Group 1: Earnings Performance - Graham reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.12 per share a year ago, representing an earnings surprise of 65.39% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenue for the quarter ended March 2025 was $59.35 million, surpassing the Zacks Consensus Estimate by 5.97%, compared to $49.07 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Graham shares have declined approximately 5.6% since the beginning of the year, while the S&P 500 has gained 2% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - Current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $54 million, and for the current fiscal year, it is $1.18 on revenues of $226 million [7] Group 3: Industry Context - The Manufacturing - General Industrial industry, to which Graham belongs, is currently in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Performance - Net sales for fiscal 2025 were $209,896, an increase of $24,363 or 13% compared to fiscal 2024, with $2,778 attributed to the acquisition of P3[158]. - Gross profit for fiscal 2025 was $52,861, reflecting a gross profit margin of 25.2%, which is a 330 basis point improvement over fiscal 2024[158]. - Net income for fiscal 2025 was $12,230, representing a 168% increase from $4,556 in fiscal 2024, with diluted income per share rising to $1.11 from $0.42[158]. - SG&A expenses for fiscal 2025 increased by $5,305 to $38,888, driven by investments in personnel, processes, and technology[158]. - The effective tax rate for fiscal 2025 was 21%, up from 18% in fiscal 2024, primarily due to higher pre-tax income[179]. - Net cash provided by operating activities for fiscal 2025 was $24,316 million, a decrease from $28,120 million in fiscal 2024, primarily due to lower cash from accounts receivable[187]. - As of March 31, 2025, stockholders' equity increased to $119,577 from $105,566 in the prior year[197]. Backlog and Orders - The company reported a funded and unfunded backlog of $412.3 million as of March 31, 2025, compared to $390.9 million as of March 31, 2024, indicating a year-over-year increase of approximately 5.5%[24]. - Backlog at March 31, 2025, was $412,335, a 5% increase from $390,868 at March 31, 2024, with approximately 83% of the backlog related to the Defense industry[158]. - Total orders for fiscal 2025 were $231,112, a decrease of 14% from $268,447 in fiscal 2024, primarily due to record orders in the previous year[201]. - The book-to-bill ratio for fiscal 2025 was 1.1x, indicating a healthy order intake relative to sales[202]. - Significant orders in fiscal 2025 included a $50,000 procurement for the U.S. Navy's Virginia Class Submarine program and a $2,200 strategic investment from a major Defense customer[203]. Market Segmentation - Domestic sales accounted for approximately 81% of total sales in fiscal 2025, with sales to the Defense industry representing 58% of total sales[23]. - In fiscal 2025, sales to the Defense industry accounted for approximately 58% of total sales, up from 25% in fiscal 2021[40]. - Sales to the Energy & Process markets represented approximately 35% of revenue in fiscal 2025, down from 75% in fiscal 2021[40]. - The Defense market accounted for 58% of net sales in fiscal 2025, with sales increasing by $22,432 or 23% compared to fiscal 2024[171]. - The Energy & Process market saw a slight increase in sales of 1%, totaling $73,287, while the Space market increased by 11% to $14,684[171]. Strategic Initiatives - The company aims for an average annualized organic revenue growth of 8% to 10% and low to mid-teen adjusted EBITDA margins by fiscal 2027[26]. - The company completed the acquisition of P3 Technologies, which is expected to diversify market and product offerings and enhance turbomachinery solutions[18]. - The company has transitioned to a diversified business model serving multiple markets, including Defense, Energy & Process, and Space, moving away from a highly cyclical Energy business[26]. - The company is expanding its Batavia, NY campus with a new 30,000 square foot manufacturing facility, funded primarily by a strategic investment from a Defense customer[117]. - The company has initiated construction of a cryogenic testing facility to enhance capabilities, scheduled for completion in Q1 fiscal 2026[145]. Risks and Challenges - Inflation and global supply chain issues have increased the cost of raw materials and labor, impacting financial results, particularly due to fixed-price contracts[36]. - The company is exposed to risks related to customer concentration, particularly with U.S. Navy projects, which could impact revenue if funding is disrupted[47]. - Fixed-price contracts represent a substantial portion of sales, which may lead to difficulties in execution and potential cost overruns[60]. - The company is susceptible to investigations and legal proceedings related to government contracts, which could adversely affect its financial position and operations[70]. - The company faces challenges from competition, as some competitors may have greater resources or cost advantages, potentially impacting market share and profitability[78]. Research