Karman Space & Defense entered fiscal 2026 with record financial performance and more than $1 billion of backlog as rising U.S. defense spending and expanding space launch activity drive demand across its portfolio.
The company said first-quarter revenue plus backlog expected to convert into revenue during fiscal 2026 represented approximately 90% of its increased full-year revenue guidance, providing substantial visibility into its near-term outlook.
Karman ended the quarter with $1 billion in total backlog, up 61% from a year earlier. The backlog includes existing contracts, purchase orders, long-term agreements and other contractual authorizations to proceed.
First-quarter revenue increased 51% year-over-year to a record $151.2 million. Adjusted EBITDA rose 47.7% to a record $44.8 million, while net income reached a record $7.8 million compared with a $4.8 million loss in the prior-year quarter.
Growth was spread across several major defense and space categories. Space and Launch revenue increased 29.5% to $43.9 million, Tactical Missiles and Integrated Defense Systems revenue grew 25% to $45.3 million, and Hypersonics and Strategic Missile Defense revenue increased 18.7% to $35.7 million. The new Maritime Defense Systems category generated $26.4 million.
Karman said Tactical Missiles and Integrated Defense Systems growth was partly driven by continued adoption of advanced drone and loitering munition technologies as well as increased GMLRS production. Maritime growth reflected the acquisitions of Seemann Composites and MSC and associated submarine and LCAC programs.
Management also pointed to proposed increases in fiscal 2027 U.S. defense funding for programs including SM-3, PAC-3, THAAD, PrSM, unmanned aircraft systems, counter-UAS systems and submarines as providing additional visibility into future demand.
Karman raised its fiscal 2026 revenue outlook to $720 million to $735 million and adjusted EBITDA guidance to $208.5 million to $219.5 million, excluding future acquisitions.
The company serves more than 80 customers across more than 130 programs, giving it exposure to a broad range of space, missile defense, tactical weapon and maritime platforms.
KEY QUOTES:
“We have excellent visibility into our full fiscal year 2026 revenue outlook, with first quarter revenue and backlog expected to convert to revenue this year representing 90% of our increased full-year guidance.”
“Record backlog of more than $1 billion at the end of the first quarter increased more than 60 percent year over year.”
“We are seeing generational demand for our solutions unfolding in a rapidly expanding pipeline and substantially increased proposal volume, which we expect to translate into growing bookings later this year.”
Jon Rambeau, CEO of Karman Space & Defense
