What guidance did Graham's management provide for the next earnings period?

What is the market's earnings forecast for Graham next quarter?

What does Graham do and what are its main business segments?

What is the revenue and EPS growth rate for Graham year over year?

Did Graham beat or miss consensus estimates last quarter?

What were the key takeaways from Graham's earnings call?

What factors drove the changes in Graham's revenue and profit?

What is Graham's gross profit margin?

- **Revenue Growth**: 23% YoY to $66 million, driven by defense and space programs.
- **Backlog Expansion**: Record $500 million, 35%+ to convert in 12 months.
- **Strategic Acquisitions**: Xdot Bearing Technologies adds foil-bearing tech for SMRs and space.
- **Operational Efficiency**: 10.8% EBITDA margin, $13.6M cash flow, $4.1M capex in automation.
- **Defense Momentum**: MK48 torpedo orders, SCEPS development, Navy partnerships.

**【Management Opening Remarks】**
- Revenue for Q2 2026 was $66 million, up 23% YoY, driven by defense and space programs.
- Adjusted EBITDA increased 12% to $6.3 million, with a margin of 10.8%.
- Backlog reached a record $500.1 million, up 23% YoY, with 35%-40% expected to convert to revenue within 12 months.
- Announced a $25.5 million follow-on order for the MK48 Mod 7 Torpedo program and a new 30,000 sq. ft. manufacturing facility in Batavia, NY.

**【CEO Commentary】**
- Defense revenue growth of 32% reflects material receipts and new programs, while space bookings of $22 million highlight expansion in commercial launch systems.
- Xdot Bearing Technologies acquisition adds foil-bearing expertise, enabling entry into small modular reactors and fuel cell applications.
- Cryogenic test facility in Florida and automated welding systems enhance production scale and efficiency.
- Book-to-bill ratio of 1.3x underscores strong demand across all end markets.

**【CFO Commentary】**
- Gross profit increased 12% to $14.3 million, with margins impacted by 180bps from high-material-receipts sales mix.
- Operating cash flow of $13.6 million supports capital expenditures of $4.1 million in automation and testing infrastructure.
- Fiscal 2026 guidance reaffirmed, with 8%-10% organic growth and low to mid-teen EBITDA margin targets.
- Tariff impact narrowed to $2-$4 million annually, reflecting sourcing discipline.

**【Q&A Highlights】**
- Space orders of $22 million will convert to revenue over 12-24 months, with $15 million recognized in Q2 and $7 million in Q3.
- Government shutdown delays minimal; Navy programs remain resilient with long-term visibility.
- Xdot integration enhances bearing technology for SMRs and space applications, with spare parts demand growing 15% YoY.
- Small modular reactors and cryogenic testing facilities position for nuclear energy growth.
- MK48 torpedo program expansion and SCEPS development for next-gen torpedoes reflect strategic defense focus.

