Pentagon awards Karman unit $5M to boost rocket motor nozzle output

The U.S. Department of Defense awarded $5 million to Systima, a facility operated by Karman Space & Defense (NYSE: KRMN), to expand production capacity for solid rocket motor nozzles. The funding was provided through Defense Production Act Title III on October 20, 2025.

The award targets Karman's Systima facility in Mukilteo, Washington. The company will use the funds to establish an additional dedicated production line for solid rocket motor nozzles and create an optimized production cell for complex nozzle components.

The Defense Department stated the funding supports objectives to expand the munitions industrial base, strengthen supply chain resilience, and increase domestic production in strategic areas. The initiative aims to accelerate missile production by boosting capacity across key supply chain components.

Karman has manufactured solid rocket motor nozzles for missile programs for several decades. The company will combine the government funding with internal investments to enhance production capabilities.

"Our team is proud to expand our decades-long support for missile programs that are critical to defending our nation," said Stephanie Sawhill, Karman's chief growth officer. "These funds will help us increase our output to address expanding demand for our solutions."

Karman Space & Defense, headquartered in Huntington Beach, California, develops systems for launch vehicles, satellites, spacecraft, missile defense, hypersonics and unmanned aircraft systems. The company operates multiple facilities across the United States and serves more than 70 prime contractors supporting over 100 space and defense programs.

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