KRMN

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Senior Vice President of Investor Relations and Corporate Communications - Steven A. Gitlin Chief Executive Officer - Jonathan Rambeau Chief Financial Officer - Michael Willis Chief Operating Officer - Jonathan Beaudoin Operator: Hello, everyone. Thank you for joining us. And welcome to the Karman Space and Defense second quarter fiscal year 26 earnings conference call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Steven A. Gitlin, Vice President of Investor Relations. Steven, please go ahead. Steven A. Gitlin: Good afternoon, and thank you for joining Karman Space and Defense's Second Quarter Fiscal Year 26 Earnings Conference Call. I am Steven A. Gitlin, senior vice president of investor relations and corporate communications. Joining me today are Jonathan Rambeau, chief executive officer Michael Willis, chief financial officer and Jonathan Beaudoin, chief operating officer. Before we begin, please note that many of the statements made on this call are forward looking. These statements involve risks and uncertainties that may cause actual results to differ materially We encourage you to review the risk factors discussed in our filings with the SEC. I would also like to note that we will discuss a number of non GAAP financial measures today that we believe can be useful in evaluating our performance. Such non GAAP financial measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Our earnings release, which we filed today, can also be found under the heading News and Events on the Investors section of our company's website and contains a reconciliation of any non GAAP financial measure to the most comparable GAAP measure. The content of this conference call contains time sensitive information that is accurate only as of today, 08/06/2026. The company undertakes no obligation to make any revision to any forward looking statements contained in our remarks today, or to update them to reflect the events or circumstances occurring after this conference call. We have posted our earnings release and presentation on our website at karmansd.com. Now I will turn the call over to John. Jonathan Rambeau: Good afternoon. In the 4 months I have been with Karman, I have worked intensely and methodically to evaluate our strategy, our operations, and our progress as we continue in our second year as a mid cap public company. I am very proud of what Karman has accomplished and I am pleased to see our hard work reflected in milestones such as our recent addition to the S&P Small Cap 600 Index. Against all measures of progress, we are seeing positive results. Shown on page 4 of our earnings presentation, highlights in and since the second quarter include sequential revenue growth of 20.4% from the first quarter to the second Year over year quarterly organic growth of 24.4% representing revenue growth from businesses we have owned for more than 12 months. Record backlog of $1.3 billion, record quarterly bookings of nearly $500 million initial fit up of a 200 thousand-square-foot factory in Salt Lake City with production capability online before the end of 26. A large long term agreement executed with a space and launch customer further to the contingent agreement received earlier this year. Meaningful progress toward remediating the material weakness previously shared in our public filings. We anticipate the necessary controls to be fully implemented by the end of 26. With testing of operating effectiveness expected to continue into early 27. Selection of and transition to PwC as our new audit firm, moving Karman into the ranks of other established public companies working with a Big 4 auditor. Signed agreement to acquire Walker Precision Engineering, establishing a beachhead position in Europe, with relationships across the spectrum of European defense primes. Additional details on the Walker acquisition can be found on page 5. With these accomplishments as background, today I will summarize our record second quarter performance, highlight the progress we have made, and outline the priorities guiding our next phase of growth. Then Mike will discuss our financial results and guidance, Jonathan will provide updates on demand, integration and capacity expansion and I will discuss our growth trajectory before we take your questions. Michael Willis: From a performance point of view, as shown on page 6, we delivered another quarter of record financial results. With quarterly revenue of $182 million, non-GAAP adjusted EBITDA of $55 million and backlog reaching $1.3 billion, giving us 95% visibility to the midpoint of our full year revenue guidance. Jonathan Rambeau: We expect our strong organic growth rate to continue and want to provide additional clarity on why short term organic growth is not as useful a metric for our integrated business model as it may be for other companies. Some companies manage newly acquired businesses in more of a holding company fashion with minimal operational integration. In contrast, we identify and acquire companies that bring unique and valuable capabilities to Karman. Capabilities that allow us to offer greater value to our customers, and we begin the integration process on day 1. This means that we seek to exploit these capabilities immediately. To the benefit of Carmen and our customers regardless of the amount of time they have been a part of the company. For example, if a newly acquired business is better suited to manufacture products for a long standing program, then we will move production to that site regardless of whether the output is considered organic or inorganic. An example is what we are doing now in Gulfport where we are transitioning certain products for our space and launch end market from another long standing business. We categorize this as inorganic even though it is really organic business that we are simply moving to a recently acquired site that is best suited to its delivery. From an operational and customer perspective, what we call that revenue is much less important than making the best business decision for the customer and the enterprise. To provide a second and slightly different example, following the acquisition of our Cedar City Utah energetics business, we immediately began pursuing new use cases and customers, for its capabilities. Having seen rapid success, we created new revenue streams within that recently acquired business that would not have been possible had they remained independent. We aim to continue pursuing this strategy of moving work and combining capabilities across all of our businesses and will not constrain that strategy by managing to a quarterly organic growth metric that could reduce long term value capture for the enterprise. With that said, we remain focused on end markets with very strong organic growth vectors, and we remain confident in our ability to deliver 20% to 25% annual organic growth for the foreseeable future. Demonstrated performance supports that growth rate. Quarterly year over year organic growth in the 5 full quarters since our IPO has ranged 19% to 36%. Including 24.4% organic growth year over year in the most recent quarter. As we move forward, we will periodically share organic growth at a minimum annually while continuing to focus on optimizing the company for maximum shareholder returns over time. Beyond our financial results, we achieved significant commercial milestones that position Karman for sustained profitable growth. As we first announced in May 2026, we secured 4 large contingent supply agreements, 1 of which converted to a firm contract in the second quarter with the others expected to close by the end of the year. Additionally, while protecting our single and sole source positions on Munitions Advisory Council, or MAC programs remains a top priority, we see this moment as an opportunity to also go on offense. In terms of increasing our share as a second source to prime contractors. Not all suppliers have invested as proactively as Karman, positioning us to step in and become a second source where we are not participating today. Here are several examples of the progress we have made. First, separation motors for a major munitions program. Second, expected selection as a second source on a small propulsion system for a widely deployed anti armor weapon system. Third, emerging opportunity as a second supplier for large solid rocket motor or SRM cases. Fourth, an opportunity to be a second source supplier for a shroud system on a widely recognized interceptor program And finally, we are also engaging with customers on an opportunity for a future lower cost interceptor program. These wins and opportunities reflect growing confidence in Karman's ability to scale, innovate, and deliver critical hardware at speed and at high volume. They also reinforce what industry leaders have recently demonstrated. Framework agreements are converting into large production contracts as highlighted by the more than $90 billion in THAAD and PAC-3 interceptor contracts recently awarded to Lockheed Martin. And these large contracts are not limited to missile defense. As the Navy recently awarded an historic $76.6 billion in contracts for 5 new Columbia and 9 new Virginia class submarines. Programs that we support extensively through our maritime defense end market. Those contract awards underscore the strength of our pipeline and the state of the global security environment that drives our customers' mission every day. The demand environment remains strong with an urgency to replenish depleted munitions and interceptor stockpiles at an unprecedented rate. In fact, some customers are now citing demand to increase certain annual production buys by as much as a factor of 10x. Which would dwarf earlier projections of 2, 3, or 4x multiples of current build rates. Karman is purpose-built to respond to this market demand, and we continue to partner with prime contractors to help them deliver reliably, and efficiently. Having covered our Q2 highlights, I would like to turn for a moment to my go forward priorities. First, continue our track record of strong financial performance while capturing generational demand that we see continuing through at least the end of the decade. Second, fully unlock the value of Karman. Leveraging differentiated IP, a growing and well capitalized development and production system and a talented workforce. Having now visited 17 of our 20 current and expected to be acquired sites, I have confidence the whole will be realized as more than the sum of the parts. And third, drive operational excellence