Graham Corp Q1 FY2027: Record Backlog, PIPE Closes, Guidance Reaffirmed
GHM has more than doubled off its 52-week low of $46.08.
Summary
Graham Corp reported Q1 FY2027 results with 29% revenue growth, a record $557M backlog, and the closing of a $50M PIPE. Full-year guidance was reiterated.
Key Events · Earnings and Guidance · GHM
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Revenue Surges 29%
Driven by a 40% jump in defense sales and an 86% increase in space sales, Q1 FY2027 net sales reached $71.3 million, up from $55.5 million a year ago.
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Record Backlog of $557M
Backlog grew 15% year-over-year to $557.2 million, with 84% from defense programs. Approximately 35-40% is expected to convert to revenue within 12 months.
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$50M PIPE Closes, Debt Repaid
The company issued 600,000 shares at $83.36 per share to T. Rowe Price, raising $50 million. Of that, $13 million was used to repay all outstanding debt, leaving $27 million in cash and full availability on an $80 million revolver.
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FY2027 Guidance Reiterated
Management reaffirmed full-year guidance: net sales of $285-$295 million, adjusted EBITDA of $35-$40 million, and gross margins of 24.5%-25.5%.
Analysis · GHM · Technology
A strong quarter for Graham Corp saw revenue climb 29% to $71.3 million, fueled by defense and space. Backlog reached a record $557 million, offering multi-year visibility. The company also closed a $50 million PIPE at $83.36 per share, using $13 million to pay down debt and leaving the balance sheet with $27 million in cash and zero drawn on its $80 million revolver. Full-year guidance was reiterated, underscoring confidence in the growth trajectory. The combination of operational momentum, a fortified balance sheet, and a reaffirmed outlook makes this a significant update for investors.
At the time of this filing, GHM was trading at $104.54 on NYSE in the Technology sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $46.08 to $125.82. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.