Graham (GHM) 8 Nov 24 2025 Q2 Earnings call transcript

In a recent earnings call, Graham Corporation, a leading technology and manufacturing company, reported a robust second quarter fiscal year 2025 financial performance, showcasing a significant 19% increase in revenue and a substantial expansion of margins. The company, known for its expertise in steam ejectors and other related technologies, presented a strong outlook, highlighting strategic initiatives and growth opportunities across its diversified markets.

Record-Breaking Performance and Market Reach

Graham Corporation achieved a record-breaking revenue of $53.6 million, marking a 19% increase from the previous year. This impressive growth is attributed to the company's efforts to expand market reach and improve operational efficiencies, as well as the successful integration of recent acquisitions such as P3 Technologies. The company's focus on higher margin opportunities and solid execution across its business units has led to significant margin expansion, with gross margin improving by 790 basis points and adjusted EBITDA margin expanding by 550 basis points.

Investing in Future Growth and Innovation

Graham Corporation is poised for continued success, with a solid financial position and strategic investments in key areas. The company recently announced plans to establish a new cryogenic propellant testing facility in Florida, which will support its expanding presence in the space and defense industries. Additionally, the acquisition of land in Arvada, Colorado, will enable the consolidation of operations and position the company for future expansion. These initiatives, alongside the recent launch of the NextGen steam injector nozzle, showcase Graham Corporation's commitment to innovation and growth.

Strategic Acquisitions and Market Diversification

The company's strategic acquisitions, such as P3 Technologies and Barber-Nichols, have bolstered its capabilities and market reach. These acquisitions have expanded Graham Corporation's offerings and enabled it to tap into new markets, contributing to the company's diversified revenue base. The company's focus on organic and inorganic growth, coupled with its strategic investments in R&D and technology, positions it well for future success.

Strong Market Position and Future Outlook

Graham Corporation's strong market position, backed by a robust backlog of $407 million, underscores its ability to capitalize on growth opportunities across its diversified markets. The company's focus on innovation, operational excellence, and strategic investments positions it well for sustained growth and profitability in the years ahead. With a solid financial foundation, a strong pipeline of growth initiatives, and a strategic outlook, Graham Corporation is well-positioned to navigate the challenges and opportunities of the evolving technology and manufacturing landscape.