through technology, capacity, and a rigorous operating rhythm. To support these priorities, we have identified key areas of focus. First, drive disciplined delivery of free cash. While we still view growth and margin performance as top priorities, you will see increased focus on this metric in 2027, and this will be reflected in our executive compensation incentive framework beginning next year. Second, create financial flexibility. As we find opportunities for operational efficiency and operating leverage, this will provide options for price reduction, business reinvestment or margin improvement In a way that best maximizes long term shareholder returns. And third, continued expansion of our total addressable market within the high growth end markets we currently occupy through both organic and inorganic means. I am pleased with the progress we have made at the midpoint of the year and I remain confident that 2026 will be another year of record performance. With that, and to further discuss that performance, I will turn it over to Mike. Michael Willis: Thank you, John. Our record second quarter results demonstrate the continued strength and momentum of the Karman business model. Pages 7 and 8 include key financial metrics. Revenue of $182 million up 58% year over year, and 20% sequentially. Gross profit of $78 million up 66% with a gross margin of 43%. Net income of $14 million, up 106% year over year. Adjusted EBITDA of $55 million up 55% year over year, adjusted EPS of $0.14, 43% above last year backlog of $1.3 billion, up 65% compared to the end of fiscal year 2025, Bookings in the quarter totaled nearly $500 million from all end markets including a large space and launch LTA. Organic revenue grew 24.4% year over year in the quarter. As John mentioned, full quarterly organic revenue growth since our IPO has ranged between 19% to 36%, supporting our annual 20% to 25% organic revenue growth target. Each of our legacy markets delivered year over year quarterly and year to date growth. Tactical missiles and IDS grew 55% to $63 million year over year quarterly, and 41% to $108 million year to date, led by strength in core production programs including unmanned encounter UAS, and emerging programs transitioning into production. Maritime defense systems contributed $34 million in the quarter, and $60 million year to date, driven by legacy and next generation submarine programs. Hypersonics and strategic missile defense grew 24% to $43 million year over year quarterly and 22% to $79 million year to date. Driven by growth in key interceptor program production and increased production associated with a new surface to surface missile system. Space and launch grew 6% to $42 million year over year quarterly and 17% to $86 million year to date, supported by content for both legacy and new launch providers. Partially offset by customer order timing associated with shifting launch schedules. Our second quarter revenue mix was as follows: Tactical Missiles and IDS, 35%; Hypersonics and SMD, 24%; space and launch, 23%; and maritime defense systems, 18%. For the 6 months ending June 30, revenue rose to $333 million up 55% year over year. Gross profit increased to $142 million up 64% year over year. Net income grew to $22 million up from $2 million a year ago. Adjusted EBITDA jumped to $99 million up 51% year over year. And adjusted EPS climbed to $0.25 up 56% year over year. Looking now at the balance sheet, we continue to prioritize growth as we make capital allocation decisions, understanding that CapEx and working capital will continue to consume cash through this high growth cycle. That said, we are also placing increased emphasis on cash management and will include free cash flow metrics in our executive compensation program as John described earlier. Cash and cash equivalents totaled $52 million up $18 million from year end. Cash used in operations was $4 million, driven primarily by increases in accounts receivable and contract assets. This reflects the working capital requirements associated with the 58% revenue growth driving our receivables. As well as contract assets from production ramps investments we are making to expand our capacity. We expect volume and cash generation to accelerate in the second half of 26. Delivering free cash flow of $15 million to $20 million Accounts receivable growth in the second quarter was a function of timing and our growth. With significant deliveries taking place late in the quarter. Accounts receivable is likely to continue to grow in Q3 and Q4, but we do not expect AR days to grow. CapEx year to date was $22 million supporting growth across nozzle capacity, UAS launchers, launch vehicles, maritime programs, and spacecraft manufacturing. This represents a slightly higher run rate than our 5% guidance for the year, implying a step down in CapEx in the second half of 26. Our CapEx does not include customer funded capital. We are investing ahead of orders to strengthen our ability to respond to the generational demand cycle we expect to persist for a number of years. Turning now to leverage. Net debt was $752 million at the end of the second quarter. Our Q2 leverage ratio was roughly 3.7x adjusted EBITDA on a pro forma basis. Subject to regulatory approval of the Walker acquisition, we expect our pro forma leverage ratio to be approximately 3.5x by the end of the year. Since the quarter end, we repriced our term loan B to SOFR plus 2.25%,. A 50 basis point reduction. Equivalent to a savings of approximately $4 million a year in interest payments. We also previously increased our revolving credit facility from $50 million to $150 million, providing greater strategic flexibility. Now I would like to provide a brief update on M&A and our auditor. We announced the execution of an agreement to acquire Walker with a total consideration of £70 million or approximately $94 million. The adjusted EBITDA multiple we expect to pay at closing is consistent with the other acquisitions we have made since our IPO. The regulatory review process is underway, and we expect the acquisition to be completed by year end. Our integration of Seemann Composites and MSC is on track. Delivering higher than expected margin as we prepare to transition space and launch work to the Gulfport location. We are not seeing meaningful changes in valuation expectations across our robust proprietary M&A pipeline, we continue to represent an acquirer of choice for IP rich first or second generation owners seeking long term growth for the businesses they have created. We engaged PwC as our new auditor this quarter, Their scale and expertise are well aligned with our business model and growth strategy. I will now provide an update on our full year guidance. Given our strong first half results, record backlog and 95% visibility, we are raising our 2026 outlook shown on page 9. We now expect full year revenue of $730 million to $745 million and non GAAP adjusted EBITDA of $215 million to $222.5 million 29.7% margin at the midpoint. This represents year over year revenue growth of 57% and adjusted EBITDA growth of 51% to the midpoint. This outlook does not include the financial results from the Walker acquisition. Importantly, we reaffirm expectations of 25% or higher organic growth in 26. We expect second half revenue to increase sequentially with approximately a 47%/53% split between Q3 and Q4. With high visibility, much of our growing record backlog supports our plans for 2027 and beyond. Lastly, for 2026 modeling purposes, we expect a statutory tax rate of 26.5% and capital expenditures of 5% of revenue. Roughly $37 million. Now I will turn the call over to Jonathan. Jonathan Beaudoin: Thank you, Mike. As John stated earlier, integration of acquired businesses is key to our strategy, and enables us to create value that would not exist if these businesses remained stand-alone. Integration of our recent acquisitions continues to move ahead smoothly. Including Seemann Composites and MSC, which remains on track for completion this year. We are realizing early benefits, capturing new business pursuits, leveraging our collective capability, along with increasing production of existing Karman products by utilizing available capacity at the newly acquired facilities. For example, our Cedar City, Utah business is helping secure our positions to compete for second source propulsion system opportunities on a MAC interceptor and a key program of record air to ground missile system. An additional illustration is our initiative to manufacture space launch vehicle systems at the Gulfport facility leveraging its large scale maritime production capabilities to meet the specialized demands of space launch products. All business development opportunities and pursuits have been incorporated into our company wide BD systems. Allowing us to fully utilize Karman's capabilities to address customer needs. We have started implementing the Karman operating system across all companies acquired since our IPO with progress varying by location. In the second quarter, our machine utilization monitoring system was launched at our Albany, Oregon facility. Given the unprecedented levels of demand, it is imperative to ensure we have sufficient capacity to satisfy our customers' requirements ahead of their need. We are optimizing existing assets by evaluating utilization rates at recently acquired businesses and leveraging the Karman operating system to identify and address output constraints. In addition, we are investing in expanded capacity to accommodate future demand. Installation of advanced equipment is underway to support our significant space launch award with enhanced spacecraft production capabilities slated for deployment in Q4 26. We continue to advance our Salt Lake City manufacturing center which will support both tactical missile and IDS and Hypersonics and SMD customers. The first production equipment arrived last month and we expect initial production capability in the fourth quarter 26. The transition of select production from the Seattle area to SLC will release meaningful capacity to support development, low rate, and full rate production at that location. Maintaining strong visibility across our supply chain is necessary to support our growth strategy. As our business continues to grow, so does our customer and program count, now at more than 150. This increased diversification also applies to our supply chain, with no 1 vendor now making up 10% of our accounts payable. Our customers control the supply of key high temperature composite materials ensuring that we have access