Karman Space & Defense Reports Record Fiscal Year 2024 Financial Results and Strong Outlook for 2025 Following Successful IPO and Strategic Acquisition
Karman Space & Defense, also known as Karman Holdings, Inc., a recognized leader in advanced defense and aerospace solutions, has announced its financial results for the full fiscal year 2024, highlighting record revenue, net income, and adjusted EBITDA. The company also outlined major milestones heading into fiscal 2025, including a highly successful IPO, strategic refinancing, and a key acquisition aimed at expanding its technological capabilities and market reach.
A Strong Year Marked by Record Growth
Karman Space & Defense reported record-breaking results for the fiscal year ending December 31, 2024, with revenue reaching $345.3 million, representing a 23% increase compared to 2023. The company achieved net income of $12.7 million—an impressive 191.3% surge year over year—driven by organic growth across all business segments and solid program execution.
The company also reported adjusted EBITDA of $106.1 million, up 29.7% from the previous year, further solidifying its operational efficiency and scalability. Karman ended the year with a funded backlog of $579.8 million, a 35.2% increase from 2023, providing strong visibility and momentum going into 2025.
Segment Highlights: Growth Across All Fronts
Karman’s diversified portfolio across hypersonics, missile defense, tactical systems, and space programs saw significant expansion during 2024:
- Hypersonics and Strategic Missile Defense revenue climbed 14.5% to $114.6 million. The increase was fueled by well-funded U.S. government initiatives focused on next-generation defense capabilities and enhanced production for critical national security programs.
- Space and Launch segment revenue grew 21.5%, reaching $115 million. This growth was largely attributed to new and ongoing commercial space launch programs, including Blue Origin’s New Glenn and United Launch Alliance’s Vulcan, alongside the acquisition of Rapid Machine Solutions – Wolcott Design Services (RMS).
- Tactical Missile and Integrated Defense Systems posted the highest year-over-year increase at 34.5%, with revenues totaling $115.6 million. This was driven by continued production ramp-up and successful deployments of key programs in response to both U.S. defense requirements and global geopolitical tensions.
“Our record-setting 2024 financial results reflect the strength and resilience of our business model,” said Tony Koblinski, Chief Executive Officer of Karman Space & Defense. “Each of our business segments delivered double-digit topline growth, which aligns with increasing national and allied priorities around missile defense, advanced tactical systems, and commercial and government space missions.”
IPO Success and Financial Strengthening in 2025
Karman’s fiscal 2025 began with several strategic developments, starting with its highly anticipated initial public offering (IPO). In February 2025, the company completed its IPO on the New York Stock Exchange under the ticker symbol “KRMN,” raising approximately $173.2 million in net primary proceeds through the sale of 8.4 million common shares priced at $22.00 each.
Simultaneously, the company completed a $300 million Term Loan B and secured a $50 million revolving credit facility, enabling the refinancing of existing debt under more favorable terms. These actions effectively lowered interest obligations and extended maturities by seven and five years, respectively—further strengthening Karman’s capital structure.
“These strategic initiatives underscore our commitment to building a robust financial foundation for the long term,” Koblinski said. “With the capital raised and improved debt structure, we are better positioned to invest in innovation, pursue new contracts, and expand through strategic acquisitions.”
Acquisition of MTI: Expanding Capabilities and Customer Reach
Among the notable developments in early 2025 was Karman’s acquisition of MTI, a company known for its design and manufacturing excellence in precision components and integrated systems. The acquisition bolsters Karman’s engineering and production capabilities, enhances customer reach, and provides immediate revenue and adjusted EBITDA benefits.
“MTI brings complementary technologies and expertise that align well with our growth strategy,” Koblinski noted. “By integrating MTI’s capabilities, we can offer more comprehensive solutions to our defense and aerospace partners while accelerating program execution timelines.”
Outlook for Fiscal Year 2025: Positioned for Sustained Growth
Looking ahead, Karman has issued strong guidance for fiscal year 2025, projecting total revenue between $423 million and $433 million, and non-GAAP adjusted EBITDA between $132 million and $137 million. These forecasts reflect continued strength across end-markets and high confidence in current contracts and the execution pipeline.
Notably, the company’s $579.8 million funded backlog provides more than 90% visibility to the midpoint of its 2025 revenue guidance, reinforcing investor confidence and enabling management to focus on pipeline development for future growth beyond the current fiscal year.
“Backed by our record backlog, increased financial flexibility, and a strong portfolio of programs, we are in a prime position to achieve our 2025 targets,” said Koblinski. “As our end markets continue to grow, we are laser-focused on delivering the advanced technologies and integrated systems our customers need to stay ahead in an evolving global security environment.”
Conference Call and Webcast Information
To discuss the financial results in more detail, Karman Space & Defense will host a live conference call and webcast on Tuesday, April 8, 2025, at 1:30 p.m. Pacific Time. The call will feature senior leadership, including CEO Tony Koblinski, CFO Mike Willis, COO Jonathan Beaudoin, and VP of Investor Relations Steven Gitlin.
Participants in the United States can join the call by dialing +1 (800) 715-9871 (toll-free) or +1 (646) 307-1963 (local/international). Investors are encouraged to join the call five to ten minutes early to allow for registration.
A live audio webcast will also be available on Karman’s Investor Relations website at https://investors.karman-sd.com/overview/default.aspx, and a replay of the webcast will remain accessible for one year.
Karman’s 2025 projections and strategic outlook contain forward-looking statements that are subject to risks and uncertainties. These include the company’s ability to integrate acquisitions like MTI, secure and retain key contracts, adjust to changes in government spending, and respond to dynamic regulatory and geopolitical environments.
While management remains confident in the company’s trajectory, investors are reminded to review all forward-looking disclosures provided in Karman’s filings with the U.S. Securities and Exchange Commission.
