Graham (NYSE:GHM) Posts Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Graham (NYSE:GHM) issued its quarterly earnings data on Friday. The industrial products company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.14, FiscalAI reports. Graham had a net margin of 6.00% and a return on equity of 12.44%. The company had revenue of $56.70 million during the quarter, compared to the consensus estimate of $52.36 million.

Here are the key takeaways from Graham’s conference call:

• Revenue rose 21% to $56.7 million and adjusted EBITDA increased 50% to $6.0 million, with an adjusted EBITDA margin of 10.7%, reflecting improved operating leverage and productivity initiatives.
• Record backlog of $515.6 million (up 34% YoY) and a Q3 book‑to‑bill of 1.3x (year‑to‑date 1.6x), with management expecting ~35–40% of backlog to convert to revenue in the next 12 months, providing strong near‑term visibility.
• Completed strategic deals—XDot technology purchase and the $35 million FlackTek acquisition (85% cash/15% equity plus up to $25M earn‑out)—which management says expands engineered‑products capability, adds recurring consumables revenue, and brings the Mega large‑scale mixer to Graham’s addressable market.
• Raised fiscal 2026 guidance to $233–239 million in revenue and $24–28 million in adjusted EBITDA, and reaffirmed longer‑term targets of 8–10% organic growth and low‑to‑mid‑teen adjusted EBITDA margins by fiscal 2027.
• Near‑term risks include estimated tariff impacts of approximately $1.0–1.5 million for the year, lumpy material receipts that pressured gross margin this quarter, and slowing large CapEx demand in the energy/process market driven by lower oil prices and macro uncertainty.

Graham Stock Up 13.3%

Shares of Graham stock opened at $83.59 on Friday. The stock has a market cap of $918.49 million, a P/E ratio of 61.92 and a beta of 0.92. Graham has a 12-month low of $24.78 and a 12-month high of $84.58. The business’s 50 day moving average is $68.12 and its 200-day moving average is $59.41.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on GHM shares. Wall Street Zen upgraded Graham from a “sell” rating to a “hold” rating in a report on Sunday, November 16th. Northland Securities cut Graham from an “outperform” rating to a “market perform” rating and set a $80.00 price objective for the company. in a research report on Tuesday, January 27th. Weiss Ratings upgraded Graham from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday. Finally, Noble Financial cut Graham from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 21st. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $72.50.

Key Headlines Impacting Graham

Here are the key news stories impacting Graham this week:

• Positive Sentiment: Q3 results beat on both EPS and revenue — EPS of $0.31 vs. ~$0.17 estimate and revenue $56.7M vs. ~$52.3M, signaling stronger demand and improved margins. Graham: Fiscal Q3 Earnings Snapshot
• Positive Sentiment: Official press release/corporate commentary highlights the quarter’s strength and provides management context on drivers (Defense, Energy & Process, Space). Useful for assessing sustainability of orders and backlog. Graham Corporation Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Company raised FY2026 revenue guidance to a $233.0M–$239.0M range (vs. consensus ~$235.9M), which supports the upside in the stock but keep an eye on how execution tracks against the midpoint. Graham Delivers Strong Q3 Results and Raises Guidance
• Positive Sentiment: At least one analyst raised the price target to $85, reflecting the better-than-expected quarter and refreshed guidance (can support further upside if upgrades continue). Graham (GHM) price target increased by 11.11% to 85.00
• Neutral Sentiment: Analyst and media write-ups summarizing the beat and guidance provide color, but investors should review the company slide deck and call for backlog, margin outlook, and capital allocation details before extrapolating future growth. View Press Release / Slide Deck

Institutional Trading of Graham

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Comerica Bank lifted its stake in Graham by 396.2% in the third quarter. Comerica Bank now owns 1,052 shares of the industrial products company’s stock valued at $58,000 after acquiring an additional 840 shares during the last quarter. BNP Paribas Financial Markets raised its holdings in shares of Graham by 62.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,063 shares of the industrial products company’s stock valued at $53,000 after purchasing an additional 410 shares during the period. Millennium Management LLC acquired a new stake in Graham in the 3rd quarter valued at about $207,000. Inceptionr LLC bought a new position in Graham during the third quarter worth about $211,000. Finally, Zacks Investment Management bought a new position in Graham during the third quarter worth about $219,000. 69.46% of the stock is owned by institutional investors.

About Graham

Graham Corporation (NYSE: GHM) is a U.S.-based industrial engineering company that designs, manufactures and services vacuum and heat transfer equipment. Its core offerings include liquid ring vacuum pumps, surface condensers, heat exchangers and custom-engineered vacuum systems. These products play a critical role in energy-intensive industries, where reliable removal of non-condensable gases and efficient heat exchange are vital to process performance.

The company’s technologies find application across a range of end markets, including power generation, petrochemical, oil and gas, LNG, and semiconductor manufacturing.