Loading...
•
Sep 30, 2021
Graham Q2 2022 Earnings Report
Sales grew by 22%, driven by the acquisition of Barber-Nichols, but profits and margins were impacted by lower margin defense projects.
Key Takeaways
Graham Corporation reported a 22% increase in sales for the second quarter of fiscal 2022, driven by the acquisition of Barber-Nichols. However, profits and margins were negatively impacted by the timing of lower margin defense projects. Orders increased sequentially by 50%, and backlog at quarter-end was $233.2 million.
Defense industry represented 58% of quarterly revenue, validating strategic expansion.
Revenue increased by 22% to $34.1 million, driven by the Barber-Nichols acquisition.
Orders increased to $31.4 million, up 50% sequentially.
Backlog at quarter-end reached $233.2 million, with 78% from the defense industry.
Revenue by Segment
Forward Guidance
Graham Corporation anticipates revenue between $130 million and $140 million for fiscal year 2022, with 45% to 50% associated with the defense industry. Adjusted EBITDA is expected to be approximately $7 million to $8 million.
Positive Outlook
- Revenue in fiscal 2022 is expected to be $130 million to $140 million.
- 45% to 50% of revenue is expected to be associated with the defense industry.
- Barber-Nichols' 10-month revenue contribution is expected to be between $45 million to $48 million.
- Gross margin of 17% to 18% is expected.
- The expected effective tax rate for the year is 24% to 25%.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...