Q2 2026 Karman Holdings Inc Earnings Call Transcript

Aug 6, 2026 / 08:30 PM GMT

Release Date Price: MXN900

Transcript 8-K

Key Points

Positve

Record Q2 revenue of $182 million, up 58% year-over-year, with 24.4% organic growth.
Record backlog of $1.3 billion, providing 95% visibility to full-year revenue guidance.
Record quarterly bookings of nearly $500 million, including a large space and launch long-term agreement.
Raised full-year 2026 revenue guidance to $730-$745 million and adjusted EBITDA to $215-$222.5 million.
Strong demand environment with customers citing potential production increases by up to 10x, supporting long-term growth.
Progress on remediating material weakness and transition to PwC as auditor, enhancing corporate governance.
Signed agreement to acquire Walker Precision Engineering, expanding European footprint and defense prime relationships.
New second-source opportunities across multiple programs, including separation motors, propulsion systems, and SRM cases.
Repriced term loan B, reducing interest costs by approximately $4 million annually.
Expects to deliver 20-25% annual organic growth for the foreseeable future, with revenue potentially doubling in 3-4 years.

Negative

Cash used in operations was $4 million due to increased receivables and contract assets from rapid growth.
CapEx run rate is slightly higher than 5% guidance, with a step-down expected in the second half.
Net debt of $752 million with leverage ratio of 3.7x, though expected to improve to 3.5x by year-end.
Second-half EBITDA margins expected to normalize lower due to contract mix, including cost-plus contracts from acquisitions.
Space and launch segment growth was only 6% year-over-year due to customer order timing and shifting launch schedules.
Organic growth metric will be disclosed less frequently (annually), potentially reducing transparency for investors.
Walker acquisition is subject to regulatory approval, with completion expected by year-end, adding execution risk.
MG resin qualification for high-temperature materials may take 1-2 years, limiting near-term supply chain alternatives.
Potential pricing pressure from customers seeking long-term agreements could impact margins.
Working capital requirements are expected to continue growing in Q3 and Q4, pressuring free cash flow.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KRMN.N - Karman Holdings Inc
Q2 2026 Karman Holdings Inc Earnings Call
Aug 06, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for joining us and welcome to the Carmen Space and Defense second quarter fiscal year 2026 earnings conference call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Steven Gitlin, Vice President of Investor Relations.

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Unidentified_2 [2]
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Steven, please go ahead.

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