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Mar 31
Graham Q4 2025 Earnings Report
Graham reported strong Q4 performance with double-digit revenue growth and improved profitability.
Key Takeaways
Q4 revenue increased 21% year-over-year to $59.3M, driven by Defense and Energy & Process market strength, resulting in significant margin and income gains.
Revenue grew 21% YoY to $59,345,000, driven by growth in Defense and Energy & Process markets.
Net income was $4,395,000 with adjusted EPS of $0.43.
Gross margin expanded 110 basis points to 27.0%.
Backlog reached a record $412,300,000 with a 1.1x book-to-bill ratio.
Graham
Graham
Forward Guidance
Graham expects revenue growth and margin expansion in fiscal 2026 supported by a strong backlog, strategic investments, and continued Defense sector demand.
Positive Outlook
- FY26 revenue expected between $225M–$235M.
- Gross margin forecasted at 24.5% to 25.5%.
- Adjusted EBITDA guided at $22M–$28M.
- Strong Defense backlog provides visibility.
- Capital investments are on time and budget.
Challenges Ahead
- Estimated tariff impact of $2M–$5M on FY26.
- Increased ERP and compensation costs in SG&A.
- No additional Defense training grants expected.
- Aftermarket sales variability could affect margins.
- Global supply chain uncertainties remain a risk.