Kratos Defense & Security Solutions (NASDAQ: KTOS) is expanding production of its Spartan turbojet engines to meet growing demand from missile and loitering munition programs, while also receiving a bullish analyst upgrade from JPMorgan.
On June 12, JPMorgan upgraded Kratos shares to “Overweight” from “Neutral,” signaling increased confidence in the defense technology company’s growth prospects. The investment bank, however, lowered its price target to $82 per share. Kratos stock closed at $57.75 on June 12, down 1.75% for the session.
Earlier in the week, Kratos announced plans to significantly increase manufacturing capacity for its Spartan family of turbojet engines, which are used in missile systems, loitering munitions, and other defense applications.
The company said it intends to produce approximately 3,000 Spartan engines next year as demand continues to increase across multiple military programs. To support the production ramp-up, Kratos has already begun purchasing long-lead materials and making strategic investments throughout its supply chain.
According to the company, the Spartan engine line is designed to deliver military-grade performance while maintaining affordability and scalable production capabilities. The engines currently support several customers and platforms across the defense sector.
Kratos stated that its production expansion aligns with U.S. defense priorities aimed at replenishing missile inventories, increasing precision-strike weapon manufacturing capacity, and improving access to cost-effective defense technologies.
The company believes its investments in manufacturing infrastructure and supply chain readiness will help accelerate delivery timelines while supporting future customer requirements in the rapidly evolving defense market.
Growing demand for missiles, autonomous systems, and loitering munitions has increased the need for scalable propulsion solutions, positioning Kratos to benefit from rising defense spending and modernization efforts.
The production expansion underscores Kratos’ focus on strengthening its role within the defense industrial base while supporting U.S. and allied national security objectives through increased manufacturing capacity and mission-ready propulsion systems.
