Graham (GHM) Earnings Date & Reports

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.

Earnings Context and Why It Matters

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.

Reported Results

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%.

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Market Reaction and Investor Sentiment

Shares of Graham Corporation 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 Key Factors to Monitor

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.

Disclaimer

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