Investing
Karman (KRMN) Stock Rises 16.9% on Raised 2026 Outlook
Karman Space & Defense shares rose 16.9% after record Q3 revenue of $202 million, up 66%, and a higher fiscal 2026 revenue and adjusted EBITDA outlook.
Karman Space & Defense (NYSE: KRMN) shares were up 16.9% in intraday trading on November 6, 2026, the session after the company reported record third quarter fiscal 2026 results. It also raised its full-year fiscal 2026 revenue outlook to between $755 million and $760 million.
What Karman Space & Defense reported
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $201.6M | $121.8M | +65.6% |
| Gross profit | $86.2M | $49.9M | +72.5% |
| Diluted EPS | $0.16 | $0.06 | +$0.10 |
| Adjusted diluted EPS | $0.19 | $0.10 | +$0.09 |
| Tactical Missiles and Integrated Defense Systems revenue | $67.6M | $44.5M | +51.9% |
Net income reached a record $21 million, up 174%. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, also excluding items such as stock-based pay and deal costs) rose 60% to $61 million, and the new full-year target for it is $225 million to $227 million, excluding any future acquisitions. Adjusted EPS strips out similar one-off costs. Space and Launch was the weak spot, with revenue down 6.9% to $37.9 million as customers shifted launch schedules.
Backlog, the value of signed contracts not yet billed, hit a record $1.7 billion, up 108% from the end of fiscal 2025. Quarterly bookings of nearly $465 million included a seven-year contract with Lockheed Martin supporting the THAAD missile defense program. Karman also completed its purchase of Walker Precision Holdings Limited, expanding in European defense, and generated $13 million of free cash flow.
Why the stock rose 16.9%
The gain was about three and a half times the size of a typical day's swing for the stock. Growth did not come only from acquisitions: organic revenue, which excludes bought businesses, rose 25%. Chief Executive Jon Rambeau said the company has "significant visibility into our increased fiscal 2026 guidance" and is now focused on building backlog for 2027 and beyond.
What to watch next
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Whether two long-term agreements now under negotiation are signed.
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Progress on two second-source supply opportunities in their initial phases, and three more being pursued.
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Integration of Walker Precision Holdings into Karman's European operations.
FAQ
What does Karman Space & Defense do?
Based in Huntington Beach, California, it designs and builds mission-critical subsystems for defense and space programs. It serves more than 150 customers across more than 150 programs.
How much debt does Karman Holdings have?
Long-term debt was $851.5 million at September 30, 2026, up from $495.3 million at December 31, 2025. Cash and cash equivalents were $68.2 million.
Sources
This article is for information only and is not investment advice.