Karman Holdings posts record revenue in Q4, beating estimates
Overview
U.S. space and defense systems maker reported record revenue in Q4, up 47.4% yr/yr, beating analyst expectations
Adjusted EPS for Q4 more than tripled from prior year
Company raised 2026 revenue and adjusted EBITDA outlook after recent acquisitions and record backlog
Outlook
Karman raises 2026 revenue outlook to $715 mln-$730 mln
Company sees 2026 adjusted EBITDA between $207 mln and $218 mln
Karman says strong market conditions and acquisitions support increased 2026 outlook
Result Drivers
MISSILE PROGRAMS & HYPERSONICS - Growth in Hypersonics and Strategic Missile Defense revenue was driven by expanded strategic missile programs, progress on NGI, higher classified program volumes, and increased activities supporting hypersonic test beds
TACTICAL MISSILES & DRONES - Revenue growth in Tactical Missiles and Integrated Defense Systems was driven by demand for advanced drone and loitering munitions technologies and increased production rates for GMLRS
SPACE & LAUNCH ORDERS - Space and Launch revenue growth was supported by timing of orders for critical content for legacy and emerging launch providers, including liquid fueled rocket engines, partially offset by lower crewed mission cadence and SLS revenue
Company press release: ID:nBwZNYxya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $134.49 mln | $132.64 mln (10 Analysts) |
Q4 EPS |
| $0.06 |
|
Q4 Net Income |
| $7.71 mln |
|
Q4 EBIT |
| $21.06 mln |
|
Q4 Gross Profit |
| $53.61 mln |
|
Q4 Pretax Profit |
| $13.56 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Karman Holdings Inc is $125.00, about 22.7% above its March 24 closing price of $101.84
The stock recently traded at 155 times the next 12-month earnings vs. a P/E of 120 three months ago
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