Kratos Defense & Security Solutions announced the opening of a 60,000‑square‑foot plant in Jerusalem’s Gav Yam high‑tech complex, adjacent to the Hebrew University of Jerusalem. The purpose‑built facility houses 20,000 square feet of clean‑room space designed for microwave product development, testing, and production, and is dedicated to the company’s Microwave Electronics Division.
The new site is a strategic extension of Kratos’ recent acquisition of Orbit Technologies Ltd., allowing the firm to consolidate microwave and digital subsystem capabilities in Israel. By situating the plant near a leading research university, Kratos gains access to a deep talent pool and the opportunity to collaborate on cutting‑edge high‑frequency research, positioning the company to accelerate design cycles and reduce time‑to‑market for defense‑grade microwave systems.
Kratos’ Q3 2025 earnings, released the same week, showed a non‑GAAP EPS of $0.14 versus analyst expectations of $0.13—a $0.01 or 7.7% beat driven by disciplined cost control and a favorable product mix that increased revenue by 24% to $347.6 million. The company’s adjusted EBITDA of $30.8 million also exceeded forecasts, reflecting efficient scaling of its manufacturing footprint. While the announcement of the Jerusalem facility was not a direct driver of the Q3 results, the investment signals Kratos’ confidence in sustaining growth and meeting future contract demand.
The expansion is expected to create new jobs in Jerusalem and enhance Kratos’ ability to meet the growing demand for affordable, rapidly deployable microwave solutions in defense and national‑security programs. By expanding its manufacturing footprint in a strategically important region, Kratos strengthens its supply‑chain resilience and positions itself to secure larger contracts for missiles, radars, and electronic‑warfare systems.
Management emphasized the strategic importance of the new facility. President of the Microwave Electronics Division, Yonah Adelman, said the expanded space and advanced clean‑room capabilities would “enable us to deliver next‑generation microwave and RF systems faster and more efficiently.” President & CEO Eric DeMarco added that the Jerusalem expansion “reflects Kratos’ commitment to global partnerships and sovereign‑capable production,” noting that the integration of Orbit’s capabilities will further enhance the company’s microwave and digital subsystem offerings in Israel.
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