Karman (NYSE: KRMN), a defense company that went public in February 2025, has experienced a remarkable stock surge, climbing 230% to nearly $73 per share by the end of that year. After peaking at around $115 in January 2026, the stock has since corrected, currently trading at $63.07. Despite this pullback, Karman recently reported strong Q1 2026 earnings, with revenue of $151.2 million—up 51% year-over-year—and adjusted earnings per share more than doubling, leading to raised guidance for the year.
This solid performance stands out in the defense sector, where Karman outpaced competitors like Kratos Defense and Rocket Lab. With a backlog of $1 billion and significant visibility into future revenue, Karman’s growth trajectory appears secure. The company also benefits from a new CEO, Jon Rambeau, who brings extensive industry experience, further bolstering investor confidence.
For market professionals, Karman’s current valuation—trading at a forward P/E of 109x—offers a more attractive entry point compared to its earlier highs. Analysts maintain a bullish outlook, with a consensus price target suggesting over 65% upside potential, making Karman a noteworthy consideration in the defense sector.
Source: marketbeat.com