Record Quarterly Financial Performance
Karman Space & Defense reported record quarterly revenue of $100 million, gross profit of $39.5 million, and adjusted EBITDA of $30 million. Their funded backlog reached a record $636 million, and revenue visibility for 2025 increased to approximately 95%.
Strong Revenue Growth Across Key Segments
Hypersonics and strategic missile defense revenue grew by 21.1%, tactical missiles and integrated defense systems revenue by 29.6%, and space and launch revenue by 12% year-over-year.
Gross Margin and EPS Improvement
Gross margin expanded by 450 basis points to 39.4% year-over-year, with a 67% increase in fully diluted adjusted EPS from $0.03 to $0.05.
Successful IPO and Debt Refinancing
Completed an IPO in February 2025, which helped pay off a $25 million revolving credit facility. Refinanced existing credit facilities, reducing net interest rates and extending maturities.
Strong Positioning in Emerging Markets
Positioned well to benefit from U.S. DoD budget increases, particularly in hypersonics and missile defense, and from commercial space launch growth.