Graham Corp Reports Strong Q3 Results, Raises Full-Year Guidance on Record Backlog
GHM has more than doubled off its 52-week low of $24.78.
Summary
Graham Corporation announced robust third-quarter fiscal 2026 results, driven by significant revenue and earnings growth, a record backlog, and an increase in its full-year fiscal 2026 guidance.
Key Events · Earnings and Guidance · GHM
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Strong Q3 Financial Performance
Revenue increased 21% to $56.7 million, diluted EPS rose 79% to $0.25, and Adjusted EBITDA grew 50% to $6.0 million for the third quarter of fiscal 2026.
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Record Backlog and Orders
The company achieved a record backlog of $515.6 million, representing a 34% increase over the prior-year period, with orders totaling $71.7 million and a book-to-bill ratio of 1.3x.
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Increased Full-Year Guidance
Graham Corporation updated and increased its full-year fiscal 2026 guidance, raising net sales to a range of $233 million to $239 million and Adjusted EBITDA to $24 million to $28 million.
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FlackTek Acquisition Update
The filing reiterated details of the $35 million FlackTek acquisition, which expands Graham's technology portfolio and was funded by cash and an increased $80 million revolving credit facility, resulting in a pro forma leverage ratio of approximately 1.2x.
Analysis · GHM · Technology
Graham Corporation delivered a strong third-quarter performance, exceeding prior-year results across key financial metrics. The significant increase in revenue, diluted EPS, and Adjusted EBITDA, coupled with a record backlog, indicates robust operational execution and strong demand, particularly in the Defense market. The decision to raise full-year fiscal 2026 guidance for both net sales and adjusted EBITDA signals management's confidence in continued momentum. The reiteration of the FlackTek acquisition, previously disclosed, provides context for the updated outlook and highlights the company's strategic expansion into advanced mixing technologies, supported by a strengthened balance sheet and increased credit capacity. Investors should view these results and outlook positively, as they suggest sustained growth and improved profitability.
At the time of this filing, GHM was trading at $73.75 on NYSE in the Technology sector, with a market capitalization of approximately $810.4M. The 52-week trading range was $24.78 to $79.13. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.