Overview

* Graham Corp ( GHM ) fiscal Q1 revenue rises 11% but missed analyst expectations

* Adjusted EBITDA for fiscal Q1 beats estimates, rising 33% to $6.8 mln

* Net income per diluted share increases 56% to $0.42

Outlook

* Graham Corp ( GHM ) reiterates fiscal 2026 net sales guidance of $225 mln to $235 mln

* Company expects fiscal 2026 gross margin between 24.5% and 25.5%

* Graham Corp ( GHM ) projects fiscal 2026 adjusted EBITDA of $22 mln to $28 mln

* Company anticipates fiscal 2026 capital expenditures of $15 mln to $18 mln

Result Drivers

* ENERGY & PROCESS GROWTH - Revenue growth driven by major commercial projects and robust aftermarket demand in Energy & Process markets

* DEFENSE ORDERS - Large defense orders, including Virginia Class submarine and MK48 Mod 7 Heavyweight Torpedo programs, boosted results

* MARGIN IMPROVEMENT - Improved gross profit margin due to better execution and pricing on defense contracts and higher margin aftermarket sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Miss $55.49 $56.60

mln mln (4

Analysts

)

Q1 EPS $0.42

Q1 Net $4.60

Income mln

Q1 Beat $6.84 $5.35

Adjusted mln mln (3

EBITDA Analysts

)

Q1 Gross 26.5%

Margin

Q1 $4.96

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "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 ( GHM ) is $59.50, about 3.5% above its August 4 closing price of $57.43

* The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)