Karman Holdings Stock Earnings Reports

Karman reported a record third quarter driven by broad-based demand across all three end markets. Q3 revenue was $122M (up 42% y/y), gross profit $50M, and adjusted EBITDA a record $38M. Funded backlog reached an all-time high of $758M, which management says provides 100% visibility to the midpoint of the revised full-year 2025 guidance. The company raised and narrowed FY25 guidance to $461M–$463M revenue and $142M–$143M adjusted EBITDA (up $7M and $2.5M at the midpoints, respectively). Karman closed a $1.2B nondilutive secondary equity offering during the quarter, completed the tuck-in acquisition of Five Axis Industries to expand space-launch capabilities, and upsized its Term Loan B to $505M to fund the acquisition and pay off the revolver—resulting in pro forma net leverage of ~3x adjusted EBITDA. Management expects preliminary 2026 organic growth of roughly 20%–25% (excluding future acquisitions) and reiterated a target of ~50 bps of annual margin expansion from operating leverage. The federal government shutdown has not impacted 2025 guidance, though some solicitations/meetings have been delayed. Management emphasized a balanced, diversified backlog (no single program >~11%) and an active M&A pipeline of accretive tuck-ins.