Karman Holdings Inc.
- Open
- 44.82
- Day high
- 45.22
- Day low
- 41.74
- Prev close
- 45.57
- Volume
- 2.1M
- Mkt cap
- $5.5B
- P/E (TTM)
- 146.7
- EPS (TTM)
- $0.28
- P/B
- 13.2
- P/S
- 9.4
- Yield
- —
- Per share
- —
Karman Holdings Inc. (KRMN) is a Industrials company listed on NYSE. The stock is down 21% over the past year. Drillr has 1 published research article covering KRMN.
Karman Holdings Inc. (KRMN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KRMN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $0.13 | $0.14 | +6.8% | $182M | +1.1% |
| May 12, 2026 | $0.08 | $0.11 | +37.5% | $151M | +0.3% |
| Mar 25, 2026 | $0.11 | $0.11 | +0.0% | $134M | +1.4% |
| Nov 6, 2025 | $0.11 | $0.10 | -10.5% | $122M | +3.1% |
| Aug 7, 2025 | $0.11 | $0.10 | -9.1% | $115M | +9.4% |
| Apr 8, 2025 | — | $0.01 | — | $91M | -0.1% |
KRMN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 8, 2026 | Petryszyn Mary Ddirector | Grant | 2,363 | — |
| May 26, 2026 | Raduenz Briandirector | Grant | 2,363 | — |
| May 26, 2026 | Laurendeau Dougofficer: Chief Growth Officer | Grant | 10,864 | — |
| May 26, 2026 | Koblinski Anthonydirector | Grant | 1,149 | — |
| May 26, 2026 | Alty Matthewdirector | Grant | 2,363 | — |
| May 26, 2026 | Beaudoin Jonathanofficer: Chief Operating Officer | Grant | 689 | — |
| May 26, 2026 | Hamilton Johndirector | Grant | 1,962 | — |
| May 26, 2026 | RAMBEAU JONofficer: Chief Executive Officer | Grant | 99,937 | — |
| May 26, 2026 | Stinnett Daviddirector | Grant | 1,962 | — |
| May 26, 2026 | Twitty Stephendirector | Grant | 2,363 | — |
| May 26, 2026 | Willis Michaelofficer: Chief Financial Officer | Grant | 689 | — |
| May 26, 2026 | Sawhill Stephanieofficer: Former Chief Growth Officer | Grant | 689 | — |
| May 26, 2026 | Petryszyn Mary Ddirector | Grant | 2,294 | — |
| Dec 15, 2025 | Koblinski Anthonydirector, officer: Chief Executive Officer | Sell | 75,000 | $69.31 |
| Dec 8, 2025 | Koblinski Anthonydirector, officer: Chief Executive Officer | Sell | 75,000 | $66.51 |
Source: KRMN SEC Form 4 filings, latest Jun 8, 2026. For informational purposes only — not investment advice.
See the full KRMN insider & 13F page →Karman Holdings Inc. company profile
Overview
Karman Holdings Inc. (NASDAQ:KRMN) is a specialized aerospace and defense company that designs, manufactures, and supplies mission-critical systems for the defense and space industries. Founded in 2020 and based in Huntington Beach, California, the company operates through its subsidiary Karman Space and Defense. Karman completed its initial public offering in February 2025, transitioning from a subsidiary of TCFIII Spaceco SPV LP to a publicly traded entity. The company has experienced rapid growth, with revenues increasing from $226 million in 2022 to $345 million in 2024, positioning itself as a key supplier to both government defense programs and commercial space ventures.
Business
Karman Holdings operates in the aerospace and defense manufacturing sector, specializing in highly engineered components and systems for some of the most demanding applications in modern warfare and space exploration. The company's core business revolves around creating mission-critical systems - components that are essential for the successful operation of missiles, spacecraft, and defense platforms where failure is not an option. The company operates through three primary business segments that reflect different aspects of the aerospace and defense market: 1. Hypersonics and Strategic Missile Defense (approximately 30% of revenue): This segment focuses on components for advanced missile systems that travel at hypersonic speeds (over five times the speed of sound) and strategic defense systems designed to intercept incoming threats. These systems represent cutting-edge military technology used in national defense applications. 2. Tactical Missiles and Integrated Defense Systems (approximately 36% of revenue): This segment produces components for shorter-range military missiles and integrated defense platforms. These include systems like the Guided Multiple Launch Rocket System (GMLRS), which are used in battlefield situations for precision strikes. 3. Space and Launch (approximately 34% of revenue): This segment serves both government space programs and commercial space companies by providing critical components for rockets and spacecraft. This includes payload protection systems (structures that protect satellites during launch), aerodynamic interstage systems (components that connect different sections of rockets), and propulsion system components. The company manufactures both metallic and composite flight hardware, utilizing advanced materials and manufacturing techniques to create components that can withstand extreme temperatures, pressures, and forces encountered in space and high-speed flight applications. These products are typically custom-engineered for specific programs and undergo rigorous testing to meet stringent military and aerospace standards.
