Karman Raises Fiscal 2026 Revenue Outlook After Record Quarter

The Tip Desk · November 6, 2026 · 3 min read

The defense manufacturer booked $201.6 million of third-quarter revenue and lifted its full-year revenue range to $755 million to $760 million.

Karman Space & Defense (KRMN) reported record third-quarter fiscal 2026 revenue of $201.6 million, up 65.6% from a year earlier, and raised its full-year outlook for the second consecutive quarter.

The specialized engineering and manufacturing company said organic growth was 25% and total growth 66%, after $182.1 million of revenue in the second quarter, when total year-over-year growth was 58.2%.

Net income was a record $20.9 million, or $0.16 a share, up 174% from $7.6 million, or $0.06 a share, a year earlier. Adjusted EBITDA was a record $60.5 million, up 60% from $37.7 million. Adjusted EBITDA margin was 30.0%.

For the full fiscal year 2026, Karman now expects revenue of $755 million to $760 million and adjusted EBITDA of $225 million to $227 million, excluding the impact of any future acquisitions. That compares with the ranges it set after the second quarter of $730 million to $745 million in revenue and $215 million to $222.5 million in adjusted EBITDA.

Backlog reached a record $1.7 billion at September 30, 2026, up 108% from fiscal year-end 2025, after $1.3 billion at the end of the second quarter. Quarterly bookings were nearly $465 million, including a seven-year contract with Lockheed Martin supporting the THAAD program.

Hypersonics and Strategic Missile Defense revenue was $51.1 million, up 39.6% from a year earlier, after $43.4 million in the second quarter. The company said the increase was primarily driven by higher production on key interceptor programs associated with Munitions Acceleration Council priorities and increased production for a new surface-to-surface missile system.

Tactical Missiles and Integrated Defense Systems revenue was $67.6 million, up 51.9% from a year earlier. Karman attributed the growth to an increase in core production programs, including unmanned aircraft systems and counter-UAS, and emerging programs transitioning to production, partially offset by a quarterly decline in a high-volume program.

Maritime Defense Systems revenue was $45.0 million, after $33.6 million in the second quarter, on legacy and next-generation submarine and surface vessel programs. Prior-year maritime revenue had been included in other end markets.

Space and Launch revenue declined to $37.9 million, down 6.9% from a year earlier, after $42.1 million in the second quarter. The company said the decline was primarily driven by customer order timing associated with shifting launch schedules, partially offset by increased content from liquid-fueled space and launch programs.

Net cash provided by operating activities was $26.7 million and free cash flow was $13.4 million, versus a $6.8 million free cash outflow in the year-ago quarter. Cash and cash equivalents were $68.2 million at quarter-end.

Karman completed the acquisition of Walker Precision Holdings Limited, expanding its presence in the European defense market, after agreeing in the prior quarter to acquire Walker Precision Engineering for about $94 million.

Chief Executive Officer Jon Rambeau said the company is focused on building backlog for 2027 and beyond while supporting a long-term organic revenue growth algorithm of 20% to 25%. The company said it is negotiating two additional long-term agreements, executing initial phases of two second-source opportunities, and actively pursuing three more.