- Kratos has received about $400 million in new DOW funding
- Nemesis and Kraken initiatives advance hypersonic tactical systems
- The 2026 Air and Space Summit will explore AI, Golden Dome and more
Kratos Defense & Security Solutions has secured approximately $400 million in new funding from the Department of War to continue work on hypersonic systems and other national security-related programs.
As DOW accelerates investment in high-speed systems and next-generation capabilities, government and industry leaders continue to shape the priorities driving this momentum. The Potomac Officers Club’s 2026 Air and Space Summit on July 30 will bring together senior officials and executives for discussions on AI, commercial space relay, interoperable optical networks, Golden Dome and more. Save your seat now to join the conversation shaping the future of air and space acquisition.
What Is the Company’s Role in Hypersonic Systems Development?
Kratos said Tuesday it delivers both propulsion and flyer systems for hypersonic applications, including the Erinyes Hypersonic Flyer, Dark Fury, and the Zeus and Oriole solid rocket motors. The company’s Nemesis and Kraken initiatives represent recent additions to its high-speed systems portfolio.
Work under the hypersonic system programs will be carried out at Kratos facilities and government sites.
What Did Kratos Officials Say About the DOW Funding?
Eric DeMarco, president and CEO of Kratos, said DOW funding began to increase and accelerate from June into July. He noted that the company remains focused on fielding affordable systems for the department and expects the funding to accelerate organic growth, boost operating cash receipts and reduce customer receivables, inventory and assets.
Dave Carter, president of the defense and rocket support services division at Kratos, said the company leads in high-speed national security systems, including ballistic missile targets, flight test vehicles and tactical systems. He noted that the company’s rapid design, engineering and fielding capabilities allow for low-cost, mass-produced systems, and that Kratos expects additional hypersonic-related awards in the coming months.
What Other Hypersonic Contracts Has Kratos Recently Secured?
The new DOW funding builds on a series of hypersonic contract awards for Kratos. In February, the company received a contract through the DOW Joint Hypersonics Transition Office to support test and evaluation of thermal protection systems for hypersonic vehicles.
In January 2025, Kratos secured a five-year, $1.45 billion contract to advance testing of a hypersonic technology in support of the Pentagon’s Multi-Service Advanced Capability Hypersonic Test Bed, or MACH-TB, 2.0 program.
