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Graham(GHM) - 2025 Q4 - Annual Results
GHMGraham(GHM)2025-06-09 10:46

Financial Performance - Fourth quarter revenue increased by 21% to 59.3million,drivenbystrongperformanceacrossallmarkets[6]−Fiscal2025netincomewas59.3 million, driven by strong performance across all markets[6] - Fiscal 2025 net income was 12.2 million, a significant increase from 4.6millioninthepriorfiscalyear,representinga1684.6 million in the prior fiscal year, representing a 168% growth[14] - Adjusted EBITDA for fiscal 2025 was 22.4 million, up 69% from 13.3millioninfiscal2024,withanadjustedEBITDAmarginof10.713.3 million in fiscal 2024, with an adjusted EBITDA margin of 10.7%[14] - For the fourth quarter of fiscal 2025, net sales increased by 21% year-over-year to 59.3 million, while full-year sales rose by 13% to 209.9million[45]−Grossprofitforthefourthquarterwas209.9 million[45] - Gross profit for the fourth quarter was 16.0 million, reflecting a 26% increase compared to the same quarter last year, with a gross margin of 27.0%[45] - Operating profit surged by 262% year-over-year to 5.5millioninthefourthquarter,withanoperatingmarginof9.35.5 million in the fourth quarter, with an operating margin of 9.3%[45] - Net income for the fourth quarter reached 4.4 million, a 228% increase from the previous year, resulting in a diluted net income per share of 0.40[45]−NetincomefortheyearendedMarch31,2025,was0.40[45] - Net income for the year ended March 31, 2025, was 12,230 million, a significant increase of 168.5% compared to 4,556millionin2024[49]−AdjustedEBITDAfortheyearendedMarch31,2025,reached4,556 million in 2024[49] - Adjusted EBITDA for the year ended March 31, 2025, reached 22,429 million, up 68.9% from 13,285millionin2024[51]−NetsalesfortheyearendedMarch31,2025,were13,285 million in 2024[51] - Net sales for the year ended March 31, 2025, were 209,896 million, up 13.1% from 185,533millionin2024[51]−Thenetincomemarginimprovedto5.8185,533 million in 2024[51] - The net income margin improved to 5.8% in 2025 from 2.5% in 2024[51] Guidance and Projections - Fiscal 2026 guidance projects revenue between 225 million and 235million,reflectinga10235 million, reflecting a 10% increase at the midpoint compared to fiscal 2025[6] - Fiscal 2026 guidance for net sales is projected between 225 million and 235million,withagrossmarginof24.5235 million, with a gross margin of 24.5% to 25.5%[26] - Adjusted EBITDA is expected to range from 22 million to 28million,withcapitalexpendituresestimatedat28 million, with capital expenditures estimated at 15 million to 18million[26]BacklogandOrders−Thecompanyreportedarecordbacklogof18 million[26] Backlog and Orders - The company reported a record backlog of 412.3 million as of March 31, 2025, a 5% increase year-over-year[24] - Orders for fiscal 2025 totaled 231.1million,resultinginabook−to−billratioof1.1x[22]−Thecompanyemphasizestheimportanceoftrackingordersandbacklogasleadingindicatorsoffutureperformance[40]−Thebook−to−billratioisusedtoassessgrowthprospects,calculatedasnetordersdividedbynetsales[41]CashFlowandInvestments−Cashprovidedbyoperatingactivitiesfortheyearwas231.1 million, resulting in a book-to-bill ratio of 1.1x[22] - The company emphasizes the importance of tracking orders and backlog as leading indicators of future performance[40] - The book-to-bill ratio is used to assess growth prospects, calculated as net orders divided by net sales[41] Cash Flow and Investments - Cash provided by operating activities for the year was 24.3 million, with cash and cash equivalents increasing to 21.6million[18]−Capitalexpendituresforfiscal2025were21.6 million[18] - Capital expenditures for fiscal 2025 were 19.0 million, focused on capacity expansion and productivity improvements[19] - Cash and cash equivalents at the end of the year increased to 21,577millionfrom21,577 million from 16,939 million, marking a rise of 27.5%[49] - Customer deposits rose to 84,062millionin2025,anincreaseof16.884,062 million in 2025, an increase of 16.8% from 71,987 million in 2024[47] - The company plans to invest in key organic and inorganic growth opportunities to enhance long-term profitability[3] Margins and Expenses - Gross margin for the fourth quarter expanded by 110 basis points to 27.0%, while fiscal 2025 gross margin increased by 330 basis points to 25.2%[6] - SG&A expenses, including amortization, are projected to be 17.5% to 18.5% of sales, with additional costs related to performance bonuses and ERP conversion included[26][28] Assets and Liabilities - Total assets increased to 264,110millionin2025from264,110 million in 2025 from 233,879 million in 2024, representing a growth of 13.0%[47] - Total liabilities increased to 144,533millionin2025from144,533 million in 2025 from 128,313 million in 2024, reflecting a growth of 12.7%[47] - The company reported a net cash provided by operating activities of 24,316millionfortheyear,downfrom24,316 million for the year, down from 28,120 million in 2024[49] - Adjusted net income for the year ended March 31, 2025, was 13,716million,comparedto13,716 million, compared to 6,796 million in 2024, an increase of 102.5%[53]