Graham(GHM) - 2025 Q2 - Quarterly Results

Revenue and Growth - Revenue increased 19% to $53.6 million, driven by strength across its markets[1] - Graham Corporation reported record revenue of $53.6 million for the second quarter of fiscal 2025, representing a significant increase compared to $45.1 million in the same quarter of the previous year[33] - The company provided an optimistic outlook, expecting continued revenue growth driven by strong market demand and strategic investments in technology[34] Profitability and Margins - Gross margin improved 790 basis points to 23.9% of sales, while net margin increased 520 basis points to 6.1% of sales[1] - Net income per diluted share was $0.30, with adjusted net income per diluted share at $0.31, reflecting increases of 650% and 343% respectively[3] - Operating profit surged to $4.2 million, a 427% increase from $803, with an operating margin of 7.9% compared to 1.8% in the previous year[31] - Adjusted EBITDA for the second quarter was $5.6 million, with an adjusted EBITDA margin of 10.5%, compared to 5.0% in the same quarter last year[34] - Adjusted net income for the three months ended September 2024 was $3.4 million, compared to $0.8 million for the same period in 2023, representing a significant increase[35] Orders and Backlog - Strong orders of $63.7 million resulted in a book-to-bill ratio of 1.2x and a record backlog of $407 million[1] - Backlog at quarter end reached a record $407 million, up 30% over the prior-year period[14] - Orders for the defense market represented 48% of total orders, including a contract for the MK19 air turbine pump for the Columbia-class submarine[13] Cash Flow and Expenditures - Cash provided by operating activities totaled $22.6 million for the six-month period, nearly double the amount from the prior year[9] - Capital expenditures for the first six months were $6.5 million, with an increase in expected fiscal 2025 capital expenditures to $13.0 million to $18.0 million[10] - The company invested $6.5 million in property, plant, and equipment during the first six months of fiscal 2025, up from $3.3 million in the same period last year[33] Expenses and Taxation - SG&A expenses totaled $9.2 million, or 17.1% of sales, reflecting continued investments in operations and technology[6] - Selling, general, and administrative expenses increased by 43% to $8.7 million, reflecting the company's investment in growth initiatives[31] - The provision for income taxes increased by 318% to $1.0 million, aligning with the substantial rise in net income[31] Strategic Initiatives and Acquisitions - The company continues to focus on strengthening relationships within the defense industry, anticipating future project opportunities and market expansion[22] - Graham Corporation acquired P3 Technologies, LLC for $170,000, enhancing its technological capabilities[33] Risks and Uncertainties - Graham Corporation's financial results are subject to various risks and uncertainties, which could materially affect actual outcomes compared to current expectations[23] Shareholder Information - The diluted weighted average common shares outstanding increased to 11,024,000 from 10,810,000 year-over-year[35]