Karman Q2 Earnings Call Highlights

Record results and raised guidance: Second-quarter revenue increased 58% year over year to $182 million, while adjusted EBITDA rose 55% to $55 million. Karman raised fiscal 2026 guidance to $730 million-$745 million in revenue and $215 million-$222.5 million in adjusted EBITDA. Strong demand and backlog support growth: Quarterly bookings approached $500 million, driving a record $1.3 billion backlog that provides 95% visibility to the midpoint of full-year revenue guidance. Tactical Missiles and Integrated Defense Systems led segment growth, with revenue up 55% year over year. Expansion and acquisition plans: Karman is expanding manufacturing capacity, expects three additional contingent supply agreements to become firm by year-end, and plans to acquire Walker Precision Engineering for approximately $94 million. The acquisition would establish the company’s initial European presence, subject to regulatory approval.

Karman NYSE: KRMN reported record second-quarter fiscal 2026 results, citing strong demand across missile, defense, maritime and space markets, while raising its full-year revenue and adjusted EBITDA outlook. Revenue for the quarter totaled $182 million, up 58% from a year earlier and 20% sequentially, according to Chief Financial Officer Mike Willis. Net income rose 106% year over year to $14 million, while non-GAAP adjusted EBITDA increased 55% to $55 million. The company reported adjusted earnings per share of $0.14, up 43% from the prior-year quarter. Get Karman alerts: Sign Up

Chief Executive Officer Jon Rambeau, who joined the company four months ago, said Karman recorded nearly $500 million in quarterly bookings and ended the period with a record backlog of $1.3 billion. That backlog provides 95% visibility to the midpoint of the company’s full-year revenue guidance, he said.

Guidance Raised on Backlog and Demand Karman raised its fiscal 2026 outlook and now expects revenue of $730 million to $745 million and non-GAAP adjusted EBITDA of $215 million to $222.5 million. At the midpoint, the outlook represents 57% revenue growth and 51% adjusted EBITDA growth from the prior year, according to Willis. The guidance excludes the pending acquisition of Walker Precision Engineering. 3 Stocks Poised to Grow on European Rearmament Spending The company reaffirmed its expectation for organic growth of 25% or more for the full year. Organic revenue increased 24.4% year over year in the second quarter. Rambeau said quarterly organic-growth figures can be less indicative of Karman’s operating performance because the company rapidly integrates acquired operations and may move production between facilities based on capabilities and customer needs. “We remain confident in our ability to deliver 20%-25% annual organic growth for the foreseeable future,” Rambeau said. He added that Karman expects to provide organic growth disclosures at least annually going forward. Management expects second-half revenue to increase sequentially, with approximately 47% of second-half revenue in the third quarter and 53% in the fourth quarter. Willis said Tactical Missiles and Integrated Defense Systems is expected to remain a major driver of second-half growth.

Segment Growth and Long-Term Space Agreement All of Karman’s legacy markets posted year-over-year quarterly growth. Tactical Missiles and Integrated Defense Systems revenue rose 55% to $63 million, supported by production programs involving unmanned systems and counter-unmanned aerial systems, as well as programs entering production. Hypersonics and Strategic Missile Defense: Revenue rose 24% to $43 million...