Karman Holdings Inc., a key supplier in the aerospace and defense sector, is set to go public with its initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker symbol "KRMN." The company plans to offer 8,421,053 shares at an estimated $18 to $20 per share, with an additional 12,631,579 shares offered by selling shareholders. With underwriters such as Citigroup, Evercore ISI, and RBC Capital Markets, Karman aims to leverage its IPO to fund strategic growth initiatives, strengthen its manufacturing capabilities, and expand its presence in the space and defense industry. As a vertically integrated solutions provider specializing in payload protection, aerodynamic interstage systems, and propulsion technologies, Karman has positioned itself as a partner for U.S. defense and aerospace contractors, benefiting from long-term government contracts and growing defense budgets.
Financially, Karman has demonstrated steady revenue growth, with 2023 revenue reaching $280.7 million, reflecting a 24% year-over-year increase. For 2024, the company estimates revenue to be between $345.7 million and $346.2 million, representing a projected 23.3% increase. Profitability is also improving, with net income growing from $4.4 million in 2023 to an estimated $13.7 million to $13.9 million in 2024. Additionally, the company maintains a strong adjusted EBITDA margin of 30.5%–30.6%, showcasing its operational efficiency and profitability. Despite carrying $358.7 million in debt, Karman's leadership believes its strategic acquisitions, engineering expertise, and strong order backlog of $578.5 million will provide a solid foundation for future growth.
Karman’s IPO comes amid increasing demand for hypersonic missile defense, space exploration technologies, and integrated defense systems—all key markets the company serves. Its sole and single-source contracts accounted for 87% of 2023 revenue, underscoring its long-term customer relationships. However, risks remain, including reliance on government contracts, supply chain challenges, and governance concerns. Karman's post-IPO growth strategy includes expanding into next-generation defense programs and scaling up its vertically integrated production capabilities. With a solid financial foundation, specialized technology, and growing demand for defense solutions, Karman Holdings has positioned itself to participate in the expanding aerospace and defense market.