Graham Corp Q3 revenue beats estimates on defense market

Overview

• Fluid technologies firm's fiscal Q3 revenue rose 21%, beating analyst expectations

• Adjusted EBITDA for fiscal Q3 beat analyst expectations

• Company completes FlackTek acquisition, expanding technology portfolio

Outlook

• Graham updates fiscal 2026 net sales guidance to $233 mln-$239 mln from $225 mln-$235 mln

• Company expects fiscal 2026 adjusted EBITDA of $24 mln-$28 mln, up from $22 mln-$28 mln

• Graham anticipates fiscal 2026 gross margin between 24% and 25%

Result Drivers

• DEFENSE MARKET - Revenue growth driven by project milestones and new programs in Defense sector

• ENERGY & PROCESS SALES - Increased sales driven by aftermarket sales and momentum in small modular reactors

• FLACKTEK ACQUISITION - Acquisition expands technology portfolio, enhancing capabilities in advanced mixing and materials processing

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Graham Corp is $80.00, about 8.5% above its February 5 closing price of $73.75

• The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 39 three months ago

Press Release: ID:nBw8nrX8Ja

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