Core Insights - Graham Corporation (GHM) has experienced significant price appreciation, with an increase of nearly 40% year-to-date and 6.71% over the last month, driven by enhanced profitability, strong order flow, and improved guidance over the past 11 months [1] Financial Performance - The company's profitability has shown a notable increase, contributing to the overall positive market performance [1] - Strong orders have been a key factor in the company's growth trajectory, indicating robust demand for its products [1] Market Outlook - The company has provided increased guidance, suggesting a positive outlook for future performance and potential for continued growth [1]

Core Insights - Graham Corporation (GHM) has experienced significant price appreciation, with an increase of nearly 40% year-to-date and 6.71% over the last month, driven by enhanced profitability, strong order flow, and improved guidance over the past 11 months [1] Financial Performance - The company's profitability has shown a notable increase, contributing to the overall positive market performance [1] - Strong orders have been a key factor in the company's growth trajectory, indicating robust demand for its products [1] Market Outlook - The guidance provided by the company has been upgraded, reflecting confidence in future performance and growth potential [1] - The overall market sentiment towards GHM appears to be positive, supported by the recent financial metrics and operational improvements [1]

Core Insights - Graham Corporation (GHM) is recognized as an impressive transition and growth story, particularly in its shift towards supplying defense applications and providing mission-critical solutions, supported by accelerating order intake [1]. Company Overview - Graham Corporation has transitioned into a supplier for various defense applications, indicating a strategic pivot that aligns with current market demands [1]. - The company has experienced a notable increase in order intake, suggesting strong demand for its products and services in the defense sector [1]. Investment Opportunities - The premium service "Value in Corporate Events" offers insights into major corporate events such as earnings reports, M&A, and IPOs, providing actionable investment ideas [2]. - The service aims to identify the best opportunities by covering approximately 10 major events each month, focusing on catalytic company events [2].

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!Over the summer, I called Graham Corporation ( GHM ) an impressive transition and growth story. In recent years, the company has become a supplier of various defense applications, providing missio ...

Group 1 - Graham Corporation (GHM) is a small-cap industrial machinery stock with a market capitalization of close to $700 million [1] - The company specializes in producing critical equipment and technologies for the Defense, Energy, and Space Industries [1]

Company Overview - Graham Corporation (GHM) is a small-cap industrial machinery stock with a market capitalization of approximately $700 million, recognized for its expertise in producing essential equipment and technologies for the Defense, Energy, and Space Industries [1]

Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 23.3% year on year to $66.03 million. The company expects the full year’s revenue to be around $230 million, close to analysts’ estimates. Its GAAP profit of $0.31 per share was 10.7% above analysts’ consensus estimates. Is now the time to buy GHM? Find out in our full research report (it’s free for active Edge members). Graham Corporation (GHM) Q3 CY2025 Hi ...

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Financial Data and Key Metrics Changes - Revenue grew 23% to $66 million, driven by solid performance across all end markets [5][14] - Adjusted EBITDA increased 12% to $6.3 million, with an adjusted EBITDA margin of 10.8%, up 40 basis points year-over-year [5][16] - Book-to-bill ratio was 1.3 times, resulting in a record backlog of $500.1 million, up 23% year-over-year [5][18] Business Line Data and Key Metrics Changes - Defense market sales increased by $9.9 million, or 32%, due to project milestones and growth in new and existing programs [14][16] - Energy and process market sales rose by $2 million, driven by large capital projects [14] - Aftermarket sales for energy and process and defense markets were $9.8 million, reflecting resilient demand [15] Market Data and Key Metrics Changes - Strong momentum in the U.S. Navy programs, including a $25.5 million follow-on order for the MK 48 Mod 7 heavyweight torpedo program [6][14] - Increased sales in the space market, with $22 million in new orders from commercial space launch customers [10][14] Company Strategy and Development Direction - The company is focused on diversifying its portfolio across high-growth, innovation-driven end markets, including defense, energy, and space [11][12] - Recent acquisition of X-Dot Bearing Technologies aims to enhance competitive positioning in high-speed rotating machinery [12][13] - Continued investment in advanced manufacturing technologies and facilities to support growth in defense and space sectors [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve fiscal 2027 targets of 8-10% organic revenue growth and low to mid-teen adjusted EBITDA margins [21] - The company remains well-positioned despite potential impacts from government shutdowns, with minimal disruption expected [33][34] Other Important Information - The company ended the quarter with $20.6 million in cash and no debt, providing significant flexibility for future growth investments [19] - Capital expenditures were $4.1 million, focused on capacity expansion and advanced technologies [19] Q&A Session Summary Question: Clarification on $22 million in space and aerospace orders - $15 million of orders were recognized in Q2, while $7 million will be recognized in Q3 [24] Question: Reason for maintaining guidance instead of raising it - Guidance was maintained due to consistent tracking with expectations and timing of project milestones [26] Question: Update on cryogenic facility and customer bookings - The cryogenic facility is on track, with testing expected to begin soon, and customer bookings are healthy [27] Question: Impact of government shutdown on business - Minimal impact is expected, with long-standing programs continuing to progress [33] Question: Customer feedback on X-Dot transaction and technology applications - Positive feedback received, with technology enabling entry into new markets like small modular nuclear [36] Question: Size and timing of investments in the space market - Additional lathes and mills will be purchased, factored into CapEx guidance for the year [38] Question: Momentum in small modular reactors - The company is in early development phases for small modular reactors, with potential for scaling in the future [42] Question: Breakdown of defense revenue growth - A significant portion of the $9.9 million growth was due to unusually high material receipts impacting gross margin [46]

Financial Performance - Revenue for Q2 FY26 increased by $12.5 million, a 23% increase compared to the prior-year period[23] - Q2 FY26 gross profit increased by $1.5 million, a 12% increase[29] - The gross margin decreased by 220 bps to 21.7%[29] - Q2 FY26 GAAP Net Income was $3.1 million[11] - Adjusted EBITDA for Q2 FY26 was $6.3 million, a 12% increase[11] - The company expects net sales between $225 million and $235 million for FY26[47] Orders and Backlog - Q2 FY26 orders totaled $83.2 million[11] - The book-to-bill ratio for Q2 FY26 was 1.3x[11] - Record backlog reached $500.1 million[11] - Defense accounted for 85% of the backlog, Energy & Process 10%, and Space 5%[42] Strategic Investments and Acquisition - A new Navy Facility in Batavia, NY was completed in Q2 FY26, backed by a $13.5 million customer grant as part of a $17.6 million expansion[13] - Graham Corporation acquired Xdot Bearing Technologies for $1.5 million, including earn-outs[19]