Karman Holdings Inc., primarily operating through its Karman Space and Defense division, specializes in the design, rigorous testing, production, and sale of ...
Karman Holdings Inc. (NYSE: KRMN) is a U.S.-based aerospace and defense company headquartered in Huntington Beach, California. The company was formed in 2020 as Karman LLC and later reorganized as a holding company under the name Karman Holdings Inc., with its primary operating subsidiary being Karman Space & Defense. Karman ...Karman Holdings Inc. (NYSE: KRMN) is a U.S.-based aerospace and defense company headquartered in Huntington Beach, California. The company was formed in 2020 as Karman LLC and later reorganized as a holding company under the name Karman Holdings Inc., with its primary operating subsidiary being Karman Space & Defense. Karman designs, tests, manufactures, and sells advanced systems and components that are vital to national security and space exploration. Its product portfolio includes missile systems, launch vehicle structures, payload protection and deployment systems, aerodynamic interstage structures, and propulsion units, as well as aerospace-grade metallic and composite flight hardware and sub-assemblies. The company serves both government and commercial customers, supporting major programs such as NASA's Artemis mission and various hypersonic and missile defense initiatives.
Karman operates multiple state-of-the-art facilities across the United States, leveraging over 40 years of combined engineering and manufacturing experience from its predecessor entities. The company's business model focuses on delivering high-reliability, precision-engineered products that meet stringent performance and safety standards. Karman's integrated approach combines design, testing, and production capabilities, enabling it to offer end-to-end solutions that reduce risk and accelerate program timelines for its customers.
Financially, Karman has demonstrated robust growth since its inception. As of the latest fiscal year, the company reported annual revenue of approximately $589 million, with a gross profit margin of 41.7%, reflecting strong operational efficiency. Its EBITDA margin stands at 24.2%, indicating healthy profitability. Despite a high valuation multiple (P/E ratio around 204), the company reinvests heavily in capacity expansion and innovation to meet growing demand in the defense and space sectors. Karman's total debt is manageable, with a debt-to-equity ratio of 0.28, and it has a solid current ratio of 3.55, ensuring ample liquidity for future investments.
Leadership is a key strength for Karman. Jon Rambeau, who brings over 30 years of experience in the aerospace and defense industry, serves as Chief Executive Officer, effective March 2026. Under his guidance, the company is focused on scaling operations, enhancing supply chain resilience, and capitalizing on long-term government contracts. The board includes industry veterans like Chairman David Stinnett and director Brian Raduenz, providing strategic oversight and expertise. The company's ultimate parent is TCFIII Spaceco SPV LP, an affiliate of Trive Capital, a private equity firm that has supported Karman's growth trajectory.
Karman's vision is to be the partner of choice for the most challenging missions in space and defense, by delivering innovative, reliable, and cost-effective solutions. The company plans to expand its manufacturing capabilities and invest in advanced technologies such as additive manufacturing and digital twin simulation to improve product performance and reduce lead times. With a strong backlog and increasing global demand for defense and space capabilities, Karman Holdings is well-positioned for sustained growth and leadership in its industry.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$471.5M
+36.6%
+20.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$17.4M
+36.7%
+80.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+40.3%
+5.3%
+1.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+15.5%
-16.0%
+34.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+3.7%
+0.1%
+49.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-42.5M
-472.6%
-146.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-9.0%
-372.8%
-104.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
153.5%
-32.8%
-2.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.29x
+86.7%
+0.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, everyone. Thank you for joining us. And welcome to the Karman Space and Defense second quarter fiscal year 26 earnings conference call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Steven A. Gitlin, Vice President of Investor Relations. Steven, please go ahead.
Steven A. Gitlin: Good afternoon, and thank you for joining Karman Space and Defense's Second Quarter Fiscal Year 26 Earnings Conference Call. I am Steven A. Gitlin, senior vice president of investor relations and corporate communications. Joining me today are Jonathan Rambeau, chief executive officer Michael Willis, chief financial officer and Jonathan Beaudoin, chief operating officer. Before we begin, please note that many of the statements made on this call are forward looking. These statements involve risks and uncertainties that may cause actual results to differ materially We encourage you to review the risk factors discussed in our filings with the SEC. I would also like to note that we will discuss a number of non GAAP financial measures today that we believe can be useful in evaluating our performance. Such non GAAP financial measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Our earnings release, which we filed today, can also be found under the heading News and Events on the Investors section of our company's website and contains a reconciliation of any non GAAP financial measure to the most comparable GAAP measure. The content of this conference call contains time sensitive information that is accurate only as of today, 08/06/2026. The company undertakes no obligation to make any revision to any forward looking statements contained in our remarks today, or to update them to reflect the events or circumstances occurring after this conference call. We have posted our earnings release and presentation on our website at karmansd.com. Now I will turn the call over to John.
Jonathan Rambeau: Good afternoon. In the 4 months I have been with Karman, I have worked intensely and methodically to evaluate our strategy, our operations, and our progress as we continue in our second year as a mid cap public company. I am very proud of what Karman has accomplished and I am pleased to see our hard work reflected in milestones such as our recent addition to the S&P Small Cap 600 Index. Against all measures of progress, we are seeing positive results. Shown on page 4 of our earnings presentation, highlights in and since the second quarter include sequential revenue growth of 20.4% from the first quarter to the second Year over year quarterly organic growth of 24.4% representing revenue growth from businesses we have owned for more than 12 months. Record backlog of $1.3 billion, record quarterly bookings of nearly $500 million initial …
