June 5, 2026

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Graham Corporation (NYSE: GHM) reported fourth-quarter fiscal 2026 results with record revenue, strong backlog, and higher full-year orders, but quarterly earnings missed expectations as margins declined.
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Graham designs and manufactures mission-critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for defense, energy, process, and space markets.
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The company reported adjusted EPS of $0.33, above estimates of $0.30, representing a 10.0% earnings surprise. Revenue came in at $67.08 million, above estimates of $60.12 million, though the earnings snapshot showed revenue growth down 68.0%.

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Results Showed Record Revenue but Lower Margins

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Graham reported quarterly net sales of $67.1 million, up 13% from the prior-year quarter. Growth was driven by continued strength in Defense, momentum in Space, and contributions from acquired businesses.
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Gross margin fell to 22.7% from 27.0%, pressured by a less favorable mix, including more lower-margin Defense sales, FlackTek purchase accounting impacts, and lower aftermarket sales. Operating income declined 52% to $2.7 million, while net income fell 55% to $2.0 million.
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Adjusted EPS came in at $0.33, down from $0.43 a year earlier. Adjusted EBITDA declined 11% to $6.8 million.
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For the full fiscal year, revenue increased 17% to a record $245.3 million. Adjusted EPS rose 13% to $1.40, and adjusted EBITDA increased 16% to $26.0 million.

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Backlog Hit a Record

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Graham ended fiscal 2026 with record backlog of $532.6 million, up 29% year-over-year.
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Full-year orders reached a record $359 million, producing a 1.5x book-to-bill ratio. Management said demand remained strong across Defense, Energy & Process, and Space, with Space orders up 76% year-over-year.
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The company also completed the acquisition of FlackTek, adding advanced mixing and materials processing as a third core technology platform.

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The Bigger Picture

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Graham’s report showed strong demand but weaker quarterly profitability.
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Record revenue, orders, and backlog point to a healthy long-term pipeline, especially in defense and space. The stock reaction likely reflected concern over margin compression, lower quarterly adjusted EBITDA, and acquisition-related costs.
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