Karman Space & Defense Expands Production Capacity to Support Critical Pentagon Missile and UAS Programs
- New digitally-enabled Utah factory to serve as advanced manufacturing hub for high volume loitering missile and counter-UAS launch systems, and critical nozzle assemblies for solid rocket motors (SRM)
- New factory will quadruple launch system production capacity and provide additional solid rocket motor nozzle manufacturing capacity for missile systems on the Pentagon's critical munitions list
- Karman continues to invest in capacity and capabilities to accelerate delivery of critical subsystems supporting U.S. space and defense programs
Karman Space & Defense ("Karman", "Karman Holdings Inc." or "the Company") (NYSE:KRMN), a leader in the rapid design, development and production of critical, next-generation system solutions that align with the U.S. Department of War's core mission priorities and the nation's accelerating demand for access to space, today announced it will open a new, state-of-the-art-facility in the greater Salt Lake City, Utah area to expand its advanced UAS launcher systems and SRM nozzle production capacity to meet substantial increases in customer demand. The Company also announced it has invested more than $15 million over the past 12 months to expand production capacity at its existing manufacturing facilities, in addition to its $5 million investment matched by the U.S. Department of War Defense Production Act Title III $5 million funding to further expand capacity.
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Karman Space & Defense Expansion
"Karman understands the urgency to increase critical U.S. and allied military capabilities to ensure preparedness for peer and near-peer threats. We are investing in more capacity and capabilities to support our customers' aggressive production plans with proven content and performance," said Jonathan Beaudoin, chief operating officer. "Our new Utah factory will quadruple our capacity to deliver the most reliable and effective launch systems for leading loitering missile and counter-UAS programs. The site will also double our SRM composite nozzle production capacity on critical programs, while adding redundancy to our manufacturing capability."
Karman's new manufacturing hub will leverage the digitally enabled technologies being implemented across Karman, which the company refers to as its Karman Operating System (KOS). This system has imbedded AI capability that provides advanced insights to deliver rapid and targeted decision making for manufacturing workflow optimization. Site plans incorporate vertically integrated capabilities, from metal and composite manufacturing to processing, assembly and testing, in one facility to reduce customer lead times.
Designed as a factory of the future, highly automated and advanced inspection technologies for metallic machining will help streamline quality control and ensure continued compliance with uncompromising customer requirements. Integrating Karman's core engineering and manufacturing capabilities in one location will help streamline the supply chain, drive rapid expansion of missile and munitions inventories and place production close to key customer facilities. Converting an existing structure, as opposed to a greenfield project, will accelerate production readiness, which is anticipated in the fourth quarter of 2026.
"Karman was founded to deliver speed, agility and scale in support of the space and defense industries at a time of unprecedented acceleration in demand. We combine a multi-decade track record of proven results with full spectrum design, development and vertically integrated manufacturing capabilities to support the success of our customers," Beaudoin added.
In October, 2025, Karman's Systima facility received $5.0 million in Defense Production Act Title III funding from the U.S. Department of War to expand the Company's capacity to produce solid rocket motor ("SRM") nozzles. Karman is co-investing an additional $5.0 million in this capacity expansion program.
ABOUT KARMAN SPACE & DEFENSE
Karman Space & Defense is a leader in the rapid design, development and production of critical, next-generation system solutions that align with the U.S. Department of War's core mission priorities and the nation's accelerating demand for access to space. Building on nearly 50 years of success, we deliver Payload & Protection Systems, Hydro/Aerodynamic Interstage Systems, and Propulsion & Launch Systems to more than 80 prime contractors supporting more than 130 space and defense programs. Karman is headquartered in Huntington Beach, CA, with multiple facilities across the United States. For more information, visit our website, www.karman-sd.com
Safe Harbor Statement
This announcement may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "likely," "seek," "project," "model," "ongoing," "will," "should," "forecast," "outlook" or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Karman, will prove to be correct or that any of our expectations, estimates or projections will be achieved.
Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation, that a significant portion of our revenue is generated from contracts with the United States military and U.S. military spending is dependent upon the U.S. defense budget; U.S. government contracts are subject to a competitive bidding process that can consume significant resources without generating any revenue; our business and operations expose us to numerous legal and regulatory requirements, and any violation of these requirements could materially adversely affect our business, results of operations, prospects and financial condition; our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete; and we have in the past consummated acquisitions and intend to continue to pursue acquisitions, and our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations. Readers and/or attendees are directed to the risk factors identified in the filings we make with the SEC from time to time, copies of which are available free of charge at the SEC's website at www.sec.gov under Karman Holdings Inc.
The forward-looking statements included in this announcement are only made as of the date of this announcement. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law.
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