Karman Space & Defense Receives Contingent Demand Commitments for Key Space and Defense Program Production with Total Potential Multi-Year Value of more than $1 Billion
- Requirements span key space and defense programs that include several of the Munitions Acceleration Council priority weapon systems
- Expected to convert to firm contracts after prime contractors receive firm orders from their customers.
- Karman maintaining production capacity ahead of customer demand
Karman Space & Defense ("Karman", "Karman Holdings Inc." or "the Company") (NYSE:KRMN), a leader in the rapid design, development and production of critical, next-generation system solutions that align with the U.S. Department of War's core mission priorities and the nation's accelerating demand for access to space, today announced the receipt of contingent demand commitments from four key space and defense customers for Karman's unique content. These written expressions of intent are contingent upon Karman's customers receiving funded contracts from their customers. Each customer has specified minimum order volumes by subassembly over a multi-year period, representing a total potential value of more than $1 billion over four to seven years.
"The significant increase in demand for our solutions is now closer to converting to firm contracts, with an aggregate potential value of more than $1 billion over a four-to-seven-year period," said Jon Rambeau, Karman chief executive officer. "Four of our largest customers, spanning space and defense, have provided written expressions of intent to negotiate with us for significant increases in procurement volumes upon finalizing their space launch schedule or receiving firm contracts from the U.S. Department of War. These commitments provide us with greater certainty of demand, enabling us to continue investing in capacity to ensure we remain ahead of what they require.
"These commitments position Karman for continued, multi-year growth and only represent a portion of the overall demand we see materializing for our solutions," Rambeau added.
Karman supports both incumbent and emerging U.S. space launch providers with payload protection and deployment, aerodynamic interstage, and propulsion systems. The Munitions Acceleration Council (MAC) has designated a list of 14 priority weapon systems to fast-track for production and stockpile replenishment. These include systems such as THAAD, PAC-3, Tomahawk, GMLRS and PrSM, among other high-demand programs for which significant funding increases appear in the fiscal year 2027 Department of War budget request.
ABOUT KARMAN SPACE & DEFENSE
Karman Space & Defense is a leader in the rapid design, development and production of critical, next-generation system solutions that align with the U.S. Department of War's core mission priorities and the nation's accelerating demand for access to space. Building on nearly 50 years of success, we deliver Payload & Protection Systems, Hydro/Aerodynamic Interstage Systems, and Propulsion & Launch Systems to more than 80 prime contractors supporting more than 130 space and defense programs. Karman is headquartered in Huntington Beach, CA, with multiple facilities across the United States. For more information, visit our website, www.karman-sd.com
Safe Harbor Statement
This announcement may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "likely," "seek," "project," "model," "ongoing," "will," "should," "forecast," "outlook" or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Karman, will prove to be correct or that any of our expectations, estimates or projections will be achieved.
Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation, that a significant portion of our revenue is generated from contracts with the United States military and U.S. military spending is dependent upon the U.S. defense budget; U.S. government contracts are subject to a competitive bidding process that can consume significant resources without generating any revenue; our business and operations expose us to numerous legal and regulatory requirements, and any violation of these requirements could materially adversely affect our business, results of operations, prospects and financial condition; our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete; and we have in the past consummated acquisitions and intend to continue to pursue acquisitions, and our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations. Readers and/or attendees are directed to the risk factors identified in the filings we make with the SEC from time to time, copies of which are available free of charge at the SEC's website at www.sec.gov under Karman Holdings Inc.
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