Graham Corp (GHM) Q2 2025: Record Revenue and Strategic Growth

Graham Corporation (NYSE: GHM), a global leader in mission-critical fluid, power, heat transfer, and vacuum technologies, reported record revenue and strong margin expansion in its second quarter fiscal 2025. The company's strategic initiatives, including acquisitions and investments in growth opportunities, have driven its impressive performance and positioned it for long-term growth.

In the second quarter of fiscal 2025, Graham Corp generated record revenue of $53.6 million, a 19% increase from the same period last year. This growth was driven by strength across its markets, with sales to the defense market growing by 23% and refining and chemical/petrochemical sales contributing an additional $2.2 million. The company's focus on higher-margin opportunities and operational efficiencies led to a 698% increase in net income to $3.28 million and a 150% increase in adjusted EBITDA to $5.615 million.

Graham Corp's strategic initiatives, such as the acquisition of P3 Technologies and the land acquisition and cryogenic testing facility, have contributed to its record revenue and margin expansion. The P3 acquisition contributed $0.9 million in incremental sales, while the land acquisition addressed space constraints and the testing facility offered scalable solutions for critical programs. These initiatives, along with a focus on higher-margin opportunities and operational efficiencies, have been key drivers of the company's success.
The company's strong balance sheet, with no debt, $32.3 million in cash, and access to $43 million under its revolving credit facility, positions it well to support growth initiatives and navigate potential market downturns. Graham Corp's robust cash flow generation is a testament to its financial stability and long-term growth prospects.
Graham Corp's strategic initiatives have not only driven its strong performance but have also positioned it for long-term growth. The company's diversified business model, focus on higher-margin opportunities, and commitment to operational excellence are key factors contributing to its success. With a strong balance sheet and access to capital, Graham Corp is well-positioned to continue its growth trajectory and create value for shareholders.
In conclusion, Graham Corp's record revenue and margin expansion in the second quarter of fiscal 2025 are a testament to the company's strategic initiatives and commitment to growth. With a strong balance sheet, robust cash flow, and a focus on higher-margin opportunities and operational efficiencies, Graham Corp is well-positioned for long-term success and represents an attractive investment opportunity.