Graham (NYSE:GHM) Releases Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Graham (NYSE:GHM) posted its earnings results on Thursday. The industrial products company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.18, FiscalAI reports. The company had revenue of $69.76 million during the quarter, compared to analysts’ expectations of $71.07 million. Graham had a net margin of 5.05% and a return on equity of 12.38%.

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

• Profitability improved sharply: Fiscal Q2 revenue rose 6% to $69.8 million, while adjusted EBITDA increased 64% to a record $10.3 million. Gross margin expanded 650 basis points to 28.2%, reflecting better execution, favorable mix, and FlackTek’s contribution.
• Backlog and demand remain strong: Backlog reached a seventh consecutive record of $561 million, up 12% year over year, and first-half book-to-bill was 1.2x. Space backlog more than doubled, while defense backlog rose 10% and was 85% funded.
• Full-year guidance was reaffirmed at $285 million–$295 million in revenue and $35 million–$40 million in adjusted EBITDA, with gross margin expectations raised by about 50 basis points. Management also reiterated its FY2029 targets of 8%–10% annual organic growth and 14%–16% adjusted EBITDA margins.
• Energy and process remains a weak spot: Q2 revenue in the segment fell 17% amid softness in large capital projects and lower international sales. Management expects the unusually high Q2 gross margin to normalize somewhat, and noted that fiscal Q3 is typically the company’s lowest-revenue quarter.

Graham Price Performance

GHM traded up $5.80 on Friday, reaching $77.90. 273,652 shares of the stock were exchanged, compared to its average volume of 266,611. The company’s 50-day moving average price is $80.15 and its 200 day moving average price is $91.09. Graham has a fifty-two week low of $52.57 and a fifty-two week high of $125.82. The firm has a market capitalization of $914.51 million, a PE ratio of 67.74 and a beta of 1.16.

Graham News Roundup

Here are the key news stories impacting Graham this week:

• Positive Sentiment: Graham reported adjusted earnings of $0.52 per share, beating analyst estimates and rising from $0.31 a year earlier. Sales increased 6% to $69.8 million. Graham Corporation Reports Second Quarter Fiscal 2027 Results
• Positive Sentiment: Record backlog, stronger margins, and demand in defense and space were highlighted as important growth drivers, supporting expectations for future business and profitability. GHM Q3 CY2026 deep dive
• Negative Sentiment: Quarterly revenue of $69.8 million was below analysts’ roughly $71 million forecast, a possible concern despite the earnings beat and year-over-year sales growth. Graham Corporation misses sales expectations

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Wall Street Zen upgraded Graham from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. began coverage on Graham in a research note on Friday, October 2nd. They set an “overweight” rating and a $120.00 price target on the stock. Weiss Ratings downgraded shares of Graham from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, October 2nd. Finally, Oppenheimer decreased their price objective on shares of Graham from $130.00 to $115.00 and set an “outperform” rating for the company in a research report on Thursday, October 8th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Graham presently has a consensus rating of “Moderate Buy” and an average target price of $123.33.

Graham Company Profile

Graham Corporation (NYSE: GHM) is a U.S.-based designer and manufacturer of engineered equipment and systems for the defense, space, and commercial markets. The company develops thermal-management, fluid-handling, vacuum, and power-generation technologies used in demanding industrial and government applications.

Graham supplies equipment for naval vessels, including surface ships and submarines, as well as systems supporting aerospace and space programs. Its products and capabilities include condensers, heat exchangers, vacuum equipment, steam and gas ejectors, cryogenic systems, and integrated propulsion and power solutions.