Graham Corporation Announces Fourth Quarter And Full-Year Fiscal 2025 Earnings Results

Graham Corporation (GHM) today announced its financial results for the most recent quarter, reporting revenue of $59.3 million, which exceeded analysts’ expectations by approximately $3.7 million. The company also met its earnings per share estimate, delivering a solid performance in a competitive market. With these results, Graham Corporation continues to demonstrate its resilience and growth potential.

Key Highlights:

• Fourth quarter revenue increased by 21% to $59.3 million, driven by strong performance across all markets.
• Gross margin expanded by 110 basis points to 27.0%, with an operating margin of 9.3%, up from 3.1% in the prior year.
• Net income for the fourth quarter was $4.4 million, with adjusted net income of $4.8 million and adjusted EBITDA of $7.7 million (12.9% of sales).
• Full-year fiscal 2025 results showed a 13% increase in sales to $209.9 million, with a net income of $12.2 million compared to $4.6 million in the previous year.
• Record backlog of $412.3 million and a book-to-bill ratio of 1.1x.
• Fiscal 2026 guidance projects revenue of $225 million to $235 million, reflecting a 10% increase at the midpoint over fiscal 2025.

Summary: Graham Corporation reported strong financial results for the fourth quarter and full year of fiscal 2025, with a notable 21% increase in revenue to $59.3 million, attributed to robust demand across its diversified product portfolio. CEO Daniel J. Thoren remarked, “We closed fiscal 2025 with strong momentum, as our fourth quarter results reflected solid execution and sustained demand.” The company also achieved significant improvements in gross and operating margins, with net income for the quarter reaching $4.4 million and a full-year net income of $12.2 million, up from $4.6 million the previous year. The record backlog of $412.3 million indicates strong future demand, while the book-to-bill ratio of 1.1x reflects a healthy order intake.

Looking ahead, Graham Corporation has provided guidance for fiscal 2026, projecting revenue between $225 million and $235 million, which represents a 10% increase at the midpoint compared to fiscal 2025. CFO Christopher Thome emphasized the company’s commitment to investing in both organic and inorganic growth initiatives, stating, “The outlook we are providing reflects the expected impact of tariffs on our fiscal 2026 results, which we estimate to be approximately $2.0 million to $5.0 million.” The company remains focused on enhancing operations and driving margin expansion while navigating potential challenges in global trade.

Graham Corporation (GHM) has recently experienced a remarkable surge in its stock price, with a staggering 61.17% increase over the past year, reflecting strong investor confidence. Over the last month alone, the stock has jumped by 26.77%, indicating a robust momentum that could be attributed to its impressive earnings growth, with a two-year compound annual growth rate (CAGR) of 340.45% in earnings per share. However, the company’s price-to-earnings ratio stands at a lofty 52.11, suggesting that investors are paying a premium for future growth expectations. Despite this high valuation, GHM’s revenue has also shown solid growth, with a two-year CAGR of 13.92%, and a modest net profit margin of 4.54%. The return on invested capital at 9.53% indicates that the company is effectively utilizing its capital to generate profits, although there is room for improvement. Interestingly, the stock did see a slight dip of 2.94% over the past six months, which may have raised some eyebrows among investors. Nonetheless, the overall trajectory remains positive, and the free cash flow growth of 3.20% further supports the company’s financial health. As GHM continues to navigate the market, its strong fundamentals and recent price performance will be closely watched by analysts and investors alike.

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems comprising ejectors and surface condensers; torpedo ejection and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems, including pumps, blowers, and electronics. The company also provides rocket propulsion systems, such as turbopumps and fuel pumps; cooling systems comprising pumps, compressors, fans, and blowers; and life support systems, including fans, pumps, and blowers. In addition, it offers heat transfer and vacuum systems comprising ejectors, process condensers, surface condensers, liquid ring pumps, heat exchangers, and nozzles, as well as turbomachinery products; and power generation systems, including turbines, generators, compressors, and pumps. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.