Graham Corporation (GHM) Reports Strong Fourth-Quarter Performance

Graham Corporation (NYSE: GHM) has released its financial results for the fourth quarter and fiscal year 2025, showcasing significant growth and strong execution of its strategic plan. The company has exceeded expectations in several key areas, including revenue and net income, and has provided optimistic guidance for fiscal 2026.

Graham Corporation Reports Better-than-Anticipated Results for Fourth-Quarter

Graham Corporation’s performance in the fourth quarter of fiscal 2025 demonstrated notable growth, with net sales rising by 21% to $59.3 million. This increase was driven by strong demand across all markets, particularly in the Defense sector, which saw a 28% rise in sales compared to the prior year.

The company’s gross margin also expanded by 110 basis points, reaching 27.0%, while the operating margin improved significantly to 9.3% from 3.1% in the previous year. These results reflect the company’s effective execution of its strategic initiatives and its ability to capitalize on market opportunities.

In comparison to expectations, Graham Corporation exceeded the anticipated earnings per share (EPS) of $0.26, achieving an EPS of $0.40. The company’s revenue of $59.3 million also surpassed the expected $56.0 million, highlighting its robust performance in the quarter.

Net income for the quarter was $4.4 million, a substantial increase from $1.3 million in the same period last year, illustrating the company’s strong financial health and operational efficiency.

Overall, the fourth quarter results indicate Graham Corporation’s success in executing its strategic plan and its ability to deliver strong financial performance. The company’s focus on key growth areas, such as automated welding and facility expansion, has contributed to its improved margins and increased revenue opportunities.

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Graham Corporation Offers Optimistic Guidance for Fiscal 2026, Net Sales Between $225-$235 Million

Looking ahead to fiscal 2026, Graham Corporation has provided optimistic guidance, projecting net sales between $225 million and $235 million. This represents a 10% increase at the midpoint over fiscal 2025. The company also expects adjusted EBITDA to range from $22 million to $28 million, reflecting a 12% increase at the midpoint. These projections are supported by the company’s strategic investments in organic and inorganic growth opportunities, as well as operational improvements aimed at enhancing margins.

Graham Corporation’s fiscal 2026 guidance also considers potential impacts from global trade policies, with an estimated tariff impact of $2.0 million to $5.0 million. Despite these challenges, the company remains confident in its ability to achieve its growth targets, thanks to its strong balance sheet and strategic focus on key markets. The company’s management transition, with Matt Malone succeeding Daniel J. Thoren as CEO, is expected to further strengthen its leadership and drive future achievements.

In conclusion, Graham Corporation’s fiscal 2026 outlook reflects its commitment to sustained growth and profitability. The company’s strategic investments and focus on operational excellence position it well to capitalize on market opportunities and deliver value to its stakeholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.