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Dec 31, 2023
Graham Q3 2024 Earnings Report
Graham's Q3 2024 performance was marked by sales growth, gross margin expansion, and record order intake.
Key Takeaways
Graham Corporation reported a 10% increase in sales to $43.8 million, driven by defense projects and aftermarket sales. The gross margin expanded by 660 basis points to 22.2%. The company achieved a net income of $0.2 million and received a record $123.3 million in orders, increasing the backlog to $399.2 million.
Sales increased by 10% to $43.8 million, driven by defense and aftermarket sectors.
Gross margin expanded by 660 basis points to 22.2% due to favorable mix and improved pricing.
Record orders of $123.3 million were received, primarily from U.S. Navy programs.
Backlog increased to a record $399.2 million, with 84% related to defense.
Revenue by Segment
Forward Guidance
Graham Corporation increased its fiscal year 2024 guidance, expecting net sales between $175 million and $185 million and adjusted EBITDA between $15.0 million and $16.0 million.
Positive Outlook
- Increased net sales guidance to $175 million - $185 million.
- Gross margin expected to be approximately 20%.
- Adjusted EBITDA guidance increased to $15.0 million - $16.0 million.
- Effective tax rate projected at 22% - 23%.
- Capital expenditures expected to be $8.0 million - $10.0 million.
Challenges Ahead
- SG&A expense expected to be 16% - 17% of sales.
- Includes $4.5 million - $5 million of BN Performance Bonus, P3 acquisition and integration, and ERP conversion costs in SG&A expense.
- Adjusted EBITDA excludes $4.5 million - $5 million of BN performance bonus, P3 acquisition and integration, and ERP conversion costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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