Karman Space & Defense (KRMN) held a Jefferies investor conference on September 10, 2026, where CEO Jon Rambeau and CFO Chris Boynton outlined the company's growth trajectory, capacity expansion plans, and path toward stronger cash generation.
Rambeau said Karman has exceeded consensus on both top-line and bottom-line metrics every quarter since its IPO approximately 18 months ago. Organic growth ran at roughly 25% year-over-year, with EBITDA margins near 30%. The tactical missiles and integrated defense systems segment posted 55% growth in the latest quarter, while the space and launch systems segment grew about 17% in the first half of the year.
The company's order book benefits from long visibility on major Department of Defense programs — Rambeau described a seven-year window — spanning platforms such as THAAD, PAC-3, the ACE program, Golden Dome, and the Virginia-class, Columbia-class, and Seawolf-class submarine programs.
On capacity, Karman announced a new leased 200,000-square-foot facility in Salt Lake City. Production is expected by year-end, with launch capacity set to quadruple and solid rocket motor capacity to double. The primary output will include missile components currently manufactured at Huntington Beach and launching systems for unmanned vehicles.
Karman's acquisition strategy continues to broaden its footprint. The company acquired Seemann Composites in February 2024, adding capabilities in submarine bow domes — large composite structures roughly 40 feet in diameter manufactured without autoclaves to tolerances of 30 thousandths of an inch. It closed the acquisition of Walker Precision Engineering just ahead of the conference, adding presence on 25 missile programs in Europe.
Rambeau emphasized that integration, not a holding-company model, drives the strategy. "We are actively integrating the businesses, bringing them together, looking to move capabilities and capacity across the business," he said, noting his 26 years at Lockheed Martin, Ford, and L3Harris shaped his approach.
Financial discipline remains a priority. Days sales outstanding improved from 111 days at IPO to the mid-90s. Management set a preliminary cash conversion target of about 80% on a normalized basis, with more detail expected in 2027.
Karman's shares traded near $35.75, close to a 52-week low of $35.18, having fallen roughly 66% over the past six months. The company covers approximately 150 unique programs and 150 unique customers, with missile content representing roughly 3% to 5% of a total bill of materials. Supplier qualification remains a barrier for competitors, taking 18 to 24 months minimum.
