Kratos Backlog Nears $2.1 Billion as Defense Suppliers Diverge
Kratos Defense & Security Solutions posted the sharpest backlog gains in the group while several suppliers further down the chain flagged funding and program risk even as new contract wins accumulated.
Kratos Defense & Security Solutions, Inc. (KTOS), the maker of unmanned systems and defense electronics, reported consolidated backlog of $2.010 billion on March 29, 2026, up from $1.573 billion at the end of 2025, with its Kratos Government Solutions unit alone growing backlog to $1.635 billion from $1.212 billion over the same quarter. The company's growth continued into the second quarter, when consolidated backlog reached $2.084 billion and KGS backlog rose to $1.710 billion, with a bid and proposal pipeline that grew to $15.0 billion from $14.3 billion in the prior quarter. Bookings ran ahead of revenue in both periods, producing book-to-bill ratios of 1.6 to 1.0 and 1.1 to 1.0 for the two quarters and 1.2 to 1.0 and 1.3 to 1.0 on a trailing-twelve-month basis.
Other suppliers further down the size scale reported comparable order momentum. Voyager Technologies, Inc. (VOYG), a defense and space technology company, said its second-quarter 2026 bookings of $113.0 million were the strongest in company history, producing a 2.1x book-to-bill ratio and pushing backlog to a record $335.5 million as net sales grew about 51% sequentially. Karman Holdings Inc. (KRMN), which supplies missile and munitions programs and space launch structures, said total backlog surpassed $1 billion as of March 20, 2026, following its Seemann Composites and MSC acquisitions, and guided to 53% revenue growth and 46% adjusted EBITDA growth at the midpoints of its outlook ranges. Intest Corp (INTT), a semiconductor and industrial test equipment maker, reported Defense/Aerospace orders of $5.9 million in the first quarter of 2026, up 184.1% from $2.1 million a year earlier, though total company backlog of $45.4 million at June 30 was down 12.4% from the prior quarter even as it rose 19.8% year over year.
Lantronix Inc (LTRX), an IoT connectivity supplier, described its drone and defense business moving "from early validation to a meaningful growth engine" in fiscal 2026, citing its first drone win with Red Cat's Teal Drones for the U.S. Army's SRR program and its status as a Blue UAS-approved, NDAA- and TAA-compliant North American supplier. At the same time, Lantronix flagged that continued growth in that market depends on its customers winning government contracts and subcontracts, which remain exposed to congressional appropriations, budgetary constraints and the risk of spending reductions or shutdowns.
Funding risk showed up more explicitly among suppliers with heavier reliance on prime-contractor and government revenue. Booz Allen Hamilton Holding Corp (BAH), a government consulting and technology services provider, said additions to funded backlog fell to $11.1 billion in fiscal 2026 from $12.2 billion in fiscal 2025, and separately disclosed that "as a result of the U.S. government's review of federal spending across U.S. government agencies, we have had certain" impacts to its backlog and revenue recognition. Mercury Systems Inc (MRCY), a defense electronics maker, said sales to the U.S. government and foreign governments made up approximately 97% of total net revenues in fiscal 2026, and it continues to depend on defense electronics programs that may be only partially funded and subject to termination, reduction or delay.
Ducommun Inc (DCO), an aerostructures and electronic systems manufacturer, reported that its backlog increase was concentrated in military and space and commercial aerospace end markets, with $844.0 million of total backlog expected to be delivered within 12 months. Ducommun also warned that a significant portion of its business depends on U.S. government defense spending that remains subject to appropriations uncertainty, budgetary constraints and shifting national defense priorities. Kopin Corp (KOPN), a display and optics supplier to defense programs, said a decline in the defense budget, a prolonged government shutdown or delayed contract awards could significantly affect its revenue and cash flow, and separately flagged that most of its defense sales run on fixed-price contracts that expose it to cost-overrun risk amid ongoing semiconductor and raw-material shortages.
Velo3D, Inc. (VELO), a metal additive-manufacturing equipment maker, said long procurement and qualification cycles, limited production capacity and heightened cybersecurity and export-control obligations may constrain its ability to capitalize on defense and aerospace demand even as participation in those markets grows. The company also disclosed that the ongoing conflict with Iran has created uncertainty in global markets and could affect demand for its products as a supplier to defense and aerospace customers, alongside broader tariff-related market volatility.
Across the group, backlog and bookings figures point to expanding order books at Kratos, Voyager and Karman, alongside a narrower but fast-growing defense order stream at Intest and a first program win for Lantronix. Booz Allen's decline in funded backlog additions and its disclosed exposure to the federal spending review stand out as the most concrete signal that appropriations pressure is already showing up in the numbers rather than remaining a general risk disclosure.