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Feb 7, 2026 4:20 AM

The Gauntlet Begins: Kratos and Red Cat Face Off for $1.1 Billion Drone Supremacy

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), Red Cat Holdings, Inc. (NASDAQ:RCAT) and 23 other drone manufacturers are preparing for battle at Fort Benning. 

The objective: Secure a lead position in the War Department's Drone Dominance Program, a massive acquisition initiative valued at $1.1 billion over four phases. 

RCAT stock is climbing. See the chart and price action here. 

A New Acquisition Philosophy

The Drone Dominance Program (DDP) is the brainchild of Secretary of War Pete Hegseth, who has spent the last year dismantling traditional procurement hurdles to better match technology with modern battlefield threats.

In his July 2025 memorandum, "Unleashing U.S. Military Drone Dominance," Hegseth redefined the stakes. 

“Drone dominance is ...