Forensic Analysis · Aerospace & Defense · as of Nov 8, 2026
Karman Holdings Inc. (KRMN)
A forensic read on Karman Holdings Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Grey Zone
Financial health
2.2
Distress distance
3
Forensic signals
6.0%
ROE
36.6%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Karman Holdings Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 2.2, placing it in the Grey zone. 3 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.15×
FY2024–FY2025
Cash conversion.Over FY2024–FY2025, cumulative operating cash flow was 0.15× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
5.8%
FY2025
Return on invested capital.Return on invested capital is 5.8% in the latest fiscal year, against 8.6% in FY2024. After-tax operating profit was $56M in FY2024 and $47M in FY2025, with operating income at 18.4% of revenue in FY2024 and 15.5% in FY2025. The capital base behind it grew +25% across FY2024–FY2025, from $655M to $820M, while the return fell 2.8 points, so the dollars added over that window earned less than the 8.6% the older base was already earning.
+17.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +17.7% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $204.3M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by receivables up +43% against revenue +37%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 6% of net operating assets, against an accruals ratio of 17.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
Key fundamentals
Latest Revenue$471.5M
Revenue Growth YoY+36.6%
Net Margin3.7%
Free Cash Flow-$42.5M
Return on Equity6.0%
Debt / Equity1.31x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Karman Holdings Inc.'s actual 10-K/10-Q/8-K filings?