Record Backlogs at Two Defense Contractors Come With Hidden Costs
Karman Holdings and Kratos both posted record order books this quarter, but one is piling on debt and the other is burning cash to get there.
Karman Holdings and Kratos both reported record defense backlogs this quarter, but Karman's debt climbed sharply and Kratos posted negative free cash flow, showing that the current wave of defense orders is straining balance sheets even as revenue grows.