Kratos Defense & Security Solutions, Inc. (KTOS) — ESG & Values Scores

Environment story

Kratos discloses minimal direct environmental data. No Scope 1, 2, or 3 emissions metrics are disclosed in the 10-K filing. No net-zero target year is stated. The company does not report renewable energy percentages or decarbonization infrastructure investments. No environmental controversies, fines, or toxic-waste allegations are documented in the sources provided. The company faces operational risks from volatile and flammable materials (explosives) in manufacturing but does not quantify environmental impact. Without disclosed emissions data or climate commitments, environmental score is capped at 60 to reflect absence of credible targets and transparency.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Manufacturing Safety and Loss Prevention

Company has safety and loss prevention programs with detailed reviews of process changes and new operations, routine safety audits for operations involving explosive materials, and insurance policies for occupational safety.

Risk mitigation for workplace injuries and production disruptions related to volatile/flammable materials; does not directly reduce carbon or environmental footprint.

Social story

Kratos reports no disclosed workforce diversity percentages, CEO-to-median-worker pay ratio, or turnover rates in the 10-K. No union agreements, strikes, or NLRB complaints are mentioned. The company acknowledges industry-wide labor shortages, particularly in STEM and clearance-eligible personnel, and states that labor cost increases have adversely impacted operating margins on fixed-price contracts. Supply-chain ethics and human-rights audits are not documented. No labor disputes or union-suppression activities are evident in available sources. Social score of 70 reflects absence of major negative flags but lack of positive diversity/equity disclosures or labor-relations transparency.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

National Security Clearance Workforce

Company workforce is primarily engineering and technically oriented with significant number of employees holding National Security clearances; described as key competitive advantage.

Supports mission-critical defense contracts; does not directly address social equity or labor standards.
Labor Retention Challenges

Company acknowledges industry-wide labor shortage and challenges in hiring, obtaining and retaining skilled employees, particularly those with National Security clearances.

Negative: labor cost increases have adversely impacted operating margins on fixed-price production contracts.

Governance story

Kratos does not disclose board independence percentage, share structure characteristics, or annual lobbying expenditures in the 10-K filing. No dual-class share structure is mentioned. No antitrust, consumer-safety, or financial-fraud regulatory proceedings are documented. The company is subject to DoD CMMC cybersecurity requirements and facility security clearances; these are compliance obligations rather than governance controversies. The company received research and development tax refunds and manages cost-accounting audits by DCAA. No active lobbying to weaken climate or consumer-protection statutes is disclosed. Governance score of 65 reflects limited transparency on board structure and lobbying, absence of major regulatory violations, and standard government contract compliance framework.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

DoD CMMC Compliance

Company is subject to Department of War Cybersecurity Maturity Model Certification (CMMC) requirements issued by Pentagon; required for classified contract eligibility.

Ensures information security standards for government contracts; compliance cost may be significant.
Facility Security Clearance

Company subject to National Industrial Security Program Operating Manual requirements; prerequisite for classified contract performance.

Mandatory compliance framework; demonstrates security governance for sensitive work.
DCAA Cost Audits

Costs incurred and allocated to U.S. Government contracts are routinely audited by Defense Contract Audit Agency (DCAA).

Standard government contractor oversight; no violations or adverse findings documented.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Kratos Defense & Security Solutions, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Kratos Defense & Security Solutions, Inc. in the app for interactive charts and portfolio building.

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