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Jun 30, 2024
Graham Q1 2025 Earnings Report
Net income increased by 12% to $3.0 million, driven by an expanded gross margin of 24.8%.
Key Takeaways
Graham Corporation reported a 5% increase in revenue to a record $50.0 million, reflecting strength in defense and refining markets. Net income rose by 12% to $3.0 million, with a gross margin expansion of 170 basis points to 24.8%. Orders totaled $55.8 million, resulting in a book-to-bill ratio of 1.1x and a backlog of nearly $400 million. The company reaffirmed its fiscal 2025 guidance.
Revenue increased by 5% to a record $50.0 million, driven by the defense and refining sectors.
Gross margin expanded by 170 basis points to 24.8%, benefiting from higher margin defense and P3 sales, and improved execution.
Net income increased by 12% to $3.0 million, representing a net margin of 5.9%.
Orders totaled $55.8 million, resulting in a book-to-bill ratio of 1.1x and a backlog of nearly $400 million.
Forward Guidance
The Company’s outlook for 2025 is reaffirmed.
Positive Outlook
- Net Sales: $200 million to $210 million
- Gross Margin: 22% to 23% of sales
Challenges Ahead
- SG&A expense: 16.5% to 17.5% of sales
- Adjusted EBITDA: $16.5 million to $19.5 million
- Effective Tax Rate 20% to 22%
- Capital Expenditures $10.0 million to $15.0 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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