Karman Space Reports Strong Earnings but Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2026
0mins
Source: Fool
Karman Holdings Inc's stock fell 6.21% as it crossed below the 5-day SMA, reflecting a negative market reaction despite strong earnings performance.
Karman Space reported Q1 earnings of $0.11 per share and sales of $151.2 million, exceeding analyst expectations. However, the stock dropped 6.8%, indicating a negative market reaction despite the company's strong sales growth of 51% year-over-year and a significant backlog increase of 61% to $1 billion. Management also raised revenue guidance for 2026, projecting between $720 million and $735 million, which suggests a positive outlook for future sales.
The decline in stock price despite strong earnings highlights a potential disconnect between market expectations and actual performance, suggesting that investors may be cautious about future market conditions or other external factors affecting sentiment.
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Analyst Views on KRMN
Wall Street analysts forecast KRMN stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 65.860
Low
70.00
Averages
80.50
High
89.00
Current: 65.860
Low
70.00
Averages
80.50
High
89.00
About KRMN
Karman Holdings Inc. conducts business as Karman Space and Defense, which specializes in the design, development and production of critical, system solutions for launch vehicle, satellite, spacecraft, missile defense, hypersonic and unmanned aircraft systems (UAS) customers. Its integrated payload protection, propulsion, and hydro/aerodynamic interstage system solutions are deployed across a variety of existing and emerging programs supporting important Department of Defense (DoD) and space sector initiatives. It has developed a proprietary portfolio of technically complex products and capabilities with specialization in complex nozzles and other engineered products for launch vehicle engine applications. Its payload protection system involves the full design and manufacturing of the top section of a booster, launch vehicle, payload, or missile system. Its propulsion systems involve the integrated offering of solid rocket motor subsystems, launch systems, and ablative composites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Karman Space & Defense Provides Operational Data Update for Secondary Offering
- Offering Size: Karman Space & Defense is conducting a public offering of 13.5 million shares of common stock, with underwriters expected to receive an additional 2.025 million shares option, although the company will not sell any shares and will not receive any proceeds from the offering.
- Growth in Business Opportunities: As of May 25, 2026, the total value of business opportunities being pursued by the company is estimated at approximately $3 billion, a significant increase from $1 billion as of March 31, 2025, indicating strong demand in the defense and aerospace sectors.
- Contract Potential: Within the active pipeline, the estimated contract values include approximately $500 million for hypersonics and strategic missile defense programs and about $700 million for tactical missiles and integrated defense programs, showcasing the company's market potential across multiple key areas.
- Future Outlook: Karman is advancing negotiations for several long-term agreements, including a space launch production agreement valued at approximately $250 million, indicating positive progress in converting business opportunities into actual contracts.
See More
Karman Space & Defense Prices Upsized Secondary Offering
- Upsized Offering: Karman Space & Defense has priced an upsized secondary offering of 14 million shares at $61 each, indicating strong market demand and expected significant capital influx for the company.
- Clear Use of Proceeds: The funds raised from this offering will be directed towards supporting the company's R&D projects and expansion plans, aimed at enhancing its competitiveness in the aerospace defense sector and driving long-term growth.
- Positive Market Reaction: The offering price exceeds market expectations, reflecting investor confidence in Karman Space & Defense's future prospects, which may positively impact the company's stock price.
- Strengthened Strategic Positioning: Through this offering, Karman Space & Defense not only enhances its capital structure but also provides funding for future acquisitions and partnerships, further solidifying its market position in the aerospace industry.
See More
Karman Space & Defense Prices Public Offering at $61 per Share
- Public Offering Size: Karman Space & Defense announced a public offering of 14,000,000 shares at $61.00 per share, expected to generate approximately $854 million in gross proceeds for the selling stockholders, indicating strong market confidence in the company's future growth.
- Adjusted Offering Size: The offering size reflects an increase from the initially proposed 13,500,000 shares, showcasing rising demand for the company's stock, which may enhance its market position in the defense and aerospace sectors.
- Underwriter Arrangement: Citigroup and Evercore ISI are acting as book-running managers for the offering, with an additional option to purchase 2,100,000 shares, further enhancing market liquidity and investor confidence.
- Compliance Statement: The offering is conducted under an effective automatic shelf registration statement with the SEC, ensuring transparency and compliance, and investors are advised to read the preliminary prospectus for more detailed information before investing.
