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Mar 31, 2023
Graham Q4 2023 Earnings Report
Graham's Q4 2023 results reflected revenue growth, driven by aftermarket and space industry strength, but were impacted by reserves for bad debt and inventory.
Key Takeaways
Graham Corporation reported an 8% increase in fourth-quarter revenue, reaching $43.0 million, fueled by aftermarket and space industry growth. However, the company experienced a net loss of $481 thousand due to reserves for bad debt and inventory related to a large space customer. Full fiscal year revenue grew by 28% to a record $157.1 million.
Fourth-quarter revenue increased by 8% to $43.0 million.
Net loss for the fourth quarter was $481 thousand.
Orders for the fourth quarter totaled $50.8 million.
Aftermarket sales to refining and petrochemical markets increased 45% to $7.1 million.
Graham
Graham
Graham Revenue by Segment
Revenue by Segment
Aftermarket Sales Revenue
CapyFin.com Forward Guidance
Graham Corporation expects fiscal 2024 revenue to grow to approximately $165 million to $175 million, with adjusted EBITDA in the range of $10.5 million to $12.5 million.
Positive Outlook
- Revenue growth expected to approximately $165 million to $175 million.
- Adjusted EBITDA expected in the range of $10.5 million to $12.5 million.
- Focusing efforts to pursue clearly defined markets.
- Driving operational excellence while investing in process optimization.
- Building an elite team of people passionate about their work.
Challenges Ahead
- SG&A expense as a % of sales includes approximately $2 million to $3 million of BN performance bonus.
- SG&A expense as a % of sales includes approximately $0.5 million to $1.0 million of enterprise resource planning system (“ERP”) conversion costs.
- Adjusted EBITDA excludes approximately $2 million to $3 million of BN performance bonus.
- Adjusted EBITDA excludes approximately $0.5 million to $1.0 million of ERP conversion costs.
- Potential additional exposure related to the space customer depending on the outcome of their proceedings and asset sale.