Karman Holdings Inc. Jefferies Global Industrials Conference 2026

Okay. Thank you. Thanks everyone for being here. My name is Sheila Kahyaoglu with the Jefferies Aerospace, Defense and Airlines Equity Research team. We have the Karman team here with us, Karman Space & Defense, Jon Rambeau, who's the CEO. Jon, thank you so much for gracing us with your presence and allowing us to visit some of your facilities as well.

Thank you. Earlier this year.

So maybe just to kick it off, for those who aren't as familiar with Karman, what do you guys do? You've grown tremendously, 24% organic growth in Q2, and you kind of started this defense tech IPO wave. So, can you give us a quick background on Karman and how you're growing so much?

Yes, I can. That's a great place to start. So for those who aren't as familiar with the company, we've been a public company now for, call it 18 months or so. We've got about five, six quarters under our belt, and the company has performed consistently and has had very strong performance since the IPO. Just a little bit of backward-looking performance here. We have, both from a top line and a bottom-line point of view, we've exceeded consensus on both metrics every quarter since the IPO and continue to remain focused on that very strong performance. The company was put together around the strategy to be a merchant supplier across the four end markets that we play in. Those four end markets being around space and launch, maritime defense, tactical missiles, hypersonics, and strategic missile defense.

Those are high growth markets that were specifically targeted as areas for Karman to acquire established businesses with established product lines and capabilities that were IP rich, that were competitively protected to a certain extent, and would provide us a strong foothold from which to grow in those end markets. Since the time of the IPO, we have continued to execute well from an organic growth perspective, about 25% a year organic growth has been our performance. That is our projection as we look forward. Industry leading margins at about 30% EBITDA margins as we have seen since the IPO and as we continue to look to the future. The companies we have acquired since IPO, there have been five, those are also performing comparably to the base business. The company overall has continued to have a very positive outlook.

I feel good about the future, feel good about our guidance for this year and the years to come.

That is great. 25% organic growth is nothing to sneeze at. As you think about that multi-year outlook, how do you think about the drivers to get to that double digit rate?

Yeah. All of the end markets that we play in, again, because we chose those very intentionally, have very strong growth vectors. The areas that are strongest are in the missiles and munitions area, and a lot of that growth is very clearly laid out as part of the Department of Defense's priorities around the Munitions Acceleration Council, or MAC programs, as they are often referred to. Second area I would mention is the space and launch area. We do support all of the established and newer entrant space and launch providers, so that is an opportunity for us to see significant growth as we continue to see the resurgence of the space economy. The third area that I see as a primary vector for growth is around unmanned systems, whether we are talking about unmanned systems, platforms, loitering munitions.

There's a whole category of systems that typically are launched from a relatively standardized tube-based launching system, and Karman has a very strong position across a broad range of providers there in that unmanned system space. Those are probably the top three. Although again, all of the end markets are very strong.

That's super helpful. Maybe just to double-click on the missiles growth, how do you think about what Karman offers and how the demand will be sustainable given the frameworks, but how do you think about Karman's offering across the platforms?

Yeah. We have a very broad footprint across those platforms. The missile work that we've done is very well established, in many cases, single and sole source positions. Recognizing where the trajectory of this end market was headed, Karman has leaned in and made commitments to expand facilities, expand our investments in equipment and personnel so that we are on a trajectory to ramp at or beyond the rates at which those overall programs are going to ramp up. We've gotten a lot of questions about whether there's going to be second source activity in the missile market, and what I can tell you is that we see this much more as an opportunity for Karman to play offense rather than play defense. Of course, we're always concerned about making sure we continue to be competitive and capitalized in order to support our customers' demand signals.

We think because of the proactive steps that we've taken and because of the active dialogue we maintain with our customers, there's not significant risk at this point in time that we're going to see erosion of Karman's current market share. What we are seeing is opportunities for us to go on offense where others in the supply chain haven't been able to keep pace or meet quality expectations, delivery expectations with our customers. We've been invited in a number of instances to either be in the qualification process or being evaluated for possible qualification to be a second source to other supply chain partners at this point in time. It's a great opportunity for Karman to continue to do what we've already been doing and expand that across the end market of missiles and hypersonics.

Do you disclose your market share?

We don't disclose market share per se. We do break the revenue in our portfolio down by end market, but we don't talk about market share. We have at times, I think, talked about our percentage of the total bill of material on some of the platforms. I think that's about as far as we've gone. I'm looking at Steve. I don't have that number off the top of my head.