to the materials required to support them. In parallel, we are working to qualify our proprietary MG as an alternative solution to support the significant expansion at high temperature material demand. We continue to monitor raw metallic material availability and at this time, we have not experienced any constraints for our products. Turning now to our AI initiatives. We are advancing AI enabled capabilities across engineering and select business with the goal of reducing cycle times and expanding capacity. Our core initiative, what we call project moonshot, is focused on securely applying AI to our historical engineering program data. Accumulated over several decades to accelerate design, engineering, and proposal workflows. Over time, we believe these capabilities could improve capture probability and drive growth. We expect to share additional examples of our progress next quarter. Now I will turn it back to John. Jonathan Rambeau: Thank you, Jonathan. As we look toward the balance of the year, we remain focused on performance and growth. Complementing our strong organic growth, we also expect to continue to pursue our growth strategy through additional acquisitions. With the focus on munitions, and space capabilities that complement our current footprint in domestic and international markets. Beyond the current year, we believe that we are well positioned to deliver 20% to 25% annual organic growth for a multi year period. At that growth rate, revenue could double in 3 to 4 years with potential inorganic growth accelerating that timeline. there is no question that this is an exciting time for Karman and we are just getting started. Now let's take your questions. Operator: We will now begin the question-and-answer session. Please limit yourself to 1 question and 1 follow-up at which point you may return to the queue for another 2 questions. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the q and a roster. Your first question comes from the line of Peter Arment with Baird. Your line is open. Please go ahead. Peter Arment: Yeah. Thanks. Good afternoon, guys. Nice results. And maybe just first question, the new LTA within space and launch, could you give us a little more color on kind of the timing of when you expect that to start to contribute to the top line? Jonathan Rambeau: Yeah, sure. Sure, Peter. I will start off with that 1. If I could. You know, this is 1 we had mentioned in our prior quarter earnings call. We talked about a contingent supply agreement that we were actively negotiating in space and launch. And at that time, I think we had mentioned approximately a $250 million value for that LTA. That did come through just a bit below that number, but not too far from it. And it is a 5-year agreement. So you can see there will be some amount of that will start to feather in over the balance of this year. Following on to some prior-year agreements that had already been in place, and that will just burn off on, you know, following this year, it will burn off at a relatively level rate across the following 4.5 or so years. Peter Arment: Okay. Super helpful. And then just as a follow-up, The second the guidance that I raised, the second half implies kind of a sequential step up on the top line. Would you do we assume that tactical missiles IDS will still be the main driver of the top line? Or maybe any color you could give on markets or segments? Thanks. Michael Willis: I think end markets are going to continue to be kind of steady course from what you saw in the first 6 months. So we would expect tactical missiles and IDS to remain pretty strong in the second half. Got it. Peter Arment: Thanks. I will jump back in the queue. Thanks, guys. Jonathan Rambeau: Thanks, Peter. Operator: Your next question comes from the line of Louie DiPalma with William Blair. Your line is open. Please go ahead. Louie Dipalma: Great. John, Michael, Jonathan and Steven, nice work on the strong quarter. Thank you. Thank you On the prior quarter earnings call, you announced that you were in negotiations with several framework agreements I was wondering if you could provide an update in terms of the progress with those framework agreements and potential timing on when they might become definitized. Jonathan Rambeau: Yeah, sure. I would be happy to answer that, Louie. We continue to have active discussions with our with our prime customers on those 3 contingent supply agreements. We have made progress on all 3 of those, and we are continuing to anticipate as we did prior quarter that those would have firm agreements in place between now and the end of the year. We have, I would say, reasonable confidence that we will see initial contracts coming through as early as Q3. But, again, I think by the end of the year, we will see those fall into place. We have been going back and forth and as you might imagine, as the prime contracts come through, you know, we have to, you know, sort of have our time in the queue to get to the detailed negotiation with those customers. But the conversations are ongoing. And if anything, I think the expectation in terms of the total quantity volume that we will be seeing coming through those is going to be at or above what was anticipated last quarter. Louie Dipalma: Great. And across the industry, John, you have observed and many investors have observed how the Department of War is looking for second suppliers for many of the leading platforms For instance, Northrop Grumman was added as a second supplier for the PAC 3 system. Like, overall, in aggregate, do you view this second supplier trend as having a positive, neutral, or potentially negative impact on Karman's business? Jonathan Rambeau: Yeah. I can tell you, Louie, that it is an active conversation that we are having almost every day. And certainly, as you are, we are well aware of the conversation around second sourcing. I would call it a net opportunity for Karman. And the reason I would say that is first off, we really have leaned out, ahead a bit in terms of where demand was going to be, getting equipment on order, getting facilities in place. You know, Jonathan talked a little bit about our expansion facility that is well underway and we are quite excited about that. So while we know our customers are being asked to look hard at second sourcing, our commitment is a, we will convince them that we have the volume I am sorry, the capacity in place to support the volume, and we are gonna continue to be a reliable and competitive partner to them. And if there is an instance where they are asked to develop a second source, we would work with them to make sure that was more of a contingency plan versus a meaningful diversion of volume from Karman. On the other side of the coin, I think a big positive for us in terms of our opportunity to go on offense here and look for opportunities where other suppliers have not been able to build confidence with the primes that they are going to be able to meet the demand and meet the production ramp. And so we have had, as I mentioned in my remarks just a few minutes ago, a number of opportunities that have either come through or that we feel reasonably confident will come through for us to be a second source on certain programs for certain components. And then at least a couple of these instances, those will be meaningful, large, long term upside opportunities for Karman. So, while those are not all in the bag yet, I am feeling optimistic so far based on the conversations we have had. Great. Great. Thanks, John. Operator: Your next question comes from the line of Kenneth Herbert with RBC Capital Markets. Your line is open. Please go ahead. Kenneth Herbert: Yeah. Hi. Good evening. Thank you very much for the time and the question. John, I wanted to follow-up on just a comment you made right there at the end of your prepared remarks, and that involved post 2026 sort of 20% to 25% organic growth framework for the business. I mean, it does represent a slight, at least at a headline level, slowdown from what we are seeing this year But maybe you could just talk about confidence around that, how you see, you know, maybe the opportunity to continue with sort of this mid twenties organic growth framework And maybe just as you have thought about providing that sort of longer term outlook what you went through as the puts and takes as you think about that? Jonathan Rambeau: Yeah. I guess, Kenneth, I did not intend to communicate a slowdown. In fact, we see a very steady trend over time as we look back across the last 5 or so quarters that we have been public. And as we look to the foreseeable future, we see it being a consistent trajectory. And I think if you just look at the end markets and some of the demand we are seeing there, you know, particularly the missiles, interceptors, where we see space and launch headed, where we see the unmanned systems and, know, counter UAS systems going. I think it is it easily supports, that continued demand signal at least through the end of the decade. Thanks. Kenneth Herbert: And if I could, just on the on the comments around free cash, we can appreciate sort of where you are in the investment cycle and supporting growth But maybe if you could just remind us again and appreciate as well the increased focus on you are bringing to the business. How we think about sort of conversions maybe the near term, but more importantly, what you think the business should or could support in the longer term as we continue to see the growth and ideally some of the investments in terms of CapEx and working capital start to moderate a bit? Michael Willis: Yeah. Thank you. And this is Mike. I think that longer term, we would still maintain that free cash flow should be the range of 80% to 90% of net income. Now in this growth cycle we are in right now, we do have a use of cash for both working capital as well as CapEx. On the working capital side, at this level of growth that we are seeing, we certainly have an increase on receivables and which is would be expected. We also are leaning forward to help support the upcoming ramp, and so you are seeing inventory and contract assets that are on the rise First half of the year was a little bit heavier on CapEx. We were able to pull things to the left to help support the ramp coming. That is why we do expect CapEx to be a little bit lower as a percentage of revenue in the second half. And, long term, we would still maintain that where we are at in terms of 5% of revenue on CapEx. We think that is an adequate level to support the growth that we are seeing for the rest of the decade. Kenneth