Graham beats Q2 adj EBITDA estimates, helped by FlackTek acquisition
Graham beats Q2 adj EBITDA estimates, helped by FlackTek acquisition
Overview
U.S. industrial equipment maker's Q2 sales rose 6% yr/yr but missed analyst expectations
Q2 adjusted EBITDA rose 64% and beat analyst expectations
Growth driven by Defense and Space markets, operational improvements, and FlackTek acquisition
Outlook
Company reaffirms fiscal 2027 net sales guidance of $285 mln to $295 mln
Graham maintains fiscal 2027 adjusted EBITDA forecast of $35 mln to $40 mln
Company raises fiscal 2027 gross margin outlook to 25.0%-26.0% from 24.5%-25.5%
Result Drivers
FLACKTEK ACQUISITION - Co said FlackTek acquisition contributed $9.5 mln in Q2 revenue and supported sales growth
DEFENSE AND SPACE GROWTH - Co cited higher Defense sales from project milestones and new programs, and Space sales growth from commercialization and program ramp-ups
MARGIN EXPANSION - Co attributed higher gross margin to operational improvements, sales mix, and FlackTek acquisition
Company press release: ID:nBw95h53Ma
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $69.76 mln | $71.07 mln (6 Analysts) |
Q2 Adjusted EPS |
| $0.52 |
|
Q2 EPS |
| $0.39 |
|
Q2 Net Income |
| $4.64 mln |
|
Q2 Adjusted EBITDA | Beat | $10.30 mln | $8.56 mln (5 Analysts) |
Q2 Gross Margin |
| 28.20% |
|
Q2 Operating Income |
| $5.83 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 is $128.00, about 84.1% above its November 4 closing price of $69.52
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 48 three months ago
Reuters Recommended Reads
Nov 4 - Curtiss-Wright Q3 sales rise 10%, beat estimates
Nov 3 - AMETEK Q3 sales beat estimates, raises outlook
Nov 3 - Regal Rexnord Q3 sales beat estimates on data center demand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)