Karman (KRMN) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $151.2 million, up 51% year-over-year, with growth across all end markets and contributions from recent acquisitions.

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

• Adjusted EBITDA rose to $44.8 million, a 47.7% increase year-over-year.

• Backlog hit a record $1.03 billion, up 61% year-over-year, with strong growth across all end markets and the addition of maritime defense systems.

• Major acquisitions included Seemann Composites and MSC, expanding maritime defense and advanced materials capabilities.

Financial highlights

• Gross profit increased 62% to $64 million, with gross margin up to 42.2%.

• Adjusted EBITDA margin was 29.6% in Q1 2026, compared to 30.3% in Q1 2025.

• Adjusted EPS more than doubled to $0.11 per diluted share.

• Operating cash flow was $0.2 million, with $217.5 million used in investing activities and $257.2 million provided by financing activities.

• Backlog expanded to $1.03 billion, up from $636 million a year ago.

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 recent acquisitions and robust demand in defense and space markets.