Karman (KRMN) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 revenue of $182.1M, up 58.2% year-over-year, with adjusted EBITDA of $55M, up 55% year-over-year, and organic growth of 24.4%.

• Net income reached $14M, up 106% year-over-year; adjusted EPS was $0.14, up 43% year-over-year.

• Backlog reached a record $1.3B, up 65% from FY25, with nearly $500M in new bookings.

• Added to the S&P SmallCap 600 Index and executed a large long-term agreement in Space and Launch.

• Announced acquisition of Walker Precision Engineering for $94M to expand into the European defense market.

Financial highlights

• Gross profit was $78.2M (43% margin), up 66% year-over-year.

• Net income for the quarter was $14M, up from $6.8M year-over-year.

• Adjusted EBITDA for the quarter was $54.6M, up from $35.3M year-over-year.

• Adjusted EBITDA margin was 30.0% for the quarter.

• For the first six months, revenue was $333M (+55%), gross profit $142M (+64%), net income $22M (up from $2M), adjusted EBITDA $99M (+51%), and adjusted EPS $0.25 (+56%).

Outlook and guidance

• Raised FY26 revenue guidance to $730M-$745M and adjusted EBITDA to $215M-$222.5M, representing 57% and 51% year-over-year growth, respectively.

• 95% of full-year revenue guidance is already covered by backlog.

• Guidance excludes the impact of future acquisitions.

• Expect 25% or higher organic growth in 2026, with sequential revenue increases in H2 and a 47%/53% Q3/Q4 split.

• Free cash flow for 2026 projected at $15M-$20M, with long-term FCF targeted at 80%-90% of net income.