valuation signals for LTS:0JS0:

  • Operating Income: $28 Mil
  • GF Value™: $27.78 vs. price of $54.47 (96.1% above fair value)
  • GF Score™: 72/100 with 5 warning signs

No single metric tells the full story. See the LTS:0JS0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Kratos Defense & Security Solutions Business Description

Address 1 Chisholm Trail, Suite 300, Round Rock, TX, USA, 78681
Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.
72GF Score

Get the complete analysis for LTS:0JS0

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$54.47
Price
$27.78
GF Value