Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET
Company Participants
Marie Mendoza - SVP & General Counsel
Eric DeMarco - President & CEO
Deanna Lund - EVP & CFO
Conference Call Participants
Michael Ciarmoli - Truist Securities
Peter Arment - Baird
Ken Herbert - RBC Capital Markets
Mike Crawford - B. Riley Securities
Seth Seifman - JPMorgan
Andre Madrid - BTIG
Joe Gomes - Noble Capital
Pete Skibitski - Alembic Global
Operator
Welcome to Kratos Defense & Security Solutions Third Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Marie Mendoza, Senior VP and General Counsel. Please go ahead.
Marie Mendoza
Thank you. Good afternoon, everyone, and thank you for joining us for the crisis, defense and security solutions. Third quarter 2024 conference call. With me today is Eric DeMarco Kratos, President and CEO, and Deanna Lund Kratos as Executive Vice President and Chief Financial Officer. Before we begin the substance of today's call, I'd like everyone to please take note of the safe harbor paragraph that is included at the end of today's press release.
This paragraph emphasizes the major uncertainties and risks inherent in the forward looking statements we will make this afternoon. Please keep these uncertainties and risks in mind as we discuss future strategic initiatives, potential market opportunities, operational outlook, financial guidance and other forward looking statements during today's call. Today's call will also include a discussion of non-GAAP financial measures, as that term was defined in Regulation G, non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with GAAP. Accordingly, at the end of today's press release, we have provided a reconciliation of these non-GAAP financial measures to the company's financial results prepared in accordance with GAAP.
With that, I will now turn the call over to Eric DeMarco.
Eric DeMarco
Good afternoon. For the third quarter. Kratos continue to execute, demonstrating the success of our strategy of making internally funded investments to rapidly develop and be first to market with relevant hardware and software for our national security customers. In Q3 every Kratos business unit substantially achieved or exceeded its objectives, with the exception of our commercial satellite business, which continues to be impacted by new entrance industry disruption and delays, including delays and delivery by the manufacturers of software defined satellites, which I have discussed in detail previously. The ongoing generational recapitalization of strategic weapons systems, including strategic, satellite air defense, radar and missile systems, continues to be a catalyst to the current and expected future Kratos financial performance, including our affirmation today of our 2024 financial guidance and our 2025 base case financial forecast expectation of 10% year over year revenue growth. As I mentioned on our previous call in Q3 and Q4 '24 and in Q1 of '25 Kratos is expected to continue to make significant internally funded bid proposal and other expenditures in pursuit of certain new, large, single award programs, one of which, with a potential value of approximately 1.5 billion. We hope to be selected on by the end of Q1 of next year.