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Investing.com -- Karman Space & Defense (NYSE:KRMN) reported mixed second quarter results but raised its full-year outlook, sending shares up 7.8% as investors focused on the company’s strong revenue growth and improved guidance.
The space and defense systems provider posted second quarter revenue of $115.1 million, up 35.3% YoY, driven by growth across all three of its business segments. However, earnings per share came in at $0.05, missing analyst expectations of $0.11. The company reported adjusted earnings per share of $0.10, which was more than triple compared to the same period last year.
Karman raised its full-year revenue guidance to between $452 million and $458 million, significantly above the analyst consensus of $434.6 million. The company also increased its adjusted EBITDA forecast to between $138.5 million and $141.5 million, up from its previous guidance of $132 million to $137 million.
"Building on our strong momentum since our February IPO, we produced another quarter of record results that include year-over-year increases of 35 percent in quarterly revenue, 29 percent in adjusted EBITDA and 36 percent in funded backlog," said Tony Koblinski, chief executive officer of Karman Space & Defense.
The company’s funded backlog reached a record $719.3 million at the end of the second quarter, up 24.1% compared to the end of the fourth quarter of 2024. This growth was supported by strong performance across all three of its end markets, with Tactical Missiles and Integrated Defense Systems showing the strongest growth at 45.9% YoY.
Karman also reported completing several strategic initiatives during the quarter, including a $300 million Term Loan B refinancing that reduced interest rates and extended debt maturities, as well as acquisitions of MTI and ISP to strengthen its manufacturing capabilities.
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