Karman Holdings Inc.
10/30/2025 | Press release | Distributed by Public on 10/30/2025 14:38
Karman Space & Defense Acquires Five Axis Industries Inc. (“Five Axis”), a Leading Supplier of Advanced Engine Subsystems for Major Commercial Space Programs (Form 8-K)
Karman Space & Defense Acquires Five Axis Industries Inc. ("Five Axis"), a Leading Supplier of Advanced Engine Subsystems for Major Commercial Space Programs
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Five Axis is a rapidly growing leader in the engineering and manufacturing of specialized nozzle and fuel systems that play a critical role in optimizing performance of current and next-generation engines for launch vehicles |
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With extensive engineering and manufacturing capabilities, Five Axis is deeply embedded in major space engine programs that serve multiple launch vehicles |
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The acquisition of Five Axis creates new opportunities to solve complex customer challenges via vertical integration by leveraging Karman's advanced spin-forming capability to deliver a proprietary nozzle solution |
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The acquisition adds complementary and highly technical capabilities to the Karman platform, including proprietary technologies tied to 3D-printed inconel that represent the continued expansion of Karman's IP portfolio |
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The acquisition is immediately accretive to Karman across all major financial metrics, including revenue growth, Adjusted EBITDA margin and cash flow |
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Karman recently increased its existing $370 million Term Loan B by $130 million primarily to fund the $83 million cash component of the Five Axis acquisition |
HUNTINGTON BEACH, Calif., Oct 30, 2025 - Karman Space & Defense ("Karman", "Karman Holdings, Inc." or "the Company") (NYSE: KRMN), a leader in the rapid design, development and production of critical, next-generation system solutions for launch vehicle, satellite, spacecraft, missile defense, hypersonic and UAS customers today announced it has acquired Five Axis Industries ("Five Axis"), a leader in highly engineered products for commercial space engines, which includes spun form nozzles, gaseous oxygen systems, and fluid control technologies, for $83 million in cash and approximately $5 million of Karman common shares. The transaction closed on October 28, 2025.
Founded in 2002 and based in Arlington, Washington, Five Axis has developed a proprietary portfolio of technically complex products and capabilities with deep expertise in complex nozzles and other highly engineered products for launch vehicle engine applications. Five Axis' products serve a critical role in optimizing engine performance and operate in highly corrosive, ultra-high-temperature propulsion environments.
Karman Five Axis Release Oct 25
"We are thrilled to add Five Axis to the Karman family," said Tony Koblinski, chief executive officer of Karman Space & Defense. "This acquisition strengthens our core competency in the engineering and manufacturing of mission-critical subsystems for the space market. Five Axis is a unique asset within the space supply chain whose proven expertise and successful track record in proprietary engine products is a natural extension of the Karman platform. Their customer and program relationships create compelling opportunities to accelerate our growth and create shareholder value."
"We welcome the talented members of Five Axis to the Karman team. We look forward to working together to deliver even more value to our customers as we continue executing on our mission to be the nation's leading merchant supplier of advanced space and defense technologies," Mr. Koblinski added.
On October 24, 2025, Karman increased the size of its existing $375 million Term Loan B to $505 million primarily to fund the acquisition of Five Axis and pay off its revolving credit facility.
For more information on Five Axis, please visit https://www.fiveaxisindustries.com.
Advisors
RBC served as primary financial advisor, Citi supported as the junior book runner and Willkie Farr & Gallagher LLP served as legal advisor to Karman in connection with the transaction. KAL Capital served as financial advisor to Five Axis.
ABOUT KARMAN SPACE & DEFENSE
Karman Space & Defense is a leader in the rapid design, development and production of critical, next-generation system solutions for launch vehicles, satellites and spacecraft, missile defense, hypersonics and UAS customers. Building on nearly 50 years of success, we deliver Payload & Protection Systems, Aerodynamic Interstage Systems, and Propulsion & Launch Systems to more than 70 prime contractors supporting more than 100 space and defense programs. Karman is headquartered in Huntington Beach, CA, with multiple facilities across the United States. For more information, visit our website, www.Karman-SD.com.
Karman Holdings Inc. published this content on October 30, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on October 30, 2025 at 20:38 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]