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Jun 30, 2022
Graham Q1 2023 Earnings Report
Graham reported sales growth and earnings for the first quarter of fiscal year 2023.
Key Takeaways
Graham Corporation reported a strong first quarter in fiscal 2023, with a 79% increase in sales to $36.1 million and diluted EPS of $0.06. The company's performance was driven by a diversified revenue base and the Barber-Nichols acquisition, with defense and space revenue representing 45% of the quarter's revenue. Graham reaffirmed its full-year guidance, expecting continued revenue and adjusted EBITDA growth.
Sales increased by 79% to $36.1 million, driven by a diversified revenue base and the Barber-Nichols acquisition.
Defense and space revenue accounted for 45% of the quarter's revenue, validating the strategic shift in business mix.
Commercial aftermarket sales and orders increased by 38% and 64%, respectively.
The company achieved a net income of $676 thousand, or $0.06 per diluted share, and an adjusted net income of $1.3 million, or $0.12 per diluted share.
Graham
Graham
Graham Revenue by Segment
Revenue by Segment
Defense Revenue
CapyFin.com Forward Guidance
Graham Corporation expects revenue for fiscal year 2023 to be in the range of $135 million to $150 million. Gross margin is expected to be approximately 16% to 17%, with SG&A expenses around 15% to 16% of sales. Adjusted EBITDA is projected to be between $6.5 million and $9.5 million, yielding an adjusted EBITDA margin of approximately 5% to 6%. Capital expenditures for fiscal 2023 are expected to be $4.5 million to $5.5 million.
Positive Outlook
- Revenue expected to remain in the $135 million to $150 million range.
- Gross margin of approximately 16% to 17% is anticipated.
- SG&A expenses expected to be approximately 15% to 16% of sales.
- Adjusted EBITDA projected to be between $6.5 million and $9.5 million.
- Capital expenditures for fiscal 2023 are expected to be $4.5 million to $5.5 million.