Latest news with #GrahamCorp
Yahoo
10-06-2025
- Business
- Yahoo
Graham Corp (GHM) Q4 2025 Earnings Call Highlights: Record Backlog and Strategic Investments ...
Full Year Revenue: $210 million, a 13% increase year-over-year. Adjusted EBITDA: $22.4 million, a 69% increase, representing 10.7% of sales. Record Backlog: $412 million as of March 31, up 7% sequentially. Book-to-Bill Ratio: 1.1x, marking the fifth consecutive year over 1.0x. Defense Market Sales: Increased by 23% year-over-year. Energy and Process Revenue: $73 million, up 1% year-over-year. Capital Expenditures: $19 million for fiscal 2025. Gross Margin: 25.2% for the year, a 330 basis point increase. Net Income: $12.2 million, up from $4.6 million in the prior year. Adjusted EPS: $1.24 per share, a 97% increase over the prior year. Cash Flow from Operations: $24.3 million for fiscal 2025. Cash and Cash Equivalents: $21.6 million at year-end, up $4.6 million. Fiscal 2026 Revenue Guidance: $225 million to $235 million. Fiscal 2026 Adjusted EBITDA Guidance: $22 million to $28 million. Warning! GuruFocus has detected 3 Warning Signs with GHM. Release Date: June 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Graham Corp (NYSE:GHM) reported a 13% increase in full-year revenue to $210 million and a 69% increase in adjusted EBITDA to $22.4 million. The company achieved a record backlog of $412 million, up 7% sequentially, with a Book-to-Bill ratio of 1.1x for the fifth consecutive year. Graham Corp (NYSE:GHM) secured a $136.5 million contract for the Virginia Class Submarine Program, enhancing its stable recurring revenue and visibility into future revenue. The company is making strategic investments, including a $3.6 million project to enhance welding capabilities, supported by a $2.2 million investment from a key defense customer. Graham Corp (NYSE:GHM) is expanding its capabilities with a new 30,000 square foot facility in Batavia, New York, and a cryogenic propellant testing facility in Florida, expected to drive future growth. The company faces potential impacts from tariffs, estimated to be $2 million to $5 million, affecting fiscal 2026 results. Graham Corp (NYSE:GHM) will no longer receive a benefit from the welder training grant, which previously contributed to gross profit. Orders for fiscal 2025 decreased to $231 million from $268 million in fiscal 2024, primarily due to the lumpiness of defense market orders. The company anticipates SG&A expenses to be between 17.5% and 18.5% of sales, reflecting continued investment in R&D and operational capabilities. Despite strong performance, the company acknowledges the need for continued work to achieve its fiscal 2027 financial goals of 8% to 10% organic revenue growth and low to mid-teen adjusted EBITDA margins. Q: Can you elaborate on the factors affecting the gross margin outlook for fiscal 2026? A: Christopher Thome, CFO, explained that the gross margin outlook is primarily impacted by tariffs and the absence of a grant received in fiscal 2025. The company is working to offset these factors through process improvement initiatives. Q: How does the investment in radiographic testing equipment benefit the business? A: Matthew Malone, President and COO, stated that the new X-ray equipment will significantly improve efficiency in evaluating complex welds, particularly for Navy projects. This technology can also be applied to the energy and process side, enhancing overall operational efficiency. Q: What is the current state of the M&A pipeline and valuation expectations? A: Christopher Thome, CFO, noted that the M&A pipeline is robust, with opportunities arising from aging ownership groups. Valuations are seen as opportunistic, and potential acquisitions align strategically with Graham's goals, offering significant impact for the company. Q: How is Graham Corp managing the increased demand from the Navy's shipbuilding programs? A: Matthew Malone, President and COO, highlighted that Graham is keeping up with demand through investments in automated welding and skilled workforce expansion. The company is also prepared for further capacity expansion with infrastructure in place for additional facilities. Q: What are the expectations for the cryogenic facility's utilization once operational? A: Matthew Malone, President and COO, mentioned that while there are no firm bookings yet, there is strong demand and inquiries. The facility's unique power capabilities are attracting interest, and it is expected to fill up nicely once operational. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
09-06-2025
- Business
- San Francisco Chronicle
Graham: Fiscal Q4 Earnings Snapshot
BATAVIA, N.Y. (AP) — BATAVIA, N.Y. (AP) — Graham Corp. (GHM) on Monday reported profit of $4.4 million in its fiscal fourth quarter. The Batavia, New York-based company said it had profit of 40 cents per share. Earnings, adjusted for one-time gains and costs, were 43 cents per share. The maker of vacuum and heat-transfer equipment posted revenue of $59.3 million in the period. Graham expects full-year revenue in the range of $225 million to $235 million. _____
Washington Post
09-06-2025
- Business
- Washington Post
Graham: Fiscal Q4 Earnings Snapshot
BATAVIA, N.Y. — BATAVIA, N.Y. — Graham Corp. (GHM) on Monday reported earnings of $4.4 million in its fiscal fourth quarter. On a per-share basis, the Batavia, New York-based company said it had profit of 40 cents. Earnings, adjusted for one-time gains and costs, came to 43 cents per share. The maker of vacuum and heat-transfer equipment posted revenue of $59.3 million in the period. Graham expects full-year revenue in the range of $225 million to $235 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on GHM at
