Financial Performance - Net sales for Q2 fiscal 2026 were $66,027, an increase of $12,464 or 23% compared to Q2 fiscal 2025, with a 32% increase in defense industry sales[70]. - Gross profit for Q2 fiscal 2026 was $14,306, up $1,507 or 12% from Q2 fiscal 2025, but gross profit margin declined by 220 basis points to 21.7%[70]. - Net income for Q2 fiscal 2026 was $3,090, with diluted earnings per share of $0.28, compared to $3,281 and $0.30 in Q2 fiscal 2025[74]. - Net income for the first six months of fiscal 2026 was $7,685 million, an increase of $1,438 million or 23% from $6,247 million in the prior year[97]. - Adjusted net income for the first six months of fiscal 2026 was $8,367 million, compared to $6,999 million in the same period of fiscal 2025[97]. - The effective tax rate for the second quarter of fiscal 2026 was 27%, up from 24% in the same quarter of fiscal 2025[95]. - Net income for the three months ended September 30, 2025, was $3,090 million, a decrease from $3,281 million in the same period of 2024, while net income for the six months ended September 30, 2025, was $7,685 million compared to $6,247 million in 2024[102]. - Adjusted EBITDA for the three months ended September 30, 2025, was $6,295 million, representing 9.5% of net sales, compared to $5,615 million and 10.5% in the same period of 2024[102]. Orders and Backlog - Orders booked in Q2 fiscal 2026 increased to $83,200 from $63,678 in Q2 fiscal 2025, resulting in a record backlog of $500,072[74]. - The company reported a book-to-bill ratio of 1.3 for the three months ended September 30, 2025, and 1.7 for the six months ended September 30, 2025, indicating strong order growth relative to sales[116]. - Total orders for the three months ended September 30, 2025, were $83,200 million, a 31% increase from $63,678 million in the same period of 2024, while total orders for the six months ended September 30, 2025, were $209,098 million, up 75% from $119,445 million in 2024[116]. - Backlog increased by $17,212 million (4%) during the quarter and $87,837 million (21%) for the first six months of fiscal 2026, reaching $500,072 million at September 30, 2025[116]. - Total backlog reached $500,072, representing a 23% increase from $407,009 in the prior year, with defense orders making up 85% of the backlog[117]. - The company expects to recognize revenue on approximately 35% to 40% of the backlog within one year[117]. Market and Sales Insights - The defense market comprised 85% of the total backlog at September 30, 2025, indicating strong demand driven by defense budget plans and geopolitical tensions[82]. - Domestic sales accounted for 83% of total sales in the second quarter of fiscal 2026, slightly down from 85% in the same quarter of fiscal 2025[87]. - Aftermarket sales to the Energy & Process and Defense markets increased by 15% year-over-year, totaling $20,230 million[88]. - The defense industry saw a 32% increase in sales, contributing $9,853 million to the overall growth, driven by project milestones and new programs[86]. - The company expects continued growth in alternative and clean energy opportunities, particularly in hydrogen production and small modular reactors[79]. Capital and Cash Management - Cash and cash equivalents at September 30, 2025, were $20,579, down from $21,577 at March 31, 2025, with no debt outstanding[74]. - Capital expenditures for the first six months of fiscal 2026 were $11,148 million, with expectations for total capital expenditures for fiscal 2026 to be between $15,000 million and $18,000 million[105]. - Cash and cash equivalents decreased to $20,579 million at September 30, 2025, from $21,577 million at March 31, 2025, primarily due to capital expenditures[106]. - The company entered into a five-year revolving credit facility with Wells Fargo providing a $50,000 million line of credit, with $5,319 million in letters of credit outstanding as of September 30, 2025[107]. - The company did not pay any dividends during the six months ended September 30, 2025, and currently has no intention to pay dividends for the foreseeable future[109]. Future Outlook - Fiscal 2026 outlook projects net sales between $225,000 and $235,000, with adjusted EBITDA estimated at $22,000 to $28,000[118]. - SG&A expenses are expected to be 17.5% to 18.5% of sales, including $6,000 to $7,000 for performance bonuses and ERP conversion costs[118]. - The company anticipates an increase in tariffs impacting financials by approximately $2,000 to $4,000 compared to the prior year[118]. - The company aims for 8% to 10% average annualized organic revenue growth and adjusted EBITDA margins in the low to mid-teens by fiscal 2027[120]. Tariffs and Foreign Currency - The company estimates the impact of tariffs on its financial statements to be approximately $1,000 million for the first six months of fiscal 2026[90]. - The estimated impact of tariffs for the first six months of fiscal 2026 is approximately $1,000, with a full-year range of $2,000 to $4,000[134]. - International sales constituted 17% of total sales in the first six months of fiscal 2026, with foreign currency fluctuations increasing cash balances by $65[131]. - The company has limited exposure to foreign currency purchases, representing about 4% of the cost of products sold[132].

