Graham Corp Q1 revenue misses estimates

Graham

05/08/2025 11:45

Overview

Graham Corp 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 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 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/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$55.49 mln
$56.60 mln (4 Analysts)
Q1 EPS
$0.42
Q1 Net Income
$4.60 mln
Q1 Adjusted EBITDA
Beat
$6.84 mln
$5.35 mln (3 Analysts)
Q1 Gross Margin
26.5%
Q1 Operating Income
$4.96 mln


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 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: ID:nBw4jP3qGa

(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.)