Defense Stocks Soaring +13% Face Setback in Just One Day: Reasons for Trillions in Value Loss

Karman Holdings Inc. (NASDAQ: KRMN) shares plunged 12.69% on the New York Stock Exchange on the 29th, closing at $57.50.

Its market capitalization fell to about $7.6 billion (approximately ₩10.3 trillion), erasing some $860 million (around ₩1.2 trillion) in a single day.

Trading volume hit 7.97 million shares, marking an unusually large change of hands for one session.

The sell-off has been attributed to an upsized and finalized secondary offering, in which existing shareholders—including major stakeholders—are set to sell 14 million common shares at $61 each, stoking concerns over increased supply and potential overhang.

Just over two weeks ago, the company had showcased its growth story by delivering record first-quarter results and raising its 2026 guidance. In the short term, however, the prospect of absorbing this extra share supply has weighed on the stock.

Karman Holdings is a U.S. space and defense contractor that designs and manufactures mission-critical subsystems for missile defense, hypersonic vehicles and space launch systems. The company went public on the NYSE in February 2025.

Headquartered in Huntington Beach, California, Karman supplies payload protection equipment, aerodynamic interstages and propulsion systems to the U.S. Department of Defense and leading defense and space customers, and has been viewed as a cyclical beneficiary of defense spending.