Exhibit 99.1 News Release Graham Corporation ¨ 20 Florence Avenue t Batavia, NY 14020 IMMEDIATE RELEASE Graham Corporation Reports Second Quarter Fiscal 2026 Results Second Quarter Fiscal 2026 Highlights: BATAVIA, NY, November 7, 2025 – Graham Corporation (NYSE: GHM) ("GHM" or the "Company"), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the Defense, Energy & Process, and Space industries, today reported financial results for its se ...

Core Insights - Graham Corporation reported strong performance in the second quarter of fiscal 2026, with a record backlog of $500.1 million and healthy demand across its end markets, particularly in Defense and Space sectors [3][5][16]. Financial Performance - Net sales increased by 23% to $66.0 million compared to $53.6 million in the same quarter last year [5][7]. - Gross profit rose by 12% to $14.3 million, with a gross profit margin of 21.7%, down 220 basis points from the previous year [5][8]. - Net income per diluted share was $0.28, while adjusted net income per diluted share was $0.31, reflecting no change from the prior year [5][39]. - Adjusted EBITDA increased by 12% to $6.3 million, with an adjusted EBITDA margin of 9.5% [5][39]. Orders and Backlog - Orders for the quarter totaled $83.2 million, resulting in a book-to-bill ratio of 1.3x [5][14]. - The backlog at the end of the quarter was a record $500.1 million, a 23% increase year-over-year, with approximately 85% of the backlog attributed to the Defense industry [5][16]. Market Segments - Sales in the Defense market contributed $9.9 million to growth, driven by project milestones and new programs [7]. - The Energy & Process market saw an 11% increase in sales, primarily due to growth in China, although sales in India decreased due to project timing [7]. Cash Management and Balance Sheet - The company maintained a strong balance sheet with no debt, $20.6 million in cash, and access to $44.7 million under its revolving credit facility [5][11]. - Cash provided by operating activities for the quarter was $13.6 million [10]. Strategic Outlook - The company is focused on high-return initiatives to enhance productivity and profitability, including investments in automation and advanced testing technologies [3][5]. - Full-year fiscal 2026 guidance remains unchanged, with expectations for revenue between $225 million and $235 million and adjusted EBITDA between $22 million and $28 million [19][21].

Core Viewpoint - Graham Corporation has secured multiple orders valued at approximately $22 million from leading Space/Aerospace customers, indicating strong momentum in its commercial space business [1][2]. Group 1: Orders and Revenue - During its fiscal second and third quarters, Graham's subsidiary Barber-Nichols LLC booked new orders for advanced turbomachinery and precision-engineered components from six major players in the commercial space launch market, expected to convert into revenue over the next 12 to 24 months [2]. - The recent orders highlight Graham's expanding role as a critical supplier for next-generation space systems [2]. Group 2: Investment in Capacity - To meet the increasing demand, Graham is investing in production capacity at its Barber-Nichols facility in Colorado, which includes new CNC machining centers and a liquid nitrogen test stand [3]. - These investments complement the construction of a cryogenic test facility near its P3 Technologies subsidiary in Jupiter, Florida, expected to open later this year [3]. Group 3: Market Position and Strategy - The company is experiencing strong momentum from both new and existing customers in the space sector, reflecting its long-term commitment to the industry and key development programs [4]. - Graham's expertise in high-speed rotating equipment and precision manufacturing positions it as a trusted supplier for complex, high-performance systems, reinforcing its strategy to diversify its portfolio across high-growth, technology-driven applications [4].

