Karman (KRMN) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 revenue of $151.2 million, up 51% year-over-year, with growth across all end markets and contributions from recent acquisitions including Seemann Composites and MSC.

• Net income reached $7.8 million, reversing a prior-year loss of $4.8 million.

• Adjusted EBITDA was $44.8 million, a 47.7%–48% increase year-over-year.

• Backlog hit a record $1.03 billion, up 61% year-over-year, providing strong multi-year revenue visibility.

• Major acquisitions and written contingent demand commitments from key customers support multi-year production and revenue growth.

Financial highlights

• Gross profit rose 62% to $63.9 million, with gross margin up to 42.2%.

• Adjusted EPS doubled to $0.11 per diluted share.

• Adjusted EBITDA margin was 29.6%, slightly down from 30.3% in Q1 FY2025.

• Total assets increased to $1.42 billion as of March 31, 2026.

• Total equity rose to $405.7 million from $382.7 million at December 31, 2025.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $720–$735 million, with adjusted EBITDA of $208.5–$219.5 million.

• Guidance reflects 54% year-over-year revenue growth and 47% adjusted EBITDA growth.

• Approximately 90% of full-year revenue guidance is already visible through backlog and Q1 revenue.

• Management expects continued growth from acquisitions and robust demand in defense and space markets.