Overview
- Kratos shares surged to an intraday high of $109.80 and closed up 13.78% at $104.04, a three-month high and near the 52-week peak.
- The rally followed the president’s Truth Social post urging a 2027 military budget of $1.5 trillion to build a stronger force.
- Trump said higher tariff revenues should cover the proposed spending increase alongside other priorities.
- Kratos CEO Eric DeMarco emphasized a focus on readiness and scalable production, signaling support for reinvestment in defense capabilities.
- Trump also criticized executive pay and pledged to restrict dividends and buybacks for defense firms until investment goals are met, a stance that could affect margins even as investors price in larger budgets.