Herbert: Great. Thanks, Mike. Michael Willis: Thank you. Operator: Your next question comes from the line of Amit Daryanani with Evercore. Your line is open. Please go ahead. Amit Daryanani: Yep. Thanks a lot. I have 2 as well. I guess maybe just to start with on the operating leverage side, your EBITDA margin, I think, came in around 29.8% in the first half. And the full year guide sort of implies it is gonna step down a bit in the back half of this year despite sales, I think, being higher. Can you just walk through like what is driving that margin drop? Is it just the acquired entity that perhaps at a lower margin or the start up cost that is capacity investments. Love to just understand kinda what is driving that downtick and there is a way to think about normalized EBITDA margin as you go into 2027. Michael Willis: Hey, Amit. So our guidance on the full-year EBITDA margins, they are in line with the margins that we guided to a quarter ago better. But the reason why they were a little bit stronger in the first half of the year is really due to a mix of contract type, and that does relate a little bit to acquisitions. And when you think about the Seemann Composites and MSC acquisition that we did in February, happen to have a much higher percentage of cost plus type contracts. And those naturally do carry a lower EBITDA margin than a firm-fixed. So what we saw in the first half, and particularly in the second quarter, is favorable contract mix where we did not have as much revenue proportionately coming from those cost plus contracts. So we see that normalizing in the second half. But still better than what we thought we would be a quarter ago. Amit Daryanani: Got it. Perfect. that is helpful. And then your the $1.3 billion backlog number, obviously, very impressive. Can you just talk about what is the duration of this thing look like? Is there a way for us to at least conceptually think how much of that would convert to sales in the back half of this year versus 2027 Then what is beyond that? Would love to just kind of understand how much of this uptick is being driven by duration versus than anything else. Thank you. Michael Willis: I can start with that. So the very strong booking nearly $500 million that we had in the second quarter. Much of that, in fact, most of it was to support 2027 and beyond. And so that gives us great confidence for the outlook. Now we do only have 5% left to book this year. there is no white space or go get. it is really just timing of PO placement. Of those bookings and specifically of the large LTA that we ended up getting on space and launch, there is opportunity that of that revenue will start to occur in the, back half of this year. But most of the bookings really are supporting our longer term strategy. Amit Daryanani: Perfect. that is it for me. Thanks a lot. Michael Willis: Thank you. Operator: Your next question comes from the line of John Godyn with Citi. Your line is open. Please go ahead. John Godyn: Hey, guys. Thanks for taking my question. It was it is great to see the organic growth reaccelerate in the second quarter. And just because of the laser focus on that, I was hoping maybe we could just revisit organic growth in the back half of the year. You could kind of discuss the shape in a little bit more detail just to level set everybody. Michael Willis: Hey, John. Yeah. Great quarter in the second quarter at the 24.4%. On organic. We do believe that on the year, we are going to be at 25% or slightly better on organic. So we are gonna expect to see that continue to increase Q3 and again in Q4. So kind of that sequential, buildup that we were talking to a little bit at the start of the year in terms of how the year would play out, but we would get to 25% or slightly better on the full year, so you are gonna see an acceleration in the second half. John Godyn: Got it. And it sounds like you have you mentioned you are 95% covered for the year. So tremendous visibility into that. Is there anything that can happen between now and the end of the year that would actually create upward pressure to that number. Like, what would be a source of upside surprise to organic growth from here? Jonathan Rambeau: In terms of upside surprise that you might see, I if the framework agreements that we talked about would convert earlier than the end of the year, there could be some additional upside that we might see. as that gets up and running. As we had previously discussed, we are anticipating right now and planning for those to really start hitting us in the first part of 2027. But as we have seen, there is a sense of urgency to get that work contracted and we are hopeful that we might see some opportunity for upside, but it is a little bit too early to count on that right now. John Godyn: Got it. And if I could just ask, 1 more. John, in the prepared remarks, you were talking about fully unlocking the value of Karman. 1 of the things you mentioned was margin. In the conversations that I have with investors, it is not unusual that investors think kind of 30% EBITDA margins are the right normalized level, roughly. But it sounded to me like you might think over the long term, there could be upside beyond that. Did I hear that correctly? And maybe you could just sort of you know, unpack that those comments a little bit more. Jonathan Rambeau: Yeah. Certainly happy to do that. I do not wanna set an expectation that margins will exceed 30% on a continuing basis as we go forward. However, what we are very focused on right now is we continue to integrate the company. it is it has been very apparent to me as I have traveled around to almost every 1 of our physical locations that as you would expect with a number of recently acquired businesses, their initial integration has been completed and there is still more opportunity. To optimize the enterprise. And the way we are thinking about that optimization is to find opportunities for financial flexibility. And we are thinking about that in 3 ways. 1 is, you know, we recognize that as our customers pursue some of these generational increases and in capacity and look to lock in long term arrangements, there could be pressure put on our pricing, and we wanna make sure we have contingency in place to be able to manage that while still maintaining our margin performance. We are also looking at whether we might want to take that financial flexibility and look at reinvestment in the business to capture the next generation franchises that are yet to be identified And the third opportunity would be obviously if we decided the best, the best long term value to our shareholders was to deliver that as additional margin for the that is an option that we would like to have available as well. So it is a strategy we are gonna continue to, I would say, pursue very intentionally and we will provide updates as we start to make progress on that. John Godyn: Alright, guys. Thanks a lot. Operator: As a reminder, if you would like to ask a question, press *1 to raise your hand. Michael Leshock: Your next question comes from the line of Michael Leshock with KeyBanc Capital Markets. Line is open. Please go ahead. Hey, good afternoon. Jonathan Rambeau: Maybe just a follow-up on the margins there. I am curious if you have a sense of what the margin difference is between a second opportunity and maybe a legacy Karman sole sourced program. It sounds like there is quite a bit of second source opportunities that you are pursuing, and you mentioned it is a net positive. Just curious what your expectations are on the margin impact should that become a bigger piece of revenue over time? Michael Leshock: Yeah. Thanks for the question, Michael. I do not see that there is gonna be an appreciable, you know, either increase or decrease in margins as a result of the second source opportunities. You know, certainly, will perhaps be a bit more aggressive initially in pricing if we needed to secure a very nice long term franchise for the company, but we were would not you know, enter into something that would be significantly dilutive to margins over the long term. Jonathan Rambeau: We would we would have an appropriate business case and think that through carefully before we made that decision. Know, obviously, we wanna look at finding a way to meet our customers where they are today, look at the price point they are paying today, can we be competitive with that, can we can we make the business case close in terms of any capital investment what we might have to make there? But as I said, for the ones that are that are already in the that we have clear visibility to, I think we feel comfortable that you know, Karman type margins would be would be in family with these new ones. Michael Leshock: Okay. Great. And then maybe on space, if you could provide any details on the new Glenn anomaly and the impact that had, if any, at all? I would expect it to be minimal, but just you know, curious on the puts and takes as we look longer term given they are a meaningful cost customer within that segment. Jonathan Rambeau: Yeah. Sure. The long term outlook for space and launch overall continues to be very favorable for us. And, you know, we certainly do talk on a regular basis with Blue Origin and I might have mentioned last quarter that the conversations we have had with them from almost immediately following the mishap were that things are full steam ahead from a production point of view, the has not slowed down. If anything, it is it is accelerated and strengthened over time. So I feel very good about where we are and what we will where we will continue to go as a partner with, with Blue Origin. Michael Leshock: Great. Thanks so much. Operator: Your next question comes from the line of Alexandra Eleni Mandery with Truist Securities. Your line is open. Please go ahead. Alexandra Eleni Mandery: Hey, nice results, and thanks for taking my question. You mentioned working to qualify your MG resin. I guess what are qualification lead times right now? And are there any discussions with the department of work to just to support the acceleration of those processes to support demand more quickly? Jonathan Beaudoin: Yeah. Appreciate the question. This is Jonathan. We are receiving funding to further develop MG resin. it is both for uses, an ablative material and solid rocker motor nozzles and for, carbon carbons or kind of 2 applications of the MG resin system. So that will further advance it and then we are working with the propulsion primes to find a project or a platform that we would then insert it. At that time, it is probably call it, a