Karman (KRMN) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $100.1 million in Q1 2025, up 20.6% year-over-year, with double-digit growth across all three end markets.

• Reported net loss of $4.8 million, primarily due to share-based compensation and IPO-related expenses.

• Delivered record gross profit of $39.5 million (+36% YoY), adjusted EBITDA of $30.3 million (+24.7% YoY), and adjusted EPS of $0.05 (+67% YoY).

• Ended the quarter with a record funded backlog of $636.4 million, up 9.8% sequentially.

• Completed IPO in February 2025, acquired MTI to expand capabilities, and refinanced debt with a $300 million Term Loan B and $50 million revolving credit facility.

Financial highlights

• Q1 2025 revenue reached $100.1 million, up 20.6% year-over-year, with gross profit of $39.5 million and gross margin of 39.4%.

• Adjusted EBITDA was $30.3 million (30.3% margin), and adjusted EPS was $0.05, up 67% year-over-year.

• Net loss was $4.8 million, compared to net income of $2.1 million in Q1 2024.

• Funded backlog at quarter-end was $636.4 million, up from $540.0 million year-over-year.

• Cash and cash equivalents increased to $113.7 million as of March 31, 2025.

Outlook and guidance

• Reaffirmed FY2025 guidance: revenue of $423–$433 million and adjusted EBITDA of $132–$137 million, representing 24% and 27% year-over-year growth at the midpoint.

• 95% of 2025 revenue is already visible, with the remaining 5% expected to be booked from existing programs by end of Q2.

• Expects 48% of full-year revenue in the first half; CapEx to remain at 4% of revenue.

• Management expects continued growth driven by strong demand in hypersonics, missile defense, and space launch markets.

• Guidance subject to risks including acquisition integration, contract retention, government spending changes, and macroeconomic conditions.