Karman Holdings (NYSE:KRMN) saw its stock soar 5.04% in Wednesday's trading session following the release of its second-quarter 2025 earnings report. The aerospace and defense company's financial results showed a remarkable turnaround in profitability, capturing investors' attention.

The earnings report revealed that Karman Holdings achieved a net income of US$6.81 million for the quarter, a significant improvement from the same period last year. The company's earnings per share (EPS) came in at US$0.051, meeting analysts' expectations. This substantial year-over-year profit growth appears to be the primary driver behind the stock's upward movement.

Adding to investor optimism, Karman Holdings' revenue is forecasted to grow at an impressive rate of 19% per annum on average over the next three years. This growth projection outpaces the 8.1% average growth forecast for the US Aerospace & Defense industry, suggesting potential for Karman Holdings to outperform its peers in the coming years. However, investors should note that the company still faces some risks, with analysts pointing out three warning signs, one of which is considered concerning.