Karman Holdings Inc. (KRMN) AI Stock Analysis

• Market Cap: $7.24B
• Dividend Yield: N/A
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,113
• Sector: Industrials
• Sector Strength: 79
• Industry: Aerospace & Defense
• EPS (TTM): 0.10
• Shares Outstanding: 132,322,430
• 10 Day Avg. Volume: 1,164,728
• 30 Day Avg. Volume: 1,996,371
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 23.24
• Enterprise Value/Gross Profit: 58.77
• Enterprise Value/Ebitda: 96.91
• 1Y Price Target: $58.25
• Price Target Upside: 6.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $57.00 ▲(4.30% Upside)

Karman Holdings Inc. benefits from strong corporate events and positive technical indicators. However, financial risks due to high leverage and negative equity, along with limited valuation data, temper the overall score.

Positive Factors

Earnings

Shares of Karman are up 10% in after-hours trading after the company reported strong second-quarter results above consensus and raised 2025 guidance.

Government Contracts

Karman is highly aligned with the passage of the One Big Beautiful Bill Act that features approximately $25 billion in funding for various defense and space programs.

Strategic Acquisitions

Karman announced that it has acquired Industrial Solid Propulsion for $55 million, enhancing its offerings in loitering munition systems, counter-UAS, and other intercept systems.

Negative Factors

Market Competition

Karman provides content on the Space Launch System and Orion that were previously perceived to be at risk of being phased out.

Supply Chain Fragmentation

The missile supply chain is highly fragmented, so the company is expected to continue to make one or two of these types of acquisitions each year.

Karman Holdings Inc. Business Overview & Revenue Model

Company Description

Karman Holdings Inc., through its subsidiary, Karman Space and Defense, engages in designing, testing, manufacturing, and sale of mission-critical systems for missile and defense, space programs, hypersonic, and launch vehicle markets. It also supplies metallic and composite flight hardware and sub-assemblies. In addition, the company provides solutions for payload protection and deployment systems, aerodynamic interstage systems, and propulsion systems. The company was incorporated in 2020 and is based in Huntington Beach, California. Karman Holdings Inc. is a subsidiary of TCFIII Spaceco SPV LP.

How the Company Makes Money

Karman Holdings Inc. generates revenue through multiple streams, primarily from the sale of its consumer products across different categories. The company's core revenue model includes direct sales through both online platforms and brick-and-mortar retail partnerships. Additionally, Karman Holdings benefits from strategic collaborations with other brands and retailers, which expand its market reach and distribution capabilities. The company also explores licensing agreements for its proprietary technologies and products, providing an additional revenue source. Key factors contributing to its earnings include product innovation, effective marketing strategies, and a strong supply chain management that ensures efficient production and distribution.

Karman Holdings Inc. Financial Statement Overview

Summary

Karman Holdings Inc. shows strong revenue and profit growth with efficient operations. However, high leverage and negative equity pose significant financial risks. Improvements in cash flow are promising, but financial stability needs attention.

Income Statement

Karman Holdings Inc. has demonstrated strong revenue growth, with a significant increase from 2023 to 2024. The company's gross profit margin remains healthy, indicating efficient cost management. Net profit margin shows improvement, turning positive in 2024, which is a notable achievement. EBIT and EBITDA margins are robust, reflecting solid operational performance.

Balance Sheet

The balance sheet reveals high leverage, with a substantial debt-to-equity ratio due to negative equity, posing a risk. However, the company's assets have grown, showing expansion potential. The negative stockholders' equity is a concern, indicating potential financial instability.

