Kratos Defense & Security Solutions (KTOS) said Monday it will manufacture Elroy Air's Chaparral autonomous cargo aircraft at its expanded Sacramento, California, facility.

Financial terms were not provided.

Kratos said it is the exclusive US manufacturer of the Chaparral aircraft and will produce all aircraft ordered by US customers.

The company said it expects to deliver the first production aircraft in late 2026.

Kratos said it will add more than 50 employees to its Sacramento workforce of more than 450 as production increases to support commercial and defense demand.

The announcement follows Elroy Air's recent plan to become a public company and its disclosure of a demand pipeline exceeding 1,400 aircraft, according to Kratos.

Shares of Kratos were up 1.5% in premarket activity Monday.