| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 9 | 127.5x | 17.3x | Bottom tier | |
Growth | 97 | 50.2% | 7.1% | Top tier | |
Quality | 46 | 8.5% | 4.5% | Around median | |
Safety | 47 | 3.5x | 2.6x | Around median | |
Capital Return | 8 | 0.00% | 0.06% | Bottom tier | |
Momentum | 6 | -54.8% | -1.6% | Bottom tier | |
Sentiment | 92 | 7 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Karman Holdings Inc. (KRMN) manufactures specialized components and systems for the space and defense markets, distributing its revenue across Tactical Missiles & Integrated Defense Systems, Hypersonics & Strategic Missile Defense, Space & Launch, and Maritime Defense Systems. Its model is based on supplying mission-critical hardware for interceptor missile, munitions, unmanned vehicle, submarine, and launch provider programs, while integrating the capabilities of acquired companies and transferring production between sites to increase available capacity. In fiscal Q2 2026, Tactical Missiles & Integrated Defense Systems represented 35% of revenue, Hypersonics & Strategic Missile Defense 24%, Space & Launch 23%, and Maritime Defense 18%.
Karman reported record fiscal Q2 2026 revenue of $182 million, up 58% year over year and 20.4% sequentially, while organic growth was 24.4%. Gross profit rose 66% to $78 million, equivalent to a 43% gross margin, and net income increased 106% to $14 million, while adjusted EBITDA reached $55 million and adjusted earnings per share were $0.14. By segment, Tactical Missiles & Integrated Defense Systems revenue was $63 million, Hypersonics & Strategic Missile Defense revenue was $43 million, Space & Launch revenue was $42 million, and Maritime Defense revenue was $34 million.
During the six months ended June 30, 2026, revenue was $333 million, gross profit was $142 million, net income was $22 million, and adjusted EBITDA was $99 million. EDGAR data for fiscal Q1 2026 shows revenue of $151.2 million, gross profit of $63.9 million, and net income of $7.8 million, consistent with the sequential acceleration reported in fiscal Q2 2026. Contracted backlog reached a record $1.3 billion, with quarterly bookings approaching $500 million and visibility covering 95% of the midpoint of fiscal 2026 revenue guidance.
The average analyst price target is $94, within a wide range of $80 to $114, compared with a 52-week stock range of $43.681 to $118.38; therefore, the average target is below the top of the annual range, while the highest target is close to it. The analyst consensus is "Buy," but the absence of a reported price-to-earnings multiple and a market capitalization of approximately 9.9 times trailing-twelve-month revenue make the valuation heavily dependent on achieving organic growth of 20% to 25%, adjusted margins of up to 30%, and improved conversion of earnings into cash.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Growth came from all core markets, led by Tactical Missiles & Integrated Defense Systems, whose revenue rose 55% to $63 million in fiscal Q2 2026. Hypersonics & Strategic Missile Defense increased 24% to $43 million, while Space & Launch generated $42 million and Maritime Defense generated $34 million. The company also recorded organic growth of 24.4% and raised annual revenue guidance to $730–745 million.
Contracted backlog reached a record $1.3 billion in fiscal Q2 2026, up 65% from the end of fiscal 2025. Quarterly bookings were approximately $500 million across all markets, with most designated to support fiscal 2027 and beyond. Management says the existing backlog provides 95% visibility to the midpoint of fiscal 2026 revenue guidance, leaving only 5% tied to the timing of purchase order issuance.
Karman converted one of its conditional supply agreements into a firm five-year agreement valued at slightly less than $250 million. Management expects a limited portion of revenue to begin during the remainder of fiscal 2026, with the remaining amount then distributed at a roughly even rate over the following four and a half years. The contract supports spacecraft production expansions scheduled to become operational in fiscal Q4 2026, while also leveraging the capabilities of the Gulfport facility.
Automated analysis for informational purposes only — not investment advice.
Net income was $22 million during the six months ended June 30, 2026, but operations used $4 million of cash due to higher accounts receivable, contract assets, and investments associated with ramping production. The company spent $22 million on capital expenditures in the first half and expects annual expenditures of approximately $37 million, or 5% of revenue. Management is targeting free cash flow of $15 million to $20 million in the second half of fiscal 2026 and estimates that long-term conversion could reach 80% to 90% of net income.
Karman signed an agreement to acquire Walker Precision Engineering for £70 million, or approximately $94 million, to establish a foothold in Europe and gain access to relationships with major European defense companies. The transaction is subject to regulatory review, and the company expects to complete it by the end of fiscal 2026. Fiscal 2026 revenue or earnings guidance does not include any contribution from Walker, and management expects pro forma leverage of approximately 3.5 times by year-end following the transaction.
Net debt was $752 million and leverage was approximately 3.7 times at the end of fiscal Q2 2026, alongside cash consumption from working capital and capital expenditures. Management expects the adjusted EBITDA margin to normalize in the second half as cost-plus contracts gain weight, and it also acknowledged the possibility of customer pressure on pricing in long-term agreements. In addition, testing the effectiveness of remediated internal controls will continue into early fiscal 2027, while the Walker transaction requires regulatory approval and the Salt Lake City facility and production transfer to Gulfport require disciplined operational execution.