Industry: Aerospace & Defense / Mission-Critical Missile, Space & Launch Systems

About Company:

Karman Holdings specializes in the design, testing, manufacturing, and sale of critical components for missile, space, and launch applications, operating across three segments:

• Payload Protection & Deployment Systems
• Aerodynamic Interstage Systems
• Propulsion Systems

It supports over 100 funded missile and space programs and partners with 70+ prime contractors including Blue Origin, ULA, Starlink, and AeroVironment.

Company History:

Founded in 2020 and headquartered in Huntington Beach, CA, Karman emerged from decades of experience in space and defense subsystems. It had a high-profile IPO in February 2025, raising $506 million at a $22/share offering and a post-debut valuation near $3–4 billion.

Company Advantage Over Competitors:

• Broad engagement across defense and space markets, including hypersonics, missile defense, integrated systems, and commercial space launch.
• Diversified capabilities across propulsion, interstage, and payload protection, with assembly manufacturing and acquisitions (MTI, Rapid Machine) enhancing scale. Public+5Investors+5Karman+5
• Domestic-focused supply chain, insulating it from tariff risk and geopolitical supply disruptions. Investors
• Strong technical credentials and prime contractor relationships position it ahead in emerging programs like DoD’s Replicator and proposed “Golden Dome” missile defense.

Risk Factors You May Want to Consider:

• Small public company with limited trading history—risk of valuation volatility and price swings post-IPO.
• EPS rating remains low (40/99 despite strong technical composite rating), indicating earnings growth remains fragile.
• Defense budget dependency—growth tied to U.S. federal procurement and geopolitical dynamics.
• Execution and integration risk from recent acquisitions and scaling operations quickly.

What Makes This Company Special or a Good Investment?

• Strong inaugural full-year earnings (2024): revenue rose ~23% to $345 million, and net income swung from a loss in 2022 to $0.08 EPS in 2024.
• Record backlog and robust growth outlook: backlog rose ~35% to over $600 million, with 2025 revenue guidance of $423M–$433M, and EBITDA expected in the $132M–$137M range.
• Elite technical performance: SmartSelect Composite Rating elevated to 96/99, placing Karman among the top 4% of stocks for technical strength in its sector.
• Analyst confidence: analyst price targets imply upside of 34–41%, with strong buy ratings across several firms, driven by strong margins and growth potential.