Karman Holdings Inc. reported fourth‑quarter 2025 revenue of $134.5 million, a 42% year‑over‑year increase, and full‑year revenue of $471.5 million, up 34% from the prior year. Adjusted EBITDA rose to $42 million in Q4 and $145.3 million for the year, reflecting a 37% growth in operating profitability. Gross margin for the quarter was 40%, slightly below the 41% margin reported in Q3 2025, while the company’s earnings per share were $0.06, below consensus estimates of $0.1156–$0.12.
The revenue surge was driven by robust demand across Karman’s core segments—Space and Launch, Hypersonics and SMD, and Tactical Missiles and IDS—all of which contributed roughly one‑third of total sales. The company’s backlog expanded to $801.1 million at the end of Q4 2025 and surpassed $1 billion as of March 20 2026, providing full‑year visibility to the midpoint of the updated 2026 guidance. Strong multi‑year contracts and continued growth in the space economy underpin the backlog expansion.
Gross margin compression to 40% was attributed to higher input costs and the integration of the Seemann and MSC acquisitions, which introduced additional manufacturing and supply‑chain expenses. Despite this, adjusted EBITDA margin improved, driven by cost‑control initiatives and a favorable mix of high‑margin contracts in the hypersonics and missile segments.
Earnings per share fell short of consensus, with $0.06 reported versus expectations of $0.1156–$0.12. The miss was largely due to higher-than‑anticipated cost inflation and one‑time integration charges associated with the recent acquisitions, offsetting the benefits of revenue growth.
Management raised its 2026 revenue guidance to $715 million–$730 million, up from the $700 million–$715 million range previously cited. The company cited a 53% annual revenue growth and 46% adjusted EBITDA growth, supported by the expanded backlog and strong demand in defense and space markets. The guidance signals confidence in sustained demand amid favorable defense spending and a growing commercial space economy.
Market reaction was muted, with the stock trading slightly lower in after‑hours. Investors focused on the EPS miss relative to higher consensus estimates, while the raised guidance and robust backlog provided a counterbalancing positive narrative.
"Our team delivered 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." – CEO Jon Rambeau
"Our strong momentum continued into the third quarter, with record financial results and year‑over‑year increases of 42 percent in revenue, 34 percent in adjusted EBITDA and 31 percent in funded backlog since year‑end 2024." – CEO Tony Koblinski
"With strong market conditions and the Seemann and MSC acquisition complete, our total backlog is now more than $1 billion as of March 20, 2026, and supports our increased 2026 financial outlook. This represents annual growth of 53 percent in revenue and 46 percent in adjusted EBITDA, to the midpoints of those ranges." – CEO Jon Rambeau
"The generational increase in demand for the missile and munitions programs that Karman supports, combined with the U.S. government's efforts to establish multi‑year prime procurement contracts and the continued expansion of the space economy give us high confidence in the sustainability of demand and our high‑growth trajectory." – CEO Jon Rambeau
"Another quarter of record performance, driven by execution and momentum following Karman's February 2025 IPO." – CEO Tony Koblinski
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