Al Root

The space, drone, and missile businesses are booming right now. That's good for shares of Karman, which supplies technologies for all three.

Karman stock was up 9.4% at $114.68 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.5% and 0.3%, respectively.

That price would be a new 52-week high for the stock.

The move came after the company updated financial guidance after the recently announced acquisition of Seemann Composites and Materials Sciences, which expanded Karman's business into autonomous maritime technologies. Think sea drones.

Karman now expects 2025 sales of about $470 million, ahead of the $467 million Wall Street analysts project. For 2026, sales will land between $700 million and $715 million. Earnings before interest, taxes, depreciation, and amortization, or Ebitda, will come in between $205 million and $215 million.

Wall Street currently projects 2026 sales of $570 million and Ebitda of $186 million.

The "industry demand backdrop is red hot," wrote William Blair analyst Louie DiPalma on Thursday, adding that Seemann is a leader in advanced composites. "The transaction expands Karman's footprint into the high-priority maritime defense market, providing exposure to long-cycle naval programs with strong funding visibility."

Karman is paying about $220 million.

DiPalma rates Karman shares Buy and doesn't have a price target for the stock.

Overall, eight of 11, or 73% of analysts covering Karman stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Karman stock is about $106.

Write to Al Root at allen.root@dowjones.com

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January 22, 2026 11:11 ET (16:11 GMT)

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