Karman (KRMN) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $100.1 million, up 20.6% year-over-year, with double-digit growth across all end markets.

• Completed a successful IPO in February 2025, raising $147.3 million in net proceeds, and acquired MTI to expand capabilities and customer base.

• Reported net loss of $4.8 million, primarily due to share-based compensation and IPO-related expenses, compared to net income of $2.1 million in Q1 2024.

• Delivered record adjusted EBITDA of $30.3 million (up 24.7% year-over-year) and adjusted EPS of $0.05 (up 67%).

• Ended the quarter with a record funded backlog of $636.4 million, up 9.8% sequentially.

Financial highlights

• Q1 2025 revenue reached $100.1 million, up 20.6% year-over-year, with gross profit of $39.5 million (up 36%) and gross margin of 39.4%.

• Adjusted EBITDA was $30.3 million (30.3% margin), up from $24.3 million, and adjusted EPS was $0.05, up from $0.03.

• Net loss was $4.8 million, reflecting IPO and acquisition-related costs.

• Funded backlog reached $636.4 million as of March 31, 2025.

• Book-to-bill ratio in Q1 was approximately 1.5–1.6.

Outlook and guidance

• Reaffirmed 2025 revenue guidance of $423–$433 million and adjusted EBITDA of $132–$137 million, representing 24% and 27% year-over-year growth at the midpoint.

• 95% of full-year revenue visibility as of April, with remaining bookings expected from existing programs by end of Q2.

• CapEx expected to remain at 4% of revenue, supporting facility and equipment upgrades.

• Focused on sustained organic growth, selective acquisitions, and talent investment.