Karman Holdings Inc. Reports 20.6% Revenue Growth to $100.1 Million in Q1 2025

Karman Holdings Inc. reported a significant increase in financial performance for the first quarter of 2025, with revenues reaching $100.1 million, a 20.6% increase from $83.0 million in the same period last year. The company attributed this growth to organic expansion across all its end markets, particularly in Tactical Missile and Integrated Defense Systems, which saw a revenue increase of 29.6%. However, Karman also reported a net loss of $4.8 million for the quarter, compared to a net income of $2.1 million in the prior year, primarily due to increased general and administrative expenses and interest costs.

The company's cost of goods sold rose to $60.7 million, up 12.3% from $54.0 million, driven largely by higher labor costs associated with the revenue growth. Gross profit improved to $39.5 million, resulting in a gross margin of 39.4%, up from 34.9% a year earlier. General and administrative expenses surged by 130.8% to $23.3 million, largely due to increased share-based compensation and professional fees related to the company's recent initial public offering (IPO).

Karman's operational metrics indicate a strong backlog, with funded contracts totaling $636.4 million as of March 31, 2025, compared to $540.0 million a year prior. The company also reported a significant increase in cash and cash equivalents, which rose to $113.7 million from $7.2 million, bolstered by net proceeds of approximately $147.3 million from its IPO completed in February 2025. This financial boost is expected to support Karman's ongoing operations and potential future acquisitions.

In terms of strategic developments, Karman completed its IPO on February 14, 2025, selling 26.5 million shares at $22.00 each. The company also announced the acquisition of MTI Holdings LLC in April 2025 for approximately $90 million, which is anticipated to enhance its capabilities in the aerospace and defense sectors. Karman's employee headcount has increased, reflecting its growth strategy and expansion into new markets.

Looking ahead, Karman Holdings Inc. remains focused on leveraging its engineering expertise and expanding its market presence in the defense and aerospace industries. The company is optimistic about future revenue growth, driven by increased U.S. government spending on defense and space initiatives, although it acknowledges potential risks related to budget uncertainties and operational performance on contracts.