Karman Holdings jumped to record highs on Wednesday after clearing earnings estimates and maintaining its 2025 revenue forecast on Tuesday. Fellow aerospace and defense manufacturer Loar Holdings tumbled after its Tuesday report and announcing a secondary stock offering.
Karman Holdings Earnings
Karman Holdings reported earnings of 5 cents per share adjusted on 20.6% revenue growth to $100.1 million. FactSet expected earnings of 2 cents per share on $96.4 million in revenue for Q1.
Hypersonics and strategic missile defense revenue jumped 21% to $30.06 million, just below FactSet views for $32 million. Space and launch sales rose 12% to $33.88 million to outpace forecasts for $30 million.
Tactile missile and integrated defense systems revenue spiked almost 30% to $36.2 million. FactSet expected $33.5 million in revenue for the segment.
Karman's funded backlog increased 9.8% to a record $636.4 million at the end of the quarter, ahead of analyst views for $608 million.
The company in the release said that its record revenue and backlog reinforces confidence in achieving its sales targets for the year. Karman maintained its 2025 revenue forecast of $423 million to $433 million. FactSet expects $427.8 million in sales for the year.
The Huntington Beach, Calif.-based missile parts and launch services maker went public in February at $22 a share
Karman for its 2024 results in April reported earnings of 8 cents per share, just below FactSet views of 10 cents. Still, earnings increased from 3 cents per share in 2023, and improved further from the per-share loss of 9 cents in 2022. Revenue surged 23% to $345 million in 2024 and barely missed estimates for $346 million.
Karman rallied 8% Wednesday to close at 43.37, just off its record high of 43.47 intraday. KRMN stock climbed 2.3% Tuesday.
Shares have risen sharply from their April 7 low of 25.02. Investors could view 38.58 as a buy point.
Loar Earnings
Loar reported earnings of 20 cents per share adjusted to beat FactSet expectations for 17 cents. Net revenue increased nearly 25% to $114.7 million, also clearing estimates for $112.6 million.
CEO Dirkson Charles in the release said that Loar "began 2025 with excellent momentum from strong demand across our end markets." The company expects the demand environment to continue and as a result lifted its guidance for the year.
Loar now expects net sales to range from $482 million to $490 million, from its previous estimates for $480 million to $488 million. But the midpoint is still below analysts' forecasts for $488 million, despite the modest Q1 beat.
The jet components supplier also raised its net income guidance by $1 million to range from $59 million to $64 million.
Loar now expects earnings to range from 71 cents to 76 cents per share adjusted, up a penny from the prior range. But that follows a 3-cent Q1 beat.
For its business segments, Loar expects high single-digit growth for original equipment manufacturing. Aftermarket growth is expected to grow in the low double-digits.
Loar expects high double-digit growth for its defense business.
Elsewhere, Loar late Tuesday announced a secondary underwritten public offering of 9 million shares of its common stock by certain shareholders. The selling stockholders will also grant the underwriters a 30-day option to purchase up to 1.35 million additional shares of LOAR stock at the public offering price, minus underwriting discounts and commissions.
Loar is not selling any shares of its common stock in the offering and will not receive any proceeds, according to the release. Selling stockholders receive all proceeds.
Loar Stock Falls
Shares retreated 6.5% to 93 Tuesday. LOAR stock tumbled another 10.5% Wednesday to fall out of a buy zone.
Shares broke out above the 90.79 cup-with-handle buy point on April 24. Since then, Loar had been consolidating at the top or just above the buy zone, which ran to 95.33. Investors could use 99.16 as an alternate entry. Shares have pared their 2025 gains to less than 13%.
Loar Holdings came public in April 2024 at a $28 IPO price.
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