and Development - Research and development (R&D) expenditures were $4,039 million in fiscal 2025, with $1,124 million not customer funded[41]. - The company expects R&D spend not funded by customers to increase to 1% to 2% of revenue in the future[41]. Environmental and Regulatory Factors - Environmental costs are not expected to have a material adverse effect on financial performance, although future liabilities cannot be assured[39]. - U.S. government contracts are subject to extensive regulations, and failure to comply may result in financial penalties or contract termination[64]. - The company is subject to export, import, and sanctions laws, and failure to comply could result in fines and regulatory actions[67]. - Climate change regulations may influence customers' investment decisions, potentially reducing demand for the company's products[73]. Workforce and Talent Management - The company maintains a highly skilled workforce and invests in employee development through various training programs[27]. - The company is dependent on a skilled workforce, facing challenges such as labor shortages and increased competition for talent, which could lead to higher operational costs[128]. - The company may experience difficulties in retaining key management and technical personnel due to intense competition in the industry[107]. Cybersecurity and Technology - Cybersecurity threats pose risks to the company's information systems, potentially leading to financial loss and reputational damage[112]. - The company has developed a comprehensive cybersecurity risk management program to protect critical systems and information, overseen by its Audit Committee[135]. - The implementation of a new enterprise resource planning (ERP) system is scheduled to go live in fiscal 2026, with potential risks including operational disruptions and inefficiencies[115].

Financial Performance Highlights - Revenue for the fourth quarter of fiscal year 2025 was $59.3 million, up 21% compared to the prior-year period[10, 35] - Full-year fiscal 2025 revenue reached a record $209.9 million, a 13% increase from the previous year[10, 36] - Gross margin for the fourth quarter of fiscal year 2025 was 27%, an increase of 110 bps[10, 43] - Full-year fiscal 2025 gross margin was 25.2%, a 330 bps expansion[10, 43] - Adjusted EBITDA for fiscal year 2025 was $22.4 million, resulting in a 10.7% margin[10, 45] - Net income for fiscal year 2025 was $12.2 million[10] Orders and Backlog - Record backlog reached $412.3 million[10, 55] - Fiscal year 2025 orders totaled $231.1 million[10] - The book-to-bill ratio for fiscal year 2025 was 1.1x[10] - Defense sector accounted for 83% of the Q4 backlog[54] Fiscal Year 2026 Outlook - Net sales are projected to be between $225 million and $235 million[59] - Adjusted EBITDA is expected to range from $22 million to $28 million[59]

Financial Performance - Fourth quarter revenue increased by 21% to $59.3 million, driven by strong performance across all markets[6] - Fiscal 2025 net income was $12.2 million, a significant increase from $4.6 million in the prior fiscal year, representing a 168% growth[14] - Adjusted EBITDA for fiscal 2025 was $22.4 million, up 69% from $13.3 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 $209.9 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 $5.5 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] - Net income for the year ended March 31, 2025, was $12,230 million, a significant increase of 168.5% compared to $4,556 million in 2024[49] - Adjusted EBITDA for the year ended March 31, 2025, reached $22,429 million, up 68.9% from $13,285 million in 2024[51] - Net sales for the year ended March 31, 2025, were $209,896 million, up 13.1% from $185,533 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 $235 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 $235 million, with a gross margin of 24.5% to 25.5%[26] - Adjusted EBITDA is expected to range from $22 million to $28 million, with capital expenditures estimated at $15 million to $18 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 $231.1 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 $21.6 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 $21,577 million from $16,939 million, marking a rise of 27.5%[49] - Customer deposits rose to $84,062 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 $264,110 million in 2025 from $233,879 million in 2024, representing a growth of 13.0%[47] - Total liabilities increased to $144,533 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 $24,316 million for the year, down from $28,120 million in 2024[49] - Adjusted net income for the year ended March 31, 2025, was $13,716 million, compared to $6,796 million in 2024, an increase of 102.5%[53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ___________ Commission File Number 001-08462 GRAHAM CORPORATION (Exact name of registrant as specified in its charter) Delaware 16-119472 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ___________ Commission File Number 001-08462 GRAHAM CORPORATION (Exact name of registrant as specified in its charter) Delaware 16-1194720 (St ...