On Tuesday, Karman Holdings (NYSE:KRMN) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.
View the webcast at https://events.q4inc.com/attendee/332112348
Summary
Karman Holdings Inc reported record first-quarter revenue of $151 million, reflecting a 51% increase year-over-year, with all-time high gross profit and adjusted EBITDA.
The company raised its full-year revenue and adjusted EBITDA guidance due to strong performance and high visibility, expecting full-year revenue of $720 to $735 million.
Significant growth was driven by the acquisition of Siemen Composites and MSC, contributing to half of the quarterly revenue growth.
Operational highlights include an all-time high backlog exceeding $1 billion, and strategic investments in capacity expansion like a new facility in Salt Lake City.
Management emphasized ongoing strong relationships with major customers, securing multi-year production commitments potentially exceeding $1 billion in revenue.
The demand environment is favorable, with substantial increases in production for key programs, supported by the President’s FY 2027 defense budget request.
Karman Holdings Inc is focused on both organic growth and strategic acquisitions, expecting to pursue one to two acquisitions per year.
Full Transcript
OPERATOR
Hello everyone. Thank you for joining us and welcome to the Karman Holdings Inc first quarter fiscal year 2026 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 star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Steven Gitlin, Senior Vice President of Investor Relations and Corporate Communications. Steven, please go ahead.
Steven Gitlin
Good afternoon and thank you for joining Karman Holdings Inc’s first quarter fiscal 2026 earnings conference call. I’m Stephen Gitlin, Senior Vice President of Investor Relations and Corporate Communications and I’m pleased to welcome you today. Joining me on today’s call are John Rambo, our Chief Executive Officer, Mike Willis, our Chief Financial Officer and Jonathan Bodwine, our Chief Operating Officer. Before we begin, please note that on this call certain information presented contains forward looking statements that are based on current expectations, forecasts and assumptions and that involve risks and uncertainties. These are Described on page 2 of the earnings presentation we posted to our website this afternoon and in detail in Karman Holdings Inc’s reports filed with the SEC and the form 8k filed today 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 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 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, May 12, 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. Now I would like to turn the call over to John Rando.
John Rando
Thank you Steven and good afternoon. Today I’ll begin by summarizing our record first quarter performance. Then Mike Willis will review our financials, followed by Jonathan Bodwine who will discuss the demand environment and our capacity expansion initiatives. I’ll wrap up with our outlook before we take your questions. Before we review our results, I want to acknowledge the service and sacrifice of the men and women who protect our nation both at home and abroad, especially during these challenging times. Allow me to also recognize the achievements of our Astronaut Corps and the dedicated teams at NASA and throughout the space supply chain. At Karman Holdings Inc, we’re proud to serve these individuals every day with the critical systems that help protect and propel them to new heights. It’s been an exciting and rewarding six weeks since I joined Karman Holdings Inc. In that time I visited six of our sites across the country, from California to Pennsylvania, from Mukilteo to Mississippi. I’ve gotten to know the people and the technology that have made Karman Holdings Inc successful. I’ve also spoken with customers who consistently praise the value Karman Holdings Inc delivers. I’ve had the pleasure of meeting many investors, some already shareholders and others who may join us in the future. Your feedback has been constructive and is always appreciated. Two questions I’m often asked are number one, what prompted me after 30 years working at a defense prime to join Karman Holdings Inc? And 2 what do I plan to do differently here to the first I spent 30 years in defense, yet when I began studying Karman Holdings Inc, I saw something I hadn’t seen before. The company’s growth trajectory, product line pedigree and unique merchant supply position as a provider to the primes across defense, space and launch made this an opportunity I couldn’t pass up. So the second I believe Karman Holdings Inc strategy is working well, so I don’t see a need for substantial changes in strategy or the trajectory of the company. My focus is on the continued strength of relationships with our customers and our investors and on meeting our commitments to our customers with on time product and system delivery and to our shareholders via continued organic and inorganic growth and bottom line returns. Finally, I’m focused on the continued optimization and integration of capabilities across the company to unlock the full value of the Karman Holdings Inc enterprise as we come through the balance of 2026. I look forward to ongoing engagement with employees, customers, investors and analysts and to your questions and feedback. Now let’s turn to our results. Our team delivered another set of record results in the first quarter as shown on page four of our earnings presentation. Highlights include record quarterly revenue of $151 million with year over year growth across all three end markets and the addition of our new Maritime Defense Systems end market. Record quarterly gross profit of 64 million, record quarterly adjusted EBITDA of 45 million, all time high backlog of more than a billion dollars and given our strong performance and high visibility, we are now raising our full year revenue and adjusted EBITDA guidance. As I’ll detail shortly, our Siemens Composites and MSC acquisition, which closed in January, contributed two months of revenue this quarter. This represented about half of our year over year quarterly revenue growth. Just two weeks ago I visited our sites in Horsham, Pennsylvania Gulfport, Mississippi, and I was impressed by the depth of capabilities, breadth of solutions and the energy of our team, an impression that’s been consistent across every site I’ve visited. Some of the sites I visited produce critical components for the space industry. One of the most exciting recent developments was a successful Artemis 2 moon mission in April. Karman Holdings Inc supplied key subsystems for the Space Launch System launch vehicle and the Orion capsule. Our space and launch market produced 29.5% year over year revenue growth, underscoring our key position in the space ecosystem, and is highlighted with our inclusion in Morgan Stanley’s recent Space Trade list. The Artemis II success and the restructuring of the Artemis program with annual missions now planned through and beyond 2029 have increased both customer engagement and contracting momentum. Karman Holdings Inc has a long, proven track record in space and we look forward to continuing to support all major US Launch providers, both established and emerging, as well as our integration of a lunar lander for NASA’s CLPS program. We’re off to a strong start in 2026 and we believe market dynamics point to continued opportunity through the end of the decade and beyond. With that, I’ll turn it over to Mike for a detailed financial review.
Mike Willis (Chief Financial Officer)
Thank you, John A record first quarter demonstrates Karman Holdings Inc’s continued strength and momentum. As shown on page 5, revenue of 151 million was up 51% from Q1 fiscal 2025. Gross profit of 64 million grew 62% with a gross margin of 42%. Net income was 8 million compared to a 5 million loss last year. Adjusted EBITDA reached 45 million, up nearly 50% year over year. As compared to Q1 fiscal year 25. Adjusted EPS increased more than 100% to $0.11 per diluted share from $0.05 and backlog grew 61% year over year to more than 1 billion. Each of our three legacy markets produced strong year over year growth in Q1, as shown on page 6. Hypersonics and Strategic Missile Defense revenue grew 19% to 36 million, driven by increases in strategic programs. Space and Launch revenue grew 29% to 44 million, driven by the timing of orders for critical content supporting both legacy and emerging launch providers and …
This post was originally published here
