Karman (KRMN) Q4 2025 earnings summary

Executive summary

• Delivered record Q4 and full-year 2025 results, with revenue and adjusted EBITDA exceeding guidance following the February 2025 IPO.

• Strategic acquisitions expanded capabilities and accelerated growth in high-priority defense and space markets.

• Leadership transition completed, with Jon Rambeau appointed CEO and Tony Koblinski moving to director.

• Highly diversified portfolio with over 80 customers and 130 programs, aligned with U.S. government priorities.

• Completed IPO raising $581 million and a $1.2 billion non-dilutive secondary equity offering.

Financial highlights

• Q4 2025 revenue reached $134.5M, up 47% year-over-year; gross profit $54M (40% margin), net income $8M (over 300% increase), adjusted EBITDA $42M (59% increase), and adjusted EPS $0.11 (tripled year-over-year).

• Full-year 2025 revenue $472M (37% increase), gross profit $190M (40% margin), net income $17M (37% increase), adjusted EBITDA $145.3M (37% increase), and adjusted EPS $0.37 (nearly tripled).

• Backlog at year-end reached $801M, up 38% year-over-year; surpassed $1B by March 2026.

• Adjusted EBITDA margin for Q4 was 31.2%; for the year, 30.8%.

• Net income margin for FY 2025 was 3.7%.

Outlook and guidance

• 2026 revenue guidance raised to $715M–$730M and adjusted EBITDA to $207M–$218M, representing 53% and 46% year-over-year growth, respectively.

• Revenue growth expected to be evenly split between organic and inorganic sources.

• Approximately 80% of 2026 revenue guidance covered by backlog as of March 2026.

• CapEx for 2026 set at 5% of revenue (~$36M) to support capacity expansion.

• Guidance excludes impact of future acquisitions.