Karman Holdings Inc. (KRMN) · Nov 5, 2026 · Earnings
Beat — Revenue $201.6M vs ~$191.3M consensus; diluted EPS $0.16 vs ~$0.15
Karman earnings beat revenue and EPS expectations, while a record backlog and fresh guidance raise strengthen its defense-growth story.
Karman is a fast-growing defense and space manufacturing platform using acquisitions to broaden its missile, hypersonics, maritime and launch capabilities; before this release, second-quarter guidance called for $730M-$745M of 2026 revenue and $215.0M-$222.5M of adjusted EBITDA, with backlog at about $1.3B.
The quarter cleared a high bar, not just the prior year. Revenue reached $201.6M, about 5.4% above the published ~$191.3M consensus, while diluted EPS was $0.16 versus roughly $0.15 expected; adjusted EPS was $0.19, up from $0.10 a year earlier. The growth was broad across defense, although Space and Launch revenue fell 6.9% year over year because launch schedules shifted. (Revenue by end market; Reconciliation of GAAP to Non-GAAP Financial Measures)
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Financial Results) | $201.6M (+65.6%) | $121.8M | ~$191.3M |
| Diluted EPS (Income Statement) | $0.16 | $0.06 | ~$0.15 |
| Adjusted EPS (Non-GAAP reconciliation) | $0.19 | $0.10 | |
| Adjusted EBITDA (Non-GAAP reconciliation) | $60.5M (+60.3%) | $37.7M | |
| Adjusted EBITDA margin (Non-GAAP reconciliation) | 30.0% | 31.0% | |
| Backlog (Backlog) | $1.7B (+108% vs. FY2025-end) |
The bigger change is the raised forward view. Karman lifted full-year revenue guidance to $755M-$760M from $730M-$745M and adjusted EBITDA guidance to $225M-$227M from $215.0M-$222.5M. That is a meaningful increase after only two quarters, and it is supported by bookings of nearly $465M and backlog that rose to $1.7B.
The backlog now makes the growth story more durable, but execution still matters. The seven-year Lockheed Martin THAAD contract and the completed Walker acquisition extend Karman’s program reach and European footprint, while management says it is pursuing additional long-term agreements and second-source opportunities. However, adjusted EBITDA margin slipped to 30.0% from 31.0%, interest expense rose to $18.0M, and nine-month free cash flow remained negative at $11.5M because acquisition spending and investment remain heavy. (Bookings and Backlog; Segment results; Cash Flow statement; Balance Sheet) 〔0〕
Bottom line: This is a genuine step-up in the story: Karman beat the quarter’s expectations and raised an already-raised outlook, with backlog providing unusually strong visibility. The main offset is that expansion is still consuming cash and margins have not expanded with the growth.
Q4 earnings and FY2027 outlook, early 2027
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