Overview

* Graham Corp ( GHM ) fiscal Q2 revenue rises 23%, beating analyst expectations

* Company, which designs and manufactures fluid, power, heat transfer and vacuum technologies, reports adjusted EBITDA for fiscal Q2 that beats analyst estimates

* Company maintains full-year fiscal 2026 guidance, citing strong demand across markets

Outlook

* Graham reiterates fiscal 2026 guidance for net sales of $225 mln to $235 mln

* Company narrows fiscal 2026 tariff impact to $2.0 mln to $4.0 mln

* Graham expects adjusted EBITDA of $22 mln to $28 mln for fiscal 2026

Result Drivers

* DEFENSE MARKET GROWTH - Sales in the Defense market increased by $9.9 mln due to project milestones and new programs

* NEW ORDERS - Significant new orders include $25.5 mln for MK48 Torpedo and $14.8 mln in Space orders, boosting backlog

* INVESTMENTS IN PRODUCTIVITY - Investments in automation and new capabilities expected to enhance margins and growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $66.03 $57.55

mln mln (4

Analysts

)

Q2 $0.31

Adjusted

EPS

Q2 EPS $0.28

Q2 Net $3.09

Income mln

Q2 Beat $6.30 $6 mln

Adjusted mln (3

EBITDA Analysts

)

Q2 Gross 21.70%

Margin

Q2 $4.27

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 $66.00, about 5.8% above its November 6 closing price of $62.14

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

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)