Kratos Defense & Security Solutions (KTOS) FY2022 results: revenue $898 million, up 10.7% on the year

Kratos Defense & Security Solutions, Inc. (KTOS) reported revenue of $898 million for fiscal 2022, the year ended 25 December 2022, up 10.7% on the year before. Net income was -$37 million, and diluted earnings per share $-0.29. The figures are the company's own, from the 10-K it filed with the SEC on 23 February 2023.

Revenue

$898 million

+10.7% on the year

FY2015FY2022

Operating margin

-0.3%

3.4% a year earlier

FY2015FY2022

Net income

-$37 million

FY2015FY2022

Diluted EPS

-$0.29

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	898	812	748	+10.7%
Cost of revenue	672	586	544	+14.6%
Gross profit	226	225	203	+0.4%
Gross margin	25.2%	27.7%	27.2%
Research and development	38.6	35.2	27.0	+9.7%
Selling, general and administrative	182	160	144	+13.9%
Operating income	-2.9	27.9	29.3
Operating margin	-0.3%	3.4%	3.9%
Interest expense	18.3	23.7	23.6	-22.8%
Pre-tax income	-33.0	4.4	6.8
Income tax	0.2	3.9	-73.5	-94.9%
Effective tax rate	n/a	88.6%	-1080.9%
Net income	-36.9	-2.0	79.6
Net margin	-4.1%	-0.2%	10.6%
Diluted EPS	-$0.29	-$0.02	$0.67

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	-25.7	30.8	46.6
Capital expenditure	45.4	46.5	35.9	-2.4%
Free cash flow	-71.1	-15.7	10.7
Free cash flow margin	-7.9%	-1.9%	1.4%
Cash from investing	-177	-52.1	-87.3
Cash from financing	-63.3	-9.3	248
Depreciation and amortisation	30.5	25.7	24.6	+18.7%
Share-based compensation	26.3	25.8	21.0	+1.9%
Diluted shares, weighted	127m	128m	119m	-1.0%
Shares outstanding at period end	126m	124m	123m	+1.6%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	936	945	925	-0.9%
Redeemable equity	11.2	15.2	14.8	-26.3%
Debt	250	297	302	-15.7%
Operating lease liabilities	40.8	32.7	38.6	+24.8%
Finance lease liabilities	49.9	43.2	38.8	+15.5%
Other liabilities	263	257	244	+2.5%
Total liabilities and equity	1,552	1,590	1,563	-2.4%
Goodwill	558	494	484	+13.0%
Intangible assets	55.2	43.2	43.0	+27.8%
Cash and equivalents	81.3	349	381	-76.7%
Receivables	106	93.9	95.3	+12.6%
Other assets	751	609	560	+23.3%
Total assets	1,552	1,590	1,563	-2.4%

10-K for the year ended 25 December 2022, filed 23 February 2023: the filing.