Karman Holdings Inc. (KRMN): A Bull Case Theory

We came across a bullish thesis on Karman Holdings Inc. on Monte Independent Investment Research’s Substack by Monte Investments. In this article, we will summarize the bulls’ thesis on KRMN. Karman Holdings Inc.’s share was trading at $103.80 as of January 30th. KRMN’s trailing and forward P/E were 1.34k and 188.68, respectively according to Yahoo Finance.

Karman Holdings (NYSE: KRMN) is a recently public, profitable defense contractor that debuted on the NYSE in February 2025 and is positioned to benefit from accelerating U.S. defense spending, particularly in tactical and hypersonic missile systems. The company specializes in manufacturing critical missile, space, and launch components, and has demonstrated strong post-IPO momentum, supported by rising demand across missile defense, space launch, and unmanned systems.

While Karman trades at a premium valuation of roughly 106x EV/adjusted EBITDA, this multiple reflects the market’s expectation that the company can grow into its valuation as defense budgets expand into 2026 and beyond, especially given its exposure to priority programs.

Karman’s vertically integrated strategy underpins its growth outlook, as the company has steadily expanded its capabilities across propulsion, composites, forging, and advanced manufacturing through both organic investment and acquisitions. Its technologies align closely with the multi-decade Golden Dome missile defense initiative, a program expected to exceed $500 billion in lifetime costs and encompass satellites, missile interceptors, and integrated command-and-control systems. With over 1,000 development contracts already awarded, Karman is well positioned to participate across multiple layers of this ecosystem.

Operationally, Karman delivered a strong Q3 2025 update, highlighted by a 38% year-over-year increase in funded backlog to $758 million and a book-to-bill ratio of 1.32x, signaling accelerating demand. Capital spending is focused on expanding production capacity and inspection capabilities, while recent contract awards tied to GMLRS, Patriot PAC-3, and Coyote missile systems reinforce long-term revenue visibility. Continued M&A activity has further strengthened Karman’s role as a critical, high-value supplier to defense primes, supporting a bullish long-term investment thesis.

Previously, we covered a bullish thesis on Lockheed Martin Corporation (LMT) by Steve Wagner in April 2025, which highlighted strong execution, a resilient backlog, and steady free cash flow generation. LMT’s stock price has appreciated by approximately 35.86% since our coverage due to the thesis playing out. Monte Investments shares a similar but emphasizes Karman Holdings’ higher-growth exposure to missile and hypersonic systems.

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Disclosure: None.