year to 2 years for a full qualification at a platform level. Alexandra Eleni Mandery: Awesome. Thank you. Operator: We have a follow-up question from Amit Daryanani with Evercore. Line is open. Please go ahead. Amit Daryanani: Yep. Thanks for letting me get back on. I guess, John, you were initially talking about just the organic growth and you talked about how the way you integrate acquisitions makes it difficult for people to disclose the quarterly organic growth going forward. Guess the question for you would be, when you evaluate an acquisition target, presumably part of the model separates the return on the target standalone organic base you would get, the return on integration synergies, like moving the Gulfport type point that you just cited. Historically, has that split been formal when you look at a deal and you underwrite it for IRR and stuff internally. I guess the question will be that now that you are just you are gonna disclose the organic, inorganic less frequently. Does that change how you internally are looking at deals pre and post synergies at all? Or is this really purely an external reporting decision of not giving information? Jonathan Rambeau: Yeah. Thanks for the question, Amit. I guess first off, I would say, you know, this is something that our approach how we think about it has remained consistent. And typically when we evaluate an opportunity, we would we would really make the base investment decision based on the current business plan or projection that we would see as we model the opportunity or the property. So really there from there, we bring the business on as a call it an instant bolt on. We start the integration process and then we typically will work the upside opportunities from there. We certainly do talk about as we are evaluating an acquisition, the strategic value and how we could bring the portfolio more tightly together and unlock additional opportunities. But the base case is typically made on the call it, the organic growth we would see resident in that business. So as we think about our model going forward our plans to talk about organic growth annually, I do not see that really changing the way we would evaluate a target. Perfect. Thank you. Operator: There are no further questions at this time. I will now turn the call back to Jonathan Rambeau, CEO, for closing remarks. Jonathan Rambeau: Hi. Well, thank you, everyone, for joining the call today. Before we close, I would just like to emphasize 3 key points from today's call. First, Karman continues to deliver 20% to 25% annual organic growth and we reaffirm our expectation of delivering 25% or higher organic growth in 2026. This growth rate varies quarter to quarter, but has remained consistent on average over the 5 full quarters since our Q1 25 IPO. Second, we are strengthening our platform expanding internationally, adding valuable new capabilities deepening customer relationships, producing higher operational efficiency, and tightening our focus on cash. And third, we are deploying capital effectively by expanding our capacity to address generational demand and positioning Karman to deliver sustained, 20% to 25% organic growth and adjusted EBITDA margins of up to 30% for years. Supplemented by inorganic growth. This is only made possible by the efforts of our outstanding Karman employees whose relentless focus on serving our customers continues to inspire. Thank you for joining us today for your interest in Carmen's space and defense. You can find our SEC filings and relevant news on our website at karmansd.com. We look forward to speaking with you again following our next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Karman. The Motley Fool has a disclosure policy. Karman Holdings (KRMN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Karman Holdings (KRMN) drew fresh attention after reporting second quarter 2026 results on 6 August, along with higher full year revenue guidance and a repricing of its term loans and revolving credit facility. See our latest analysis for Karman Holdings. The earnings beat, higher guidance and lower interest costs have clearly shifted sentiment around Karman Holdings. The 1-day share price return of 5.60% and the 7-day share price return of 20.93% contrast with a year to date share price return that is down 24.23%, while the 1-year total shareholder return of 27.20% reflects stronger performance for investors who stayed invested through the past year. If Karman has caught your eye, it can help to see what else is moving in similar areas of the market by scanning 36 power grid technology and infrastructure stocks Bulls point to Karman Holdings' record backlog, guidance raise and lower interest costs. Bears see a stock still down sharply year to date after a strong week. Which side does the current valuation support next? Karman Holdings closed at $58.23, while the most followed narrative on the stock assigns a fair value of $105.60. That gap sits at the center of the current debate. Read the complete narrative. Read the complete narrative. The fair value hinges on how that $1b-plus backlog converts, how margins hold up as acquisitions are integrated, and how fast earnings compound from here. This narrative leans heavily on rapid top line growth, rising profitability and a richer future cash flow profile that is very different to what the current share price implies. Result: Fair Value of $105.60 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Karman Holdings still carries a heavy debt load and relies on a concentrated customer base, which could quickly challenge this undervalued narrative if sentiment turns. Find out about the key risks to this Karman Holdings narrative. The user narrative emphasizes future earnings and EBITDA scenarios to argue that Karman Holdings looks undervalued. Our DCF model comes to a very different conclusion. It puts fair value at $16.95, which implies the stock is expensive at the current $58.23 price. Which perspective better fits your risk tolerance? For investors who want to see how this type of cash flow modelling works in detail, Look into how the SWS DCF model arrives at its fair value. With such a split between bullish and cautious views on Karman Holdings, it makes sense to move fast and review the data yourself. To see how the positives stack up against the concerns in one place, take a close look at the 2 key rewards and 1 important warning sign. If Karman Holdings has sharpened your focus, do not stop there. Use the Simply Wall Street Screener to quickly spot fresh opportunities that fit your style. Spot potential mispricings by comparing fundamentals with current prices using the 51 high quality undervalued stocks. Strengthen your dividend income game by scanning the market for 8 dividend fortresses. Sleep easier at night by concentrating on 79 resilient stocks with low risk scores that aim to keep volatility in check. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KRMN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Karman Holdings Inc.? Here are five stocks we like better. 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. 2 Space and Defense Stocks Turning Backlogs Into Revenue Growth 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. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Karman: Defense Darling's Outlook Strengthens After 40% Drop 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. 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. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 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. → No Hangover: Revisiting Microsoft One Week After Earnings 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. 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, driven by interceptor production and a new surface-to-surface missile system. Space and Launch: Revenue increased 6% to $42 million, supported by legacy and new launch providers, partially offset by customer order timing and shifting launch schedules. Maritime Defense Systems: Revenue totaled $34 million, supported by legacy and next-generation submarine programs. Karman’s second-quarter revenue mix was 35% Tactical Missiles and IDS, 24% Hypersonics and Strategic Missile Defense, 23% Space and Launch, and 18% Maritime Defense Systems. The company converted one of four previously announced contingent supply agreements into a firm contract during the quarter. Rambeau said the Space and Launch long-term agreement is valued slightly below the approximately $250 million estimate discussed in the prior quarter. The five-year agreement is expected to begin contributing some revenue in the second half of fiscal 2026 and then be recognized at a relatively even rate over the following four and a half years. Karman said it expects the remaining three contingent supply agreements to become firm contracts by year-end, potentially with initial contracts arriving as early as the third quarter. Management said the expected volume from those agreements is at or above prior expectations, though the company is principally planning for their revenue contribution to begin in early 2027. The company is expanding manufacturing capacity to support what executives described as generational demand for munitions, interceptors and related defense products. Karman is fitting out a 200,000-square-foot Salt Lake City factory, where initial production capability is expected in the fourth quarter of 2026. The facility will serve Tactical Missiles and IDS as well as Hypersonics and Strategic Missile Defense customers. Chief Operating Officer Jonathan Beaudoin said Karman is also installing equipment to support a major space-launch award, with enhanced spacecraft production capabilities expected in the fourth quarter. The company plans to transition selected Space and Launch production to its Gulfport facility, using that location’s large-scale maritime manufacturing capabilities. Karman continues to integrate Seemann and MSC, acquisitions completed earlier this year. Willis said those businesses are producing higher-than-expected margins, although their larger proportion of cost-plus contracts contributed to expectations for somewhat lower margins in the second half compared with the first half. The company also agreed to acquire Walker Precision Engineering for approximately £70 million, or about $94 million. The acquisition, which remains subject to regulatory approval, is expected to close by year-end and would establish Karman’s initial European presence and relationships with European defense prime contractors. At quarter-end, Karman had $52 million in cash and cash equivalents and net debt of $752 million. Its pro forma leverage ratio was approximately 3.7 times adjusted EBITDA. Subject to the Walker acquisition closing, management expects leverage to decline to about 3.5 times by year-end. Cash used in operations was $4 million during the quarter, largely reflecting higher accounts receivable and contract assets tied to growth and production ramps. Karman expects free cash flow of $15 million to $20 million in the second half. Management said it expects long-term free-cash-flow conversion of 80% to 90% of net income, while noting that working capital and capital expenditures will continue to consume cash during the current expansion cycle. Rambeau said Karman is pursuing opportunities to become a second source for additional defense programs while seeking to maintain its existing single- and sole-source positions. He said those opportunities are expected to carry margins generally in line with Karman’s existing business rather than materially diluting profitability. