diff --git a/meta-oe/recipes-kernel/ktls-utils/ktls-utils/0001-systemd-Fix-out-of-tree-builds.patch b/meta-oe/recipes-kernel/ktls-utils/ktls-utils/0001-systemd-Fix-out-of-tree-builds.patch
deleted file mode 100644
index a5a46ea8d3..0000000000
--- a/meta-oe/recipes-kernel/ktls-utils/ktls-utils/0001-systemd-Fix-out-of-tree-builds.patch
+++ /dev/null
@@ -1,28 +0,0 @@
-From 496b0ffd7cd685a1adb48b150157fdea14f5f159 Mon Sep 17 00:00:00 2001
-From: Khem Raj <raj.khem@gmail.com>
-Date: Tue, 9 Dec 2025 08:53:53 -0800
-Subject: [PATCH] systemd: Fix out-of-tree builds
-
-The systemd unit file installation does not work when the build directory
-differs from the source directory because cp cannot find the source file.
-Prefix the unit files with $(srcdir) to reference files from the source tree.
-
-This fixes out-of-tree builds which use separate build directories (B != S).
-
-Upstream-Status: Submitted [https://github.com/oracle/ktls-utils/pull/134]
-Signed-off-by: Khem Raj <raj.khem@gmail.com>
----
- systemd/Makefile.am | 2 +-
- 1 file changed, 1 insertion(+), 1 deletion(-)
-
-diff --git a/systemd/Makefile.am b/systemd/Makefile.am
-index d2f8e25..d6435ad 100644
---- a/systemd/Makefile.am
-+++ b/systemd/Makefile.am
-@@ -24,5 +24,5 @@ MAINTAINERCLEANFILES	= Makefile.in
- if INSTALL_SYSTEMD
- install-data-hook: $(unit_files)
- 	mkdir -p $(DESTDIR)/$(unitdir)
--	cp $(unit_files) $(DESTDIR)/$(unitdir)
-+	cp $(addprefix $(srcdir)/,$(unit_files)) $(DESTDIR)/$(unitdir)
- endif
diff --git a/meta-oe/recipes-kernel/ktls-utils/ktls-utils_1.3.0.bb b/meta-oe/recipes-kernel/ktls-utils/ktls-utils_1.4.0.bb
similarity index 83%
rename from meta-oe/recipes-kernel/ktls-utils/ktls-utils_1.3.0.bb
rename to meta-oe/recipes-kernel/ktls-utils/ktls-utils_1.4.0.bb
index 947aa90e2e..e8e4f36d6c 100644
--- a/meta-oe/recipes-kernel/ktls-utils/ktls-utils_1.3.0.bb
+++ b/meta-oe/recipes-kernel/ktls-utils/ktls-utils_1.4.0.bb
@@ -7,10 +7,8 @@ RDEPENDS:${PN} += " gnutls"
 LICENSE = "GPL-2.0-only"
 LIC_FILES_CHKSUM = "file://COPYING;md5=d568123389d9a12625cca2b089b1728b"
 
-SRC_URI = "https://github.com/oracle/ktls-utils/releases/download/${BP}/${BP}.tar.gz \
-           file://0001-systemd-Fix-out-of-tree-builds.patch \
-           "
-SRC_URI[sha256sum] = "8ee295b26b608450bc0c47ba199b34cf92f7f9ec4c81a62363e6450da76b6739"
+SRC_URI = "https://github.com/oracle/ktls-utils/releases/download/${BP}/${BP}.tar.gz"
+SRC_URI[sha256sum] = "acd9e1851e492e7e16b879b30fc800f4a98d4214fa534ebb7e24d379f5984770"
 
 inherit autotools pkgconfig systemd