Karman Seen Benefiting From Rising Defense, Space Spending, Oppenheimer Says

11:26 AM EDT, 10/22/2026 (MT Newswires) -- Karman (KRMN) is well positioned to benefit from rising defense and space spending as demand grows for its mission-critical systems and subsystems used in missiles, hypersonics, space launch, unmanned aerial systems and maritime platforms, Oppenheimer said Thursday. According to the report, the company supplies more than 80 prime contractors across 130-plus programs, with no single program accounting for more than 12% of 2025 revenue. Its products are costly and difficult to replace once qualified, supporting long-term customer relationships and recurring revenue. Karman's Q2 2026 organic revenue grew 24.4%, with nearly $500 million in bookings, a 2.7-times book-to-bill ratio and $1.32 billion in backlog. Acquisitions also expanded its capabilities across maritime, missile and European defense markets. The analyst said cash generation remains a key focus as working capital, capital expenditures and acquisition integration weigh on performance. Karman reported negative operating cash flow of $3 million in H1 2026 and raised its 2026 revenue guidance to $730 million to $745 million, despite adjusted EBITDA of $99.4 million. Oppenheimer initiated coverage of Karman with an outperform rating and a price target of $40. Karman shares were down over 1% in Thursday trading. Price: 34.64, Change: -0.64, Percent Change: -1.80