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Karman Holdings Inc. (KRMN)
:KRMN
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Karman Holdings Inc.
(NYSE:KRMN)
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Select Model
Rating:62Neutral
Price Target:
$68.00
▼(-0.09% Downside)
Karman Holdings Inc. has a promising outlook with strong revenue growth and strategic acquisitions. However, financial risks due to high leverage and negative equity, along with a high P/E ratio, suggest caution. The positive earnings call sentiment and strategic growth initiatives are significant strengths.
Positive Factors
Revenue Growth
Strong revenue growth across all end markets indicates robust demand and effective business strategies, supporting long-term expansion.
Strategic Acquisitions
Strategic acquisitions like Five Axis Industries bolster Karman's technological edge and market position, driving future growth and competitive advantage.
Increased Backlog
A growing backlog provides revenue visibility and stability, supporting sustained operations and strategic planning for future growth.
Negative Factors
High Leverage
High leverage and negative equity pose financial risks, potentially impacting Karman's ability to invest in growth and manage economic downturns.
Federal Shutdown Risks
Potential impacts from federal shutdowns could disrupt operations and delay contracts, affecting revenue and strategic initiatives.
Dual Sourcing Risks
Dual sourcing by customers could reduce Karman's market share and revenue growth, challenging its competitive positioning in key sectors.
Karman Holdings Inc. (KRMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.06B
Dividend YieldN/A
Average Volume (3M)1.64M
Price to Earnings (P/E)795.1
Beta (1Y)1.56
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,113
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.10
Shares Outstanding132,322,430
10 Day Avg. Volume1,169,362
30 Day Avg. Volume1,641,103
Financial Highlights & Ratios
PEG Ratio1.64
Price to Book (P/B)20.26
Price to Sales (P/S)11.50
P/FCF Ratio348.60
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue23.39
Enterprise Value/Gross Profit58.54
Enterprise Value/Ebitda95.33
Forecast
1Y Price Target
$80.60Price Target Upside18.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Karman Holdings Inc. Business Overview & Revenue Model
Company DescriptionKarman Holdings Inc. (KRMN) is a diversified holding company focused on the acquisition and management of businesses across various sectors, including technology, healthcare, and consumer services. The company aims to leverage its expertise in operational efficiency and strategic growth to enhance the value of its portfolio companies. Karman is dedicated to fostering innovation and driving sustainable practices within its subsidiaries, ultimately delivering value to its shareholders.
How the Company Makes MoneyKarman Holdings Inc. generates revenue primarily through the performance of its subsidiary companies, which operate in diverse industries. The company's revenue model is based on a combination of equity stakes, management fees, and profit-sharing agreements. Key revenue streams include dividends from profitable subsidiaries, consulting and advisory fees for operational improvements, and potential capital gains from the sale of underperforming assets. Additionally, Karman may engage in strategic partnerships with other firms to enhance its service offerings and expand its market reach, which contributes to its overall earnings.
Karman Holdings Inc. Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 14, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Karman Space & Defense's strong quarterly performance, record-breaking revenue, increased backlog, and strategic acquisitions, with raised guidance for fiscal year 2025. Despite concerns about potential impacts of the federal government shutdown and dual sourcing risks, the overall sentiment remains positive due to robust market demand and strategic growth initiatives.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Karman Space & Defense posted record quarterly revenue of $122 million, a 42% increase compared to the third quarter of fiscal year 2024. Gross profit grew 48% to $50 million, and adjusted EBITDA rose to $38 million, marking a new quarterly record.
Increased Backlog and Strategic Acquisitions
The funded backlog continued to grow, reaching an all-time high of $758 million, providing 100% visibility to the midpoint of the full-year revenue guidance. The company also completed a $1.2 billion secondary equity offering and acquired Five Axis Industries, expanding capabilities with IP-rich content for the commercial space industry.
Guidance Raised for Fiscal Year 2025
Karman Space & Defense raised its 2025 guidance, increasing revenue expectations by $7 million at the midpoint to $461 million to $463 million, and adjusted EBITDA by $2.5 million to $142 million to $143 million.
Strong Market Demand Across End Markets
Revenue grew across all three end markets: Hypersonics and Strategic Missile Defense (36% increase), Space and Launch (47% increase), and Tactical Missiles and Integrated Defense Systems (42% increase).
