Karman Space & Defense Posts Record Revenue Growth on Defense Demand Surge
Event summary
- Karman Space & Defense reported Q2 FY2026 revenue of $182M, up 58% YoY, with adjusted EBITDA rising 55% to $55M.
- Net income surged 106% YoY to $14M, with EPS at $0.11 compared to $0.05 in the prior-year quarter.
- Backlog hit a record $1.3B, up 65% from fiscal year 2025, driven by a large multi-year space and launch contract.
- The company agreed to acquire Walker Precision Engineering for ~$94M to expand into the European defense market.
The big picture
Karman Space & Defense is capitalizing on surging demand for missile defense and space launch systems, with its record backlog reflecting long-term contract wins. The acquisition of Walker Precision Engineering signals an aggressive push into Europe amid rising global defense budgets. The company's ability to scale production while maintaining profitability will be critical as it navigates this high-growth phase.
What we're watching
- Execution Risk
- Whether Karman can sustain its rapid growth while integrating Walker Precision Engineering and meeting existing program requirements.
- Market Demand
- How the $90B in recent prime contractor awards for missile defense systems will impact Karman's long-term bookings.
- Geographic Expansion
- The pace at which Karman can establish a strong foothold in the European defense market post-acquisition.
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