Karman Holdings Inc. (NYSE: KRMN)

Karman Holdings Inc. (NYSE: KRMN), which operates as Karman Space and Defense, specializes in the design, development and production of critical, next-generation system solutions for launch vehicle, satellite, spacecraft, missile defense, hypersonic and unmanned aircraft systems (UAS) customers. 

Recommendation Rationale – Sell at USD 88.46 

• KRMN stated that its business could be negatively impacted by the changes in budgetary priorities of the US government. The decline in government expenditures, the shift of expenditures from programs supported by KRMN or the change in federal government contracting policies can result in federal government agencies decreasing their purchases under contracts.
• Also, shortfalls in available external R&D funding can significantly impact the company.
• In Q3 FY 2025, KRMN witnessed a rise in cost of goods sold to $71.8 Mn in Q3 FY 2025 as compared to $52.1 Mn in Q3 FY 2024. Its operating expenses also witnessed a rise primarily because of higher general and administrative expenses and depreciation and amortization expense.
• KRMN’s share price is trading close to its R2 level recommended on February 18, 2026. Therefore, there can be a possible decline from the specified resistance levels.

KRMN’s Daily Price Chart 

Fundamental Valuation 

EV/EBITDA Based Relative Valuation (Illustrative)

Considering the increasing volatility over global equity market, inflationary pressures, geopolitical tensions, etc. the company’s stock might trade at slight discount. For the valuation, peers such as Axon Enterprise Inc (NASDAQ: AXON), Kratos Defense and Security Solutions Inc (NASDAQ: KTOS), etc.

Given its current trading levels, and risks associated, it is prudent to book profit at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the closing price of USD 88.46 per share, up by 9.21% as on 19 February 2026.  

Karman Holdings Inc. (NYSE: KRMN) is part of Kalkine’s Global Big Money Report. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 19 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.  

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest. 

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.