GHM earnings analysis
What we found in GHM's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.12
- Gross margin
- 23.5%
- Operating margin
- 6.1%
- Segment
- Defense
- Segment
- Energy & Process
- Segment
- Space
What they said about what is next.
Annual outlook confirmed but detailed numerical guidance provided during FY2027 earnings call.
The filing reads better than the one before it.
What came before.
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing GHM makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever