Kratos to manufacture Elroy Air’s Chaparral VTOL cargo drone in US

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) has entered into a five-year strategic manufacturing agreement with Elroy Air, becoming the exclusive US manufacturer for the Chaparral hybrid-electric autonomous vertical takeoff-and-landing (VTOL) cargo drone. The partnership is set to accelerate high-volume production of the aircraft to meet growing demand in both defense and commercial markets.

Elroy Air, known for pioneering autonomous aerial cargo systems for middle-mile logistics and military resupply, sees the agreement as a major step forward in bringing its Chaparral system to scale.

“Kratos is an established and trusted producer of military UAS and is unique in their manufacturing focus on affordability. Kratos has produced and delivered thousands of uncrewed aircraft, with a well-established and reliable supply chain for these systems. Their expanded production capabilities make them the ideal partner to bring Chaparral to market at scale,” said Elroy Air CEO Andrew Clare. “This partnership accelerates our ability to deliver Chaparral systems to the many customers waiting for them, across both defense and commercial markets.”

Kratos has expanded its manufacturing capacity in recent years, specializing in affordable, jet-powered composite unmanned aircraft for the US Department of Defense. The agreement leverages its infrastructure and expertise to position Chaparral for mass production.

Eric DeMarco, president and CEO of Kratos, said, “Kratos is the recognized industry leader for rapid development, production, and delivery of affordable, leading technology unmanned aerial drone systems, which is a perfect fit with Elroy Air’s UAV roadmap, incredibly large forecasted addressable market and related future high volume production plans, including for the US military. Kratos provides Elroy an immediate and unique competitive, customer differentiating, value-multiplier advantage, with Kratos’ up and running manufacturing facilities, qualified and executing supply chain and relevant past performance qualifications. Kratos’ partnership with Elroy Air is a recent example of Kratos delivering relevant products, not promises, power points and renditions, with expected tangible value creation for our stakeholders.”

The Chaparral is designed to transport up to 300 pounds of cargo over 300 miles, using a hybrid-electric powertrain that enables rapid refueling and extended range compared to battery-electric aircraft. Initial production will begin at Kratos’ Sacramento, California facility, with high-rate production to follow in Oklahoma City.

The first Chaparral production units are expected in 2026, and both companies will showcase their unmanned systems at the Miramar Air Show from September 26–28 in San Diego.