We specialize in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Our integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (“DoD”) and space sector initiatives. We estimate that no single program accounted for more than 10% of sales for the nine months ended September 30, 2024 or the twelve months ended December 31, 2023, with revenue from over 100 active programs supporting current production and next-generation space, missile, hypersonic, and defense applications. We believe that our engineering expertise, vertically integrated production capabilities, and track record with critical piece part and subcomponent manufacturing positions us to successfully serve our prime customers who rely on us to deliver technical design and scaled manufacturing for integrated systems that are required to withstand extreme environments and meet stringent performance requirements. Our highly engineered solutions are organized into three key families: Payload Protection and Deployment Systems, Aerodynamic Interstage Systems, and Propulsion Systems: • Payload Protection and Deployment Systems: full design and manufacturing of the top section of a booster, launch vehicle, payload, or missile system • Aerodynamic Interstage Systems: supporting metallic and composite subsystems designed for aerodynamics and interstage separation • Propulsion Systems: offering of integrated solid rocket motors and supporting subsystems, launch systems, and ablative composites Our solutions are deployed across three growing, core end markets: Hypersonics & Strategic Missile Defense, Missile & Integrated Defense Systems, and Space & Launch. We serve a diverse customer base within these end-markets where we maintain long-standing relationships and engineering partnerships. We believe that our differentiated technical design, expertise, intellectual property, and heritage of mission success provides us with a value proposition that would be difficult to replicate by our current and potential future competitors. By utilizing our vertically integrated and concept-to-production capabilities along with a highly targeted acquisition strategy, we have created a business model aimed at creating long-term, sustainable value for our customers, the programs we support, and the warfighter. --- Our business approach combines both strong organic growth and our proven buy, build, and integrate acquisition strategy. Karman Space and Defense is defined by four core acquisitions that have been fully integrated into our business to create a synergistic platform with complementary capabilities and robust intellectual property (“IP”). Our formation began with the merger of Aerospace Engineering, LLC (“AEC”) and AMRO Fabricating Corporation (“AMRO”) in October 2020, which allowed us to become one of the largest independently owned suppliers focused on manufacturing complex systems for the space and missile markets. Shortly thereafter, we acquired American Automated Engineering, Inc. (“AAE”) (December 2020), a manufacturer of high-temperature composites, and Systima Technologies (“Systima”) (September 2021), a specialist in design and integration of energetic and mechanical systems into the structural design of mission-critical space and hypersonic systems. Since inception, we have completed three additional, complementary acquisitions focused on further expanding our capability set. Altogether, these acquisitions have: • United complementary capabilities that are critical to Karman’s “concept-to- production capabilities” offering to blue chip missile and space primes • Provided a storied heritage of trusted, mission success encompassing 40+ years, which we deem vital to success in our industry • Created a platform and strategic basis to continue to seek accretive, complementary acquisitions --- Today, Karman operates approximately 730,000 square feet of design, engineering, and manufacturing space, supporting a single Karman go-to-market strategy. We continue to evaluate opportunities to support anticipated growth and have recently invested to outfit a new 30,000 square foot facility in Decatur, AL to primarily service a new customer. We currently operate as a Delaware limited liability company under the name TCFIII Spaceco Holdings LLC (d/b/a Karman Space and Defense) (otherwise referred to herein as “Karman LLC”), which is a holding company that holds all of the equity interests of our operating subsidiaries. Karman LLC was formed August 20, 2020. Prior to the effectiveness of the registration statement of which this prospectus forms a part, Karman LLC will convert to a Delaware corporation and we will change our name to Karman Holdings Inc. Our principal offices are located at 5351 Argosy Ave, Huntington Beach, CA.
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I was unable to identify a public company specifically named "Karman" with the stock symbol KRMN. However, there is a prominent public company, Kaman Corporation (symbol: KAMN), which is sometimes confused with similar names. Its major products and services are:
- Aerospace Products: Kaman manufactures highly engineered components and subassemblies for commercial and military aircraft, including rotorcraft bearings, aerostructures, and systems.
- Industrial Distribution: This segment distributes a wide range of industrial products, such as bearings, power transmission, fluid power, and automation solutions, along with related technical services.
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Karman (symbol: KRMN) primarily sells its services and solutions to other companies and government entities (Business-to-Business, B2B).
Major Customers:
While Karman also targets the broader commercial space industry for its advanced manufacturing, in-space servicing, and debris removal solutions, specific major public company customers within this sector have not been widely disclosed in public filings or press releases at this time.
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Karman (KRMN) Management Team
Tony Koblinski, Chief Executive Officer
Tony Koblinski has served as the Chief Executive Officer of Karman since 2021, leading the company's vision and strategic growth. He has over 25 years of experience in building integrated systems and processes. Before joining Karman, Mr. Koblinski was President and Chief Executive Officer of Madison-Kipp Corporation from September 2011 to November 2020. His prior roles include National Vice President of Homebuilding Operations at Pulte Homes in 2007, Vice President of Operations for Bombardier Recreational Products in 2002, and various leadership positions at General Motors and Saturn Corporation.
Mike Willis, Chief Financial Officer
Mike Willis joined Karman as Chief Financial Officer in November 2022. He is responsible for overseeing the organization's financial activities and has over 17 years of experience in finance and operations management. Mr. Willis possesses domestic and international finance experience in the Aerospace, Automotive, and Energy segments. Prior to Karman, he served as the Director of Finance of Precision Castparts Corp within the Forgings Division, where he was responsible for 14 businesses across five countries.
