Karman (NYSE:KRMN) Releases Quarterly Earnings Results, Hits Estimates

Karman (NYSE:KRMN) posted its quarterly earnings data on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.11, FiscalAI reports. The business had revenue of $134.49 million during the quarter. Karman had a return on equity of 11.11% and a net margin of 2.65%.The company’s revenue was up 47.5% compared to the same quarter last year.

Here are the key takeaways from Karman’s conference call:

• Reported record results with Q4 revenue of $134M, FY2025 revenue of $472M and adjusted EBITDA of $145M, and raised 2026 guidance to $715M–$730M revenue and $207M–$218M adjusted EBITDA.
• Backlog expanded to an all-time high (>$800M exiting 2025 and now >$1B including recent acquisitions), giving approximately 80% visibility to the midpoint of 2026 guidance.
• Completed multiple strategic acquisitions (MTI, ISP, Five Axis, Seemann/MSC) that broaden capabilities in composites, energetics, and nozzle/launch systems and deepen maritime defense exposure.
• Accelerating capacity and efficiency investments — >1M sq ft today, a ~200k sq ft Salt Lake City hub, co-investment (government + company) to expand nozzle production, workforce up to ~1,400, and rollout of a company-wide operating system.
• Near-term headwinds include contracting delays from the federal government shutdown, a higher debt load after acquisitions (~$768M, ~3x leverage) and a heavier cost-plus contract mix (Seemann/MSC) that the company says will pressure 2026 EBITDA margin versus 2025.

Karman Trading Down 2.2%

Shares of NYSE:KRMN opened at $99.60 on Thursday. Karman has a 52-week low of $25.02 and a 52-week high of $118.38. The company has a debt-to-equity ratio of 1.27, a quick ratio of 2.69 and a current ratio of 2.86. The company has a market capitalization of $13.18 billion and a P/E ratio of 398.39. The company has a 50-day simple moving average of $97.37 and a 200 day simple moving average of $81.97.

Key Karman News

Here are the key news stories impacting Karman this week:

• Positive Sentiment: Karman guided to roughly 53% revenue growth for fiscal 2026 and said it will expand manufacturing capacity and pursue M&A to support that growth — a clear growth signal that can drive multiple expansion if execution continues. Karman Holdings expects 53% revenue growth for 2026 while expanding capacity and M&A activity
• Positive Sentiment: Q4/FY25 revenue came in at $134.5M, up 47.5% year-over-year (record sales), and management raised the outlook tied to defense backlog strength — the revenue momentum and backlog underpin near-term organic growth expectations. Karman Space & Defense Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results
• Positive Sentiment: Analysts are bullish: Needham reiterated a Buy and kept a $125 price target after the beat and raised outlook; other coverage moved consensus targets into the $116–125 range, which supports further upside if guidance is met. Karman Holdings Inc.: Record FY25 Beat, Raised 2026 Outlook, and Robust Defense Backlog Underpin Buy Rating and $125 Target
• Positive Sentiment: Street targets lifted: a recent compilation shows an average target near $116.90, reflecting bullish analyst revisions after the quarter. Analysts Set Karman Holdings Inc. (NYSE:KRMN) Target Price at $116.90
• Neutral Sentiment: Earnings per share of $0.11 matched consensus; the quarter was top-line driven while EPS was in line, so upside is currently growth- rather than margin-driven. Karman Q4 Press Release / Slide Deck
• Neutral Sentiment: Management commentary and the full earnings call/slides are available for details on timing of capacity expansions and M&A — useful for assessing execution risk but not immediate catalysts by themselves. Karman Holdings Inc. (KRMN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Valuation and profitability concerns: Karman trades at a very high EV/earnings multiple (PE ~398) with modest net margins (~2.7%), so disappointed execution or delayed margin improvement could trigger a sharp pullback. (Background company metrics cited in filings and market summaries.)
• Negative Sentiment: Some outlets flagged “mixed results”—top-line strength but margins and EPS not yet showing commensurate improvement—so the headline guidance carries execution risk that could temper gains if targets slip. Karman posts mixed results, lifts outlook on defense demand

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on KRMN. Truist Financial set a $118.00 price objective on shares of Karman in a research report on Friday, January 9th. Royal Bank Of Canada increased their price objective on shares of Karman from $85.00 to $125.00 and gave the stock an “outperform” rating in a research note on Thursday, January 22nd. BWS Financial reiterated a “sell” rating and set a $37.00 target price on shares of Karman in a report on Thursday, January 22nd. Weiss Ratings restated a “hold (c-)” rating on shares of Karman in a research note on Monday, December 29th. Finally, KeyCorp upped their price objective on Karman from $80.00 to $122.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 28th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $116.90.

Institutional Trading of Karman

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in shares of Karman by 151.1% during the 4th quarter. Vanguard Group Inc. now owns 9,342,230 shares of the company’s stock worth $683,571,000 after acquiring an additional 5,621,556 shares during the period. Lexington Partners L.P. bought a new stake in Karman in the 3rd quarter valued at $319,861,000. Donaldson Capital Management LLC bought a new stake in Karman in the 3rd quarter valued at $252,803,000. Schusterman Interests LLC acquired a new stake in Karman during the 3rd quarter valued at $148,024,000. Finally, Trustees of the University of Pennsylvania bought a new position in Karman during the fourth quarter worth $142,869,000.

About Karman

We specialize in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Our integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (“DoD”) and space sector initiatives. We estimate that no single program accounted for more than 10% of sales for the nine months ended September 30, 2024 or the twelve months ended December 31, 2023, with revenue from over 100 active programs supporting current production and next-generation space, missile, hypersonic, and defense applications.