Graham Corporation (GHM) Q2 2026 Earnings Call Transcript

- **Revenue Surge**: 11% YoY growth to $55.5M, fueled by 33% jump in aftermarket sales and strong defense orders.
- **Backlog Record**: $482.9M backlog (+22% YoY), with 35-40% set to convert to revenue within 12 months.
- **Profit Expansion**: Adjusted EBITDA up 33% to $6.8M, gross margin at 26.5% (170bps YoY improvement).
- **Strategic Wins**: $136.5M Virginia-class submarine contract and $25.5M torpedo order highlight defense dominance.
- **Risks**: Tariffs could impact FY2026 by $2-5M, though mitigated by in-country manufacturing.
- **Growth Drivers**: New energy (SMRs, cryogenics) and space programs (launch systems, satellite cooling) show early momentum.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 2026 revenue reached $55.5 million, up 11% YoY, driven by energy/process markets (refining, petrochemical, new energy) and a 33% surge in aftermarket sales.
- **Record Backlog**: Backlog hit $482.9 million (+22% YoY), with 35-40% expected to convert to revenue within 12 months. Defense orders dominate at 87%.
- **Strategic Investments**: New Batavia facility (30k sq ft) for U.S. Navy programs is 75% operational, with 6 automated welding machines installed. Cryogenic testing facility in Florida nearing completion.
- **Defense Momentum**: $25.5M follow-on order for MK48 Mod 7 torpedoes and $136.5M Virginia-class submarine contract. $3.6M strategic partnership with defense customer for critical weld evaluation.
- **New Energy Growth**: Small modular reactors (SMRs) and cryogenics show early momentum, with Idaho National Labs testing Barber-Nichols helium circulators.
- **Space Segment**: Low-rate production programs in launch and satellite cooling systems, with cryogenic testing facility set to generate revenue soon.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA rose 33% to $6.8 million (12.3% margin), driven by higher volume and improved sales mix. Gross margin expanded 170bps to 26.5%.
- **Cash Flow**: $10.8M cash on hand, $44.3M revolver availability. Capital expenditures ($7M) focused on capacity expansion and productivity enhancements.
- **Tariff Impact**: Potential full-year impact of $2-5M, mitigated by in-country subcontractors and contract terms.
- **Guidance**: Reiterate FY2026 outlook for 10% revenue growth and 12% adjusted EBITDA growth, targeting FY2027 goals of 8-10% organic growth and low/mid-teens EBITDA margins.

**【Q&A Highlights】**
- **Margin Sustainability**: Aftermarket sales (20% of Q1 revenue vs. 15% prior year) and favorable mix drove margins. Expect normalization in later quarters due to lower-margin material receipts.
- **Order Timing**: $136.5M Virginia-class contract and $25.5M torpedo order will be booked in Q2, with torpedo program having 3 additional option years.
- **Tariff Mitigation**: Network of in-country partners and contract clauses protect against tariffs, though fluid situation requires monitoring.
- **International Strategy**: Shift to 'China for China' and 'India for India' models, leveraging local supply chains for competitive pricing.
- **Workforce**: Direct labor up 10% YoY, with HR teams successfully recruiting despite softened labor market.


Graham Corporation (GHM) Q1 2026 Earnings Call Transcript

- **Record Financial Performance**: FY2025 revenue $210M (+13%), EBITDA $22.4M (+69%), with 1.1 book-to-bill ratio for 5th straight year.
- **Defense Dominance**: $136.5M Virginia-class contract, 83% defense backlog, and 23% defense revenue growth.
- **Growth Catalysts**: $17.5M Navy facility, $50M credit line, and next-gen nozzle tech with $50M+ potential.
- **2026 Outlook**: $225-235M revenue (+10%), $22-28M EBITDA, targeting low-mid teens margins by 2027.
- **Risks & Opportunities**: Tariffs ($2-5M impact), M&A pipeline strength, and 10% welder workforce growth.

**【CEO Summary Section】**
- Full year 2025 revenue reached $210 million, up 13% YoY, with adjusted EBITDA of $22.4 million (+69%), or 10.7% of sales.
- Record backlog of $412 million (+7% QoQ), with 83% defense-focused, supporting 45% conversion to 2026 revenue.
- Secured $136.5 million contract for Virginia-class submarine program, with $86.5 million definitized in Q1 2026 for recurring revenue through 2034.
- Defense book-to-bill ratio 1.1 for 5th consecutive year, driven by Navy programs and strategic customer investments.

**【President & COO Strategy Update】**
- Transitioning to 'improve' phase with $17.5M Navy-focused facility expansion (Batavia, NY) and $50M credit facility for growth.
- Energy & Process revenue up 1% YoY to $73 million, with $19M 2025 CapEx targeting 7-10% of sales for automation, R&D, and cryogenic testing.
- Next-gen nozzle technology could generate $50M+ over 5-10 years, with aftermarket orders up 8% YoY.
- Leadership transition: Matt Malone becomes CEO, Dan Thoren moves to Executive Chairman, with Mike Dixon promoted to VP & GM of Barber-Nichols.

