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Dec 31, 2025
Graham Q3 2026 Earnings Report
Graham Corporation reported strong third quarter fiscal 2026 results, with significant increases in revenue, net income, and adjusted EBITDA.
Key Takeaways
Graham Corporation delivered a robust performance in the third quarter of fiscal 2026, with revenue increasing by 21% to $56.7 million and net income per diluted share rising by 79% to $0.25. Adjusted EBITDA saw a substantial 50% increase to $6.0 million, driven by strong execution across its diversified end markets, particularly Defense, and supported by a record backlog of $515.6 million.
Revenue for the third quarter increased 21% to $56.7 million, reflecting strong performance across diversified end markets.
Net income per diluted share rose 79% to $0.25, and adjusted net income per diluted share increased 72% to $0.31.
Adjusted EBITDA grew 50% to $6.0 million, with an Adjusted EBITDA margin of 10.7%.
Orders reached $71.7 million, contributing to a record backlog of $515.6 million and a book-to-bill ratio of 1.3x.
Revenue by Segment
Forward Guidance
Graham Corporation is updating and increasing its full-year fiscal 2026 guidance, reflecting strong performance and the contribution from the FlackTek acquisition. The company remains on track to achieve its strategic goals of 8% to 10% annual organic revenue growth and low to mid-teen Adjusted EBITDA margins by fiscal 2027.
Positive Outlook
- Net Sales guidance increased to $233 million to $239 million (from $225 million to $235 million).
- Adjusted EBITDA guidance increased to $24 million to $28 million (from $22 million to $28 million).
- The company maintains a strong balance sheet with low leverage and increased capacity under its line of credit after the FlackTek acquisition.
- Continued focus on disciplined execution, operational efficiency, and advancing strategic initiatives.
- Investments in automation, advanced testing, and new technical capabilities are expected to enhance productivity and support margin expansion.
Challenges Ahead
- Gross Margin guidance slightly lowered to 24.0% to 25.0% of sales (from 24.5% to 25.5% of sales), partly due to estimated impact of increased tariffs.
- Effective Tax Rate guidance increased to 16% to 18% (from 20% to 22%).
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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