Graham (NYSE:GHM) Announces Earnings Results, Beats Expectations By $0.18 EPS

Key Points

• Graham reported EPS of $0.52, beating analyst expectations of $0.34 by $0.18, while quarterly revenue of $69.8 million came in below the $71.1 million consensus estimate.
• Profitability strengthened: adjusted EBITDA rose 64% to a record $10.3 million, and gross margin expanded 650 basis points to 28.2%. Revenue increased 6% year over year.
• Backlog hit a seventh consecutive record at $561 million, and Graham reaffirmed its full-year revenue and EBITDA guidance while raising its gross-margin outlook. Energy and process revenue fell 17%, however, amid weakness in large projects and international sales.

Graham (NYSE:GHM - Get Free Report) posted its earnings results on Thursday. The industrial products company reported $0.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.18, FiscalAI reports. Graham had a net margin of 4.53% and a return on equity of 11.09%. The firm had revenue of $69.76 million during the quarter, compared to the consensus estimate of $71.07 million.

Here are the key takeaways from Graham's conference call:

• Profitability improved sharply: Fiscal Q2 revenue rose 6% to $69.8 million, while adjusted EBITDA increased 64% to a record $10.3 million. Gross margin expanded 650 basis points to 28.2%, reflecting better execution, favorable mix, and FlackTek’s contribution.
• Backlog and demand remain strong: Backlog reached a seventh consecutive record of $561 million, up 12% year over year, and first-half book-to-bill was 1.2x. Space backlog more than doubled, while defense backlog rose 10% and was 85% funded.
• Full-year guidance was reaffirmed at $285 million–$295 million in revenue and $35 million–$40 million in adjusted EBITDA, with gross margin expectations raised by about 50 basis points. Management also reiterated its FY2029 targets of 8%–10% annual organic growth and 14%–16% adjusted EBITDA margins.
• Energy and process remains a weak spot: Q2 revenue in the segment fell 17% amid softness in large capital projects and lower international sales. Management expects the unusually high Q2 gross margin to normalize somewhat, and noted that fiscal Q3 is typically the company’s lowest-revenue quarter.

Graham Stock Up 8.0%

Shares of NYSE GHM traded up $5.80 on Friday, hitting $77.90. The company had a trading volume of 273,652 shares, compared to its average volume of 258,936. Graham has a 12-month low of $52.57 and a 12-month high of $125.82. The firm has a market capitalization of $914.51 million, a P/E ratio of 67.74 and a beta of 1.16. The business has a 50 day moving average of $80.15 and a two-hundred day moving average of $91.09.

Wall Street Analysts Forecast Growth

GHM has been the subject of several research reports. Weiss Ratings downgraded shares of Graham from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, October 2nd. Wall Street Zen raised shares of Graham from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Oppenheimer cut their target price on shares of Graham from $130.00 to $115.00 and set an "outperform" rating on the stock in a research note on Thursday, October 8th. Finally, JPMorgan Chase & Co. initiated coverage on shares of Graham in a report on Friday, October 2nd. They set an "overweight" rating and a $120.00 target price on the stock. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $123.33.

Graham News Roundup

Here are the key news stories impacting Graham this week:

• Positive Sentiment: Graham reported adjusted earnings of $0.52 per share, beating analyst estimates and rising from $0.31 a year earlier. Sales increased 6% to $69.8 million. Graham Corporation Reports Second Quarter Fiscal 2027 Results
• Positive Sentiment: Record backlog, stronger margins, and demand in defense and space were highlighted as important growth drivers, supporting expectations for future business and profitability. GHM Q3 CY2026 deep dive
• Negative Sentiment: Quarterly revenue of $69.8 million was below analysts’ roughly $71 million forecast, a possible concern despite the earnings beat and year-over-year sales growth. Graham Corporation misses sales expectations

About Graham

Graham Corporation NYSE: GHM is a U.S.-based designer and manufacturer of engineered equipment and systems for the defense, space, and commercial markets. The company develops thermal-management, fluid-handling, vacuum, and power-generation technologies used in demanding industrial and government applications.

Graham supplies equipment for naval vessels, including surface ships and submarines, as well as systems supporting aerospace and space programs. Its products and capabilities include condensers, heat exchangers, vacuum equipment, steam and gas ejectors, cryogenic systems, and integrated propulsion and power solutions.

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