Kratos Defense & Security Solutions Inc. is seeking to raise $1 billion in a share sale, as government spending on defense ramps up.
The San Diego-based firm is offering shares for $83 to $85 each in a share sale marketed overnight, according to people familiar with the matter. The price range represents a discount of as much as 10% to Thursday’s closing price of $92.14.
The share sale is fully subscribed following a confidential marketing effort, one of the people said, asking not to be identified as the information isn’t public.
Shares of Kratos fell 4.8% to $87.72 each in after-hours trading on Thursday in New York. The stock climbed 21% this year through Thursday’s close.
US defense stocks have rallied in 2026, extending last year’s stellar performance as geopolitical tensions ratchet higher and military spending plans rise to match.
ratos shares fell when the company reported earnings on Feb. 23, forecasting revenue for the first quarter of $335 million to $345 million that missed the average analyst estimate of $346.9 million.
Robert W Baird & Co., Raymond James Financial Inc., Royal Bank of Canada and Truist Financial Corp. are leading the offering, according to a statement earlier.
Written by: Anthony Hughes @Bloomberg
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