Karman (KRMN) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $345.3 million in fiscal 2024, up 23% year-over-year, with balanced growth across all end-markets and strong organic and inorganic contributions.

• Net income reached $12.7 million, a 191% increase year-over-year; adjusted EBITDA was $106.1 million, up 29.7%.

• Completed IPO in February 2025, raising $173 million in net proceeds to support growth plans and strengthen the balance sheet.

• Acquired and integrated MTI and RMS, expanding capabilities in next-generation missile technologies and immediately accretive to financials.

• Record funded backlog of nearly $580 million at year-end, up 35% year-over-year, and over $600 million by March 2025, providing strong revenue visibility.

Financial highlights

• Fiscal 2024 revenue reached $345.3 million, up 23% year-over-year, with 18% organic growth.

• Adjusted EBITDA grew 29.7% to $106.1 million, with a 30.7% margin and 150 basis points of margin expansion.

• Net income increased 191% to $12.7 million, representing 3.7% of revenue and a 210 basis point improvement.

• Gross margin expanded to 38.3%; net operating income rose 31% to $63.6 million.

• No single program accounted for more than 11% of revenue, indicating strong diversification.

Outlook and guidance

• Fiscal 2025 revenue guidance: $423–$433 million; adjusted EBITDA: $132–$137 million, including MTI.

• Guidance implies 24% revenue growth and 27% adjusted EBITDA growth at the midpoint.

• Over 90% visibility to the midpoint of 2025 revenue guidance from funded backlog.

• Strategic focus on organic growth, 1–2 smaller acquisitions per year, and continued investment in talent and systems.

• Statutory tax rate expected at 24%; CapEx investments to total ~4% of revenue.