The company achieved a robust 42.2% gross margin in 2026Q1, though operating margins remain sensitive to throughput levels, fluctuating between 10.0% and 20.2% over the last ten quarters.
| Sales/Revenue | 522.59M | 471.5M | 345.25M | 280.7M | 226.31M |
| Revenue Growth % | 45.03% | 36.57% | 22.99% | 24.04% | - |
| Cost of Goods Sold | 308.15M | 281.47M | 213.14M | 175.16M | 145.36M |
| COGS % of Revenue | - | 59.7% | 61.73% | 62.4% | 64.23% |
| Gross Profit | 214.44M | 190.03M | 132.11M | 105.55M | 80.95M |
| Gross Margin % | 41.03% | 40.3% | 38.27% | 37.6% | 35.77% |
| Gross Profit Growth % | - | 43.84% | 25.17% | 30.39% | - |
| Operating Expenses | 130.01M | 117.08M | 68.55M | 57.05M | 60.51M |
| OpEx % of Revenue | - | 24.83% | 19.86% | 20.33% | 26.74% |
| Selling, General & Admin | 91M | 85.66M | 44.42M | 36.62M | 30.04M |
| SG&A % of Revenue | - | 18.17% | 12.87% | 13.05% | 13.27% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 4M | 31.43M | 24.13M | 20.43M | 30.48M |
| Operating Income | 84.43M | 72.94M | 63.56M | 48.49M | 20.43M |
| Operating Margin % | 16.16% | 15.47% | 18.41% | 17.28% | 9.03% |
| Operating Income Growth % | - | 14.76% | 31.07% | 137.31% | - |
| EBITDA | 134.35M | 115.68M | 96.36M | 75.67M | 55.42M |
| EBITDA Margin % | 25.71% | 24.53% | 27.91% | 26.96% | 24.49% |
| EBITDA Growth % | 50.64% | 20.05% | 27.33% | 36.55% | - |
| D&A (Non-Cash Add-back) | 49.91M | 42.74M | 32.8M | 27.18M | 34.98M |
| EBIT | 88.48M | 77.09M | 65.06M | 49.06M | 20.23M |
| Net Interest Income | -45.84M | -44.57M | -50.73M | -47.87M | -37.5M |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 45.84M | 44.57M | 50.73M | 47.87M | 37.5M |
| Other Income/Expense | -41.79M | -40.42M | -49.23M | -47.3M | -37.71M |
| Pretax Income | 42.64M | 32.52M | 14.33M | 1.19M | -17.27M |
| Pretax Margin % | 8.16% | 6.9% | 4.15% | 0.42% | -7.63% |
| Income Tax | 12.69M | 15.16M | 1.63M | -3.17M | -3.17M |
| Effective Tax Rate % | 29.75% | 46.6% | 11.36% | -266.3% | 18.37% |
| Net Income | 29.96M | 17.37M | 12.7M | 4.36M | -14.1M |
| Net Margin % | 5.73% | 3.68% | 3.68% | 1.55% | -6.23% |
| Net Income Growth % | 808.1% | 36.73% | 191.37% | 130.92% | - |
| Net Income (Continuing) | 29.96M | 17.37M | 12.7M | 4.36M | -14.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.23 | 0.13 | 0.10 | 0.03 | -0.11 |
| EPS Growth % | 770.38% | 35.28% | 191.21% | 130% | - |
| EPS (Basic) | - | 0.13 | 0.10 | 0.03 | -0.11 |
| Diluted Shares Outstanding | 132.53M | 132.32M | 132.17M | 132.17M | 132.17M |
| Basic Shares Outstanding | 132.53M | 132.32M | 132.17M | 132.17M | 132.17M |
| Dividend Payout Ratio | - | - | 1.23% | 18.09% | - |
High Operating Leverage Sensitivity
As indicated by the most recent quarterly data, KRMN achieved a 51.0% year-over-year revenue growth rate in 2026Q1, signaling a significant acceleration from the 18.5% growth observed in 2024Q4 as the company successfully transitions key hypersonic and space-related programs from development into early-stage production phases.
The consistent quarterly revenue expansion suggests that the company is effectively capturing market share within the high-barrier-to-entry aerospace sector. Investors should monitor whether this growth trajectory remains sustainable as the company moves toward full-rate production, which may introduce new operational bottlenecks.
Based on reported financial statements, KRMN has maintained a robust gross margin profile, peaking at 42.2% in 2026Q1, which suggests that the company's specialized manufacturing processes for high-stress aerospace environments provide a meaningful pricing advantage over more commoditized Tier 2 industrial suppliers in the defense sector.
This margin stability implies that the company possesses significant value-add capabilities that insulate it from raw material price volatility. However, the ability to sustain these levels will likely depend on the company's success in managing the engineering complexity inherent in its mission-critical hardware contracts.
According to the income statement data, operating margins have fluctuated between 10.0% and 20.2% over the last ten quarters, suggesting that KRMN's high fixed-cost structure creates significant sensitivity to throughput levels, as evidenced by the margin compression observed during periods of rapid SG&A expenditure increases.
The lack of consistent operating leverage indicates that the company is still absorbing the costs of its roll-up strategy and facility integration. Further investigation is warranted to determine if these SG&A spikes are temporary integration costs or a permanent increase in the company's required administrative overhead.
As reported in recent filings, the significant delta between operating income and net income, including a net loss in 2025Q1, suggests that non-operating items and potential amortization charges are heavily impacting the bottom line, masking the underlying cash-generating potential of the company's core aerospace manufacturing operations.
The volatility in net income appears to be driven by the company's history as a private equity-backed roll-up, which often results in non-cash charges that do not reflect operational performance. Analysts should focus on adjusted EBITDA metrics to better understand the true profitability of the business.
While top-line growth is impressive, the company's reliance on specialized, high-fixed-cost assets creates a risk where any slowdown in program demand could lead to rapid margin contraction, as the current 15.47% operating margin is highly dependent on maintaining high utilization rates across its autoclave and machining facilities.
Short-term investors should be wary of the potential for 'integration fatigue' or quality control issues that could arise as the company attempts to scale its operations. The current thin cash position relative to revenue may also limit the company's flexibility if a major program faces unexpected delays.
Quick answers to the most common questions about buying KRMN stock.
For fiscal year 2025, Karman Holdings Inc. (KRMN) reported total revenue of $471.5M. This represents a 108.3% increase compared to $226.3M in 2022.
Karman Holdings Inc. (KRMN) is profitable, generating $17.4M in net income for the fiscal year ending 2025 with a net profit margin of 3.7%.
Karman Holdings Inc. (KRMN) reported an operating income of $72.9M, resulting in an operating profit margin of 15.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Karman Holdings Inc. (KRMN) generated $190.0M in gross profit for the year, representing a gross profit margin of 40.3%. This demonstrates the company's core pricing power and production efficiency.