Kratos Defense & Security Solutions (NASDAQ:KTOS) saw its shares rise 1.6% after announcing a formal partnership with GE Aerospace (NYSE:GE) aimed at developing next-generation propulsion technologies for unmanned and collaborative combat aircraft systems.
Building on an earlier Memorandum of Understanding, the new teaming agreement formalizes collaboration between the two companies to co-develop and produce cost-effective, high-performance propulsion systems. A central focus of the alliance is the GEK800 Engine, with plans for further joint efforts on additional turbofan engines such as the GEK1500.
This initiative is geared toward supporting key defense applications, including unmanned aerial systems (UAS) and Collaborative Combat Aircraft (CCA), which are seen as critical components in future military strategy. The propulsion solutions being developed are intended to meet stringent performance, affordability, and production scalability requirements crucial for national security.
Eric DeMarco, CEO of Kratos, highlighted the company’s role in rapidly delivering affordable defense capabilities, while Amy Gowder, President and CEO of GE Aerospace’s Defense & Systems unit, underscored the strategic value of accelerating innovation in unmanned aircraft propulsion.
With Kratos contributing over two decades of experience in UAS propulsion and GE Aerospace offering a century of know-how in engine development and production, the partnership is positioned to transform how defense contractors move from concept to operational deployment.
The modest yet positive movement in Kratos’ stock price signals investor optimism about the potential for this collaboration to generate significant technological and financial returns as defense spending continues to prioritize unmanned and autonomous systems.