Modest Update as Framework Agreements Support Multi-year Demand Ramp

Research evidence excerpt

Modest Update as Framework Agreements Support Multi-year Demand Ramp

at $43.9M with growth improving to 29% growth vs. 12% y/y. Tactical Missiles 52-Week High / Low US$118.38 / US$41.29

and Integrated Defense came in at $45.3M, representing 25% growth vs. 30% y/y. Shares Out (mil) 132.0

Following the completion of the Seemann & MSC acquisition the company has now Market Cap. (mil) US$8,739.7

added Maritime Defense as a revenue segment coming in at $26.4M, or 17% of revenue Avg Daily Vol (000) 2,143

this quarter. Adjusted EBITDA reached $44.8M or 29.6% margins in the quarter, down Div Yield 0.00%

Fiscal Year End Dec 70bps y/y, from acquisition costs realized in the quarter.

Price Performance - 1 Year

• FY26 Guidance | Raising FY revenue by $5.5M, FY EBITDA by $1.5M. KRMN USD

raised FY26 revenue expectations from the 4Q25 call by $5.5M at the midpoint, to a 120

range of 55% - 57%, commenting the year will be evenly split between organic and 110

inorganic growth. Adjusted EBITDA of $214.0M represented $1.5M raise at the midpoint, 100

represents~140bps of margin contraction over FY25 on contract mix from the incoming 90

MSC deal. The company's ending reported a backlog of $1B and raising their FY26 80

visibility ~90% up from ~80%. 70

• Takeaway | Framework agreements point to promising multi-year production 50

ramps. While again Q1 was only a modest update for numbers, we think this quarter's May-2540 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26

announcement of contingent demand commitments from four key space and defense

Source: Bloomberg

customers (with aggregate potential value of more than $1 billion over the next four-

to-seven years) could start to present ordering tailwinds in 2H26 with more material

volume in FY27.