Karman (KRMN) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $115.1 million, up 35% year-over-year, with double-digit growth across all end markets and net income of $6.8 million, up 48% year-over-year.

• Adjusted EBITDA reached $35.3 million (up 29% year-over-year), and adjusted EPS was $0.10, more than triple the prior year.

• Funded backlog hit a record $719.3 million, up 36% year-over-year, providing strong revenue visibility.

• Completed strategic acquisitions of MTI and ISP, a $1.2 billion oversubscribed secondary offering, and an IPO in February 2025.

• Added to major indices, including Russell 1000 and S&P Aerospace & Defense Select Industry Index.

Financial highlights

• Q2 2025 revenue: $115.1 million (up 35% year-over-year); gross profit: $47 million (up 36% year-over-year); net income: $6.8 million (up 48% year-over-year).

• Adjusted EBITDA: $35.3 million (30.7% margin, down from 32.2% year-over-year); adjusted EPS: $0.10 (up from $0.03 year-over-year).

• Six-month revenue: $215.2 million; six-month adjusted EBITDA: $65.6 million.

• Funded backlog: $719.3 million as of June 30, 2025.

• Net income margin: 5.9% for Q2 2025; operating margin: 17.5%; gross margin: 40.9%.

Outlook and guidance

• Raised full-year 2025 revenue guidance to $452–$458 million, a 32% year-over-year increase at midpoint.

• Adjusted EBITDA guidance raised to $138.5–$141.5 million, also a 32% year-over-year increase at midpoint.

• 100% revenue visibility for FY25 based on first-half results and funded backlog.

• Management cites robust defense funding, increased U.S. space launch cadence, and strong backlog as key growth drivers.

• Portfolio highly aligned with U.S. Department of Defense priorities; minimal international sales reduce tariff risk.