Yahoo
09-06-2025
- Business
- Yahoo
Graham: Fiscal Q4 Earnings Snapshot
BATAVIA, N.Y. (AP) — BATAVIA, N.Y. (AP) — Graham Corp. (GHM) on Monday reported earnings of $4.4 million in its fiscal fourth quarter. On a per-share basis, the Batavia, New York-based company said it had profit of 40 cents. Earnings, adjusted for one-time gains and costs, came to 43 cents per share. The maker of vacuum and heat-transfer equipment posted revenue of $59.3 million in the period. Graham expects full-year revenue in the range of $225 million to $235 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on GHM at
Yahoo
08-02-2025
- Business
- Yahoo
Graham Corp (GHM) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $47 million, a 7.3% increase over the prior year period. Gross Margin: Improved by 260 basis points to 24.8% of sales. Adjusted EBITDA Margin: Expanded by 180 basis points to 8.6% of sales. Net Income: GAAP net income of $1.6 million, translating to $0.14 per diluted share. Adjusted Net Income: $0.18 per diluted share, a 38% increase over the prior year. Adjusted EBITDA: $4 million, a 36% increase over the prior year. SG&A Expenses: Increased by $0.9 million due to strategic investments. Effective Tax Rate: 29% for the quarter, 20% year-to-date. Cash and Debt: $30 million in cash, no outstanding debt. Capital Expenditures: $7.3 million for the quarter; expected $15 million to $19 million for fiscal 2025. Orders: $24.8 million for the quarter; $144.2 million for the nine-month period. Backlog: $385 million as of December 31, with 80% from defense business. Fiscal 2025 Revenue Guidance: $200 million to $210 million. Fiscal 2025 Adjusted EBITDA Guidance: $18 million to $21 million. Fiscal 2025 Gross Margin Guidance: Increased to 24% to 25%. Warning! GuruFocus has detected 6 Warning Signs with GHM. Release Date: February 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Graham Corp (NYSE:GHM) reported a 7.3% increase in revenue for the third quarter, reaching $47 million, driven by growth across key end markets. The company's gross margin improved by 260 basis points to 24.8%, attributed to higher sales volume, favorable project mix, and better execution. Adjusted EBITDA margin expanded by 180 basis points to 8.6% of sales, indicating strong bottom-line growth. The company has a significant backlog of $385 million, providing excellent visibility into future operations and stability. Graham Corp (NYSE:GHM) is making strategic investments in new facilities and technologies, such as the Batavia manufacturing facility and cryogenic propellant test facility, to support future growth. Orders for the quarter declined to $24.8 million, reflecting the lumpiness and timing issues in the business. SG&A expenses increased by $0.9 million due to strategic investments, impacting short-term profitability. The company faces challenges in the shipbuilding market, with potential supply chain and labor issues affecting operations. Defense orders appeared lower than usual, attributed to the timing of large contracts and the inherent lumpiness in the sector. The effective tax rate for the quarter was 29%, which can vary significantly due to foreign subsidiaries and discrete items. Q: Can you provide insights into the challenges and opportunities in the shipbuilding market, particularly regarding new programs or expansions with existing customers? A: Daniel Thoren, President and CEO, explained that despite industry noise, their customers are focused on building ships and are eager to receive equipment as soon as possible. Graham Corp is in discussions with customers about expanding capacity and capabilities, which are positive and productive conversations. Q: What is driving the strong growth in the aftermarket segment, and is defense contributing to this growth? A: Daniel Thoren noted that the aftermarket growth is primarily driven by the energy and chemical sectors, with domestic customers transitioning to maintenance mode. There is also growing international interest in their next-gen nozzle. While defense is contributing, the primary strength remains in energy and chemical sectors. Q: Given the lumpiness in order flow, what is your ideal book-to-bill ratio to balance sales growth and lead times? A: Christopher Thome, CFO, stated that their goal is a book-to-bill ratio of 1.1 times to support 8% to 10% organic revenue growth annually. They are actively planning and investing in people, processes, and facilities to support this growth. Q: Are there any updates on potential funding from BlueForge for supply chain and labor challenges? A: Daniel Thoren mentioned that the government plans to continue supplier development funding for several years. Graham Corp is actively discussing with customers where to invest and apply for funds to expand capabilities, with several proposals currently under review. Q: How does the potential $200 billion defense budget supplemental impact Graham Corp, and what are the risks if a continuing resolution is implemented? A: Daniel Thoren explained that while it's difficult to predict specific impacts, Graham Corp is involved in strategic Navy programs funded by advanced procurement, providing some visibility. A supplemental budget would relieve pressure on programs, whereas a continuing resolution could pressure less strategic programs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio Error in retrieving data
