Eric Demarco on defense procurement
From Why Kratos Could Be Defense Tech's Biggest Growth Story | CEO Eric DeMarco · · The Motley Fool
“Quantity has a quality all of its own — you're going to see quantities of very capable autonomous or AI-driven systems that by definition need to be very low cost, delivering perhaps 90% of the capability of an exquisite system at orders of magnitude lower cost so you can have affordable mass.”
On , Eric Demarco, Chief Executive Officer, President & Director at KRATOS DEFENSE & SECURITY, spoke about defense procurement during Why Kratos Could Be Defense Tech's Biggest Growth Story | CEO Eric DeMarco on The Motley Fool.
About Eric Demarco
Eric DeMarco, CEO of Kratos Defense & Security Solutions, stated during the company's Q4 2025 earnings call that Kratos expects to approximately double its hypersonic franchise revenues in 2026 over 2025 to around $400 million, with a potential further increase of over 75% in 2027 to approximately $700 million. He described the current period as a "generational recapitalization of strategic weapon systems" driven by geopolitical threats, and noted that Kratos is one of the few non-traditional prime contractors qualified to address the resulting demand for military-grade hardware. DeMarco also emphasized the company's focus on low-cost, high-volume production of jet drones, hypersonic systems, and small jet engines, citing the principle that "quantity has a quality all of its own." In interviews and public appearances, DeMarco has discussed Kratos's vertical integration strategy for mission-critical parts and its use of non-traditional manufacturers, such as automotive industry suppliers, to manage costs. He has expressed concern about low-cost, fiber-optic tethered drones used by adversaries, describing them as difficult to counter. DeMarco has also argued that the U.S. defense industry needs to prioritize fielding systems at 90% capability rather than pursuing perfection, stating that "better is the enemy of good enough." He characterized his role at Kratos as a "passion" and a "mission," citing "God, family, country" as his guiding principles)Skip