Karman (KRMN) investor relations material

Company Positioning and Capabilities

• Occupies a unique supply chain position just below prime contractors, integrating components into systems for added value and serving over 80 customers across 130+ programs.

• Vertically integrated from design to full-rate production, enabling rapid system development, supply chain efficiency, and end-to-end capabilities including custom propellants and advanced composites.

• 40% of revenue comes from IP-enabled capabilities with design authority, offering a wide range of products for high-growth markets such as hypersonics, missile defense, maritime, and space launch.

• Employs over 300 design engineers, operates 1 million+ sq ft across 17 locations, and has 40+ years of flight heritage.

• High customer satisfaction and strong partnerships with primes, seen as a valued support contractor rather than a competitor.

Financial Performance and Growth Outlook

• Achieved a 32% revenue CAGR and 35% adjusted EBITDA CAGR from 2023 to Q1 2026, with revenue reaching $523M and adjusted EBITDA $160M.

• EBITDA margins consistently around 30% on an annualized basis, with adjusted EBITDA margins ranging from 29% to 31%.

• New business pipeline grew from $1B to $3B year-over-year, with a 4x increase in bid volume and a 3x increase in active pipeline.

• Backlog at end of Q1 exceeded $1B, supporting strong visibility for current and future revenue, with over 90% visibility to full-year revenue.

• Positioned for over $1B in contract value on high-priority programs, with major deals in space launch, munitions, torpedo recovery, and UAS systems in 2026.

Strategic Initiatives and Investments

• Significant CapEx investments (5% of revenue) in facility expansion, including a new Salt Lake City manufacturing site.

• Actively integrating recent acquisitions (Seemann Composites, MSC) to expand maritime defense offerings and market reach.

• Pursuing differentiated process IP, such as out-of-autoclave composite curing for submarine domes.

• Focus on supply chain efficiencies, cost effectiveness, and optimal technical solutions to drive competitive advantage.

• Long-term contracts and framework agreements expected to drive multi-year growth, especially in munitions and space.