Kratos Defense & Security Solutions Inc. and GE Aerospace Announce Teaming Agreement to Develop New Propulsion Systems

On June 3, 2025, Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) and GE Aerospace (NYSE: GE) announced a formal teaming agreement aimed at advancing propulsion technologies for next-generation unmanned aerial systems and Collaborative Combat Aircraft-type (CCA-type) aircraft. This collaboration is set to expand the small engine portfolio of both companies with the development of the GEK800 Engine and other low-cost expendable turbofan engines.

The agreement was highlighted by multiple financial news sources, including Benzinga, Investing.com, and RTTNews, noting a positive impact on Kratos’ stock price. The announcement led to a rise in Kratos’ stock, reflecting investor optimism about the potential of this partnership.

Kratos, a defense contractor and security systems integrator, specializes in weapon systems lifecycle support, military weapon range, security and surveillance systems, and IT engineering. The company serves federal, state, and local agencies, with a market capitalization of approximately $5.73 billion as of May 29, 2025. The stock closed at $36.89 on that date, with a 52-week high of $39.16 and a low of $17.91.

The formal teaming agreement provides a framework for Kratos and GE Aerospace to collaborate on the development, manufacturing, testing, and fielding of the GEK800 Engine. This initiative is part of a broader effort to enhance propulsion technologies for affordable unmanned aerial systems and CCA-type aircraft.

Eric DeMarco, President and CEO of Kratos, emphasized the strategic importance of this agreement, highlighting its potential to strengthen Kratos’ position in the defense and aerospace sectors. The collaboration is expected to leverage the expertise of both companies to deliver innovative propulsion solutions that meet the evolving needs of the defense industry.

This partnership marks a significant step for Kratos in expanding its capabilities and offerings in the aerospace and defense sector, aligning with its mission to provide advanced solutions to government and commercial clients.