What's Happening?
Kratos, a defense manufacturer, is on the verge of securing a significant order for its XQ-58 Valkyrie autonomous fighter jet with the US Marine Corps (USMC). This development would mark the first major procurement of the Valkyrie outside of test and evaluation phases. Although a formal contract has not been signed, the decision to make the Valkyrie a program of record has reportedly been made in principle. The USMC has conducted several flight tests with the XQ-58, including pairing it with Lockheed Martin F-35B fighters for electronic attack roles. Kratos CEO Eric DeMarco highlighted the potential financial impact of this contract, noting that the company could deliver 15 aircraft immediately upon contract award. Kratos has already initiated production of 24 Valkyries in anticipation of future demand.
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Why It's Important?
The potential contract with the USMC represents a significant milestone for Kratos, potentially boosting its tactical drones business. The XQ-58 Valkyrie, as an autonomous fighter, aligns with the military's increasing focus on unmanned systems for combat operations. This move could enhance the USMC's capabilities in electronic warfare and air defense suppression. For Kratos, securing this contract would validate its investment in the Valkyrie program and position the company as a leader in the emerging market for autonomous combat aircraft. The deal could also influence future procurement decisions by other branches of the US military and international partners.
What's Next?
If the contract is finalized, Kratos plans to deliver the initial batch of Valkyries by 2026. The company is also pursuing additional opportunities, including a partnership with Airbus to offer a Valkyrie variant to the German air force. Kratos is preparing for further production by acquiring long-lead items for an additional 24 jets, potentially expanding its production run to 48 aircraft. The company is also in discussions with two unnamed customers, indicating a strong market interest in the Valkyrie.
