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

$RTX (-2,22%) ,$LMT (-10,98%)

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

Combat aircraft & air dominance

$LMT (-10,98%) , $BA. (-2,46%)

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

Maritime strike capability

$HII (-0,09%) , $GD (-0,46%) , $BA. (-2,46%)

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

Sensors & electronic reconnaissance

$HAG (-1,21%) , $QQ. (-0,85%) , $CHRT (-2,45%) , $BA. (-2,46%)

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

Autonomous systems & drones

Almost all companies play me here. $KTOS (-6,94%) as the only drone pure play.

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

Cyber / AI & data fusion

$PLTR (-2,52%) ,$CACI (-0,81%)

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

Ground-based large-scale systems

$GD (-0,46%) ,$NOC (+8,43%) , $BA. (-2,46%)

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

Multidomain space flight

$NOC (+8,43%)

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 (-4,42%)
(drones/loitering ammunition):

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

New position $RHM (-2,73%)
(Ammunition & Platforms)

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

Increase $RTX (-2,22%)

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

Top-up $GD (-0,46%)

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 (-6,94%) 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. ⚡