Karman Q2 revenue beats estimates; lifts 2026 outlook

Karman Holdings

06/08/2026 21:23

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Overview
    * US space and defense systems maker's fiscal Q2 revenue rose 58% yr/yr, beating analyst expectations
    * Adjusted EPS for fiscal Q2 rose to $0.14 from $0.10 a year ago
    * Company agreed to acquire Walker Precision Engineering for about $94 mln, expanding into European defense market

Outlook
    * Karman raises 2026 revenue outlook to $730 mln-$745 mln
    * Company now sees 2026 adjusted EBITDA of $215 mln-$222.5 mln
    * Company says record $1.3 bln backlog provides strong visibility for 2026

Result Drivers
    * DEFENSE PROGRAM PRODUCTION - Growth in hypersonics and strategic missile defense revenue was driven by increased production in key interceptor programs and a new surface-to-surface missile system
    * TACTICAL MISSILES & INTEGRATED DEFENSE - Revenue growth was led by strength in core production programs, including unmanned aircraft systems and counter-UAS, and new programs moving to production
    * SPACE & LAUNCH CONTENT - Revenue in space and launch rose due to content supporting both legacy and emerging launch providers, partly offset by shifting customer launch schedules

Company press release:  ID:nBwbKYtLja 
Key Details
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
 Q2        Beat      $182.06   $180.07
 Revenue             mln       mln (10
                               Analysts
                               )
 Q2 EPS              $0.11      
 Q2 Net              $14.03     
 Income              mln       
 Q2 Net              $34.83     
 Operatin            mln       
 g Income                      
 Q2 Gross            $78.23     
 Profit              mln       
 Q2                  $19.27     
 Pretax              mln       
 Profit                        
 Analyst Coverage
    * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 $114.00, about 106.8% above its August 5 closing price of $55.12
    * The stock recently traded at 72 times the next 12-month earnings vs. a P/E of 89 three months ago

Reuters Recommended Reads
    * Aug 4 - Kratos Defense Q2 revenue jumps 30.5%, raises 2026 outlook 
    * Aug 5 - Curtiss-Wright Q2 EPS beats estimates as margins expand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)