Graham Corporation (GHM) Delivers Record Revenue and Backlog Growth in Fiscal 2026
Key Takeaways
- Graham Corporation reported record quarterly revenue of $67.1 million, up 13% year-over-year.
- Full-year fiscal 2026 revenue reached a record $245.3 million, a 17% increase from the prior year.
- Adjusted net income per diluted share for the quarter was $0.33, ahead of consensus estimates.
- Full-year adjusted EBITDA rose 16% to $26.0 million, supported by defense and space market strength.
- Backlog climbed to a record $533 million, up 29% year-over-year, with a book-to-bill ratio of 1.5x.
- Net income per diluted share for the full year was $1.12.
Why These Results Stand Out
Graham Corporation designs and manufactures mission-critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries. The fourth quarter and full-year fiscal 2026 results reflect sustained demand in defense and space sectors, alongside contributions from the FlackTek acquisition. These outcomes build on prior periods of growth, highlighting the company’s ability to execute on long-cycle programs while navigating softer capital spending in traditional energy markets. Investors monitor these reports closely for visibility into backlog conversion and margin trends amid a diversified end-market exposure.
The Quarter and Year in Detail
Fourth-quarter fiscal 2026 net sales totaled $67.1 million, a 13% increase from the prior-year period and a quarterly record. Gross profit reached $15.3 million, with a gross margin of 22.7%. Net income per diluted share was $0.18, while adjusted net income per diluted share was $0.33. Adjusted EBITDA was $6.8 million.
For the full fiscal year 2026, revenue climbed 17% to a record $245.3 million. Adjusted net income per diluted share rose 13% to $1.40, and adjusted EBITDA increased 16% to $26.0 million. Net income per diluted share for the year was $1.12. The company provided fiscal 2027 guidance of $285 million to $295 million in net sales and gross margin between 24.5% and 25.5%.
Market Reaction and Investor Focus
Shares of GHM experienced volatility following the June 8, 2026, earnings release, with initial trading reflecting the record results offset by considerations around gross margin compression in the quarter. Investor focus centered on the robust backlog growth and defense sector momentum as key positives, while monitoring execution on new energy and space programs.
Forward Outlook and Areas to Watch
Investors should watch the conversion of the record backlog into revenue over coming quarters, particularly within naval defense programs where capacity expansions are underway. Demand signals in space and new energy applications, including small modular reactor opportunities, remain important growth drivers.
Management highlighted ongoing investments to strengthen competitive positioning, which may influence near-term margins but support longer-term expansion. Aftermarket activity in energy and process markets continues to provide stability amid softer large capital project spending.
Upcoming catalysts include updates on the FlackTek integration and progress toward fiscal 2027 guidance ranges. Industry dynamics in defense spending and energy transition projects will also shape performance visibility.
A Closer Look with AI Tools
One resource I turn to when evaluating how a company like this fits into broader industry trends is Tickeron’s AI Screener. It allows filtering by technical patterns, fundamentals, and performance metrics to identify comparable names or breakout candidates more efficiently. AI Screener
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Disclaimers and LimitationsGHM's RSI Indicator leaves overbought zone
The 10-day RSI Indicator for GHM moved out of overbought territory on June 26, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 instances where the indicator moved out of the overbought zone. In of the 40 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GHM as a result. In of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GHM turned negative on July 07, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GHM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GHM broke above its upper Bollinger Band on June 25, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where GHM advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 297 cases where GHM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GHM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.889) is normal, around the industry mean (6.328). P/E Ratio (95.223) is within average values for comparable stocks, (51.768). GHM's Projected Growth (PEG Ratio) (3.015) is slightly higher than the industry average of (2.014). Dividend Yield (0.000) settles around the average of (0.020) among similar stocks. P/S Ratio (4.843) is also within normal values, averaging (138.494).
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General Information
a manufacturer of vacuum and heat transfer equpiment
Industry IndustrialMachinery
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