GHM Q3 Deep Dive: Strong End-Market Demand and Backlog Support Full-Year Outlook

Core Insights - Graham Corporation reported Q3 CY2025 revenue of $66.03 million, exceeding analyst expectations of $57.55 million, representing a year-on-year growth of 23.3% [1][6] - The company’s GAAP profit per share was $0.31, surpassing the consensus estimate of $0.28 by 10.7% [1][6] - Full-year revenue guidance is reaffirmed at approximately $230 million, aligning with analyst estimates [1][6] Revenue and Financial Performance - Revenue for Q3 was $66.03 million, a 23.3% increase year-on-year, and 14.7% above analyst estimates [6] - GAAP EPS was $0.31, exceeding analyst expectations by 10.7% [6] - Adjusted EBITDA was reported at $6.30 million, with a margin of 9.5%, also above analyst estimates [6] - Operating margin remained stable at 6.5%, consistent with the same quarter last year [6] - Backlog at the end of the quarter stood at $500.1 million [6] - Market capitalization is reported at $684.5 million [6] Strategic Outlook - Management highlighted strong revenue growth driven by defense programs, commercial space applications, and steady performance in energy and process markets [3][5] - Investments in advanced manufacturing and inspection capabilities, along with a new facility in Batavia, New York, are expected to enhance operational execution [3][4] - The company anticipates continued growth due to a record backlog and ongoing capacity investments, particularly in defense and space markets [4] - Capital allocation remains disciplined, with expected returns over 20% on investments in new test facilities and advanced technologies [4] - Strategic acquisition of Xdot Bearing Technologies and projects in small modular nuclear reactors are seen as key to long-term visibility and growth [4]