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Kratos Up as Drone Maker Wins $950M U.S. Air Force Contract

Kratos shares were higher after the military drone manufacturer won a $950 million contract with the U.S. Air Force.

Kratos Defense & Security Solutions  (KTOS) - Get Kratos Defense & Security Solutions, Inc. Report shares rose on Friday after the defense and aerospace firm was awarded a $950 million contract from the U.S. Air Force.

At last check the shares rose 4.4% to $19.25. Kratos stock is trading at almost four times its 52-week low of $5, set in mid-March. It touched a 52-week high above $22 earlier this month.

The San Diego company won a multiple-award, multilevel security contract for the U.S. Air Force's Advanced Battle Management System. 

Kratos Defense manufactures military drones. 

"Our technology will support the Air Force and Space Force with critical interoperability solutions that it needs to engage with peer and near-peer adversaries – connecting weapons, sensors and decision-makers, through common interfaces that can disseminate data to the tactical edge," President and Chief Executive Eric Demarco said in a statement.

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"This is a crucial foundation for enabling multidomain command and control." 

On Sept. 8 Kratos was also awarded a  contract to support the U.S. Air Force's Ground-Based Strategic Deterrent program as part of the team led by fellow defense contractor Northrop Grumman.  (NOC) - Get Northrop Grumman Corporation Report

As part of this deal, Kratos will provide engineering services, the manufacture and production of specialized ground support systems, including missile transporters and payload transporters to the program.

The Air Force Nuclear Weapons Center said that the effort will span 8 1/2 years and include weapon-system design, qualification, test and evaluation and nuclear certification.

And on Sept. 22 Kratos Defense and Microsoft  (MSFT) - Get Microsoft Corporation Report launched Microsoft Azure Orbital, a platform to manage data from Earth-observation and internet-of-things applications.