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Karman Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by 24.4% year-over-year organic growth, supported by record bookings of nearly $500 million and a backlog reaching $1.3 billion. Management emphasizes an integrated business model where production is moved to the most efficient site regardless of acquisition status, prioritizing long-term value capture over short-term organic growth metrics. Growth in Tactical Missiles and IDS was led by core production programs including unmanned and counter-UAS systems, while Maritime Defense benefited from legacy and next-generation submarine programs. The company is shifting to an 'offensive' strategy to secure second-source positions on major programs where existing suppliers have failed to meet production ramp expectations. Operational focus is transitioning toward remediating material weaknesses, with full implementation of controls expected by the end of 2026. The acquisition of Walker Precision Engineering establishes a strategic beachhead in Europe, providing direct relationships with European defense primes. Management reaffirms a multi-year framework of 20% to 25% annual organic growth, citing generational demand for munitions and interceptors through the end of the decade. Guidance for 2026 was raised to $730 million - $745 million in revenue, with 95% visibility to the midpoint based on current backlog and contract timing. Free cash flow is expected to accelerate in the second half of 2026 to between $15 million and $20 million as volume increases and capital expenditure run rates step down. Executive compensation will be tied to free cash flow metrics starting in 2027 to drive disciplined delivery and financial flexibility. Capacity expansion at the Salt Lake City facility is scheduled to bring production online before the end of 2026 to support tactical missile and hypersonics demand. The company transitioned to PwC as its new Big 4 auditor to align with its scale as an established public company. A 50 basis point reduction in Term Loan B pricing is expected to save approximately $4 million in annual interest payments. Working capital requirements remain high due to 58% revenue growth and the need to invest in inventory ahead of significant production ramps. Management noted that while customers are looking at second sourcing, they aim to ensure these are contingency plans rather than meaningful diversions of Karman's volume. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the remaining three contingent supply agreements to convert to firm contracts by the end of 2026, with initial contracts potentially appearing in Q3. Anticipated volume from these agreements is expected to be at or above levels projected in the prior quarter. Management views the trend as a net positive opportunity to gain share as a second source on programs where they do not currently participate. They are engaging on opportunities for separation motors, small propulsion systems, and large solid rocket motor cases. While not setting expectations to exceed 30% EBITDA margins, management is seeking 'financial flexibility' through operational optimization. This flexibility provides options for price reductions to secure long-term franchises, reinvestment in new technologies, or margin improvement. Full qualification at a platform level is estimated to take one to two years. The company is receiving funding to develop the resin for solid rocket motor nozzles and carbon-carbon applications.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 revenue of $182 million, up 58% year-over-year, with 24.4% organic growth. Record backlog of $1.3 billion, providing 95% visibility to full-year revenue guidance. Record quarterly bookings of nearly $500 million, including a large space and launch long-term agreement. Raised full-year 2026 revenue guidance to $730-$745 million and adjusted EBITDA to $215-$222.5 million. Strong demand environment with customers citing potential production increases by up to 10x, supporting long-term growth. Progress on remediating material weakness and transition to PwC as auditor, enhancing corporate governance. Signed agreement to acquire Walker Precision Engineering, expanding European footprint and defense prime relationships. New second-source opportunities across multiple programs, including separation motors, propulsion systems, and SRM cases. Repriced term loan B, reducing interest costs by approximately $4 million annually. Expects to deliver 20-25% annual organic growth for the foreseeable future, with revenue potentially doubling in 3-4 years. Cash used in operations was $4 million due to increased receivables and contract assets from rapid growth. CapEx run rate is slightly higher than 5% guidance, with a step-down expected in the second half. Net debt of $752 million with leverage ratio of 3.7x, though expected to improve to 3.5x by year-end. Second-half EBITDA margins expected to normalize lower due to contract mix, including cost-plus contracts from acquisitions. Space and launch segment growth was only 6% year-over-year due to customer order timing and shifting launch schedules. Organic growth metric will be disclosed less frequently (annually), potentially reducing transparency for investors. Walker acquisition is subject to regulatory approval, with completion expected by year-end, adding execution risk. MG resin qualification for high-temperature materials may take 1-2 years, limiting near-term supply chain alternatives. Potential pricing pressure from customers seeking long-term agreements could impact margins. Working capital requirements are expected to continue growing in Q3 and Q4, pressuring free cash flow. Warning! GuruFocus has detected 2 Warning Sign with KRMN. Is KRMN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the progress of the three contingent supply agreements and the potential timing for when they might become definitized?A: John Rambo (CEO): We continue to have active discussions with our prime customers on those three contingent supply agreements. We've made progress on all three, and we anticipate firm agreements will be in place between now and the end of the year. We have reasonable confidence that we'll see initial contracts coming through as early as Q3. The expectation in terms of total quantity volume coming through those agreements is going to be at or above what was anticipated last quarter. Q: How do you view the industry trend of the Department of War looking for second suppliers for leading platforms? Is this a positive, neutral, or potentially negative impact on Karman's business?A: John Rambo (CEO): I would call it a net opportunity for Karman. We have leaned out ahead in terms of anticipating demand, getting equipment on order, and facilities in place. While customers are being asked to look at second sourcing, our commitment is to convince them we have the capacity to support the volume and remain a reliable partner. On the other side, this is a big positive for us to go on offense and become a second source where other suppliers haven't been able to build confidence with primes. We have a number of opportunities that have either come through or we feel confident will come through, including meaningful large long-term upside opportunities. Q: You mentioned a 20% to 25% organic growth framework for the business post-2026. Does this represent a slowdown from this year, and what gives you confidence in this outlook?A: John Rambo (CEO): I did not intend to communicate a slowdown. We see a very steady trend over time across the last five quarters since being public, and we see a consistent trajectory for the foreseeable future. Looking at the end markets, particularly missiles, munitions, interceptors, space and launch, and unmanned systems, it easily supports that continued demand signal at least through the end of the decade. Q: Can you walk through what is driving the EBITDA margin drop in the second half of the year despite higher sales? What is the normalized EBITDA margin as we go into 2027?A: Mike Willis (CFO): Our guidance on the full-year EBITDA margins is in line with what we guided to a quarter ago, slightly better. The stronger first-half margins were due to a mix of contract type, which relates to acquisitions. The Siemens and MSC acquisition has a much higher percentage of cost-plus contracts, which naturally carry a lower EBITDA margin than firm-fixed-price contracts. We saw a more favorable contract mix in the first half, and we see that normalizing in the second half, but still better than we thought a quarter ago. Q: Can you provide details on the new long-term agreement (LTA) within Space and Launch, including timing and when it will start to contribute to the top line?A: John Rambo (CEO): This was the contingent supply agreement we mentioned last quarter, approximately $250 million in value. It came through just a bit below that number but not too far from it. It's a five-year agreement, so some amount will start to feather in over the balance of this year, and it will burn off at a relatively level rate across the following four and a half years. Q: Given the focus on free cash flow, how should we think about conversions in the near term and longer-term as growth continues and investments moderate?A: Mike Willis (CFO): Longer-term, we maintain that free cash flow should be in the range of 80% to 90% of net income. In this growth cycle, we have a use of cash for working capital and CapEx. On working capital, at this level of growth, we see an increase in