Q4 2025 Graham Corp Earnings Call Transcript
Key Points
- Graham Corp (GHM) reported a 13% increase in full-year revenue to $210 million and a 69% increase in adjusted EBITDA to $22.4 million.
- The company achieved a record backlog of $412 million, up 7% sequentially, with a Book-to-Bill ratio of 1.1x for the fifth consecutive year.
- Graham Corp (GHM) secured a $136.5 million contract for the Virginia Class Submarine Program, enhancing its stable recurring revenue and visibility into future revenue.
- The company is making strategic investments, including a $3.6 million project to enhance welding capabilities, supported by a $2.2 million investment from a key defense customer.
- Graham Corp (GHM) is expanding its capabilities with a new 30,000 square foot facility in Batavia, New York, and a cryogenic propellant testing facility in Florida, expected to drive future growth.
- The company faces potential impacts from tariffs, estimated to be $2 million to $5 million, affecting fiscal 2026 results.
- Graham Corp (GHM) will no longer receive a benefit from the welder training grant, which previously contributed to gross profit.
- Orders for fiscal 2025 decreased to $231 million from $268 million in fiscal 2024, primarily due to the lumpiness of defense market orders.
- The company anticipates SG&A expenses to be between 17.5% and 18.5% of sales, reflecting continued investment in R&D and operational capabilities.
- Despite strong performance, the company acknowledges the need for continued work to achieve its fiscal 2027 financial goals of 8% to 10% organic revenue growth and low to mid-teen adjusted EBITDA margins.
Greetings. Welcome to Graham Corporation's fiscal fourth quarter and full year fiscal 2025 conference call. (Operator Instructions). This time I'll turn the conference over to Tom Cook, Investor Relations for Graham Corporation. Tom, you may now begin your presentation.
Thank you, Rob, and good morning everyone. Welcome to Graham's fiscal fourth quarter and full year 2025 earnings call. With me on the call today are Dan Thoren, CEO; Chris Thome, CFO; and Matt Malone, President and COO. This morning, we released our financial results.
Our earnings release and accompanying presentation today's call are available on our website at ir.grahamcorp.com. You should be aware that we may make forward-looking statements during the formal discussion as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today.
These risks and uncertainties and other
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