Karman Holdings Inc.

Good afternoon, and thank you for joining Carmen's Space and Defense's second quarter fiscal year 2025 earnings conference call. I'm Stephen Gitlin, Vice President of Investor Relations, and I'm pleased to welcome you today. Joining me on today's call are Tony Koblinski, our Chief Executive Officer, Mike Willis, our Chief Financial Officer, and Jonathan Bodlein, our Chief Operating Officer. Before we begin, please note that on this call, certain information presented contains forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain words such as believe, anticipate, expect, estimate, intend, project, plan, or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors outside of our control. that may cause our business strategy or actual results to differ materially from the forward-looking statements. All forward-looking statements should be considered in conjunction with the forward-looking statements in our earnings release. Future company updates will be available via press releases. For further information on these risks, we encourage you to review the risk factors discussed in our company's periodic reports on Form 10-K and Form 10-Q filed with the SEC, and the Form 8-K filed today with the SEC, along with the associated earnings release and the safe harbor statement contained therein. This afternoon, we also filed our earnings release and posted an earnings presentation to our website at carmen-sd.com in the news and events section. The content of this conference call contains time sensitive information that is accurate only as of today, August 7th, 2025. The company undertakes no obligation to make any revision to any forward looking statements contained in our remarks today, or to update them to reflect the events or circumstances occurring after this conference call. I'd also like to note that unless otherwise stated, all numbers we will be discussing today are GAAP. Our press release contains reconciliation of any non-GAAP financial measures to the most comparable GAAP measure. Now, I would like to turn the call over to Tony.

Thank you, Steve, and good afternoon, everyone. On today's call, I will provide an overview of our second quarter highlights. Then Mike Willis will review our financial performance and balance sheet strength. John Beaudoin will then discuss the state of our end markets and our operational performance. Following their remarks, I'll return to share our strategic outlook and guidance before opening the call for your questions. I'm pleased to report another exceptional quarter marked by strong execution across all aspects of our business. Our record second quarter results continue our strong momentum since our February IPO and demonstrate the continued success of our strategy and the effective performance of our team. Shown on slide four of our earnings presentation are the key highlights for the quarter. We posted record revenue of $115 million. with growth across all three of our end markets. We set a new high for gross profit at 47 million. Adjusted EBITDA reached 35 million, another new quarterly record. And funded backlog reached an all-time high of 719 million, giving us more than 100% visibility to the midpoint of our full-year revenue guidance range. Given this strong performance, We are now raising our guidance for 2025 revenue and adjusted EBITDA, as I will detail in a few moments. Beyond the numbers, though, we achieved several major milestones shown on slide five. We refinanced our credit facilities, saving more than $8 million in annual interest expense and improving our financial flexibility. We completed two strategic acquisitions, MTI and ISP, which steepen our capabilities and customer contacts. we were added to the RUSLE 1000 and other indices. And just two weeks ago, we completed a $1.2 billion secondary offering that was significantly oversubscribed, increasing our public float and completing our transition to a fully independent company. Taking a broader view, the demand environment remains very favorable. With more than a trillion dollars in planned DoD funding, including robust support for production and development programs we already participate in. As such, we are well positioned to drive continued growth in and beyond 2025. Drivers for that growth include restocking activity resulting from extensive consumption of U.S. missiles and unmanned systems in complex zones, the Golden Dome for America program, and signs of growing international demand, as NATO allies increase their military spending. Supporting both DoD and commercial markets, we also anticipate a continued increase in space launch cadence. With that high-level overview, I'll turn the call over to Mike for a review of the quarter's financial highlights.

Thank you, Tony. Good afternoon, everyone. Q2 was another strong quarter that demonstrated the positive impact of our strategy and operational discipline. Shown on slide six, Highlights include revenue of 115.1 million, representing a 35% increase compared to the second quarter of fiscal year 24. Gross profit grew 36% to 47 million, maintaining gross margins at nearly 41%. Net income rose 48% to 6.8 million. Adjusted EBITDA jumped to 35.3 million, a 29% year-over-year increase. Adjusted EPS more than tripled to 10 cents per diluted share. And funded backlog has grown 36% year-over-year and 24% since the end of 24. Growth was broad-based across all three of our end markets. Shown on slide number seven, hypersonics and strategic missile defense revenue at 35 million grew 22% year-over-year supported by programs like Next Generation Interceptor and classified work. Space and launch jumped 39% to 39.6 million driven by orders supporting increased launch cadence. And tactical missiles and integrated defense systems was up 46% to $40.5 million, driven by production ramps in UAS and counter UAS programs. And market-renewed mix was balanced, 34% space and launch, 30% hypersonics and SMD, and 35% tactical missiles and IDS. Turning to the balance sheet, We ended the quarter with $27.4 million in cash and cash equivalents, up nearly $16 million from the end of 2024. We upsized our term loan B to $375 million, with $20 million available on our $50 million revolver. Our oversubscribed secondary offering added 24.15 million shares to our public flow, improving our liquidity without issuing any new shares. This offering marks the transition to a fully independent company. Looking ahead, we continue to expect a statutory tax rate of 24% and expect CapEx to be approximately 4.5% of revenue. With that, I'll turn the call over to Jonathan for an overview of our market position and operational highlights.