On January 5 2026, Karman Holdings Inc. received a $5 million Defense Production Act Title III award from the U.S. Department of War to expand its Systima facility in Mukilteo, Washington, increasing capacity for solid‑rocket motor nozzles.
The award is part of a broader federal effort to strengthen the domestic defense industrial base. By adding production capacity, Karman can meet growing demand from missile and launch vehicle programs, reinforcing supply‑chain resilience and national security.
Karman has a long track record of supplying solid‑rocket motor nozzles to key U.S. missile programs. The new funding will allow the company to accelerate its expansion plans, support backlog fulfillment, and maintain its competitive edge in a market where domestic production is increasingly prioritized.
In the third quarter of 2025, Karman reported revenue of $121.79 million, up 41.7% year‑over‑year, and earnings per share of $0.10, slightly below the $0.12 consensus estimate. Gross margin stood at 39.96% while net margin was 2.65%, reflecting the company’s focus on high‑margin defense contracts and disciplined cost management.
The award is expected to bolster Karman’s cash flow and reduce reliance on external financing. With a current ratio of 2.86 and a debt‑to‑equity ratio of 1.31, the company is positioned to invest in capacity expansion without compromising financial stability.
Stephanie Sawhill, Karman’s chief growth officer, said, “Our team is proud to expand our decades‑long support for missile programs that are critical to defending our nation. These funds will help us increase our output to address expanding demand for our solutions, building on our legacy of delivering trusted solutions to warfighters, allies, and national security.”
The award underscores the U.S. government’s commitment to domestic defense manufacturing and signals confidence in Karman’s ability to scale production in line with national security priorities.
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