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
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsGHM's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for GHM turned positive on May 29, 2026. Looking at past instances where GHM's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 29, 2026. You may want to consider a long position or call options on GHM as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GHM advanced for three days, in of 300 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 285 cases where GHM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for GHM moved out of overbought territory on June 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 02, 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.
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 72, 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 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 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 (7.930) is normal, around the industry mean (6.262). P/E Ratio (85.125) is within average values for comparable stocks, (50.313). Projected Growth (PEG Ratio) (2.716) is also within normal values, averaging (2.006). Dividend Yield (0.000) settles around the average of (0.019) among similar stocks. P/S Ratio (4.329) is also within normal values, averaging (141.473).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of vacuum and heat transfer equpiment
Industry IndustrialMachinery