# Kratos plans a turbojet production ramp ahead of expected sales Kratos targets up to 3,000 engines produced in 2027. It forecasts about 1,500 sold, with cash flow estimates including working capital for the ramp. Published 2026-11-07 by TGOs. Canonical: https://tgos.io/news/2026/11/07/kratos-plans-a-turbojet-production-ramp-ahead-of-expected/ Kratos plans to increase turbojet production to address expected customer demand for jet engines for small cruise missiles and drones.[1] Its 2027 forecast assumes about 1,500 engines sold, with most deliveries in the second half.[1] Kratos's fiscal 2026 and 2027 cash flow estimates include working capital for materials, components and equipment to increase production of turbojet engines up to 3,000 engines produced in 2027.[1] Third-quarter 2026 revenue grew 35.7% year over year.[1] Organic growth, excluding the current-year contribution from acquisitions, was 23.2%.[1] Turbine Technologies posted 27.1% organic revenue growth.[1] Growth is already absorbing cash.[1] Third-quarter 2026 operations used $5.2 million, which Kratos attributed primarily to receivables growth, alongside inventory increases tied to production ramps and development investments.[1] For full year 2026, Kratos forecasts free cash flow use of $110 million to $120 million.[1] It forecasts capital expenditures of $100 million to $110 million.[1] It expects investments in inventory, property, plant, equipment and facilities to continue at least throughout fiscal 2027.[1] Kratos raised $1,348.4 million from common stock issuance, net of issuance costs, in the first nine months of fiscal 2026.[1] It ended the quarter with $1,404.3 million in cash and cash equivalents.[1] Separately, third-quarter Unmanned Systems revenue fell to $74.6 million from $87.2 million a year earlier.[1] Kratos attributed the decline to a prior-year shipment of Valkyries to an international customer that generated $16.1 million.[1] ## Why it matters Kratos says continuing resolutions typically restrict production-rate increases and new program starts.[1] Its guidance assumes a continuing resolution into its first fiscal quarter of 2027.[1] If it extends beyond March 31, 2027, the company says it will need to reassess its initial forecast for that year.[1] ## Sources 1. Kratos Reports Third Quarter 2026 Financial Results, Nov. 5, 2026