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Jun 30, 2025
Graham Q1 2026 Earnings Report
Graham Corporation reported its first quarter fiscal 2026 results, showcasing increased revenue, gross profit, net income, and adjusted EBITDA, driven by strong performance in Energy & Process and Defense markets.
Key Takeaways
Graham Corporation delivered a strong first quarter for fiscal 2026, with revenue increasing 11% to $55.5 million and net income rising 55% to $4.6 million. The company saw significant growth in its Energy & Process markets and continued strong performance in its Defense business, leading to improved margins and a substantial increase in orders and backlog.
Revenue increased by 11% to $55.5 million, reflecting strength across the company’s product portfolio and diversified revenue base.
Net income per diluted share grew 56% to $0.42, while adjusted net income per diluted share increased 36% to $0.45.
Orders surged to $125.9 million, primarily driven by large defense orders, resulting in a robust book-to-bill ratio of 2.3x and a backlog of $482.9 million.
Gross profit increased 19% to $14.7 million, with gross margin improving 170 basis points to 26.5%, attributed to higher sales volume, improved sales mix, and better execution on defense contracts.
Revenue by Segment
Forward Guidance
Graham Corporation is reiterating its full-year fiscal 2026 guidance, expecting net sales between $225 million and $235 million, gross margin of 24.5% to 25.5%, and Adjusted EBITDA between $22 million and $28 million. The company remains on track to achieve its strategic goal of 8% to 10% annual organic revenue growth and low to mid-teen Adjusted EBITDA margins by fiscal 2027.
Positive Outlook
- Reiterating full year fiscal 2026 guidance for all metrics provided, indicating confidence in future performance.
- On track to reach strategic goal of 8% to 10% annual organic revenue growth by fiscal 2027.
- Aiming for low to mid-teen Adjusted EBITDA margins by fiscal 2027.
- Numerous in-process capital investments expected to generate returns above 20%.
- Completion of the Batavia defense facility expansion, enhancing capabilities.
Challenges Ahead
- Estimated impact of increased tariffs for the full year to be between $2 million to $5 million.
- Assumptions for sales and profitability require operating production facilities at planned capacity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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