Karman Space & Defense Reports Record FY2025 Results, Raises 2026 Outlook on Soaring Demand

HUNTINGTON BEACH, Calif., March 25, 2026 – Karman Space & Defense (NYSE: KRMN), a leader in the design, development, and production of critical next-generation systems for the defense and space sectors, delivered a blockbuster set of results for the fourth quarter and full fiscal year 2025, with a series of record-breaking financial and operational achievements. The company also provided an upgraded outlook for 2026, citing robust market demand and a strengthened competitive position after recent strategic acquisitions.

Key Highlights for Investors

• Record Quarterly and Annual Revenue: Q4 FY2025 revenue soared to \$134.5 million, up 47.4% year-over-year. Full-year revenue hit a record \$471.5 million, reflecting 36.6% annual growth.
• Stunning Profitability Surge: Q4 net income was \$7.7 million (up 358% YoY) with EPS of \$0.06. For the full year, net income reached \$17.4 million, up 36.7%, and EPS of \$0.13.
• Adjusted EBITDA Growth: Q4 adjusted EBITDA hit \$42.0 million (+59% YoY); full-year adjusted EBITDA was \$145.3 million (+36.9%). Adjusted EPS for the year nearly tripled to \$0.37.
• Backlog and Bookings: Year-end backlog reached \$801.1 million (+38.2% YoY), with subsequent orders pushing backlog beyond \$1 billion as of March 20, 2026.
• Major Capital Raises: Completed an initial public offering that raised \$581 million, as well as a \$1.2 billion non-dilutive secondary equity offering.
• Acquisitions: Completed three accretive acquisitions in 2025, and in January 2026 acquired Seemann Composites and MSC, expanding into the maritime defense market and deepening composites and resin expertise.
• Credit Facility Expansion: Upsized revolving credit facility from \$50 million to \$150 million in March 2026, providing greater financial flexibility.
• Raised 2026 Guidance: Management now expects 2026 revenue of \$715–\$730 million and adjusted EBITDA of \$207–\$218 million, representing 53% and 46% growth at the midpoints, respectively.

Business Segment Performance

• Hypersonics & Strategic Missile Defense: Q4 revenue grew 41.8% to \$48.4 million. Full-year segment revenue reached \$150.0 million, up 30.9%. Growth was driven by expanded strategic missile programs, NGI progress, classified projects, and increased hypersonic testbed support.
• Space & Launch: Q4 revenue rose 24.6% to \$35.7 million, with full-year revenue of \$149.8 million (+30.2%). Growth was fueled by orders from both legacy and emerging launch providers, especially for liquid-fueled rocket engines, partially offset by a slowdown in crewed missions and SLS revenue.
• Tactical Missiles & Integrated Defense Systems: Q4 revenue jumped 77.0% to \$50.5 million. For the year, revenue reached \$171.7 million, up 48.5%. Demand was driven by growth in advanced drone, loitering munitions, and increased GMLRS production rates.

Balance Sheet and Liquidity

• Strong Cash Position: Cash and equivalents of \$34.0 million at year-end, up from \$11.5 million the previous year.
• Significant Asset Base: Total assets rose to \$1.10 billion (from \$774 million), reflecting acquisitions and internal growth.
• Equity and Leverage: Stockholders’ equity rose to \$382.7 million (from \$196.0 million), with long-term debt including notes payable increasing to \$495.3 million (from \$326.9 million).

Outlook and Strategic Commentary

CEO Jon Rambeau emphasized that Karman’s “outstanding results in 2025, with 37 percent revenue growth, 37 percent adjusted EBITDA growth and strategic investments designed to satisfy accelerating customer demand for our solutions,” have set the stage for continued momentum. The Seemann Composites and MSC acquisitions position Karman as an “all-domain provider, from deep sea to deep space,” supporting national defense and the expanding space economy.

The company’s record backlog of over \$1 billion as of March 2026 underpins Karman’s upgraded 2026 outlook. Management expects continued high demand for missile and munitions programs, multi-year procurement contracts from the U.S. government, and expansion in the space sector to drive sustainable growth.

Non-GAAP Metrics and Adjustments

Karman provides both GAAP and non-GAAP figures. Adjusted EBITDA and EPS exclude non-cash share-based compensation, transaction-related expenses, integration and restructuring costs, lender fees, and other non-recurring items. These adjustments are detailed in the report and are important for shareholders seeking a normalized view of ongoing performance.

Conference Call Details

Karman will host a conference call and webcast on March 25, 2026, at 1:30 pm PT to discuss results. Investors can access the call via phone or online, with replays available for one year. Supporting materials are posted on the company’s investor relations website.

Shareholder-Important and Potentially Price-Sensitive Information

• Significant Upward Revision to 2026 Financial Guidance: The raised outlook for both revenue and EBITDA is a strong signal of management’s confidence in demand and execution.
• Backlog Now Exceeds \$1 Billion: This milestone may point to sustainable, multi-year growth and revenue visibility.
• Major Capital Raises and Expanded Credit Facility: These moves provide ample liquidity for further acquisitions and growth investments, potentially supporting continued outperformance.
• Accretive Acquisitions and Strategic Expansion: The integration of Seemann Composites and MSC broadens market reach and adds capabilities, which could lead to increased market share and higher future earnings.
• Strong Market Conditions in Defense and Space: Management commentary and segment data indicate robust secular demand tailwinds, especially in hypersonics, missiles, and space launch systems.
• IPO and Secondary Offering: These capital markets events both enhance visibility and strengthen the balance sheet, supporting potential future growth and M&A activity.

Risks and Forward-Looking Statements

Management cautions that actual results may differ due to risks such as U.S. defense budget fluctuations, competitive dynamics, integration risks related to acquisitions, and broader economic or regulatory changes. Forward-looking statements reflect current expectations but are subject to change.

Disclaimer: This article is based on Karman Holdings Inc.’s publicly disclosed SEC filings and press releases. It does not constitute investment advice. Investors should review all official filings, including risk factors, and consult with their financial advisors before making investment decisions. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

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