Kratos and Intelsat demonstrate end-to-end 5G satellite network

SAN DIEGO - Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) successfully demonstrated an end-to-end 5G Non-Terrestrial Network (NTN) that integrates its OpenSpace software-defined satellite ground system with Intelsat’s space and ground network, the company announced Thursday.

The over-the-air test validated satellite’s capability to extend terrestrial 5G networks, utilizing Intelsat’s Galaxy 19 Ku-band GEO satellite along with Intelsat’s cloud-native, virtualized 5G core network.

During the demonstration, multiple User Equipment emulators from VIAVI Solutions successfully connected and established data traffic flows from different locations within the 5G-NTN cell, confirming that standards-compliant terminals can access 5G networks via satellite connections.

"This demonstration represents a significant milestone in both companies’ progress in advancing ubiquitous 5G connectivity that spans both terrestrial and space networks," said Greg Quiggle, Senior Vice President of Product Management at Kratos.

The test follows the Third Generation Partnership Program’s (3GPP) incorporation of Non-Terrestrial Networks into its 5G specifications with Release 17, which enables the extension of 5G services beyond terrestrial coverage.

Kratos and its partner Radisys had previously announced plans to develop a satellite base station delivered as cloud-native software for deployment within the OpenSpace system.

The demonstration marks progress toward providing broadband services to locations unserved or underserved by terrestrial connectivity alone. According to the press release, the technology could enable seamless service delivery across satellite orbits and operators while integrating satellite-enabled services with global terrestrial communications networks. With projected revenue growth of 13% for FY2025 and a healthy current ratio of 2.84, Kratos appears well-positioned to capitalize on these opportunities. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.

In other recent news, Kratos Defense & Security has been the focus of several analyst updates and strategic developments. Noble Capital raised its price target for Kratos to $60, citing growth opportunities and a recent capital raise that enhances the company’s ability to pursue new ventures. Similarly, Cantor Fitzgerald reiterated an Overweight rating with a $60 target, highlighting potential catalysts like X-58 scaling and microwave electronics. Benchmark raised its price target to $50, noting the impact of a $150 billion defense budget boost that strengthens Kratos’ market position. Stifel also increased its target to $54 following a $500 million equity raise, emphasizing the optionality it provides for future investments. The Pentagon’s directive to ramp up drone production has positively impacted Kratos, as the company is part of the broader sector experiencing increased demand. Kratos’ joint venture with Rafael Advanced Defense Systems, Prometheus, is expected to become a significant earnings contributor, as noted by Stifel. These developments indicate a strong focus on growth and strategic positioning in both defense and commercial sectors.

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