Q4 2026 Graham Corp Earnings Call Transcript
Key Points
- Graham Corp (GHM) achieved record annual revenue of $245 million, record orders of $359 million, and a record backlog of $533 million, demonstrating strong execution and demand across core markets.
- The company made substantial investments in strategic growth initiatives, including capacity expansion, technical capabilities, and new automation and manufacturing technologies.
- Graham Corp (GHM) successfully integrated acquisitions such as XDOT and FlacTech, which are expected to contribute to future growth and shareholder value.
- The defense sector showed strong demand, with significant contributions from naval programs and new high-profile directed energy and radar programs.
- The space market experienced significant growth in orders and backlog, supported by investments in testing and manufacturing capabilities, positioning Graham Corp (GHM) as a critical supplier in the space ecosystem.
- Gross margin declined to 22.7% in the fourth quarter from 27% in the prior year, primarily due to a higher proportion of defense revenue with lower margin characteristics.
- The company faced continued uncertainty in the energy and process markets, with softness in large capital project spending and global refining and petrochemical facilities.
- Selling, general, and administrative expenses increased due to acquisition and integration activities, impacting profitability.
- The integration of FlacTech is still ongoing, with some milestones yet to be completed, which may limit immediate acquisition activities.
- Cash flow can be lumpy due to the nature of defense contracts and material receipts, making it challenging to provide consistent cash flow guidance.
Thank you. Q26 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad.
It is now my pleasure to introduce your host, Tom Cook of Investor Relations. Thank you. You may begin.
Thank you, Shamali, and good morning, everyone. Welcome to Graham's Fiscal Fourth Quarter and Full Year 2026 Earnings Call.
With me on the call today is Matt Malone, President and CEO, and Chris Doan, Chief Financial Officer. This morning, we released our financial results. Our earnings release and accompanying presentation for today's call are available on our website at ir.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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
