Defense and Space 'Pick and Shovel' Stocks Plunge 5%, $4 Billion Vanishes

Karman Holdings Inc. (ticker: KRMN) saw its shares close at $50.65 on the New York Stock Exchange on July 7, down 5.08%, reducing its market capitalization to roughly $6.7 billion (about KRW 9 trillion).

This decline erased approximately $320 million (around KRW 400 billion) in market value that day.

Recently, a major shareholder priced a secondary offering of 14 million shares at $61 each, heightening concerns over excess supply and placing additional downward pressure on the stock.

The company is expected to release its next quarterly results on August 6. Despite robust demand in the defense and space sectors, the market remains cautious due to Karman’s high valuation, leverage levels, and cash-generation expectations.

Headquartered in Dallas, Texas, Karman Holdings supplies the U.S. Department of Defense and leading defense and space contractors with components for missile defense systems, hypersonic weapons, launch vehicles, and satellite and spacecraft structures.

Since its February 2025 IPO on the NYSE—at which time it carried a valuation of about $4 billion (approximately KRW 5 trillion)—the company has sustained high growth, supported by major defense programs and a backlog exceeding $1 billion.