Latest news with #GHM
Yahoo
10-06-2025
- Business
- Yahoo
GHM Q1 Earnings Call: Operational Investments, Defense Growth, and Leadership Transition Highlight Outlook
Industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 20.9% year on year to $59.35 million. The company's full-year revenue guidance of $230 million at the midpoint came in 1.7% above analysts' estimates. Its GAAP profit of $0.40 per share was significantly above analysts' consensus estimates. Is now the time to buy GHM? Find out in our full research report (it's free). Revenue: $59.35 million vs analyst estimates of $55.67 million (20.9% year-on-year growth, 6.6% beat) EPS (GAAP): $0.40 vs analyst estimates of $0.18 (significant beat) Adjusted EBITDA: $7.65 million vs analyst estimates of $4.77 million (12.9% margin, 60.5% beat) EBITDA guidance for the upcoming financial year 2026 is $25 million at the midpoint, above analyst estimates of $23.77 million Operating Margin: 9.3%, up from -3% in the same quarter last year Backlog: $412.3 million at quarter end Market Capitalization: $489 million Graham Corporation's first quarter results reflected the impact of multi-year investments and a diversified market focus, with management attributing revenue growth to increased defense sales and stronger execution across all segments. CEO Daniel Thoren highlighted the recently secured $136.5 million contract for the U.S. Navy's Virginia-class submarine program and noted that the Barber-Nichols division's performance supported both ongoing revenue stability and future visibility. The company completed several high-return capital projects, expanded its Batavia manufacturing facility, and grew its welder workforce by 10%, steps that were identified as critical to supporting long lead-time defense contracts and enabling continued backlog growth. Management emphasized that productivity initiatives, operational improvements, and a focus on higher-margin work in defense and energy contributed to the year-over-year margin expansion. Looking forward, Graham Corporation's outlook is driven by expectations for continued defense demand, capacity expansion projects coming online, and ongoing efficiency improvements. President and incoming CEO Matthew Malone outlined the transition into the 'improve' and 'growth' phases of the company's long-term strategy, emphasizing upcoming benefits from technology investments and scalable product offerings. Management expects capital expenditures to remain elevated to support growth, with a target to increase R&D spending and further automate manufacturing. Malone stated, 'We are aligning both organic and inorganic investments to capture tailwinds in our core markets,' and highlighted digital transformation and global reach as future priorities. Management also cautioned that tariffs and the absence of certain grants could affect margins, but expressed confidence in offsetting these pressures with process improvements and pricing initiatives. Management attributed the quarter's performance to defense contract wins, expanded manufacturing capabilities, and successful execution of their stabilization and improvement strategy. Defense contract momentum: The company secured a major contract for the Virginia-class submarine program, bolstering its recurring revenue base and enhancing long-term visibility, with Barber-Nichols maintaining a key supplier role. Manufacturing capacity expansion: Ongoing investments in facilities—such as the 30,000 square foot Navy-focused Batavia site and automation upgrades—are expected to improve throughput and support increased defense and energy market demand. Operational process improvements: Management reported that initiatives like automated welding and enhanced radiographic testing are reducing project cycle times and improving quality, with broader benefits anticipated from applying these technologies across markets. Workforce development: The company's welder training program expanded the skilled labor pool by 10% year-over-year, helping address past bottlenecks and enabling the execution of complex defense contracts. Portfolio diversification and integration: The integration of P3 into Barber-Nichols has provided rapid design capabilities and cross-pollination of advanced technology, positioning the business to serve new energy and process opportunities beyond its legacy operations. Graham Corporation's management expects that ongoing defense demand, facility investments, and operational efficiencies will be the leading factors for revenue and margin performance in the coming quarters. Defense and naval demand: Management expects continued high volumes from U.S. Navy programs, supported by contract structures that now include protections against commodity price volatility, providing greater stability over multi-year cycles. Capacity and technology upgrades: Several capital projects—including automation, new testing facilities, and digital systems—are set to come online by year-end, with benefits to productivity and margin expansion expected to begin in the following year. Margin and cost headwinds: While tariffs and the expiration of certain training grants are forecast to create temporary margin pressure, management believes that improved pricing models, process efficiencies, and the ability to order high-risk materials early will partially offset these risks. In upcoming quarters, the StockStory team will be watching (1) the ramp-up and customer adoption of new manufacturing and testing facilities, (2) progress on integrating advanced automation and digital systems into operations, and (3) continued success in converting backlog into revenue, particularly in defense and energy markets. The effectiveness of cross-market technology applications and the ability to offset margin headwinds will also be key signposts. Graham Corporation currently trades at a forward P/E ratio of 38×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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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