Positive Outlook for Future Growth
Preliminary view of 2026 anticipates annual growth consistent with recent revenue CAGR of 20% to 25%, excluding future acquisitions.
Negative Updates
Federal Government Shutdown Uncertainty
While the federal government shutdown has not yet impacted 2025 guidance, there is uncertainty regarding its effect on future bookings and 2026 operations.
Potential Risks of Dual Sourcing
There are market concerns about potential dual sourcing by customers, which could impact Karman's revenue ramp across missiles and other programs.
Company Guidance
During Karman Space & Defense's Third Quarter Fiscal Year 2025 earnings call, the company reported record quarterly revenue of $122 million, a 42% increase year-over-year, driven by growth across all three end markets. Gross profit reached a record $50 million, maintaining a margin of 41%, while adjusted EBITDA rose 34% to $38 million. The company also increased its full-year guidance for 2025, projecting revenue between $461 million to $463 million and adjusted EBITDA of $142 million to $143 million, reflecting a growth of 34% year-over-year. The funded backlog hit an all-time high of $758 million, providing full visibility to the midpoint of the full-year revenue guidance and a strong foundation for 2026. Karman completed a $1.2 billion nondilutive secondary equity offering and increased its credit facility to support the acquisition of Five Axis Industries, enhancing its capabilities in the commercial space industry. For 2026, Karman anticipates annual growth consistent with its recent revenue CAGR of 20% to 25%, excluding future acquisitions.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 financial risks. Cash flow improvements 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.78
Positive
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.40
Negative
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 428.25M | 345.25M | 280.71M | 226.31M |
| Gross Profit | 171.14M | 132.11M | 105.55M | 80.95M |
| EBITDA | 105.09M | 96.36M | 75.67M | 55.21M |
| Net Income | 11.34M | 12.70M | 4.36M | -14.10M |
Balance Sheet | ||||
| Total Assets | 968.08M | 773.96M | 710.83M | 682.59M |
| Cash, Cash Equivalents and Short-Term Investments | 18.66M | 11.53M | 5.45M | 6.63M |
| Total Debt | 483.69M | 447.87M | 409.33M | 403.58M |
| Total Liabilities | 598.96M | 577.96M | 528.37M | 505.00M |
| Stockholders Equity | 369.12M | 196.00M | 182.46M | 177.60M |
Cash Flow | ||||
| Free Cash Flow | -43.02M | 11.39M | 3.55M | -27.16M |
| Operating Cash Flow | -23.27M | 26.65M | 20.33M | -5.89M |
| Investing Cash Flow | -152.18M | -46.24M | -16.21M | -21.26M |
| Financing Cash Flow | 186.44M | 25.67M | -5.29M | 16.73M |
Karman Holdings Inc. Technical Analysis
Neutral
68.06
Price Trends
72.79
Negative
63.29
Positive
Market Momentum
-3.08
Negative
47.20
Neutral
87.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRMN, the sentiment is Neutral. The current price of 68.06 is below the 20-day moving average (MA) of 68.58, below the 50-day MA of 72.79, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -3.08 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 87.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KRMN.
Karman Holdings Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $7.24B | 108.06 | 1.47% | ― | ― | ― | |
73 Outperform | $5.82B | 86.08 | 4.36% | 0.92% | -0.37% | -34.97% | |
73 Outperform | $7.73B | 33.32 | 12.09% | 0.47% | 7.11% | 13.43% | |
68 Neutral | $6.55B | 104.10 | 6.56% | ― | 25.38% | 237.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $9.06B | 795.09 | ― | ― | ― | ― | |
51 Neutral | $4.23B | -1.63 | ― | ― | -1.31% | -78.19% |
* Industrials Sector Average
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Karman Holdings Inc. Corporate Events
Private Placements and FinancingM&A Transactions
Karman Holdings Completes Acquisition of Five Axis Industries
Positive
Oct 30, 2025
On October 28, 2025, Karman Holdings Inc. completed the acquisition of Five Axis Industries Inc., a leader in advanced engine subsystems for commercial space programs, for $83 million in cash and shares. This acquisition, funded by an increase in Karman’s Term Loan B, is expected to enhance Karman’s capabilities in mission-critical subsystems and is immediately accretive across major financial metrics, strengthening its position in the space and defense industry.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.