Core Viewpoint - Graham Corporation will release its second quarter fiscal year 2026 financial results on November 7, 2025, and will host a conference call to discuss these results along with the company's strategy and outlook [1][2]. Financial Results Announcement - The financial results will be announced before the markets open on November 7, 2025 [1]. - A conference call will take place at 11:00 a.m. Eastern Time on the same day, with a question-and-answer session to follow [2][3]. Conference Call Details - The conference call can be accessed via phone at (201) 689-8560 or through an internet webcast [3]. - A replay of the call will be available from 3:00 p.m. ET on the day of the teleconference until November 14, 2025 [3]. Company Overview - Graham Corporation is a global leader in designing and manufacturing mission-critical technologies for the Defense, Energy & Process, and Space industries [4]. - The company is recognized for its engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies [4].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - Graham Corporation announced the acquisition of specific assets from Xdot Bearing Technologies, a firm specializing in foil bearing technology [1] - Xdot has developed and patented innovative technologies in the field of foil bearings, which are critical for various applications [1] - The acquisition aligns with Graham Corporation's strategy to enhance its capabilities in fluid, power, heat transfer, and vacuum technologies for key markets including Defense, Energy & Process, and Space [1]

Company Overview - Ferguson plc is currently ranked 2 in the Zacks Sector Rank among 189 individual stocks in the Industrial Products sector, indicating strong performance relative to peers [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Performance Metrics - Ferguson plc has achieved a year-to-date return of approximately 29.1%, significantly outperforming the average return of 6.1% for Industrial Products companies [4] - The Zacks Consensus Estimate for Ferguson's full-year earnings has increased by 0.5% over the past quarter, reflecting improved analyst sentiment [4] Industry Context - Ferguson plc is part of the Manufacturing - General Industrial industry, which includes 41 companies and currently holds a 53 rank in the Zacks Industry Rank [6] - The average gain for stocks in this industry is 7% year-to-date, further highlighting Ferguson's superior performance [6] Comparative Analysis - Another notable performer in the Industrial Products sector is Graham (GHM), which has seen a year-to-date increase of 8.6% and has a Zacks Rank of 1 (Strong Buy) [5] - Both Ferguson plc and Graham are expected to continue their solid performance, making them attractive options for investors in the Industrial Products sector [7]

Group 1 - Graham (GHM) is currently outperforming the Industrial Products sector with a year-to-date return of 10.1%, compared to the sector's average gain of 7.5% [4] - The Zacks Rank for Graham is 1 (Strong Buy), indicating strong analyst sentiment and an improving earnings outlook, with a 20.3% increase in the consensus estimate for full-year earnings over the past quarter [3] - Graham is part of the Manufacturing - General Industrial industry, which ranks 35 in the Zacks Industry Rank, and has outperformed the average industry gain of 8.2% this year [6] Group 2 - Gates Industrial (GTES) is another stock in the Industrial Products sector that has outperformed, with a year-to-date return of 24.4% [4] - Gates Industrial also holds a Zacks Rank of 1 (Strong Buy), with a 5.6% increase in the consensus EPS estimate for the current year over the past three months [5]

Core Insights - Gabelli Funds, LLC is hosting the annual Aerospace & Defense Symposium on September 4, 2025, at The Harvard Club in New York City, focusing on strong demand outlook and high barriers to entry in the Aerospace and Defense industry [1] - The symposium will feature top executives from over ten companies, discussing themes such as defense spending, aftermarket opportunities, and M&A potential [1] Agenda Highlights - The event will start at 7:30 AM with a welcome and introduction by the Gabelli Funds Team [2] - Notable companies participating include Astronics Corporation, Textron Inc., Moog Inc., HEICO Corporation, and Elbit Systems Ltd., among others, with scheduled presentations throughout the day [2][3] - The agenda includes one-on-one meetings with management, providing attendees with networking opportunities [1]