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Earnings analysis · 10-K

GHM earnings analysis

Filed June 8, 2026 · Our reading of the company's report

The latest report

Graham Corporation (GHM) experienced significant revenue growth in FY2026, reporting $245.3 million, a 17% increase from the prior year, primarily driven by strong Defense market performance, which accounted for 60% of…

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Graham Corporation (GHM) experienced significant revenue growth in FY2026, reporting $245.3 million, a 17% increase from the prior year, primarily driven by strong Defense market performance, which accounted for 60% of sales. The company's strategic focus on the Defense sector, paired with recent acquisitions such as FlackTek, underpins its growth trajectory despite recent declines in operating margins. Forward guidance for FY2027 projects net sales between $285 million and $295 million, indicating continued optimism about market demand.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

27% Gross margin Operating margin Nov 2022 Jun 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $77 Operating expenses $17 Left as operating profit $6

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Nov 2022 Jun 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$1.12
Segment
Defense
Segment
Energy & Process
Segment
Space

What stood out

  • Strong Revenue Growth

    Net sales increased by 17% YOY to $245.3 million, bolstered by a 21% rise in Defense sales.

  • Record Backlog

    Backlog reached a record $532.6 million, up 29% from the prior year, with 85% tied to Defense contracts.

  • Successful Acquisitions

    The acquisition of FlackTek contributed an incremental $2.8 million in sales and strengthens GHM's position in advanced mixing technologies.

  • Positive EPS Growth

    Net income for FY2026 was $12.5 million, translating to an EPS of $1.12, slightly higher than the prior year.

  • Guidance Shows Continued Growth

    FY2027 guidance estimates net sales between $285 million to $295 million, reflecting confidence in market conditions.

  • Increased Orders

    Orders booked rose by 56% to $359.4 million, indicating strong demand and filling the pipeline for future revenue.

What to watch

  • Customer Concentration Risk

    60% of FY2026 revenue derived from the Defense sector, particularly the U.S. Navy, exposing GHM to risks related to government funding disruptions.

  • Declining Operating Margin

    Gross margin declined to 23.5% from 25.2% YOY, mainly due to a shift in sales mix towards lower-margin Defense contracts.

  • Integration Challenges from Acquisitions

    Failure to successfully integrate FlackTek could hinder projected revenue and EBITDA growth, with potential unknown liabilities from the acquisition.

Management's outlook

Annual outlook confirmed but detailed numerical guidance provided during FY2027 earnings call.

Earlier filings 4

10-Q · November 7, 2025

Graham reported a Q2 quarter with revenue of $66,027,000 (up $12,464,000 or ~23.3% YoY from $53,563,000) and continued backlog strength (remaining unsatisfied performance obligations of $500,072,000). Gross margin…

10-Q · August 5, 2025

Graham reported a strong Q1 (three months ended June 30, 2025) with net sales of $55,487,000 (up $5,536,000 or ~11.1% vs. $49,951,000 LY) and improved margins: gross profit rose to $14,721,000 and operating income to…

10-Q · February 7, 2025

Graham reported quarterly revenue of $47,037,000 (up $3,219,000 or ~7.35% year-over-year from $43,818,000) with gross profit rising to $11,686,000 (gross margin ~24.8%) and operating income improving to $2,210,000…

10-Q · August 7, 2024

Graham Corporation reported quarterly net sales of $49,951,000 (up $2,382,000 vs. $47,569,000 year-ago) and net income of $2,966,000 ($0.27 diluted per share, up from $0.25). Gross profit improved to $12,368,000 (gross…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.