Graham(US:GHM)2025-11-07 11:45Financial Performance - Revenue increased 23% to $66.0 million compared to $53.6 million in the prior year[5] - Gross profit rose 12% to $14.3 million, with a gross profit margin of 21.7%, down 220 basis points from the previous year[5][9] - Net income per diluted share was $0.28, a decrease of 7% from $0.30 in the prior year[5][7] - Adjusted EBITDA increased 12% to $6.3 million, with an adjusted EBITDA margin of 9.5%[5][7] - The company reported a net income of $3.090 million for the three months ended September 30, 2025, a decrease of 6% from $3.281 million in the prior year[38] - Net income for the six months ended September 30, 2025, was $7,685,000, compared to $6,247,000 for the same period in 2024, representing an increase of 23.1%[42] - Adjusted EBITDA for the six months ended September 30, 2025, was $13,133,000, up from $10,752,000 in 2024, reflecting a growth of 22.2%[44] - Net sales for the six months ended September 30, 2025, reached $121,514,000, compared to $103,514,000 in 2024, indicating a year-over-year increase of 17.4%[44] - The net income margin for the six months ended September 30, 2025, was 6.3%, slightly up from 6.0% in 2024[44] Orders and Backlog - Orders totaled $83.2 million, resulting in a book-to-bill ratio of 1.3x and a record backlog of $500.1 million, a 23% increase year-over-year[5][16] - Approximately 85% of the backlog is related to the Defense industry, providing stability and visibility[16] - The book-to-bill ratio is utilized to track growth prospects, calculated as net orders divided by net sales, although specific ratios were not provided[34] Guidance and Projections - The company is reiterating its full-year fiscal 2026 revenue guidance of $225 million to $235 million[19][20] - Capital expenditures for fiscal 2026 are projected to be between $15.0 million and $18.0 million[19] Financial Position - Total current assets increased to $159.448 million as of September 30, 2025, compared to $141.372 million as of March 31, 2025[40] - Total liabilities rose to $159.400 million as of September 30, 2025, up from $144.533 million as of March 31, 2025[40] - The company’s total stockholders' equity increased to $127.590 million as of September 30, 2025, compared to $119.577 million as of March 31, 2025[40] Cash Flow and Expenditures - Cash and cash equivalents decreased to $20.579 million as of September 30, 2025, from $21.577 million as of March 31, 2025[40] - The company reported a net cash provided by operating activities of $11,324,000 for the six months ended September 30, 2025, compared to $22,649,000 in 2024, a decline of 50%[42] - The company incurred $11,148,000 in capital expenditures for property, plant, and equipment during the six months ended September 30, 2025, compared to $6,464,000 in 2024, an increase of 72.5%[42] - Cash and cash equivalents at the end of the period were $20,579,000, down from $32,318,000 at the end of the same period in 2024, a decrease of 36.4%[42] Investments and Initiatives - The company is investing in automation and new technical capabilities, expecting returns above 20% from these initiatives[4] - The estimated impact of tariffs on consolidated financial results is now expected to be between $2.0 million and $4.0 million[18][20] Accounts Receivable - The company reported a decrease in accounts receivable of $7,104,000 for the six months ended September 30, 2025, compared to an increase of $15,387,000 in 2024[42]