Karman Raises Full-Year Outlook; Swings to Profit in 1Q

By Christopher Kuo

Karman Holdings raised its full-year outlook after posting double-digit revenue growth in the first quarter, led by its space and launch business.

The space and defense company on Tuesday raised its full-year outlook for revenue. It now expects $720 million to $735 million in revenue for 2026.

Full year adjusted earnings before interest, taxes, depreciation and amortization is expected to be between $208.5 million to $219.5 million, the company said.

Analysts polled by FactSet expect $723.5 million in full-year revenue and adjusted Ebitda of $212.3 million.

The company on Tuesday posted a profit of $7.8 million, or 6 cents a share, compared with a loss of $4.8 million, or 4 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were 11 cents. Analysts polled by FactSet expected 12 cents a share.

Revenue rose 51% to $151.2 million. Analysts expected revenue of $150.8 million. Sales growth was driven by expansion in the company's space and launch division, said Chief Executive Jon Rambeau. That division's revenue increased by 29.5% year over year. Revenue from its tactical missiles and integrated defense systems division also grew 25%.

The company has seen significant increases in 2027 funding from the Defense Department, specifically for its Unmanned Aircraft Systems, counter-UAS, submarines and other technology, Rambeau said.

Karman on Tuesday said it received contingent demand commitments from four space and defense customers. The commitments are contingent upon Karman's customers receiving funded contracts from their customers. The total potential multi-year value of the contracts with Karman is more than $1 billion, the company said.

Write to Christopher Kuo at chris.kuo@wsj.com

(END) Dow Jones Newswires

May 12, 2026 16:46 ET (20:46 GMT)