Karman Holdings Inc. Segments Disclosure
ASC Subtopic 280-10, Segment Reporting, establishes standards for reporting information about operating segments, which are defined as components of an enterprise for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) to allocate resources and assess performance. and reviews financial information at a consolidated level. The Company operates as a operating segment, and the accounting policies of the segment are consistent with those described in the summary of significant accounting policies. The CODM evaluates performance and allocates resources based on consolidated net income, and segment assets are reported as total consolidated assets on the balance sheet.
The following table summarizes the Company’s revenues, net income and significant expenses:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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(in thousands) |
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Revenue |
|
$ |
471,500 |
|
|
$ |
345,251 |
|
|
$ |
280,705 |
|
Expenses and other items: |
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|
|
|
|
|
|
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Cost of goods sold: |
|
|
|
|
|
|
|
|
|
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Labor |
|
|
(115,060 |
) |
|
|
(95,404 |
) |
|
|
(80,684 |
) |
Materials |
|
|
(133,518 |
) |
|
|
(91,808 |
) |
|
|
(75,469 |
) |
Overhead |
|
|
(21,587 |
) |
|
|
(17,100 |
) |
|
|
(12,256 |
) |
Depreciation and amortization |
|
|
(11,309 |
) |
|
|
(8,828 |
) |
|
|
(6,747 |
) |
Total cost of goods sold |
|
|
(281,474 |
) |
|
|
(213,140 |
) |
|
|
(175,156 |
) |
General and administrative expenses |
|
|
(85,656 |
) |
|
|
(44,421 |
) |
|
|
(36,623 |
) |
Depreciation and amortization not included in cost of goods sold |
|
|
(31,428 |
) |
|
|
(24,130 |
) |
|
|
(20,432 |
) |
Other income |
|
|
4,147 |
|
|
|
1,502 |
|
|
|
563 |
|
Interest expense, net |
|
|
(44,567 |
) |
|
|
(50,733 |
) |
|
|
(47,867 |
) |
Income tax provision |
|
|
(15,156 |
) |
|
|
(1,628 |
) |
|
|
3,169 |
|
Net income |
|
$ |
17,366 |
|
|
$ |
12,701 |
|
|
$ |
4,359 |
|
General and administrative expenses include share-based compensation of $8.1 million, $1.0 million and $1.3 million and for the years ended December 31, 2025, 2024 and 2023, respectively.
Other income for the years ended December 31, 2025, 2024 and 2023, was $4.1 million, $1.5 million and $0.6 million, respectively. The increase was primarily attributable to the settlement of a shareholder loan in 2024 and the write-off of a contingent consideration liability in 2025.
Capital expenditures, which include purchases of property, plant, and equipment, are assessed and managed at the enterprise level. Refer to “Investing Activities” in the Consolidated Statement of Cash Flows for the amount of cash paid for capital expenditures.
Interest income during the periods presented is insignificant.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.