Graham Corp Reports Strong Q3 Results, Record Backlog, and Raises FY26 Sales & EBITDA Guidance
GHM has more than doubled off its 52-week low of $24.78.
Summary
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.
Key Events · Earnings and Guidance · GHM
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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.
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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.
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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%.
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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.
Analysis · GHM · Technology
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.
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.