Karman Space & Defense receives contingent orders worth over $1 billion

Karman Space & Defense (NYSE: KRMN) announced it received contingent demand commitments from four customers for space and defense programs with a total potential value exceeding $1 billion over four to seven years.

The commitments are contingent upon Karman's customers receiving funded contracts from their own customers, including the U.S. Department of Defense. Each customer specified minimum order volumes by subassembly over a multi-year period, according to the company's press release.

"Four of our largest customers, spanning space and defense, have provided written expressions of intent to negotiate with us for significant increases in procurement volumes upon finalizing their space launch schedule or receiving firm contracts from the U.S. Department of Defense," said Jon Rambeau, chief executive officer.

The requirements span programs that include several Munitions Acceleration Council priority weapon systems. The council has designated 14 priority weapon systems for fast-track production and stockpile replenishment, including THAAD, PAC-3, Tomahawk, GMLRS and PrSM systems.

Karman provides payload protection and deployment, aerodynamic interstage, and propulsion systems to space launch providers. The company serves more than 80 prime contractors supporting over 130 space and defense programs.

The Huntington Beach, California-based company said it is maintaining production capacity ahead of customer demand to position for the expected contract conversions.

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