The partnership, structured as a 50/50 venture, involves a joint investment of up to $175 million for infrastructure, equipment, and workforce development. Once the construction phase and technology transfer from Rafael are complete, Prometheus is expected to begin production of SRMs in 2027.
Rafael, a leading Israeli defence contractor, is known for its advanced missile defence systems, including Iron Dome, Trophy Active Protection System (APS), and David’s Sling. The company also develops high-energy laser technology such as Iron Beam, which is set to become operational by 2025.
Kratos specialises in hypersonic and advanced systems, ballistic missile targets, and solid rocket motors, with experience supporting the U.S. defence sector for decades. The company has developed propulsion and flight systems, including the Erinyes Glide Vehicle, Dark Fury, Zeus, and Oriole Solid Rocket Motors.
Eric DeMarco, President and CEO of Kratos, described Prometheus as a “catalyst for value creation”, strengthening the U.S. defence industrial base. He highlighted that Prometheus will supply tens of thousands of SRMs and casted warheads to support both U.S. national security and allied defence needs.
Rafael CEO Yoav Tourgeman emphasised that Prometheus represents a strategic expansion in the U.S. defence market. He stated that the venture will enhance supply chain independence, ensuring reliable access to combat-proven energetic solutions for the U.S. and its allies.
Kratos will report its 50% stake in Prometheus using the equity method of accounting, reflecting net income from the venture in its financial statements. The company will continue to report operating income, net income, and adjusted EBITDA separately to allow stakeholders to track both Kratos and Prometheus’ financial performance.
