Karman Holdings Q3 revenue jumps 66% on hypersonics, missile defense demand

Overview

• US defense and space engineering firm's fiscal Q3 revenue rose 66% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q3 rose to $0.19 from $0.10 a year ago

• Company completed Walker Precision Holdings acquisition, expanding in European defense market

Outlook

• Karman raises 2026 revenue outlook to $755 mln-$760 mln

• Company expects 2026 adjusted EBITDA of $225 mln-$227 mln

• Company focused on building backlog for 2027 and beyond

Result Drivers

• HYPERSONICS AND MISSILE DEFENSE - Revenue growth was primarily driven by increased production of key interceptor programs and a new surface-to-surface missile system

• TACTICAL MISSILES AND INTEGRATED DEFENSE - Higher revenue was attributed to increased production in core programs, including unmanned aircraft systems and counter-UAS, and emerging programs moving into production

• MARITIME DEFENSE SYSTEMS - Revenue increase was driven by legacy and next-generation submarine and surface vessel programs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Karman Holdings Inc is $78.50, about 129.7% above its November 4 closing price of $34.17

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 62 three months ago

Reuters Recommended Reads

• Nov 5 - Kratos Defense Q3 revenue, adjusted EBITDA beat estimates; raises 2026 EBITDA outlook

• Nov 3 - Leidos Q3 profit beats estimates on cost controls; lifts FY EPS outlook

• Nov 4 - Curtiss-Wright Q3 sales rise 10%, beat estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)