Graham Corp Reports Strong Q3 Results, Record Backlog, and Raises FY26 Sales & EBITDA Guidance

summarizeSummary

Graham Corp reported strong Q3 fiscal 2026 results with significant revenue and earnings growth, achieved a record backlog, and raised its full-year sales and adjusted EBITDA guidance.

check_boxKey Events

• Strong Q3 Fiscal 2026 Financial Performance

  Net sales increased 21% to $56.7 million, and net income surged 79% to $2.8 million ($0.25 diluted EPS) compared to the prior year's third quarter. Adjusted EBITDA also grew 50% to $6.0 million.

• Record Backlog Achieved

  Orders booked in Q3 fiscal 2026 increased 189% to $71.7 million, driving backlog to a record $515.6 million as of December 31, 2025, a 34% increase year-over-year.

• Raised Fiscal 2026 Guidance

  The company raised its fiscal 2026 net sales guidance to $233 million - $239 million (from $225 million - $235 million) and adjusted EBITDA guidance to $24 million - $28 million (from $22 million - $28 million). Gross profit margin guidance was slightly lowered to 24.0%-25.0%.

• FlackTek Acquisition Details

  The company acquired FlackTek for $35 million (85% cash, 15% stock) with potential earn-outs of $25 million. FlackTek adds $30 million in annualized revenue and advanced mixing technology, complementing Graham's existing businesses. This follows the 8-K filing on January 26, 2026, announcing the acquisition.

auto_awesomeAnalysis

Graham Corporation's latest 10-Q filing reveals robust third-quarter fiscal 2026 performance, marked by significant revenue and earnings growth, and a record-high backlog. The company also raised its fiscal year 2026 sales and adjusted EBITDA guidance, signaling continued positive momentum. This strong financial update, coupled with details on the recent FlackTek acquisition and an expanded credit facility, reinforces a positive outlook for the company's strategic growth initiatives in defense, energy, and space markets. Investors should note the slight decline in gross profit margin, attributed to sales mix and material receipts, but this is largely offset by the substantial top-line growth and order book strength.