See More
Karman Space Launches 13.5 Million Share Public Offering
- Public Offering Initiated: Karman Space & Defense announced that certain selling stockholders launched an underwritten public offering of 13.5 million shares, with underwriters expected to receive a 30-day option to purchase an additional 2.03 million shares, providing liquidity for shareholders while the company itself does not participate in the sale.
- Proceeds to Shareholders: Karman will not sell any shares in this offering, meaning all net proceeds will go to the selling stockholders, which could impact the company's future financing capabilities as it will not receive any funds from this transaction.
- Future Revenue Projections: Karman projects revenue between $720 million and $735 million by 2026, indicating stable demand commitments over the next 4-7 years, although the current offering does not directly affect its financial position.
- Strong Financial Performance: Karman recently reported a non-GAAP EPS of $0.11, in line with expectations, and revenue of $151.2 million, beating estimates by $1.01 million, demonstrating the company's competitiveness and growth potential in the market.
See More
Starfighters Space Partners with NASA to Advance Microgravity Capabilities
- Industry Transformation: The impending SpaceX IPO is set to raise up to $75 billion at a $1.75 trillion valuation, marking a historic event that will mainstream the space sector as an investable area, thereby boosting related ETFs.
- Strategic Partnership: Starfighters Space has signed a Memorandum of Understanding with Mu-G Technologies in response to NASA's Request for Information for microgravity services, planning modifications and testing in Texas to fill a gap in U.S. capabilities.
- Technological Edge: By modifying the Falcon 50 aircraft, Starfighters will offer microgravity, reduced gravity, and hypergravity testing, catering to the needs of pharmaceutical, biotech, and materials science sectors, enhancing its competitive position in the market.
- Market Outlook: Starfighters is already collaborating with blue-chip clients like Lockheed Martin, and under CEO Tim Franta's leadership, the company is actively pursuing NASA-defined commercial microgravity capabilities, which is expected to attract more investor interest.
See More
Starfighters Space Partners with NASA to Revitalize Microgravity Capabilities
- IPO Catalyst: SpaceX's upcoming Nasdaq listing aims to raise up to $75 billion at a $1.75 trillion valuation, reshaping the entire space sector's valuation landscape and attracting increased investor interest in related companies.
- Strategic Partnership: Starfighters Space has signed a Memorandum of Understanding with Mu-G Technologies in response to NASA's request for microgravity services, planning modifications and testing in Texas to fill the gap in U.S. capabilities, thereby enhancing its market competitiveness.
- Diverse Flight Environments: Under the MOU, Starfighters will utilize the Falcon 50 aircraft to provide microgravity, reduced gravity, and hypergravity testing, combined with the supersonic capabilities of its F-104 aircraft, addressing NASA's demand for novel flight platforms and advancing commercial microgravity research.
- Industry Leadership: Starfighters already serves blue-chip clients like Lockheed Martin and the U.S. Air Force, and under CEO Tim Franta's leadership, the company is actively expanding its aerospace operations, which is expected to further enhance its market share and revenue.
See More
Karman Space & Defense Provides Operational Data Update for Secondary Offering
- Offering Size: Karman Space & Defense is conducting a public offering of 13.5 million shares of common stock, with underwriters expected to receive an additional 2.025 million shares option, although the company will not sell any shares and will not receive any proceeds from the offering.
- Growth in Business Opportunities: As of May 25, 2026, the total value of business opportunities being pursued by the company is estimated at approximately $3 billion, a significant increase from $1 billion as of March 31, 2025, indicating strong demand in the defense and aerospace sectors.
- Contract Potential: Within the active pipeline, the estimated contract values include approximately $500 million for hypersonics and strategic missile defense programs and about $700 million for tactical missiles and integrated defense programs, showcasing the company's market potential across multiple key areas.
- Future Outlook: Karman is advancing negotiations for several long-term agreements, including a space launch production agreement valued at approximately $250 million, indicating positive progress in converting business opportunities into actual contracts.
See More
Karman Space & Defense Prices Upsized Secondary Offering
- Upsized Offering: Karman Space & Defense has priced an upsized secondary offering of 14 million shares at $61 each, indicating strong market demand and expected significant capital influx for the company.
- Clear Use of Proceeds: The funds raised from this offering will be directed towards supporting the company's R&D projects and expansion plans, aimed at enhancing its competitiveness in the aerospace defense sector and driving long-term growth.
