Karman Holdings Inc. (KRMN) AI Stock Analysis

• Market Cap: $7.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 701.8
• Beta (1Y): 1.52
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,113
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.10
• Shares Outstanding: 132,322,430
• 10 Day Avg. Volume: 1,775,251
• 30 Day Avg. Volume: 1,582,806
• PEG Ratio: 1.64
• Price to Book (P/B): 20.26
• Price to Sales (P/S): 11.50
• P/FCF Ratio: 348.60
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 23.39
• Enterprise Value/Gross Profit: 58.54
• Enterprise Value/Ebitda: 95.33
• 1Y Price Target: $83.80
• Price Target Upside: 39.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $62.00 ▲(3.21% Upside)

Karman Holdings Inc. has strong earnings growth and positive future guidance, which are significant strengths. However, financial risks due to high leverage and negative equity, combined with bearish technical indicators and high valuation, weigh down the overall score.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong demand across Karman's markets, supporting long-term business expansion and market presence.

Strategic Acquisitions

The acquisition enhances Karman's technological capabilities and market reach, positioning the company for sustained growth in the commercial space sector.

Backlog Growth

A growing backlog provides revenue visibility and stability, supporting Karman's strategic planning and long-term financial health.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Karman's ability to invest in growth opportunities.

Negative Equity

Negative equity indicates financial instability, which could hinder Karman's ability to secure favorable financing and invest in future growth.

Potential Dual Sourcing Risks

Dual sourcing could dilute Karman's market share and revenue from key programs, affecting long-term growth and profitability.

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 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.

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	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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	78 Outperform	$6.81B	29.30	12.09%	0.58%	7.11%	13.43%
LOAR	69 Neutral	$6.04B	97.53	6.56%	―	25.38%	237.96%
HXL	66 Neutral	$5.77B	85.48	4.36%	0.94%	-0.37%	-34.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KRMN	58 Neutral	$7.95B	701.75	―	―	―	―
AMTM	53 Neutral	$5.90B	113.47	2.20%	―	―	―
SPR	41 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

Karman Holdings Inc. Corporate Events

Karman Holdings Inc. Reports Record Earnings and Growth

Karman Holdings Inc.’s recent earnings call painted a picture of optimism and robust performance. The company reported record-breaking revenue and growth, with strategic acquisitions and increased backlog contributing to a positive outlook. Despite some concerns about potential impacts from the federal government shutdown and dual sourcing risks, the overall sentiment remains positive, driven by strong market demand and strategic growth initiatives.

Karman Holdings Reports Record Q3 2025 Results

Karman Holdings Inc., operating as Karman Space & Defense, is a prominent company in the aerospace and defense sector, specializing in the rapid design, development, and production of advanced system solutions for launch vehicles, satellites, spacecraft, missiles, missile defense, hypersonics, and unmanned aerial systems (UAS). Headquartered in Huntington Beach, California, the company serves over 80 prime contractors across more than 130 space and defense programs.

Karman Holdings Completes Acquisition of Five Axis Industries

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.

The most recent analyst rating on (KRMN) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Karman Holdings Inc. stock, see the KRMN Stock Forecast page.