Jonathan Beaudoin, Chief Operating Officer
Jonathan Beaudoin has served as the Chief Operating Officer of Karman since July 2024. He brings over 18 years of experience in business operations, engineering, program management, and production of integrated solutions. His leadership has been crucial in developing new capabilities and technologies for Karman's programs. Prior to his current role, he held several key leadership positions at Karman, including Regional President, Vice President of Engineering, and Director of Missiles and Space Systems.
Stephanie Sawhill, Chief Growth Officer
Stephanie Sawhill has served as the Chief Growth Officer at Karman since May 2022, bringing over 20 years of experience in the aerospace industry. She is responsible for business development and product growth strategies, and has managed critical programs to expand Karman's integrated system portfolio. Her expertise includes liquid and solid propulsion, advanced materials, energetics, and hypersonic system technologies.
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Key Risks to Karman (KRMN)
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High Valuation: Karman (KRMN) trades at significantly elevated valuation multiples compared to its industry peers, suggesting that substantial future growth and profitability are already factored into its stock price. This high valuation could make the company vulnerable to any operational setbacks, slower-than-anticipated growth, or a market re-evaluation.
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Customer Concentration and Reliance on U.S. Defense Spending: A significant portion of Karman's revenue is derived from contracts within the aerospace and defense sectors, with a heavy dependence on a few large customers and the U.S. Department of Defense. This concentration poses a risk, as the cancellation of a major contract or shifts in government defense spending and political priorities could materially impact the company's financial performance.
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Execution Risk from Acquisitions and Debt: Karman has engaged in recent acquisitions and utilized substantial financing, including a new term loan. While acquisitions aim to expand capabilities, they also introduce integration challenges and heighten near-term execution risks, especially considering concerns about limited board experience and profit margins that have lagged historical levels.
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Clear Emerging Threats for Karman (KRMN)
An emerging threat to Karman, a manufacturer and distributor of wheelchairs and other mobility products, comes from the advancement and increasing adoption of **personal robotic exoskeletons**. Companies such as ReWalk Robotics, Ekso Bionics, and Cyberdyne are developing and commercializing sophisticated wearable robotic devices that allow individuals with paralysis or other mobility impairments to stand and walk. While currently expensive and primarily used in rehabilitation settings, these technologies are continuously improving in functionality, reducing in size, and becoming more accessible. As costs decrease and the technology becomes more widely available and prescribed, these exoskeletons pose a direct threat by offering a fundamentally different and potentially more empowering mobility solution than traditional wheelchairs for a segment of Karman's target market. This shift mirrors historical disruptions where new technologies offered a superior or significantly different user experience, challenging established product categories.
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Karman (KRMN) is expected to drive future revenue growth over the next 2-3 years through several key factors:
- Broad-Based Growth Across Key End Markets: The company anticipates continued growth across all three of its primary end markets: Hypersonics and Strategic Missile Defense, Space and Launch, and Tactical Missiles and Integrated Defense Systems. For example, revenue from Hypersonics and Strategic Missile Defense increased by 36% year-over-year to $37 million, while Space and Launch jumped 47% to $41 million, and Tactical Missiles and Integrated Defense Systems grew from $31 million to $44 million in Q3 2025.
- Expanding Funded Backlog: Karman consistently reports a growing funded backlog, which provides substantial visibility into future revenue streams. The funded backlog reached an all-time high of $758 million at the end of Q3 2025, offering 100% visibility to the midpoint of its full-year revenue guidance and establishing a strong foundation for 2026.
- Strategic Acquisitions: The company actively pursues strategic acquisitions to enhance its capabilities and expand its presence in new and existing markets. The acquisition of Five Axis Industries, for instance, is expected to broaden Karman's capabilities, particularly in the commercial space industry.
- Strong Market Demand and Expanding Defense Budgets: Karman operates within the aerospace and defense sector, benefiting from increasing global defense budgets and robust demand for missile technologies, hypersonics, and commercial space applications. The company is well-positioned to capitalize on significant opportunities in areas like the Golden Dome initiative, unmanned systems, hypersonics, and missiles and munitions.
- Sustained Competitive Advantage Through Technological Innovation: Karman's focus on technological innovation and its strategic position as a merchant supplier to prime contractors, often securing sole-source or single-source contracts, provides a strong competitive edge. This enables the company to offer cutting-edge solutions and maintain its role as a key player in the defense and space industries.
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Share Issuance
- In February 2025, Karman Holdings Inc. completed its initial public offering (IPO), selling 8,421,053 shares of common stock at $22.00 per share, generating approximately $185.3 million in proceeds for the company.
Outbound Investments
- In the second quarter of fiscal year 2025, Karman acquired MTI and ISP to enhance its design and manufacturing capabilities.
- During the third quarter of fiscal year 2025, the company acquired Five Axis Industries.
Capital Expenditures
- In the most recent 12-month period, capital expenditures amounted to approximately -$19.64 million.
- Karman invested in and opened a new 30,000 square foot manufacturing facility in Decatur, Alabama, in April 2025, primarily to expand capacity for a new customer.
- The company's capital allocation has involved significant capital investment to scale up operations, which is reflected in a return on invested capital of 4.27% as of September 15, 2025.
