Graham Corporation (NYSE: GHM) Q4 2025 Earnings Call | 06/10/2025

16 days ago

59:25

Inside Ticker

AI Summary

Key Highlights:

Strong Financial Performance: Graham Corporation reported strong financial results for fiscal year 2025, with revenue up approximately 13% to $210 million and adjusted EBITDA up 69% to $22.4 million (10.7% of sales).
Record Backlog: The company achieved a record backlog of $412 million as of March 31st, 2025, up 7% sequentially, with a book-to-bill ratio of 1.1.
Defense Market Strength: Graham is a key supplier for U.S. Navy programs, including the Columbia-class and Virginia-class submarine programs. They secured a $136.5 million contract award for mission-critical equipment for the Virginia-class submarine program.
Energy & Process Growth: Revenue in the energy and process sector increased 1% year-over-year to $73 million.
Strategic Investments: The company is investing in capital projects with a return on investment exceeding 20%, including automation, facility expansion, and new technologies.
Leadership Transition: Matt Malone became President and CEO on June 10th, 2025, with Dan Thorne transitioning to a strategic advisor role and becoming Executive Chairman.
Fiscal Year 2026 Outlook: Revenue is projected to be in the range of $225 to $235 million, with adjusted EBITDA between $22 million and $28 million.

Strategic Priorities:

Product Lifecycle Expansion: Extending reach into value identification and extraction.
Commercialization: Shifting from one-off solutions to scalable offerings.
Global Reach: Expanding the global footprint.
Digital Transformation: Evolving systems to be smarter and more proactive.
M&A: Pursuing strategic acquisitions.

Key Financial Metrics:

Revenue: $210 million (up 13% year-over-year)
Adjusted EBITDA: $22.4 million (up 69% year-over-year), 10.7% of sales
Backlog: $412 million
Book-to-bill ratio: 1.1

Graham Corporation is focused on long-term growth and profitability, driven by its strategic initiatives and strong market position.

About this video

Graham Corporation (NYSE: GHM) reported Q4 2025 results on June 10, 2025, with revenue surging 21% year-over-year to $59.3 million, driven by strong performance across Defense (up 28%), Space (up 27%), and Energy & Process (up 10%) segments. Gross margin expanded 110 basis points to 27.0%, and operating margin rose to 9.3%, up from 3.1% in the prior-year period. Net income for the quarter was $4.4 million ($0.40 per diluted share), while adjusted net income reached $4.8 million and adjusted EBITDA climbed to $7.7 million, representing 12.9% of sales. For the full fiscal year 2025, Graham achieved record revenue of $209.9 million, a 13% increase, fueled by a 23% rise in Defense and 11% growth in Space revenues. Gross margin for the year expanded 330 basis points to 25.2%, and net income nearly tripled to $12.2 million. Adjusted EBITDA was $22.4 million, or 10.7% of sales. The company reported full-year orders of $231.1 million (book-to-bill ratio of 1.1x) and a record backlog of $412.3 million, positioning Graham for continued growth into fiscal 2026. CEO Daniel J. Thoren highlighted the successful completion of Graham’s "Stabilize Phase" and the transition to the "Improve" and "Growth" phases of its strategic plan, with ongoing investments in automation, facility expansion, and new testing capabilities to drive further margin and revenue gains. Outlook: Fiscal 2026 revenue guidance: $225–$235 million (up 10% at midpoint) Adjusted EBITDA guidance: $22–$28 million (up 12% at midpoint) Focus on automation, facility expansion, and high-ROIC projects About Inside Ticker: For more expert analysis and real-time updates on Graham Corporation (NYSE: GHM) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #GrahamCorp #GHM #EarningsCall #Q42025 #RecordRevenue #Margins #Backlog #Defense #Space #Energy #IndustrialTech #Investing #InsideTicker

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