Revenue growth accelerated to 58.2% YoY in 2026Q2, with gross margin expanding to 43.0% and operating margin reaching 19.1%, though net margin was suppressed to 7.7% by non-operating charges.
Karman Holdings Inc. (KRMN) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 589.55M | 471.5M | 345.25M | 280.7M | 226.31M |
| Revenue Growth % | 50.23% | 36.57% | 22.99% | 24.04% | - |
| Cost of Goods Sold | 343.9M | 281.47M | 213.14M | 175.16M | 145.36M |
| COGS % of Revenue | - | 59.7% | 61.73% | 62.4% | 64.23% |
| Gross Profit | 245.65M | 190.03M | 132.11M | 105.55M | 80.95M |
| Gross Margin % | 41.67% | 40.3% | 38.27% | 37.6% | 35.77% |
| Gross Profit Growth % | - | 43.84% | 25.17% | 30.39% | - |
| Operating Expenses | 146.5M | 117.08M | 68.55M | 57.05M | 60.51M |
| OpEx % of Revenue | - | 24.83% | 19.86% | 20.33% | 26.74% |
| Selling, General & Admin | 102.91M | 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 | 99.16M | 72.94M | 63.56M | 48.49M | 20.43M |
| Operating Margin % | 16.82% | 15.47% | 18.41% | 17.28% | 9.03% |
| Operating Income Growth % | - | 14.76% | 31.07% | 137.31% | - |
| EBITDA | 139.07M | 115.68M | 96.36M | 75.67M | 55.42M |
| EBITDA Margin % | 23.59% | 24.53% | 27.91% | 26.96% | 24.49% |
| EBITDA Growth % | 41.67% | 20.05% | 27.33% | 36.55% | - |
| D&A (Non-Cash Add-back) | 40.19M | 42.74M | 32.8M | 27.18M | 34.98M |
| EBIT | 102.55M | 77.09M | 65.06M | 49.06M | 20.23M |
| Net Interest Income | -49.23M | -44.57M | -50.73M | -47.87M | -37.5M |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 49.23M | 44.57M | 50.73M | 47.87M | 37.5M |
| Other Income/Expense | -45.84M | -40.42M | -49.23M | -47.3M | -37.71M |
| Pretax Income | 53.32M | 32.52M | 14.33M | 1.19M | -17.27M |
| Pretax Margin % | 9.04% | 6.9% | 4.15% | 0.42% | -7.63% |
| Income Tax | 16.14M | 15.16M | 1.63M | -3.17M | -3.17M |
| Effective Tax Rate % | 30.26% | 46.6% | 11.36% | -266.3% | 18.37% |
| Net Income | 37.18M | 17.37M | 12.7M | 4.36M | -14.1M |
| Net Margin % | 6.31% | 3.68% | 3.68% | 1.55% | -6.23% |
| Net Income Growth % | 365.72% | 36.73% | 191.37% | 130.92% | - |
| Net Income (Continuing) | 37.18M | 17.37M | 12.7M | 4.36M | -14.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.28 | 0.13 | 0.10 | 0.03 | -0.11 |
| EPS Growth % | 372.47% | 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% | - |
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.
Key Metrics
Top Statement Risk
High valuation and program concentration
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates Sharply
KRMN's revenue surged 58.2% YoY in 2026Q2 to $182.1M, accelerating from 51.0% in the prior quarter, according to the latest income statement data.
The sequential acceleration from 51.0% to 58.2% YoY growth indicates that demand for hypersonic and space structures is intensifying, likely driven by program ramp-ups. The consistent double-digit growth across all quarters since 2025Q1 suggests a durable expansion phase, though investors should monitor whether this pace is sustainable as the base grows.
Gross Margin Expansion Reflects Pricing Power
Gross margin improved to 43.0% in 2026Q2, up from 40.9% a year earlier, as reported in the financial statements, indicating enhanced pricing power or product mix.
The 210 basis point YoY expansion in gross margin suggests KRMN is capturing more value from its specialized manufacturing capabilities, possibly due to favorable contract terms or improved operational efficiency. However, the sustainability of this margin depends on input costs and the ability to maintain utilization rates on its high-fixed-cost assets.
Operating Leverage Drives Margin Upside
Operating margin expanded to 19.1% in 2026Q2 from 17.5% in the year-ago quarter, as per the income statement, with operating income growing faster than revenue.
Operating income grew 73% YoY in 2026Q2, outpacing the 58% revenue growth, demonstrating strong operating leverage. This suggests that SG&A costs are scaling slower than revenue, likely due to the fixed-cost nature of the business. However, the 2025Q1 dip to 10.0% operating margin highlights volatility, possibly from one-time expenses or integration costs.
Net Margin Suppressed by Non-Operating Charges
Net margin of 7.7% in 2026Q2 is significantly below the 19.1% operating margin, as per the income statement, implying substantial non-operating costs.
The gap between operating and net margins suggests high interest expenses or non-cash amortization from the company's roll-up history. The 2025Q1 net loss of -$4.8M further indicates earnings volatility. Investors should adjust for these charges to assess the true cash-generating power of the operations.
COGS and SG&A Efficiency Improve
COGS as a percentage of revenue fell to 57.0% in 2026Q2 from 59.1% a year earlier, while SG&A grew only 61% YoY, as per the income statement.
The decline in COGS ratio indicates better cost management or favorable input prices, while SG&A growth lagging revenue growth suggests overhead discipline. However, the 2025Q1 SG&A spike to $23.3M (23.3% of revenue) versus $19.4M in 2025Q2 (16.9%) warrants attention, as it may reflect one-time costs or inefficiencies.
Valuation and Program Concentration Risks
Despite strong growth, KRMN's elevated P/S ratio and reliance on government contracts pose risks, as noted in recent context flags, with any program delay potentially triggering a de-rating.
The market has priced in continued high growth, leaving little room for error. The Q2 FY26 EPS miss ($0.14 vs. $0.15 est.) despite record revenue suggests bottom-line conversion is lagging, possibly due to acquisition-related costs. If defense budget priorities shift or commercial launch cadences slow, the high fixed-cost base could compress margins sharply.