Cash Flow

The cash flow statement shows positive free cash flow growth and improved operating cash flow, which are positive indicators of liquidity and operational efficiency. However, reliance on financing activities and previous negative free cash flow highlight potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	306.46M	345.25M	280.71M	226.31M
Gross Profit	121.20M	132.11M	105.55M	80.95M
EBITDA	73.51M	96.36M	75.67M	55.42M
Net Income	3.69M	12.70M	4.36M	-14.10M
Balance Sheet
Total Assets	953.93M	773.96M	710.83M	682.59M
Cash, Cash Equivalents and Short-Term Investments	27.44M	11.53M	5.45M	6.63M
Total Debt	485.78M	447.87M	409.33M	403.58M
Total Liabilities	504.29M	577.96M	528.37M	505.00M
Stockholders Equity	449.64M	196.00M	182.46M	177.60M
Cash Flow
Free Cash Flow	-36.18M	11.39M	3.55M	-27.16M
Operating Cash Flow	-23.40M	26.65M	20.33M	-5.89M
Investing Cash Flow	-145.21M	-46.24M	-16.21M	-21.26M
Financing Cash Flow	188.37M	25.67M	-5.29M	16.73M

Karman Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	78 Outperform	$6.32B	30.25	11.32%	0.58%	4.77%	4.50%
HXL	74 Outperform	$5.06B	59.03	5.63%	1.03%	1.92%	-15.47%
LOAR	71 Outperform	$6.78B	154.25	4.70%	―	26.15%	251.10%
KRMN	70 Outperform	$7.24B	―		―	―	―
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
AMTM	57 Neutral	$6.12B	117.59	2.20%	―	―	―
SPR	51 Neutral	$4.87B	―	81.63%	―	-2.60%	-94.76%

Karman Holdings Inc. Corporate Events

Karman Holdings Completes Successful Public Offering

On July 23, 2025, Karman Holdings Inc. priced an underwritten public offering of 21,000,000 shares of its common stock at $49.00 per share. The offering, which closed on July 25, 2025, was conducted by existing stockholders, who will receive all proceeds, while Karman will not benefit financially from this transaction. The underwriters, including Citigroup and Evercore ISI, were granted a 30-day option to purchase an additional 3,150,000 shares, which was fully exercised on July 24, 2025. The company agreed to a 90-day lock-up period, restricting the sale of additional shares without underwriters’ consent. This move is expected to strengthen Karman’s market position by enhancing liquidity and potentially increasing its stock’s market value.

The most recent analyst rating on (KRMN) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Karman Holdings Inc. stock, see the KRMN Stock Forecast page.

Karman Holdings Announces Public Offering of Shares

On July 21, 2025, Karman Holdings Inc. announced a public underwritten offering of 20,000,000 shares of its common stock by certain selling stockholders, with an option for underwriters to purchase an additional 3,000,000 shares. The company will not receive any proceeds from this offering. Concurrently, Trive Capital, the largest stockholder, will distribute its shares to its limited partners, effectively reducing its ownership to zero. This distribution is contingent on the offering’s completion, but the offering itself is not contingent on the distribution. Additionally, Karman released preliminary financial results for the second quarter of fiscal year 2025, showing significant growth in revenue and other financial metrics compared to the same period in 2024. The company expects to release final results on August 7, 2025.

The most recent analyst rating on (KRMN) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Karman Holdings Inc. stock, see the KRMN Stock Forecast page.

Karman Holdings Secures Loan for ISP Acquisition

On May 27, 2025, Karman Holdings Inc. amended its Credit Agreement to secure a $75 million incremental term loan, primarily to fund the acquisition of Industrial Solid Propulsion (ISP). The acquisition, completed on May 28, 2025, enhances Karman’s capabilities in energetic propulsion technologies, aligning with its strategic focus on the space and defense markets. ISP, a leader in small-diameter energetic systems, brings over 40 years of expertise and a proprietary portfolio to Karman, promising accretive benefits across revenue growth, EBITDA margin, and cash flow.

The most recent analyst rating on (KRMN) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Karman Holdings Inc. stock, see the KRMN Stock Forecast page.

Karman Holdings Appoints Mary Petryszyn to Board

On May 13, 2025, Karman Holdings Inc. appointed Mary Petryszyn to its Board of Directors. She will serve until the first annual meeting following the company’s initial public offering, where she will be a nominee for election by shareholders. Ms. Petryszyn’s appointment is part of Karman’s strategic preparations for its public offering, indicating a focus on strengthening its governance structure. Her compensation will align with the company’s existing director compensation policy.

The most recent analyst rating on (KRMN) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Karman Holdings Inc. stock, see the KRMN Stock Forecast page.