Karman (KRMN) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $182.1M, up 58% year-over-year, with organic growth of 24.4% and adjusted EBITDA of $54.6M, up 55% year-over-year.

• Net income for Q2 2026 was $14.0M, up 106% year-over-year; six-month net income totaled $21.8M, up from $2.0M.

• Backlog reached a record $1.3B–$1.32B, up 65%–84% year-over-year, with nearly $500M in new bookings.

• Announced acquisition of Walker Precision Engineering for $94M to expand into Europe, with closing expected in Q3 2026.

• Added to S&P SmallCap 600 Index and executed a large long-term agreement in Space and Launch.

Financial highlights

• Gross profit for Q2 2026 was $78.2M (43% margin), up 66% year-over-year.

• Adjusted EBITDA for Q2 2026 was $54.6M (30.0% margin), up from $35.3M in Q2 2025.

• Adjusted EPS for Q2 2026 was $0.14, up 43% year-over-year.

• Six-month revenue was $333.3M (+54.9%), gross profit $142M (+64%), net income $21.8M (up from $2M), adjusted EBITDA $99M (+51%), and adjusted EPS $0.25 (+56%).

• Net income margin for Q2 2026 was 7.7%, up from 5.9% a year ago.

Outlook and guidance

• Raised FY26 revenue guidance to $730M–$745M and adjusted EBITDA to $215M–$222.5M, representing 57% and 51% year-over-year growth at midpoint.

• 95% of full-year revenue guidance is already covered by backlog.

• Expect 25% or higher organic growth in 2026, with sequential revenue increases in H2 and a 47%/53% Q3/Q4 split.

• Free cash flow for 2026 projected at $15M–$20M, with long-term FCF targeted at 80%–90% of net income.

• Guidance excludes the impact of future acquisitions.