Karman (KRMN) TD Cowen 47th Annual Aerospace & Defense Conference summary

Strategic Positioning and Business Model

• Operates as a merchant supplier with over 80 prime contractor customers across 130+ programs, with no intention to become a prime contractor.

• Focuses on highly engineered, IP-rich system solutions for missiles, missile defense, space launch, hypersonics, drones, counter-UAS, and maritime defense.

• Vertically integrated, offering end-to-end solutions from design to full-rate production, differentiating from competitors.

• Enhanced competitive moat through strategic acquisitions, adding proprietary products, advanced engineering, and vertical integration opportunities.

• Maintains a resilient business model with broad program and customer diversification, reducing risk and supporting long-term growth.

Financial Performance and Growth

• Achieved 2024 revenue of $345M, representing 23% growth, with adjusted EBITDA of $106M and a 31% margin.

• Funded backlog grew from mid-$200 million to $580 million by end of 2024, reaching $750–780 million in Q3.

• Largest program accounted for about 11% of 2024 revenue, reflecting broad program diversification.

• Pursued 10 strategic acquisitions since 2020, expanding capabilities, IP, and market reach, and consistently generating incremental growth opportunities.

• CapEx investments increased to 4.5% of revenue in 2025 to prepare for rising demand and production expansion.

Market Focus and Expansion

• Serves four main end markets: hypersonics/strategic missile defense, tactical missiles/integrated defense, maritime defense, and space/launch.

• Maritime segment strengthened by Seemann and MSC, with positions on Columbia- and Virginia-class submarine programs.

• U.S. market is primary, with some international exposure via FMS and nascent direct international relationships.

• Sees significant long-term opportunity in space, supporting both government and commercial launch providers and payload integration.

• Actively involved in emerging unmanned naval vehicle programs, leveraging composite expertise.