Karman Space & Defense Awarded $218 Million Long-Term Agreement to Support THAAD Production
Seven-year Lockheed Martin agreement supports increased production of critical missile defense capability
HUNTINGTON BEACH, Calif., October 20, 2026--Karman Space & Defense (NYSE: KRMN) has entered into a seven-year, $218 million agreement with Lockheed Martin to provide shrouds for the Terminal High Altitude Area Defense (THAAD) program.
The long-term commitment provides Karman increased visibility to invest in the people, equipment and manufacturing capacity needed to support growing U.S. and allied demand for THAAD.
"Demand for missile defense capabilities is accelerating, and meeting that demand will require significantly more capacity across the industrial base," said Jon Rambeau, chief executive officer of Karman Space & Defense. "Karman is building the engineering expertise and manufacturing capability and capacity our customers need to increase production. This long-term agreement deepens our partnership with Lockheed Martin and enables us to support increased THAAD production for years to come."
Under the agreement, Karman will manufacture shrouds for the THAAD interceptor. These protective aerodynamic structures shield critical interceptor components from extreme aerodynamic forces and environmental conditions during launch and flight and must separate cleanly and reliably at the appropriate point in the mission.
Karman brings decades of experience in the design, engineering and production of deployable shroud systems. The company's manufacturing capabilities and automated processes support repeatable, high-quality production at scale, combining lightweight, high-strength structures with precise separation mechanisms engineered to perform reliably under demanding flight conditions.
THAAD is a globally transportable missile defense system designed to intercept ballistic missile threats during their terminal phase of flight. Lockheed Martin is the prime contractor and systems integrator for the THAAD weapon system.
The agreement strengthens Karman's long-term role on THAAD while supporting continued investment in engineering, advanced manufacturing and production capacity. As demand for missile defense continues to grow, Karman is investing to help its customers increase output and expand capacity across the defense industrial base.
Signed on Sept. 29, 2026, this award is one of three long-term agreements Karman disclosed during its Aug. 6, 2026, second-quarter earnings call as being under negotiation.
About Karman Space & Defense
Karman Space & Defense is a leader in the rapid design, development, and production of critical, next-generation systems that align with the core mission priorities of the U.S. Department of War and its allies and meet the accelerating demand for access to space. Building on nearly 50 years of success, we deliver Payload & Protection Systems, Hydro/Aerodynamic Interstage Systems, and Propulsion & Launch Systems to 150 prime contractors supporting 150 space and defense programs. Karman is headquartered in Huntington Beach, Calif., with multiple facilities across the United States. For more information, visit our website, www.karman-sd.com.