Karman Space & Defense reports 35% revenue growth in Q2 2025

HUNTINGTON BEACH - Karman Space & Defense (NYSE:KRMN) reported preliminary second quarter revenue of approximately $114.5-115 million, representing about 35% growth compared to the same period last year, according to a press release statement issued by the company.

The aerospace and defense contractor, which specializes in system solutions for launch vehicles, satellites, and missile defense, expects to post net income between $6.17-6.20 million for the quarter ended June 30, 2025, compared to $4.60 million in the second quarter of 2024. InvestingPro analysis indicates the company maintains a FAIR financial health score, with two key advantages: strong sales growth expectations and robust liquidity position. Subscribers can access 16 additional ProTips and comprehensive analysis through the Pro Research Report.

Gross profit is estimated to reach between $46.7-47.0 million, up from $34.59 million in the prior-year period. The company’s funded backlog grew to approximately $712-715 million, an increase of about 35% from $528 million a year earlier.

Adjusted EBITDA is projected to be $34.85-35.15 million with an Adjusted EBITDA margin between 30.4-30.6%, compared to $27.42 million and 32.2% in the second quarter of 2024.

The preliminary results were released in connection with an underwritten public offering of 20 million shares of common stock by certain selling stockholders. The selling stockholders are expected to grant underwriters a 30-day option to purchase up to an additional 3 million shares. Karman will not receive any proceeds from the offering as it is not selling any shares.

The company plans to release its complete second quarter financial results on August 7, 2025, after market close, followed by a conference call with management at 1:30 p.m. Pacific Time.

The preliminary financial data remains subject to completion of the company’s financial statement closing procedures, and final results may differ from these estimates.

In other recent news, Karman Space & Defense reported a significant year-over-year revenue increase of 21% for the first quarter of 2025, reaching $100 million, and surpassing analyst expectations by 4%. The company’s adjusted EBITDA also showed strength, coming in at $30.3 million, which exceeded consensus predictions by 5%. In a strategic move, Karman completed the acquisition of Industrial Solid Propulsion to enhance its capabilities in small-diameter solid propellant technologies, which is expected to boost key financial metrics such as revenue growth and cash flow. Furthermore, Karman announced a proposed public offering of 20 million shares by existing stockholders, with Citigroup and Evercore ISI acting as book-running managers. Analyst firm RBC Capital Markets raised Karman’s price target to $44, maintaining an Outperform rating following the company’s strong financial performance. William Blair also reiterated an Outperform rating, noting the inclusion of major defense funding in the One Big Beautiful Bill Act, which benefits Karman’s market exposure. The company’s CEO expressed confidence in continued growth, highlighting the alignment of Karman’s capabilities with market needs. These developments reflect Karman’s ongoing efforts to expand its market presence and financial performance in the aerospace and defense sectors.

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