Sixty-Six Percent Growth and a Double Raise on the Year
Karman's release put revenue at $201.6 million, up 65.6% from $121.8 million a year earlier, with 25% organic growth. GAAP net income was a record $21 million, or $0.16 per diluted share, versus $0.06 a year earlier. Adjusted EBITDA was a record $61 million, up 60%, and adjusted EPS was $0.19 versus $0.10. Free cash flow was $13 million on $27 million of operating cash flow. MarketBeat put the adjusted EPS consensus near $0.16, so the operating print cleared the Street bar.
End-market detail from the release showed Hypersonics and Strategic Missile Defense revenue of $51.1 million, up 39.6%; Tactical Missiles and Integrated Defense Systems of $67.6 million, up 51.9%; Space and Launch of $37.9 million, down 6.9% on customer order timing; and Maritime Defense Systems of $45.0 million. Bookings were nearly $465 million in the quarter, including a significant seven-year contract with Lockheed Martin supporting the THAAD program, and the company completed the acquisition of Walker Precision Holdings Limited in Europe.
A One-Point-Seven Billion Backlog After the Raise
Backlog reached a record $1.7 billion at quarter-end, up 108% from fiscal year-end 2025, the company said. Full-year 2026 outlook moved to $755 million to $760 million of revenue and $225 million to $227 million of adjusted EBITDA, excluding future acquisitions. CEO Jon Rambeau framed the raise against a long-term organic revenue growth algorithm of 20% to 25% and said the firm was negotiating two additional long-term agreements while executing second-source opportunities. Wall Street Observer separately highlighted the backlog and the Friday rally in the mid-20% range earlier in the session before the stock extended further.
Thirty-Six Percent Cash Through a Twenty-Percent November Band
Stocknear, using a November 5 close snapshot when KRMN was at $32.09, showed a November 20 expected move of about ±$6.63, or 20.7%, implying an approximate range of $25.46 to $38.72. Against that prepaid band, Friday's cash print near $43.67 is about $4.95 above the upper break-even and a roughly 36% move from Thursday's close — well past the mid-teens-to-low-twenties event premium the monthly chain had collected into the report. December 18's expected move on the same page was about ±$8.11, or 25.3%, which Friday's cash has also cleared.
Long November calls struck near the money into the report have been paid by the stock leg at these prints; short straddles and iron condors that sold a roughly 21% November move sit past the upper break-even once $43 is marked. The other risk after a defense-supplier gap like this is follow-through and liquidity: KRMN's chain is thinner than mega-cap names, so bid-ask spreads can widen when the stock runs 30%+ in a session, and a partial giveback toward the $38.72 break-even would still leave short premium underwater versus Thursday's close. Delayed Yahoo Finance options are a reference rather than fills. Our implied volatility guide covers how post-earnings IV usually compresses after a gap this size, and the OCC options disclosure document explains the risks of standardized options.
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*By the OptionsPilot Editorial Team. Published November 6, 2026, 12:25 PM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
