Karman raises 2026 revenue outlook to $755–760 million after 65.6% quarterly growth
Key Facts
Karman Space & Defense raised its fiscal 2026 revenue outlook to a range of $755 million to $760 million and increased its adjusted EBITDA outlook to $225–227 million, according to a statement issued on November 5, 2026. The company said the outlook excludes the impact of any future acquisitions. The update came with the release of third-quarter fiscal results, which showed revenue of $201.623 million, up 65.6% year over year. Organic revenue growth was 25%, compared with total growth of 66%, according to the company’s presentation. The higher outlook thus follows strong quarterly growth, with business growth and acquisitions contributing to the overall increase.
Growth extended through the first nine months of the fiscal year, when revenue reached $534.896 million, up 58.7% from the same period a year earlier. On a quarterly basis, adjusted EBITDA rose 60% to $61 million. Adjusted diluted earnings per share were $0.19, compared with $0.10 in the same quarter of the previous fiscal year. The company recorded $27 million in net cash from operating activities during the quarter, while free cash flow was $13 million. These figures show the company’s revenue growth, profitability and cash generation in the period in which it raised its outlook.
Segment performance varied. Revenue from tactical missiles and integrated defense systems rose 51.9% to $67.577 million. The company attributed the growth mainly to core production programs, including unmanned aircraft systems and counter-unmanned aircraft systems, as well as emerging programs moving into production. In hypersonics and strategic missile defense, revenue increased 39.6% to $51.095 million. The company said the increase was linked to higher production in interceptor programs tied to the Munitions Acceleration Council’s priorities, along with a new ground-to-ground missile system. The results reflect expansion in missile and defense activities, two of the quarter’s leading sources of revenue growth.
By contrast, revenue in the space and launch segment fell 6.9% to $37.908 million. Karman attributed the decline to the timing of customer orders associated with changes in launch schedules, and said increased content in its liquid-fueled space and launch activities partly offset the impact. The naval defense systems segment generated revenue of $45.043 million during the quarter, driven mainly by existing and next-generation submarine and surface-ship programs. The differing results show that overall revenue growth was not evenly distributed across the company’s businesses. Karman also announced the completion of its acquisition of Walker Precision Holdings, a move it said expands its presence in the European defense market.
Karman’s bookings during the quarter totaled about $465 million across its end markets and included a significant 7-year contract with Lockheed Martin to support the THAAD program. The bookings and multiyear contract indicate the volume of business the company secured during the period, alongside its reported revenue. Chief Executive John Rambo said the company is focused on building its backlog for 2027 and beyond while supporting its long-term target of annual organic growth of 20% to 25%. He added: "We are currently negotiating two additional long-term agreements, executing the initial phases of two second-source supply opportunities, and actively pursuing three more opportunities." Management views these agreements and supply opportunities as part of its efforts to strengthen its backlog and long-term organic growth.