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

Conference highlights and business model

• Presented a vertically integrated, design-to-production supplier serving 80+ prime contractors across 130+ programs, with 200+ engineers and capabilities spanning design, prototyping and production.

• Portfolio spans hypersonics, missile defense, tactical missiles, integrated defense, space and launch; Seemann and MSC expand maritime exposure, including Columbia- and Virginia-class submarines.

• Mission-critical capabilities include propulsion, advanced materials and sonar protection, supported by deep IP, advanced modeling and integrated engineering.

• U.S.-focused portfolio has limited international revenue; near-term allied exposure is mainly through FMS, while direct relationships with allied industrial companies remain nascent.

Financial performance and demand

• 2024 revenue was $345M, up 23%; adjusted EBITDA was $106M, with a 31% margin. Revenue CAGR was 24% and adjusted EBITDA CAGR 33% from 2022–2024.

• Funded backlog reached $580M in 2024, growing at a 48% CAGR, and was ~$750–780M in Q3 2025.

• 2024 revenue was diversified across end markets, with no single program above 11%; hypersonics, strategic missile defense, tactical missiles and integrated defense generally represented ~two-thirds.

• End markets were described as rapidly growing and well funded; Columbia- and Virginia-class submarine programs had ~$25B in FY26 funding and long sustainment tails.

• ~90% of revenue is from fixed-price contracts; Seemann and MSC add a higher cost-plus fixed-fee mix, while fixed-price contracts remain the majority.

Capacity and execution

• 2025 CapEx guidance increased from 3.5%–4% of revenue at the start of the year to ~4.5% by Q3, as investment prepared capacity for expected demand.

• Capacity levers include facility headroom, redeployable production lines and equipment, automation, expanded hiring and close supply-chain management.

• Investments are being made as demand signals strengthen, ahead of purchase orders, to support customer production requirements.

• Manufacturing capabilities include carbon-carbon production, electron beam welding and five-axis precision machining.