Karman 10-Q Details Record Q3: $201.6M Revenue, $1.67B Backlog, Material Weaknesses Persist
KRMN sits 23% above its 52-week low of $29.34.
Summary
Karman's Q3 10-Q backs up the record $201.6 million revenue and $20.9 million net income already reported, and shows backlog at $1.67 billion — but material weaknesses in internal controls remain unremediated and the quarter's tax benefit was largely one-time.
Key Events · Earnings and Guidance · KRMN
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Record Q3 Revenue and Profit
Revenue rose 65.6% to $201.6 million and net income jumped 173.5% to $20.9 million, with gross margin up 1.7 points to 42.7%.
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Backlog Nearly Doubles
Backlog reached $1.67 billion versus $758.2 million a year earlier, and remaining performance obligations stood at $1.5 billion, with 15% expected in Q4 2026 and 36% in 2027.
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Tax Benefit Flatters Earnings
A completed R&D credit study produced a $7.8 million prior-year benefit plus a $7.4 million upward revision to the 2026 estimate, driving a (57.1)% effective tax rate for the quarter.
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Material Weaknesses Unremediated
Management concluded disclosure controls were not effective as of September 30, 2026 due to entity-level and IT general control material weaknesses; remediation is underway but not yet tested.
Analysis · KRMN · Manufacturing
The headline numbers were already out via the prior-day 8-K, but the full 10-Q carries the detail that matters for the thesis. Backlog jumped to $1.67 billion from $758 million a year ago, and remaining performance obligations of $1.5 billion give unusually long revenue visibility for a company this size. The offset is governance: management again concluded disclosure controls were not effective because of unremediated material weaknesses in internal control over financial reporting, and the quarter's tax benefit — a (57.1)% effective rate — leans on a $7.8 million prior-year R&D credit catch-up plus a $7.4 million upward revision, so it is not a repeatable earnings driver. Debt also climbed, with the term loan at $861.8 million after the Fifth and Sixth Amendments funded the Seemann and Walker acquisitions.
How filings like this one have moved
In the 30 days to Nov 6, 2026, 44.9% of the 1407 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.36%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, KRMN was trading at $35.99 on NYSE in the Manufacturing sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $29.34 to $118.38. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.