Karman HoldingsKRMN +2.62%16 Gross Margin % is 42.24% as of Mar. 2026, which is 11% above its 10-year median of 37.94. GuruFocus rates KRMN with a GF Score™ of 16/100. The stock has 2 warning signs investors should review. Among 343 Aerospace & Defense companies, Karman Holdings ranks better than 73.47% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Karman Holdings had a gross margin of 42.24% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Karman Holdings Gross Margin % Related Terms
Karman Holdings Gross Margin % Historical Data
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The historical data trend for Karman Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KRMN vs VSEC, MRCY, AIR: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Karman Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Karman Holdings Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Karman Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Karman Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Karman Holdings (KRMN) has a Gross Margin % of 42.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Karman Holdings and its competitors. This is 11% above median its historical median of 37.94. Over the past decade, Karman Holdings' Gross Margin % has ranged from 35.77 to 41.03. According to the industry distribution chart, Karman Holdings ranks #91 out of 343 companies in the Aerospace & Defense industry, placing it in the top 26.5%.
Is Karman Holdings' Gross Margin % too high?
Karman Holdings' current Gross Margin % of 42.24% is 11% above median its 10-year median of 37.94. Over the past 10 years, this metric has ranged from a low of 35.77 to a high of 41.03. The Aerospace & Defense industry median Gross Margin % is 26.61. Karman Holdings' value of 42.24% is 58.7% above this industry median. Based on the distribution chart, Karman Holdings ranks #91 out of 343 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Karman Holdings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Karman Holdings' Gross Margin % compare to VSEC and MRCY?
According to the Aerospace & Defense industry distribution chart, Karman Holdings ranks #91 out of 343 companies for Gross Margin %. This puts Karman Holdings in the upper half of its industry. The industry median Gross Margin % is 26.61. Karman Holdings' value of 42.24% is 58.7% above this benchmark. Historically, Karman Holdings' own Gross Margin % has ranged from 35.77 to 41.03 over the past decade. While the company's 10-year median is 37.94 vs. the industry median of 26.61, Karman Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.61, based on 343 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karman Holdings's current Gross Margin % of 42.24% is 58.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Karman Holdings and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karman Holdings's current Gross Margin % is 42.24%, which is 11% above median its own 10-year median of 37.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karman Holdings stock overvalued right now?
Karman Holdings (KRMN) has a current Gross Margin % of 42.24%. The current Gross Margin % is 42.24%, which is 11% above median its 10-year median of 37.94 and 58.7% above the Aerospace & Defense industry median of 26.61. Karman Holdings' overall GF Score™ is 16/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Karman Holdings (KRMN), the current Gross Margin % is 42.24% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Karman Holdings Inc specializes in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Its integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (DoD) and space sector initiatives. Its engineered solutions are organized into three key families: Payload Protection and Deployment Systems, Aerodynamic Interstage Systems, and Propulsion Systems. The company's solutions are deployed across three growing, core end markets: Hypersonics & Strategic Missile Defense, Missile & Integrated Defense Systems, and Space & Launch.
16GF Score
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