- Positive Market Reaction: The offering price exceeds market expectations, reflecting investor confidence in Karman Space & Defense's future prospects, which may positively impact the company's stock price.
- Strengthened Strategic Positioning: Through this offering, Karman Space & Defense not only enhances its capital structure but also provides funding for future acquisitions and partnerships, further solidifying its market position in the aerospace industry.
See More
Karman Space & Defense Prices Public Offering at $61 per Share
- Public Offering Size: Karman Space & Defense announced a public offering of 14,000,000 shares at $61.00 per share, expected to generate approximately $854 million in gross proceeds for the selling stockholders, indicating strong market confidence in the company's future growth.
- Adjusted Offering Size: The offering size reflects an increase from the initially proposed 13,500,000 shares, showcasing rising demand for the company's stock, which may enhance its market position in the defense and aerospace sectors.
- Underwriter Arrangement: Citigroup and Evercore ISI are acting as book-running managers for the offering, with an additional option to purchase 2,100,000 shares, further enhancing market liquidity and investor confidence.
- Compliance Statement: The offering is conducted under an effective automatic shelf registration statement with the SEC, ensuring transparency and compliance, and investors are advised to read the preliminary prospectus for more detailed information before investing.
See More
Karman Space Launches 13.5 Million Share Public Offering
- Public Offering Initiated: Karman Space & Defense announced that certain selling stockholders launched an underwritten public offering of 13.5 million shares, with underwriters expected to receive a 30-day option to purchase an additional 2.03 million shares, providing liquidity for shareholders while the company itself does not participate in the sale.
- Proceeds to Shareholders: Karman will not sell any shares in this offering, meaning all net proceeds will go to the selling stockholders, which could impact the company's future financing capabilities as it will not receive any funds from this transaction.
- Future Revenue Projections: Karman projects revenue between $720 million and $735 million by 2026, indicating stable demand commitments over the next 4-7 years, although the current offering does not directly affect its financial position.
- Strong Financial Performance: Karman recently reported a non-GAAP EPS of $0.11, in line with expectations, and revenue of $151.2 million, beating estimates by $1.01 million, demonstrating the company's competitiveness and growth potential in the market.
See More
Starfighters Space Partners with NASA to Advance Microgravity Capabilities
- Industry Transformation: The impending SpaceX IPO is set to raise up to $75 billion at a $1.75 trillion valuation, marking a historic event that will mainstream the space sector as an investable area, thereby boosting related ETFs.
- Strategic Partnership: Starfighters Space has signed a Memorandum of Understanding with Mu-G Technologies in response to NASA's Request for Information for microgravity services, planning modifications and testing in Texas to fill a gap in U.S. capabilities.
- Technological Edge: By modifying the Falcon 50 aircraft, Starfighters will offer microgravity, reduced gravity, and hypergravity testing, catering to the needs of pharmaceutical, biotech, and materials science sectors, enhancing its competitive position in the market.
- Market Outlook: Starfighters is already collaborating with blue-chip clients like Lockheed Martin, and under CEO Tim Franta's leadership, the company is actively pursuing NASA-defined commercial microgravity capabilities, which is expected to attract more investor interest.
See More
Starfighters Space Partners with NASA to Revitalize Microgravity Capabilities
- IPO Catalyst: SpaceX's upcoming Nasdaq listing aims to raise up to $75 billion at a $1.75 trillion valuation, reshaping the entire space sector's valuation landscape and attracting increased investor interest in related companies.
- Strategic Partnership: Starfighters Space has signed a Memorandum of Understanding with Mu-G Technologies in response to NASA's request for microgravity services, planning modifications and testing in Texas to fill the gap in U.S. capabilities, thereby enhancing its market competitiveness.
- Diverse Flight Environments: Under the MOU, Starfighters will utilize the Falcon 50 aircraft to provide microgravity, reduced gravity, and hypergravity testing, combined with the supersonic capabilities of its F-104 aircraft, addressing NASA's demand for novel flight platforms and advancing commercial microgravity research.
- Industry Leadership: Starfighters already serves blue-chip clients like Lockheed Martin and the U.S. Air Force, and under CEO Tim Franta's leadership, the company is actively expanding its aerospace operations, which is expected to further enhance its market share and revenue.
See More
