Karman Stock Soars 42%: Record $1.7B Backlog After Q3 Beat

Karman Holdings (NYSE: KRMN) stock soared 42.13% on Friday, November 6, 2026, closing at $45.61 after the space and defense supplier reported record third-quarter results, a record $1.7 billion backlog, and a raised full-year outlook. The shares opened at $35.90, up from a $32.09 previous close, and held most of the gain through the close on a day when buyers were returning to beaten-down names across the market.

What happened

Karman Space & Defense reported third-quarter fiscal 2026 revenue of $202 million, a record for the company. That was up 65.6% from $121.8 million a year earlier, with 25% organic growth and the rest helped by acquisitions. Adjusted earnings came in at $0.19 per diluted share, above the $0.16 consensus estimate and up from $0.10 a year ago. On a reported basis, net income reached a record $21 million, up 174% year over year, with diluted earnings of $0.16 per share versus $0.06 a year earlier. Adjusted EBITDA rose 60% to $61 million.

The number that drew the most attention, though, was the order book. Backlog reached a record $1.7 billion at quarter-end, up 108% compared with fiscal year-end 2025. The company booked nearly $465 million of new orders in the quarter alone, across all of its end markets. That included a significant seven-year contract with Lockheed Martin supporting the THAAD missile-defense program.

Why it is blowing up

First, the beat was broad, not a single line item. Revenue, adjusted earnings, net income and EBITDA all set records at the same time, and growth came from both existing business and deals Karman has bought. Second, management raised the outlook instead of simply repeating it. Karman now expects fiscal 2026 revenue of $755 million to $760 million and adjusted EBITDA of $225 million to $227 million. That revenue range sits above the roughly $742 million analysts had expected, according to coverage of the results.

Third, the timing helped. Friday was a rebound session after Thursday's sharp selloff in technology and AI-linked stocks. The Nasdaq Composite rose 1.09% and the S&P 500 added 0.31%, while defense and space names also moved higher, with Firefly Aerospace among the day's other large gainers. A stock that had fallen sharply this year — Karman remains down roughly 38% to 40% year to date even after Friday's jump, and well below its 52-week high of $118.38 — can move hard when a record quarter lands on a risk-on day.

Key facts

• Close: $45.61, up $13.52 (+42.13%) on Friday, November 6, 2026, from a $32.09 previous close.
• Q3 revenue: $201.6 million, up 65.6% year over year; organic growth was 25%.
• Earnings: adjusted EPS of $0.19 versus a $0.16 consensus estimate; reported net income of $21 million, up 174%.
• Backlog: a record $1.7 billion, up 108% from fiscal year-end 2025, on nearly $465 million of quarterly bookings.
• Guidance: fiscal 2026 revenue raised to $755 million–$760 million, with adjusted EBITDA of $225 million–$227 million.
• Nine months: revenue of $534.9 million, up 58.7% year over year.

Chief Executive Jon Rambeau said the company delivered another quarter of record results, highlighting 66% total revenue growth, 25% organic growth, 60% adjusted EBITDA growth, $13 million of free cash flow, and a doubling of backlog compared with fiscal year-end 2025. Karman designs, tests and manufactures mission-critical systems for missile, defense and space programs, which puts it directly in the path of sustained US defense spending on missile defense and space systems.

What is next

The question now is execution. A $1.7 billion backlog only turns into revenue if Karman can deliver on long-term defense contracts on schedule, and management has flagged accelerated capacity investment, while still targeting at least $20 million of free cash flow in the second half of 2026. Management also continues to target 20% to 25% annual organic growth and an adjusted EBITDA margin of around 30% in 2027, according to its earnings-call commentary. Investors will also watch whether Friday's volume-driven jump holds next week, given how volatile the stock has been this year. This report describes what happened and why markets reacted; it is not a recommendation to buy, sell or hold any security.

Sources

Karman Space & Defense Q3 fiscal 2026 results (Business Wire via Morningstar) · Zolmax: Karman shares gap up on strong earnings · Swingfolio: US close, November 6, 2026 · Investopedia: Markets news, November 6, 2026

FAQ

Why did Karman stock rise 42% on November 6, 2026?

Karman beat earnings expectations, reported record revenue of about $202 million, up 65.6% year over year, and raised its full-year outlook. A record $1.7 billion backlog added to the reaction.

What were Karman's Q3 2026 earnings?

Adjusted earnings were $0.19 per share, above the $0.16 consensus, while reported net income was a record $21 million, or $0.16 per diluted share. Adjusted EBITDA was $61 million.

What is Karman's backlog and guidance?

Backlog reached a record $1.7 billion, up 108% from fiscal year-end 2025. Management raised fiscal 2026 guidance to $755 million–$760 million in revenue and $225 million–$227 million in adjusted EBITDA.

Is Karman stock up for the year?

No. Even after Friday's 42% jump to $45.61, the shares remain down roughly 38% to 40% year to date and well below their 52-week high of $118.38, which underlines how volatile the stock has been.