Graham Corp Q2 revenue beats; narrows fiscal 2026 tariff impact

Graham

07/11/2025 11:41

Overview

Graham Corp 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/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$66.03 mln
$57.55 mln (4 Analysts)
Q2 Adjusted EPS
$0.31
Q2 EPS
$0.28
Q2 Net Income
$3.09 mln
Q2 Adjusted EBITDA
Beat
$6.30 mln
$6 mln (3 Analysts)
Q2 Gross Margin
21.70%
Q2 Operating Income
$4.27 mln


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 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: ID:nBw8GSfYRa

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(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.)