HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--July 21, 2025--
Karman Space & Defense $(KRMN)$ ("Karman," the "Company," "we" or "us"), a leader in the rapid design, development and production of critical, next-generation system solutions for launch vehicle, satellite, spacecraft, missile defense, hypersonic and UAS customers, today released preliminary second quarter fiscal year 2025 financial results in connection with an underwritten public offering (the "Offering") of 20,000,000 shares of its common stock being offered by certain selling stockholders. The selling stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 3,000,000 shares of common stock. The Company is not selling any shares of common stock and will not receive any proceeds from the sales of shares in the Offering. The Company also announced it will issue financial results for the Company's second quarter fiscal year 2025 after financial markets close on Thursday, August 7, 2025. Management will host a conference call and live audio webcast to discuss the results at 1:30 p.m. Pacific Time.
Preliminary Second Quarter Fiscal Year 2025 Results (unaudited)
Set forth below are preliminary estimates of selected unaudited financial information and other information for the three months ended June 30, 2025, and actual unaudited financial results for the three months ended June 30, 2024. We have provided ranges of certain preliminary results below because our closing procedures for our fiscal quarter ended June 30, 2025 are not yet complete. These ranges are based on the information available to us as of the date of this press release. Our final results remain subject to customary closing procedures or subsequent events, however we do not expect our final results to materially differ from the preliminary results shown below. These preliminary estimates are forward-looking statements. Our unaudited financial results as of the three months ended June 30, 2025 are not yet finalized. During the course of the preparation of our unaudited financial statements and the notes thereto by management, additional items that require adjustments to the preliminary results presented below may be identified.
The preliminary results provided below do not represent a comprehensive statement of our financial results and should not be viewed as a substitute for the financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In addition, the preliminary results for the three months ended June 30, 2025 are not necessarily indicative of the results to be achieved in any future period.
Three Months Ended June 30,
----------------------------------------------
(In thousands,
except
percentages) 2025 2024
-------------------------------- ------------
Low High
(Estimated) (Estimated)
--------------- --------------- -------
Revenue $ 114,500 $ 115,000 $ 85,039
Gross Profit $ 46,700 $ 47,000 $ 34,594
Pretax Income $ 8,310 $ 8,400 $ 4,916
Net income $ 6,170 $ 6,200 $ 4,604
Funded backlog $ 712,000 $ 715,000 $528,008
Adjusted
EBITDA(1) $ 34,850 $ 35,150 $ 27,423
Adjusted EBITDA
margin(1) $ 30.4% $ 30.6% $ 32.2%
1. Adjusted EBITDA and Adjusted EBITDA margin are not calculated in
accordance with GAAP. See below for a reconciliation of net income
(loss) to Adjusted EBITDA and net income (loss) margin to Adjusted
EBITDA margin, the most directly comparable financial measures
calculated in accordance with GAAP.
The estimates of Karman's revenue, gross profit, pretax income, net income, funded backlog and adjusted EBITDA, as of June 30, 2025 are preliminary, have not been audited, do not present all information necessary for an understanding of Karman's financial condition as of June 30, 2025, and are subject to change upon completion of Karman's financial statement closing procedures. The preliminary financial data included in the above has been prepared by, and is the responsibility of, Karman's management. Karman's independent registered public accounting firm has not audited, reviewed, examined, compiled, nor applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, Karman's independent registered public accounting firm does not express an opinion or any other form of assurance with respect thereto.
For the three months ended June 30, 2025, we expect revenue to be between $114.50 million and $115.00 million, representing an estimated increase of approximately 34.6% and 35.2%, compared to revenue of $85.04 million for the three months ended June 30, 2024.
For the three months ended June 30, 2025, we expect total gross profit to be between $46.70 million and $47.00 million, compared to total gross profit of $34.59 million for the three months ended June 30, 2024
For the three months ended June 30, 2025, we expect income before provision for income taxes to be between $8.31 million and $8.40 million, compared to income before provision for income taxes of $4.92 million for the three months ended June 30, 2024.
For the three months ended June 30, 2025, we expect net income to be between $6.17 million and $6.20 million, compared to net income of $4.60 million for the three months ended June 30, 2024.
For the three months ended June 30, 2025, net income margin is expected to be 5.4%, compared to net income margin of 5.4% for the three months ended June 30, 2024.
For the three months ended June 30, 2025, we expect funded backlog to be between $712.00 million and $715.00 million, representing an estimated increase of approximately 34.8% and 35.4%, compared to funded backlog of $528.01 million for the three months ended June 30, 2024.
For the three months ended June 30, 2025, Adjusted EBITDA is expected to be between $34.85 million and $35.15 million, compared to Adjusted EBITDA of $27.42 million for the three months ended June 30, 2024. For the three months ended June 30, 2025, Adjusted EBITDA margin is expected to be between 30.4% and 30.6%, compared to Adjusted EBITDA margin of 32.2% for the three months ended June 30, 2024.
The following table reconciles expected net income (loss) to Adjusted EBITDA for the three months ended June 30, 2025, and net income (loss) margin to Adjusted EBITDA margin for the three months ended June 30, 2025, as well as actual financial results derived from our unaudited financial statements for the three months ended June 30, 2024:
Three Months Ended June 30,
-----------------------------------------------
(in thousands, except
percentages) 2025 2024
---------------------------------- -----------
Low High
(Estimated) (Estimated)
---------------- ---------------- -----------
Net income $ 6,170 $ 6,200 $ 4,604
Adjustments:
Income tax provision 2,140 2,300 311
Interest expense, net 11,850 11,900 13,401
Depreciation and
amortization(a) 10,280 10,350 8,306
EBITDA 30,440 30,650 26,622
Adjustments:
Acquisition related
expenses(b) 3,840 3,910 79
Integration expenses
and non-recurring
restructuring
costs(c) 375 380 476
Lender and
administrative agent
fees(d) 195 210 --
Other non-recurring
costs(e) -- -- --
Share-based
compensation(f) -- -- 246
Adjusted EBITDA $ 34,850 $ 35,150 $27,423
Revenues 114,500 115,000 85,039
Net income margin 5.4% 5.4% 5.4%
Adjusted EBITDA Margin 30.4% 30.6% 32.2%
a Depreciation and amortization expense includes a range of $2,780 to
$2,850, and $1,985 of depreciation and amortization recorded in cost
of goods sold for the three months ended June 30, 2025 and June 30,
2024, respectively.
b Represents legal and due diligence fees incurred in connection with
planned and completed acquisitions, which are required to be expensed
as incurred. During the periods presented, these costs were incurred
for due diligence and legal fees related to an acquisition of
equipment and intangible assets.
c These costs include company-wide system implementation expenses and
Company re-branding costs. This category also includes
post-acquisition integration costs, and employee expenses related to
acquisitions or restructuring activities.
d Reflects non-recurring lender fees associated with one-off amendments
to the Company's credit agreement, separate from ongoing
administrative fees.
e Other non-recurring costs consisted primarily of non-cash impairment
losses during the three months ended June 30, 2024.
f Reflects non-cash share-based compensation expenses associated with
the Company's P Units.
Second Quarter Fiscal Year 2025 Earnings Conference Call and Webcast
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July 21, 2025 17:03 ET (21:03 GMT)