receivables, which is expected. We are also leaning forward to support the upcoming ramp, so inventory and contract assets are on the rise. Long-term, we maintain that 5% of revenue on CapEx is an adequate level to support growth for the rest of the decade. Q: Can you discuss the shape of organic growth in the back half of the year? What could be a source of upside surprise to organic growth from here?A: Mike Willis (CFO) & John Rambo (CEO): We believe on the year we will be at 25% or slightly better on organic growth, so you will see an acceleration in the second half. In terms of upside surprise, if the framework agreements convert earlier than the end of the year, there could be additional upside. We are planning for those to really start hitting in the first part of 2027, but there is a sense of urgency to get that work contracted, and we are hopeful we might see some opportunity for upside. Q: You mentioned fully unlocking the value of Karman and margins. Do you think there could be upside beyond the 30% EBITDA margin level over the long term?A: John Rambo (CEO): I don't want to set an expectation that margins will exceed 30% on a continuing basis. However, we are focused on finding opportunities for financial flexibility. We recognize customers may put pressure on pricing, and we want to have contingency in place to manage that while maintaining margin performance. We are also looking at reinvestment in the business to capture next-generation franchises. The third opportunity would be to deliver additional margin if that's the best long-term value for shareholders. It's a strategy we will pursue intentionally and provide updates as we make progress. Q: What is the margin difference between a second source opportunity and a legacy Karman sole source program? Should second source become a bigger piece of revenue, what is the margin impact?A: John Rambo (CEO): I don't see an appreciable increase or decrease in margins as a result of second source opportunities. We might be a bit more aggressive initially in pricing to secure a long-term franchise, but we wouldn't enter into something significantly dilutive to margins over the long term. We want to be competitive with the price point customers are paying today and make the business case close in terms of capital investment. For the ones already in the pipeline, we feel comfortable that Karman-type margins would be in family with these new ones. Q: Can you provide details on the New Glenn anomaly and the impact it had, if any, given Blue Origin is a meaningful customer within the space segment?A: John Rambo (CEO): The long-term outlook for space and launch continues For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HUNTINGTON BEACH, Calif., August 06, 2026--(BUSINESS WIRE)--Karman Space & Defense ("Karman", "Karman Holdings, Inc." or "the Company") (NYSE: KRMN), a leader in the rapid design, development, and production of critical, next-generation systems that align with the core mission priorities of the U.S. Department of War and its allies, and meet the accelerating demand for access to space, today reported second quarter fiscal year 2026 financial results. Second Quarter Fiscal Year 2026 and subsequent highlights Record quarterly revenue of $182.1 million driven by year over year organic growth of 24.4% and total growth of 58.2% Record quarterly net income of $14.0 million, up 106.1% year over year, and earnings per fully diluted share of $0.11, compared to $0.05 in the prior-year quarter Record quarterly non-GAAP adjusted EBITDA of $54.6 million, a 54.7% year over year increase, and non-GAAP adjusted earnings per fully diluted share of $0.14, compared to $0.10 in the prior-year quarter Record backlog of $1.3 billion at the end of the second quarter of 2026, up 65% compared to the end of the fiscal year 2025 Quarterly bookings of nearly $500 million across all end markets, including a large, multi-year contract with a space and launch customer Agreement to acquire Walker Precision Engineering for approximately $94 million, expanding presence into the European defense market Completed debt repricing, expected to reduce annual interest expense by approximately $4 million Raising 2026 outlook to $730 to $745 million in revenue and $215 to $222.5 million in adjusted EBITDA "Our team produced another quarter of record performance, generating revenue of $182 million driven by year over year organic growth of 24.4 percent and total growth of 58 percent, and adjusted EBITDA of $55 million, an increase of 55 percent," said Jon Rambeau, chief executive officer of Karman Space & Defense. "Our record $1.3 billion backlog provides exceptionally strong visibility into our fiscal year 2026 outlook and positions us to achieve this year’s goals while building even stronger momentum for 2027 and beyond. "The demand environment continues to strengthen, with more than $90 billion in recent prime contractor awards for THAAD and PAC-3 interceptors and over $76 billion for new Columbia and Virginia class submarines. Against this backdrop, bookings in the quarter totaled nearly $500 million, including a large, long-term agreement with a leading space and launch customer, and we are actively negotiating three additional long-term defense agreements with a combined potential value of more than $1 billion. "We are scaling capacity to meet existing program requirements and we are simultaneously going on offense - winning alternative supplier positions on new programs and in new content areas. We believe Karman remains well positioned to create long-term shareholder value in this unique and accelerating demand environment," Rambeau added. Second Quarter Fiscal Year 2026 Financial Results The increase in total revenue reflects growth across all end-markets and our diversified portfolio of more than 150 customers and programs. Growth in Hypersonics and Strategic Missile Defense revenue for the three and six months ended June 30, 2026 from the comparable period in the prior year, was primarily driven by growth in key interceptor program production and increased production associated with a new surface-to-surface missile system. Growth in Space and Launch revenue for the three and six months ended June 30, 2026 from the comparable periods in the prior year, was primarily driven by content supporting both legacy and emerging launch providers, partially offset by customer order timing associated with shifting launch schedules. Growth in Tactical Missiles and Integrated Defense Systems for the three and six months ended June 30, 2026 from the comparable period in the prior year, was primarily driven by strength in core production programs, including unmanned aircraft systems and counter-UAS, and emerging programs transitioning to production. Growth in Maritime Defense Systems for the three months ended June 30, 2026 from the comparable period in the prior year was primarily driven by legacy and next generation submarine programs. Backlog As of June 30, 2026, total backlog was $1.3 billion, which represents the total value or current estimated value of existing contracts, less amounts previously invoiced. Contract types include, but are not limited to, purchase orders, long term agreements and contractual authorizations to proceed. Business Outlook for the Full Year 2026 For the full fiscal year 2026, the Company raises its expectations for total revenue to between $730 million and $745 million, and for non-GAAP Adjusted EBITDA to between $215.0 million and $222.5 million, excluding the impact of any future acquisitions. Non-GAAP adjusted EBITDA is provided in the full year 2026 Outlook on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, because to do so could be misleading and unable to be accomplished without unreasonable effort given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant. The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, subject to certain risks and uncertainties, including certain assumptions with respect to our ability to efficiently and on a timely basis integrate acquisitions, obtain and retain contracts, react to changes in the timing and/or amount of government spending, changes in the demand for our products, activities of competitors, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates and investors should review all risks related to achievement of the guidance reflected under "forward-looking statements" below and in the Company’s filings with the Securities and Exchange Commission. Conference Call and Live Webcast In conjunction with this release, Karman Space & Defense Inc. will host a conference call and live webcast today, Thursday, August 6, 2026, at 1:30 pm Pacific Time. Hosting the call and webcast to review results for the second quarter of fiscal year 2026 will be Chief Executive Officer Jon Rambeau, Chief Financial Officer Mike Willis, Chief Operating Officer Jonathan Beaudoin, and Senior Vice President, Investor Relations and Corporate Communications Steven Gitlin. Investors may dial into the call using the following telephone numbers: +1 (833) 461-5787 (U.S. toll free) or +1 (585) 542-9983 (U.S. local or international) entering Meeting ID: 435 493 861. Please allow ten minutes prior to the start time to allow for registration. Investors with Internet access may listen to the live audio webcast via the Investor Relations page of the Karman Space & Defense website, https://investors.karman-sd.com/overview/default.aspx, or directly at https://events.q4inc.com/attendee/435493861. Please allow ten minutes prior to the call to download and install any necessary audio software. A replay of the audio webcast will be available for one year. A supplemental investor presentation for the second quarter fiscal year 2026 may be accessed at https://investors.karman-sd.com/News--Events/events-and-presentations/default.aspx. Audio Replay An audio replay of the event will be archived on the Investor Relations section of the Company's website at https://investors.karman-sd.com. About Karman Space & Defense Karman Space & Defense is a leader in the rapid design, development and production of critical, next-generation system solutions that align with the U.S. Department of War and its allies’ core mission priorities and the accelerating demand for access to space. Building on nearly 50 years of success, we deliver Payload Protection Systems, Hydro/Aerodynamic Interstage Systems, and Propulsion & Launch Systems to more than 150 prime contractors and programs. Karman is headquartered in Huntington Beach, CA, with multiple facilities across the United States. For more information, visit