**【CFO Financial Commentary】**
- Q4 2025 revenue $59.3M (+21% YoY), full year $210M (+13% YoY), driven by defense (+23%) and P3 contributions.
- Gross margin 27% (Q4) and 25.2% (FY), up 110/330 bps YoY, benefiting from volume leverage and welder training grant ($1.3M margin boost).
- Adjusted EBITDA $22.4M (+69% YoY), with 2026 guidance of $22-28M (+12% midpoint), targeting low-mid teens margins by 2027.
- 2026 revenue outlook $225-235M (+10% midpoint), with tariffs expected to impact margins by $2-5M.

**【Q&A Highlights】**
- **Gross Margin Risks**: 2026 guidance reflects $2-5M tariff impact and loss of welder training grant, offset by process improvements.
- **M&A Pipeline**: Robust pipeline of single-owner private companies with strategic fit, valuations supported by exit plan complexity.
- **Welder Workforce**: 10% YoY growth in Batavia welders, with cross-utilization across defense and energy/process markets.
- **Cryogenic Testing**: Facility nearing completion, with strong inquiries driven by electrification trends and NASA-like demand.
- **Navy Contracts**: Fixed-price contracts with commodity volatility protections, 5+ year program visibility for Virginia-class submarines.


Graham (GHM)-9 Jun 25-2025 Q4 Earnings call transcript

- **Revenue Beat**: Q3 2025 revenue of $47M (+7.3% YoY) driven by 11% defense growth and 2.4% aftermarket expansion.
- **Margin Expansion**: Gross margin up 260bps to 24.8%, EBITDA margin up 180bps to 8.6%, fueled by volume leverage and cost control.
- **Strategic Investments**: $15-19M FY25 capex for defense expansion, cryogenic test facility, and ERP upgrades with >20% ROI.
- **Leadership Transition**: Matt Malone set to become CEO in June 2025, with Mike Dixon leading Barber-Nichols.
- **Key Risks**: Defense funding uncertainty (potential $4B Navy CR impact), order lumpiness (Q3 orders down 36% YoY).

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $47 million, up 7.3% YoY, driven by defense (11% growth) and aftermarket strength (2.4% YoY). 
- **Margin Expansion**: Gross margin improved 260bps to 24.8%, while adjusted EBITDA margin rose 180bps to 8.6%, reflecting volume leverage and cost control.
- **Leadership Transition**: Matt Malone appointed President & COO, set to become CEO in June 2025. Mike Dixon takes over Barber-Nichols, ensuring internal talent continuity.

**【CFO Financial Commentary】**
- **Profitability**: GAAP net income of $1.6M ($0.14 EPS) vs. $0.01M prior year; adjusted EBITDA up 36% to $4M (8.6% of sales). 
- **Cash Flow**: $30M cash on hand, $43M available on revolver; FY25 capex guidance raised to $15-19M for facility expansions.
- **Order Pipeline**: Q3 orders $24.8M, 9M backlog $385M (80% defense). Space backlog up 59% YoY; 45-50% of backlog to convert in 12 months.

**【Key Projects】**
- **Batavia Expansion**: 29k sqft naval defense facility on track for June 2025 completion. 
- **Cryogenic Test Facility**: Mid-2025 launch to support liquid hydrogen/oxygen testing for space, defense, and energy.
- **NextGen Nozzle**: 2nd domestic order secured; international inquiries growing due to 30% energy savings.

**【Q&A Highlights】**
- **Defense Demand**: Navy prioritizing shipbuilding equipment, with no slowdown signals despite industry challenges. 
- **Aftermarket Growth**: Chemical/petrochemical aftermarket up 51% YoY; international interest in NextGen nozzle driven by China/India efficiency needs. 
- **M&A Strategy**: Actively pursuing $10-80M engineered product companies with IP moats; $30M+ balance sheet for acquisitions.

**【Financial Guidance】**
- **FY25 Outlook**: Revenue $200-210M (+11% YoY), adjusted EBITDA $18-21M (+47% YoY). 
- **Margin Targets**: Gross margin guided to 24-25% (up from 23-24%), EBITDA margin 9.5% at midpoint.


GHM

GHM fundamentals

Earnings Call

You can ask Aime