I find the share of $KTOS (-1,06 %) quite interesting. It has only taken just under 20 years to complete the saucer formation since the issue and finally rise above the issue price again. Should you get in now or wait for a setback?

I wanted to give you a little update on my current defense portfolio and the planned changes.

📍Status Quo:

📍Capability areas and benefits for the portfolio:

Air & missile defense

$RTX (-1,17 %) ,$LMT (+0,61 %)

Patriot, PAC-3, THAAD - core systems for the protection of cities, bases and fleets

Combat aircraft & air dominance

$LMT (+0,61 %) , $BA. (+0,07 %)

F-35 program (LMT), Eurofighter Typhoon, future Tempest/FCAS

Maritime strike capability

$HII (-1,9 %) , $GD (-0,38 %) , $BA. (+0,07 %)

Nuclear submarines (Virginia, Astute), Type-26 frigates, combat systems

Sensors & electronic reconnaissance

$HAG (-0,77 %) , $QQ. (+0,65 %) , $CHRT (+1,23 %) , $BA. (+0,07 %)

AESA radars, ESM/ECM, BAE Raven ES-05 radar

Autonomous systems & drones

Almost all companies play me here. $KTOS (-1,06 %) as the only drone pure play.

Unmanned jets (XQ-58) and tactical UAS - rapidly growing budget item

Cyber / AI & data fusion

$PLTR (+4 %) ,$CACI (+1,23 %)

AI-supported command and control systems (PLTR Gotham/Apollo) and US government IT services

Ground-based large-scale systems

$GD (-0,38 %) ,$NOC (-1,21 %) , $BA. (+0,07 %)

Abrams modernizations, artillery rockets and ground-based sensors, CV90-IFV, M109 howitzers

Multidomain space flight

$NOC (-1,21 %)

US nuclear deterrence - from delivery systems to warning and command and control networks

💰Realized partial sales at $HAG and $PLTR

I had already reduced $HAG and $PLTR by 50% each this year with large gains (+651% and +346%):

The valuations of both companies are currently extremely sporty.

PLTR

Trailing P/E ratio (TTM): 580 - 590x

Forward P/E ratio: ~240x

Price-to-sales: >100x

HAG

Trailing P/E ratio (TTM): 120 - 130x

Forward P/E ratio: ~80x

Price-to-sales: >5x

I will nevertheless remain invested in both positions for the time being. Mainly because I currently see no significant change in the underlying investment story.

Position sizes are relativized by new planned purchases and the concentration risk falls from 34% → 25% of the sleeve.

📊Planned adjustments:

❓Why these changes?

New position$AVAV (-2,45 %)
(drones/loitering ammunition):

Covers the fastest growing budget line (attritable UAS), which was previously barely represented.

New position $RHM (-1,09 %)
(Ammunition & Platforms)

Adds the "155 mm grenades" bottleneck and European land systems to the portfolio; beneficiary of EU armament.

Increase $RTX (-1,17 %)

Most favorable US prime (forward P/E ≈ 25), high visibility in air/missile defense systems.

Top-up $GD (-0,38 %)

Diversified towards submarines, ground vehicles and ammunition; reliable free cash flow.

📉Planned, staggered entries:

$AVAV: $220 - $185

$RHM: €1550 - €1450

$RTX: $125 - $120

$GD: $285 - $270

🤔 What does your portfolio look like?

Which defense stocks do you hold and why?

While everyone is staring at the big armor values such as Lockheed & Co. $KTOS (-1,06 %) is still flying under the radar - but they are right in the middle of things when it comes to the future of defense:

✅ Focus on drones, unmanned systems & space technology

✅ Supplier for the Pentagon, NATO & SpaceX partner

✅ Drones such as the XQ-58A Valkyrie are seen as game changers for the military

✅ Sales are growing, order backlog is steadily increasing

💡 Market environment speaks for itself: global defense spending at record levels, drone technology is becoming standard - and Kratos is at the forefront of technology

Currently still below USD 3 billion market capitalization - small cap with real 10x potential if drone programs are successful.

Conclusion: If you don't want to miss out on the future of AI and defense, you should put KTOS on your watchlist now - before the mainstream discovers it. ⚡