Kratos CEO hints at large acquisition opportunities

By Marjorie Censer / February 26, 2021 at 1:31 PM

The chief executive of Kratos Defense & Security Solutions said yesterday the company is weighing large potential acquisitions.

In a call with analysts, Eric DeMarco said "certain industry-related dynamics" have generated a number of acquisition opportunities, which the company is now "investigating."

"Over the past multiple years, we have been focused organically . . . and we've stayed away from anything large, we've done tuck-in" acquisitions, he said. "There are some certain dynamics that are happening out there in the industry that have brought potential opportunities to us that are right in our bailiwick."

Asked by an analyst whether the company is looking at larger acquisition candidates, DeMarco said yes.

Meanwhile, Kratos this week said sales in its most recent quarter totaled $206 million, up almost 12% from the same three-month period a year earlier. The company recorded quarterly profit of $78 million, up from $3 million the prior year.

In 2020, Kratos reported sales of $748 million, up 4% from 2019. Profit for the year totaled $80 million, up from nearly $13 million in 2019.

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