Kratos Redirects Engine Capacity to Supply Boeing's JDAM Program

Kratos Defense & Security Solutions has redirected its Spartan engine production capacity to supply Boeing's Joint Direct Attack Munition Long Range program.

The U.S. Air Force awarded Boeing a US$75 million contract for the BSU-111/B precision-guided munition powered by Kratos's J85 engines in August 2026.

This move highlights Kratos's fully operational Auburn Hills propulsion facility and planned capacity expansion, which could underpin its role in high-volume, low-cost propulsion for next-generation munitions.

The allocation of Spartan engine capacity to Boeing's JDAM Long Range program may influence Kratos's investment narrative by reinforcing propulsion as a key short-term catalyst, but it also sharpens execution risk if large production runs or follow-on orders do not come through on the expected timeline.