KRMN · Karman Holdings Inc.

Karman Space & Defense delivered exceptional Q1 FY2026 results, achieving record revenue of $151.2 million, a 51% increase year-over-year, driven by growth across all end markets: Hypersonics and Strategic Missile Defense up 18.7% to $35.7 million, Space and Launch up 29.5% to $43.9 million due to order timing for launch providers and spacecraft, Tactical Missiles and Integrated Defense Systems up 25.0% to $45.3 million from drone technologies and GMLRS production, and new Maritime Defense Systems at $26.4 million following the Seemann Composites and MSC acquisitions in January 2026. This diversified growth across over 80 customers and 130 programs flipped net income to a record $7.8 million from a $4.8 million loss, with diluted EPS of $0.06, while non-GAAP adjusted EBITDA hit $44.8 million (up 47.7%), reflecting strong margin expansion to nearly 30%. Backlog surged 61% to a record $1.0 billion, providing high visibility with 90% expected to convert to FY2026 revenue. CEO Jon Rambeau highlighted excellent visibility into the raised full-year outlook of $720-735 million revenue (54% growth) and $208.5-219.5 million adjusted EBITDA (47% growth), fueled by U.S. Department of War funding increases for programs like SM-3, PAC-3, THAAD, and submarines, alongside accelerating space launch demand. Strategic moves included upsizing the revolving credit facility to $150 million in March 2026, supporting expansion. Management expressed confidence in a rapidly expanding pipeline and growing bookings, positioning for sustained momentum through 2027 amid generational demand in defense and space.