Kratos to scale Spartan turbojet output to 3,000 engines in 2027
Kratos Defense and Security Solutions has announced a significant uplift in production capacity for its Spartan line of turbojet engines, citing accelerating demand from missile and loitering munition programmes across the US defence sector. The NASDAQ-listed company said it plans to produce 3,000 Spartan engines in 2027, and has already begun internally funded procurement of long-lead materials and supply chain investment to support that target.
The Spartan engine family is manufactured entirely within the United States, using a domestic supply chain that the company says reduces reliance on foreign sources for critical propulsion components. Kratos did not disclose current annual production volumes, contract values, or the names of the customer programmes being supported.
The expansion
Steve Fendley, president of the Kratos Unmanned Systems Division, said the requirement for affordable, scalable propulsion was intensifying as the US Department of Defense focuses on rebuilding missile stockpiles and expanding precision-strike capacity. "The need for scalable, high-performance but low-cost propulsion systems has never been greater," he said. "Kratos is investing today to ensure our customers have access to affordable, reliable, American-made propulsion systems that can be delivered at the speed and scale required by the modern threat environment."
By front-loading materials procurement with internal capital rather than waiting for firm contracts, Kratos is accepting short-term balance-sheet risk in exchange for faster delivery readiness. The company has not indicated the capital expenditure involved, nor has it disclosed which tier-one or tier-two suppliers are involved in the expanded supply chain.
Market context
The announcement reflects a broader shift in Western defence procurement toward attritable, high-volume munitions platforms. Loitering munitions, sometimes called kamikaze drones, have become a prominent feature of recent conflicts, and several NATO member governments are actively replenishing inventories and commissioning new capacity. The US has set out explicit industrial-base goals to increase the monthly production rates of key munitions categories, which in turn drives demand for compact, low-cost turbojets of the type Kratos produces.
Kratos competes in the propulsion segment against a number of specialist manufacturers, including Williams International and PBS Aerospace, alongside in-house propulsion development at prime contractors such as Raytheon and Northrop Grumman. The company's stated differentiator is cost: it positions affordability as a design-stage engineering discipline rather than an afterthought, which resonates with procurement offices under pressure to acquire mass rather than exquisite capability.
Regulatory and export considerations
US-manufactured propulsion systems for missiles and unmanned aerial platforms are subject to International Traffic in Arms Regulations (ITAR) controls, meaning any export to allied customers requires State Department licences. Kratos referenced support for "US and allied national security objectives," suggesting export programmes are anticipated, though no allied customer or Foreign Military Sale was named in the release.
The domestic supply-chain emphasis also aligns with the requirements of the Defence Production Act and the broader industrial-base resilience agenda being pursued under current US defence policy. Companies demonstrating US-only supply chains are increasingly favoured in sole-source and competitive awards where supply-chain security is a scoring criterion.
Investors will look for Kratos to convert the capacity investment into named programme wins and firm contract bookings in forthcoming quarterly results. The company's next earnings disclosure will be the clearest indicator of whether demand signals are translating into funded orders.