Manufacturing NewsTEG DailyOctober 15, 2026

October 15, 2026 · Daviess County · Story 2 of 5

Kratos Breaks Ground on Radar and Hypersonics Facilities in Odon

Kratos Defense & Security Solutions broke ground on new AN/SPY-1 radar and Helios hypersonics test facilities in Odon, Daviess County, supporting Department of War modernization work tied to Naval Support Activity Crane. The buildout follows the $50 million Indiana Payload Integration Facility the company finished ahead of schedule in July. The SPY-1 facility connects to a potential $175 million Navy sustainment contract known as Project Anaconda, which would give the Navy its first in-house SPY-1 support capability independent of incumbents Lockheed Martin and Raytheon.

Kratos Defense & Security Solutions broke ground on new AN/SPY-1 radar and Helios hypersonics test facilities in Odon, Daviess County, supporting Department of War modernization work tied to Naval Support Activity Crane. The buildout follows the $50 million Indiana Payload Integration Facility the company finished ahead of schedule in July.

The SPY-1 facility connects to a potential $175 million Navy sustainment contract known as Project Anaconda, which would give the Navy its first in-house SPY-1 support capability independent of incumbents Lockheed Martin and Raytheon. Kratos is also ramping its TDI-J85 and Spartan engine lines toward a target of more than 10,000 J85 engines a year by 2029, and it has already placed a 3,000-engine order for 2027 production tied to Boeing's JDAM-LR munitions program before that contract is fully finalized. Construction is backed by the Department of War's IBAS program even though Kratos keeps commercial pricing rights.

For your morning huddle

Q

With Kratos, Prometheus (its RAFAEL joint venture on solid rocket motors), and NSWC Crane all clustering in the same Daviess/Martin County corridor, do we have the precision-machining or propulsion-component capacity to bid into that supply chain before it locks in with out-of-state vendors?

Briefing note

Impact
The SPY-1 facility is tied to 'Project Anaconda,' a potential $175M Navy sustainment contract that would give the Navy its first in-house SPY-1 support capability independent of incumbents Lockheed Martin and Raytheon, a direct displacement play, not a supplement. The construction is also taxpayer-subsidized through the Department of War's IBAS program even though Kratos retains commercial pricing rights, and Kratos is carrying real speculative risk: it's targeting 10,000+ J85 engines a year by 2029 and has already placed a 3,000-engine order for 2027 production tied to Boeing's JDAM-LR munitions program, ahead of that contract being fully definitized.
Watch
Whether the IRIC radar facility hits its planned 2027 operational date, which would position Kratos to bid on next-generation SPY-6 sustainment work.

Sources

  1. Kratos Breaks Ground on New AN/SPY-1 Radar and Helios Hypersonics Testing Facilities in Indiana · simplywall.st

Earlier coverage

From the brief, October 15, 2026

  1. Indiana Opens Applications for Advanced Nuclear Ready Communities Program
  2. Kratos Breaks Ground on Radar and Hypersonics Facilities in Odon
  3. SK Hynix Ties New U.S. NAND Fab to China Equipment Approval
  4. Husted's Ohio Roundtable Tackles the PJM Capacity Price Increase Behind Indiana's Power Costs
  5. LaGrange's Manufacturing Day Offers a Workforce Pipeline Lesson for Indiana

The whole day’s brief →

This story

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