Defense manufacturer Kratos announced this week it is developing a new hypersonic drone system. The Round Rock, Texas, based company also said it broke ground on a state-of-the-art laboratory and testing facility in Indiana to support that development.
Kratos Defense CEO Eric DeMarco said on March 18 that the company is developing a hypersonic drone — meaning it will be able to go five times the speed of sound. DeMarco declined to provide details about the design, performance or schedule, in a March 18 interview with Aviation Week, but said the new drone adds to Kratos' growing list of high-speed vehicles.
Kratos offers a number of ballistic and hypersonic systems and testing services. The company helps design, develop and test aircraft, missiles, spacecraft, propulsion units, and various components and parts.
In January, Kratos won a $1.45 billion contract from the U.S. Department of Defense to develop testing capabilities for hypersonic weapons. The five-year contract will support the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) program. Leidos, Rocket Lab and Stratolaunch were tapped as contractors for the team.
The MACH-TB program looks to test glide bodies and payloads using commercial launch infrastructure and boosters.
$50 Million Test Facility
Meanwhile, Kratos on March 18 broke ground on a $50 million development and testing facility in Crane, Indiana to assist with those efforts. The Indiana Payload Integration Facility (IPIF) will support development for the Hypersonic System, including the new hypersonic drone. The facility will also support hypersonic glide vehicles that are powered by rocket motors. Vehicles using air-breathing propulsion tech are also possible at the facility, DeMarco told Aviation Week.
Hypersonic glide vehicles (HGV) are warheads typically carried by rocket or ballistic missiles. They can then be launched, and glide independently at hypersonic speeds to a target. They differ from hypersonic cruise missiles, which use air-breathing engines for power throughout the flight.
Kratos currently has two hypersonic glide vehicles in its portfolio, named Erinyes and Dark Fury. Still, hypersonic technology is largely in developmental stages in the U.S. Lockheed Martin and Leidos' Long Range Hypersonic Weapon for the U.S. Army is the sole exception in operation, according to Aviation Week.
National Defense magazine reports that China is currently the world leader in hypersonic weapons systems, and that Russia has "three deployed hypersonic weapons systems," including two which have been used against Ukraine.
Kratos Stock
KTOS stock declined 2.6% Thursday.
Shares are working up the right side of a very V-shape cup base with a 35.66 buy point, matching their January high. Breakouts from steep sided V-shape cups can carry some additional risk.
Kratos stock has gained 20% so far this year with a 12-month advance of almost 80%.
KTOS has a 21-Day ATR% of 5.15.
The average true range is a metric available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
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