Karman (KRMN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $201.6M, up 65.6% YoY with 25% organic growth; adjusted EBITDA reached $60.5M, up 60%, and backlog was a record $1.67B.

• Quarterly bookings reached $465M; FY2026 revenue and adjusted EBITDA guidance were raised on backlog conversion and demand across defense and space markets.

Financial highlights

• Q3 revenue was $201.6M, up 65.6%; 9M revenue was $534.9M, up 58.7%.

• Q3 gross profit rose 72.5% to $86.2M; 9M gross profit was $228.3M, up 67%.

• Q3 net income was $20.9M versus $7.6M; 9M net income was $42.7M versus $9.7M, with tax benefits materially affecting both periods.

• Q3 adjusted EBITDA was $60.5M, up 60%, and adjusted diluted EPS was $0.19, up 90%; 9M adjusted EBITDA was $159.9M and adjusted EPS was $0.44.

• Q3 bookings were $465M and backlog was $1.67B, up 108% YoY; backlog includes firm, binding commitments.

Outlook and guidance

• FY2026 revenue guidance rose from $730M–$745M to $755M–$760M; adjusted EBITDA guidance rose from $215M–$222.5M to $225M–$227M.

• Updated guidance implies 61% YoY revenue growth and 55% adjusted EBITDA growth at the respective midpoints; adjusted EBITDA margin midpoint is 29.8%.

• Long-term organic growth target is 20%–25%, with adjusted EBITDA margin near 30%; focus is on building backlog for 2027 and beyond.

• RPO was $1.5B at September 30, 2026; expected recognition is 15% in Q4 2026, 36% in 2027 and 49% thereafter.

• THAAD production is expected to accelerate in 2027; two additional seven-year agreements are under negotiation, with further bookings as quantities are finalized.