Revenue model
Karman Holdings generates revenue primarily through product sales of engineered components and systems to government agencies and commercial customers. The company operates on a contract-based business model where it secures long-term agreements to supply specific components for major defense and space programs. The company's primary customers include the U.S. Department of Defense (DoD), NASA, and commercial space companies. Government contracts typically represent the majority of revenue, providing relatively stable and predictable income streams through multi-year programs. The company has achieved 95% revenue visibility for 2025 and maintains a funded backlog of $636 million, indicating strong forward demand. Several factors influence Karman's profitability and margins. Positive margin drivers include the company's specialized manufacturing capabilities that command premium pricing, long-term contract structures that provide pricing stability, and economies of scale as production volumes increase. The company has demonstrated margin expansion, with gross margins improving 450 basis points to 39.4% in Q1 2025. Additionally, potential increases in defense spending, such as the mentioned $150 billion in incremental DoD funding opportunities, could drive higher volumes and improved margins. Margin pressures could arise from raw material cost inflation, particularly for specialized metals and composites used in aerospace applications. Competition from larger defense contractors or new entrants could pressure pricing, while program delays or cancellations by government customers could impact capacity utilization. The company's reliance on government spending also makes it vulnerable to budget cuts or shifts in defense priorities. Manufacturing complexity and the need for continuous quality improvements in mission-critical applications also require ongoing investment that can pressure margins.
Competitive moat
Karman Holdings possesses a moderate competitive moat built primarily around specialized manufacturing capabilities and established customer relationships in the aerospace and defense sector. The company's moat stems from several key factors that create barriers to entry for potential competitors. The most significant aspect of Karman's competitive position is its specialized manufacturing expertise in mission-critical components. The aerospace and defense industry requires extremely high reliability standards, extensive testing protocols, and compliance with stringent government regulations. This creates substantial barriers for new entrants who would need to invest heavily in specialized equipment, quality systems, and regulatory approvals before they could compete effectively. The company also benefits from customer switching costs and long development cycles in the aerospace industry. Once Karman's components are integrated into a missile or spacecraft design, customers face significant costs and risks in switching to alternative suppliers. The qualification process for new suppliers can take years and requires extensive testing, making customers reluctant to change suppliers unless absolutely necessary. However, Karman's moat faces several challenges. The company operates in a highly competitive industry dominated by much larger players like Lockheed Martin, Raytheon, and Boeing, who have significantly greater resources and broader capabilities. These competitors could potentially develop competing products or acquire smaller suppliers like Karman. Additionally, the company's dependence on government contracts makes it vulnerable to policy changes, budget cuts, or shifts in defense priorities that could redirect spending away from its core markets. The commercial space market, while growing rapidly, is also becoming increasingly competitive with new entrants and established players expanding their capabilities. Karman's relatively small size compared to industry giants limits its ability to invest in research and development at the same scale as larger competitors, potentially constraining its ability to maintain technological leadership over time.
Risks & safety
Karman Holdings presents a mixed margin of safety profile with some concerning financial metrics that warrant careful consideration. • Cash and Liquidity Position: The company maintains $113.7 million in cash and short-term investments with a strong current ratio of 3.34, indicating good short-term liquidity. However, the company is experiencing negative free cash flow of -$18.6 million in Q1 2025, suggesting ongoing cash consumption. • Debt and Solvency: The debt-to-equity ratio of 1.20 indicates moderate leverage, though this improved from 2.29 in 2024 following the IPO and debt refinancing. Total liabilities of $526.5 million against total assets of $875.4 million suggest manageable but significant debt levels. • Valuation Metrics: The company trades at extremely high multiples with an EV/EBITDA of 61.1x and price-to-book ratio of 12.7x, indicating significant valuation risk. These metrics suggest the stock is pricing in substantial growth expectations that may be difficult to achieve. • Profitability Concerns: Despite positive EBITDA of $19.3 million, the company reported a net loss of -$4.8 million in Q1 2025, indicating ongoing profitability challenges at the bottom line. • Other Considerations: The company's 95% revenue visibility for 2025 and $636 million funded backlog provide some earnings predictability, though the high valuation multiples suggest limited downside protection if growth disappoints.
Recent development
Karman Holdings has undergone significant strategic transformation over the past few years, culminating in its February 2025 initial public offering. The most notable recent development was the company's successful IPO, which provided capital to refinance existing debt and improve its financial position. This transition from private to public ownership represents a major milestone in the company's evolution. A key strategic move was the acquisition of MTI, which added proprietary capabilities to Karman's technology portfolio. This acquisition appears designed to enhance the company's competitive position by expanding its in-house capabilities rather than relying solely on external suppliers or partners. The company has demonstrated strong operational performance with consistent revenue growth across all three business segments. Hypersonics and Strategic Missile Defense grew 21.1%, Tactical Missiles and Integrated Defense Systems increased 29.6%, and Space and Launch expanded 12% year-over-year in Q1 2025. This broad-based growth suggests successful execution across multiple market segments. Karman has also positioned itself to capitalize on emerging defense initiatives, including the Golden Dome initiative and potential increases in GMLRS (Guided Multiple Launch Rocket System) production from 10,000 to 19,000 units annually by 2028. These programs represent significant growth opportunities as the company leverages its existing capabilities to serve expanding market demand. The company has achieved notable operational improvements, with gross margins expanding 450 basis points to 39.4% and record quarterly adjusted EBITDA of $30 million in Q1 2025. Management has maintained confident guidance for 2025, projecting revenue of $423-$433 million and adjusted EBITDA of $132-$137 million, indicating continued growth expectations.
KRMN company profile · for informational purposes only — not investment advice.
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