Second Quarter Fiscal Year 2026
Filed Aug 6, 2026Record quarterly revenue, net income and adjusted EBITDA as Karman raised its full-year 2026 revenue and adjusted EBITDA outlook.
Revenue increased 58.2% year over year, net income increased 106.1%, adjusted EBITDA increased 54.7%, quarterly bookings were nearly $500 million, and the Company raised full-year 2026 revenue and adjusted EBITDA expectations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenue, three months ended June 30, 2026GAAP | $ 182,063 | – | up 58.2% |
| Total Revenue, six months ended June 30, 2026GAAP | $ 333,273 | – | up 54.9% |
| Organic revenue growth, three months ended June 30, 2026other | 24.4% | – | – |
| Net income, three months ended June 30, 2026GAAP | $14.0 million | – | 106.1% |
| Earnings per fully diluted share, three months ended June 30, 2026GAAP | $0.11 | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $54.6 million | – | 54.7% |
| Adjusted earnings per fully diluted share, three months ended June 30, 2026non-GAAP | $0.14 | – | – |
| Backlog as of June 30, 2026other | $1.3 billion | – | 65% compared to the end of the fiscal year 2025 |
| Quarterly bookingsother | nearly $500 million | – | – |
| Hypersonics and Strategic Missile Defense revenue, six months ended June 30, 2026GAAP | $ 79,105 | – | up 21.7% |
| Space and Launch revenue, six months ended June 30, 2026GAAP | 85,926 | – | up 17.0% |
| Tactical Missiles and Integrated Defense Systems revenue, six months ended June 30, 2026GAAP | 63,012 | – | up 41.1% |
| Maritime Defense Systems revenue, six months ended June 30, 2026GAAP | 59,970 | – | not a meaningful figure |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Hypersonics and Strategic Missile DefenseGrowth in key interceptor program production and increased production associated with a new surface-to-surface missile system. | $ 43,417 | – | up 24.2% |
| Space and LaunchContent supporting both legacy and emerging launch providers, partially offset by customer order timing associated with shifting launch schedules. | 42,072 | – | up 6.3% |
| Tactical Missiles and Integrated Defense SystemsStrength in core production programs, including unmanned aircraft systems and counter-UAS, and emerging programs transitioning to production. | 63,012 | – | up 55.4% |
| Maritime Defense SystemsLegacy and next generation submarine programs. | $ 33,562 | – | not a meaningful figure |
Full Year 2026 outlook
- Revenue$730 million to $745 million
- Notenon-GAAP Adjusted EBITDA: $215.0 million to $222.5 million
- NoteExcluding the impact of any future acquisitions.
What drove it
- Revenue growth reflected growth across all end-markets and a diversified portfolio of more than 150 customers and programs.
- Quarterly bookings of nearly $500 million included a large, multi-year contract with a space and launch customer.
- Backlog was $1.3 billion as of June 30, 2026.
- The Company is actively negotiating three additional long-term defense agreements with a combined potential value of more than $1 billion.
Concerns
- Space and Launch growth was partially offset by customer order timing associated with shifting launch schedules.
- Full-year outlook excludes the impact of any future acquisitions.
- The Company identified assumptions and uncertainties around acquisition integration, obtaining and retaining contracts, timing and amount of government spending, product demand, competition, regulation, and general economic and business conditions.
What to watch
- Conversion of the $1.3 billion backlog into revenue.
- Execution of the nearly $500 million of quarterly bookings, including the large multi-year space and launch contract.
- Progress on the three additional long-term defense agreements with a combined potential value of more than $1 billion.
- Integration of the proposed Walker Precision Engineering acquisition and the expected approximately $4 million annual interest-expense reduction from debt repricing.
- Space and Launch customer order timing associated with shifting launch schedules.
Balance sheet and cash flow
- Completed debt repricing, expected to reduce annual interest expense by approximately $4 million.
- Agreement to acquire Walker Precision Engineering for approximately $94 million.
Analysis
Karman reported record quarterly revenue of $182.1 million, with year-over-year organic growth of 24.4% and total growth of 58.2%. Revenue for the six months ended June 30, 2026 was $333,273, up 54.9% from $215,221 in the comparable prior-year period. Quarterly net income was a record $14.0 million, up 106.1% year over year, while earnings per fully diluted share were $0.11 compared to $0.05 in the prior-year quarter.
Demand was broad-based across the reported end markets. Tactical Missiles and Integrated Defense Systems was the largest reported quarterly revenue segment at 63,012 and grew 55.4%, supported by core production programs and emerging programs transitioning to production. Hypersonics and Strategic Missile Defense increased 24.2% to $ 43,417, while Space and Launch increased 6.3% to 42,072. Maritime Defense Systems contributed $ 33,562, with prior-year comparison marked not meaningful because that revenue had previously been included within other end markets.
Profitability also advanced, with record non-GAAP adjusted EBITDA of $54.6 million, up 54.7% year over year, and non-GAAP adjusted EPS of $0.14 compared to $0.10. The filing does not provide gross margin, operating income, operating cash flow, free cash flow, cash, debt balances, repurchases, or dividends in the supplied text. Capital actions disclosed were an agreement to acquire Walker Precision Engineering for approximately $94 million and completion of a debt repricing expected to reduce annual interest expense by approximately $4 million.
The order book provides the principal support for the increased outlook. Backlog reached $1.3 billion as of June 30, 2026, up 65% compared with the end of fiscal year 2025, and quarterly bookings were nearly $500 million, including a large multi-year space and launch contract. Management raised full-year 2026 revenue expectations to $730 million to $745 million and non-GAAP adjusted EBITDA expectations to $215.0 million to $222.5 million, excluding future acquisitions.
The main reported execution item is Space and Launch, where customer order timing associated with shifting launch schedules partially offset growth from legacy and emerging launch-provider content. Investors should also track conversion of backlog and bookings, progress on the three additional defense agreements with combined potential value of more than $1 billion, and integration of Walker Precision Engineering. The outlook is subject to management assumptions regarding integration, contract awards and retention, government-spending timing and amount, demand, competition, regulation, and economic and business conditions.
Management, verbatim
Our team produced another quarter of record performance, generating revenue of $182 million driven by year over year organic growth of 24.4 percent and total growth of 58 percent, and adjusted EBITDA of $55 million, an increase of 55 percent.
Jon Rambeau, chief executive officer of Karman Space & Defense
Our record $1.3 billion backlog provides exceptionally strong visibility in to our fiscal year 2026 outlook and positions us to achieve this year’s goals while building even stronger momentum for 2027 and beyond.
Jon Rambeau, chief executive officer of Karman Space & Defense
Not in the filing
stated, not guessed- Prior-quarter total revenue and sequential revenue change.
- Gross profit and gross margin, GAAP and non-GAAP.
- Operating income, operating margin, and operating expenses, GAAP and non-GAAP.
- GAAP net income prior-year dollar amount.
- Non-GAAP adjusted EBITDA prior-year dollar amount.
- Operating cash flow and free cash flow.
- Cash balance, total debt balance, and net debt.
- Share repurchases and dividends.
- Detailed reconciliation of non-GAAP measures to GAAP measures in the supplied filing text.
- Prior full-year guidance figures for comparison, as no previous outlook was provided.
- Forward guidance for gross margin, operating expenses, tax rate, EPS, cash flow, capital expenditures, cash, debt, repurchases, and dividends.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.