our website, www.karman-sd.com. Non-GAAP Supplemental Information We present in this press release certain financial information based on our Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share (Adjusted EPS). We believe the non-GAAP financial measures will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures, each of which is discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. We may use non-GAAP financial metrics in certain management compensation plans, debt covenants, internal budgetary decision making, and other resource allocation decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure. We recognize that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not. and readers should not, consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business. We define these non-GAAP financial measures as follows: EBITDA refers to net income before income taxes, depreciation and amortization and interest expense. Adjusted EBITDA refers to EBITDA plus, as applicable for each period, adjustments for certain items management believes are not indicative of ongoing operations. Adjusted EBITDA excludes non-cash share-based compensation expenses. Additionally, Adjusted EBITDA excludes certain nonrecurring costs that management excludes in contemplation of budget decisions and are not costs of operating the business, such as entity wide re-branding initiatives or acquisition integration costs, and lender and administrative agent fees associated with discrete amendments. Lastly, Adjusted EBITDA excludes other non-recurring costs including gains or losses from disposition of assets, non-cash impairment losses, non-recurring transaction expenses and other charges or gains that the Company believes are not part of the ongoing operations of its business. The resulting expense or benefit from these other non-recurring costs is inconsistent in amount and frequency. Adjusted EBITDA Margin - Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenue. Adjusted EBITDA and Adjusted EBITDA Margin are not measures calculated in accordance with U.S. GAAP, and they should not be considered an alternative to any financial measures that were calculated under U.S. GAAP. Adjusted EBITDA and Adjusted EBITDA Margin are used to facilitate a comparison of the ordinary, ongoing and customary course of our operations on a consistent basis from period to period and provide an additional understanding of factors and trends affecting our business. Adjusted EBITDA and Adjusted EBITDA Margin are driven by changes in volume, performance, contract mix and general and administrative expenses and investment levels. Performance, as used in this definition, refers to changes in profitability and is primarily based on adjustments to estimates at completion on individual contracts. These adjustments result from increases or decreases to the estimated value of the contract, the estimated costs to complete the contract, or both. These measures therefore assist management and our board and may be useful to investors in comparing our operating performance consistently over time as they remove the impact of our capital structure, asset base and items outside the control of the management team and expenses that do not relate to our core operations. Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly titled non-GAAP measures used by other companies as other companies may have calculated the measures differently. Adjusted EPS represents GAAP net income (loss) per fully diluted share, excluding transaction related expenses, integration expenses and non-recurring costs, lender and administrative agent fees, share-based compensation and other non-recurring costs as they are not representative of our operating performance. Forward-Looking Statements This announcement may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "likely," "seek," "project," "model," "ongoing," "will," "should," "forecast," "outlook" or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Karman, will prove to be correct or that any of our expectations, estimates or projections will be achieved. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation, that a significant portion of our revenue is generated from contracts with the United States military and U.S. military spending is dependent upon the U.S. defense budget; U.S. government contracts are subject to a competitive bidding process that can consume significant resources without generating any revenue; our business and operations expose us to numerous legal and regulatory requirements, and any violation of these requirements could materially adversely affect our business, results of operations, prospects and financial condition; our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete; and we have in the past consummated acquisitions and intend to continue to pursue acquisitions, and our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations. Readers and/or attendees are directed to the risk factors identified in the filings we make with the SEC from time to time, copies of which are available free of charge at the SEC’s website at www.sec.gov under Karman Holdings Inc. The forward-looking statements included in this announcement are only made as of the date of this announcement. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law. For additional media and information, please follow us: LinkedIn X Instagram YouTube View source version on businesswire.com: https://www.businesswire.com/news/home/20260806643283/en/ Contacts Investor contact:Steven [email protected] Media contact:[email protected]

Karman Holdings Inc. (KRMN) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.69%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.11, delivering a surprise of +37.5%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Karman Holdings Inc., which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $182.06 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.20%. This compares to year-ago revenues of $115.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Karman Holdings Inc. shares have lost about 24.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While Karman Holdings Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Karman Holdings Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $190.68 million in revenues for the coming quarter and $0.58 on $730.43 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Heico Corporation (HEI), has yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of +19.1%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. Heico Corporation's revenues are expected to be $1.34 billion, up 17% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Karman Holdings Inc. (KRMN) : Free Stock Analysis Report Heico Corporation (HEI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Leonardo DRS, Inc. (DRS) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +29.63%. A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.26, delivering a surprise of +23.81%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Leonardo DRS, Inc., which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $913 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $829 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Leonardo DRS, Inc. shares have added about 36.5% since the beginning of the year versus the S&P 500's gain of 6.9%. While Leonardo DRS, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Leonardo DRS, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $1.03 billion in revenues for the coming quarter and $1.30 on $3.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Karman Holdings Inc. (KRMN), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +30%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Karman Holdings Inc.'s revenues are expected to be $179.91 million, up 56.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Leonardo DRS, Inc. (DRS) : Free Stock Analysis Report Karman Holdings Inc. (KRMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HUNTINGTON BEACH, Calif., July 23, 2026--(BUSINESS WIRE)--Karman Space & Defense (NYSE: KRMN) ("Karman" or "the Company"), a leader in the rapid design, development, and production of critical, next-generation systems that align with the core mission priorities of the U.S. Department of War and its allies, and meet the accelerating demand for access to space, today announced it will issue financial results for the Company's second quarter fiscal year 2026 after financial markets close on Thursday, August 6, 2026. Management will host a conference call and live audio webcast to discuss the results at 1:30 p.m. Pacific Daylight Time. Hosting the call and webcast to review results for the second quarter fiscal year 2026 will be Chief Executive Officer, Jon Rambeau; Chief Financial Officer, Mike Willis; Chief Operating Officer, Jonathan Beaudoin; and Senior Vice President, Investor Relations and Corporate Communications, Steven Gitlin. Conference Call and Webcast Event Summary Date: August 6, 2026 Time: 1:30 PM PDT | 2:30 PM MDT | 3:30 PM CDT | 4:30 PM EDT Participant Dial-In: toll-free +1 (833) 461-5787 / international toll +1 (585) 542-9983 Meeting ID: 435 493 861 Investors with Internet access may listen to the live audio webcast directly by clicking here or via the Investors section of the Karman Space & Defense, Inc. website, https://investors.karman-sd.com, under "News and Events." Please allow 10 minutes prior to the call to download and install any necessary audio software. Audio Replay Options An audio replay of the event will be archived on the Investor Relations section of the Company’s website at https://investors.karman-sd.com. ABOUT KARMAN SPACE & DEFENSE Karman Space & Defense is a leader in the rapid design, development and production of critical, next-generation systems that align with the core mission priorities of the U.S. Department of War and its allies and meet the accelerating demand for access to space. Building on nearly 50 years of success, we deliver Payload & Protection Systems, Hydro/Aerodynamic Interstage Systems, and Propulsion & Launch Systems to over 80 prime contractors supporting more than 130 space and defense programs. Karman is headquartered in Huntington Beach, Calif., with multiple facilities across the United States. For more information, visit our website, www.karman-sd.com For additional media and information, please follow us LinkedIn X Instagram YouTube View source version on businesswire.com: https://www.businesswire.com/news/home/20260723614526/en/ Contacts Investor contact:Steven [email protected] Media contact:[email protected]