Karman Space & Defense Acquires ISP; Deal Is Accretive To Karman's Revenue Growth, Adjusted EBITDA Margin, Contracted Revenue And Cash Flow

• ISP is a rapidly growing provider of small-diameter energetic and propulsion technologies, with more than 40 years of flight-proven expertise in the design, testing and manufacturing of tactical boost motors, solid rocket propellant gas generators and other specialty solid propulsion systems
• With 14 proprietary propellant formulation families and more than 400 motor configurations, the acquisition deepens Karman's core expertise in energetic systems
• The acquisition is accretive to Karman across all major metrics, including revenue growth, Adjusted EBITDA margin, contracted revenue and cash flow
• Karman recently increased its existing $300 million Term Loan B by $75 million primarily to fund the $50 million cash component of the ISP acquisition

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 ISP, a leader in specialty energetic propulsion technologies including small boost motors and solid propellant gas generators for the rapidly growing UAS, UAS intercept and rocket-assisted takeoff systems markets. The transaction closed on May 28, 2025.

On May 27, 2025, Karman successfully closed an offering to increase the size of its existing $300 million Term Loan B by $75 million. The majority of the proceeds from this offering were used to fund the acquisition of ISP, which consisted of $50 million in cash, approximately $5 million in Karman common shares and $5 million in potential earnout payments.