olivLaw · US equity research
Graham Corporation GHM
General Industrial Machinery & Equipment · SIC 3560 · Vertical: General Industrial Machinery & Equipment (SIC 3560)
Graham Corporation designs and manufactures mission critical equipment for fluids, power, heat transfer, vacuum and advanced mixing for the defense, energy and process, and space industries. Sales rose to 245,293 thousand dollars in fiscal 2026 and backlog reached a record, which makes the company relevant to investors tracking its shift from a cyclical energy business toward defense and space. The 17% sales increase in fiscal 2026 shows momentum, but the concentration on defense customers remains a key point of analysis.
At the close of 04 Nov 2026, Graham Corporation (GHM) stock was 69.52 USD (−5.95% on the day), with market capitalisation 816.0 m USD, P/E 67.1 on diluted EPS of 1.04 USD over the last 12 months, dividend yield 0.00%, beta 1.79, 52-week range 53.56–123.79 USD. Latest reported quarter (Q1 2027): revenue of 71.3 m USD (+28.6% YoY), net income of 3.9 m USD (−14.9% YoY), diluted EPS 0.33 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 39.3
- weak (30–45)
- Bollinger (20, 2)
- 62.07 – 81.81
- in the lower half of the band · %B 0.38 · band width 27.4%
- SMA 50 / 200
- 80.88 / 91.29
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -3.58 / -4.39
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −23.2% | −1.1% | −22.1 pp | — |
| 3 months | −33.5% | −0.5% | −33.0 pp | — |
| 6 months | −28.1% | +4.4% | −32.5 pp | — |
| Year to date | +8.2% | +12.3% | −4.1 pp | — |
| 1 year | +12.2% | +13.5% | −1.4 pp | +12.6% |
| 3 years | +309.2% | +76.4% | +232.8 pp | +46.8% |
| 5 years | +406.3% | +63.7% | +342.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 53.6 m | 47.0 m | 59.3 m | 55.5 m | 66.0 m | 56.7 m | 67.1 m | 71.3 m |
| Cost of revenue | 40.8 m | 35.4 m | 43.3 m | 40.8 m | 51.7 m | 43.2 m | 51.8 m | 53.5 m |
| Gross profit | 12.8 m | 11.7 m | 16.0 m | 14.7 m | 14.3 m | 13.5 m | 15.3 m | 17.8 m |
| SG&A | 8.7 m | 9.3 m | 10.3 m | 9.4 m | 9.8 m | 10.1 m | 12.2 m | 12.6 m |
| Operating income | 4.2 m | 2.2 m | 5.5 m | 5.0 m | 4.3 m | 3.1 m | 2.7 m | 4.2 m |
| Depreciation & amortisation | 1.4 m | 1.5 m | 1.6 m | 1.5 m | 1.6 m | 2.0 m | 2.7 m | 2.7 m |
| Pre-tax income | 4.3 m | 2.2 m | 5.6 m | 5.0 m | 4.2 m | 3.2 m | 2.3 m | 4.2 m |
| Income tax | 1.0 m | 659.0 k | 1.2 m | 418.0 k | 1.1 m | 358.0 k | 351.0 k | 271.0 k |
| Net income | 3.3 m | 1.6 m | 4.4 m | 4.6 m | 3.1 m | 2.8 m | 2.0 m | 3.9 m |
| Diluted EPS | 0.30 | 0.14 | 0.39 ≈ | 0.42 | 0.28 | 0.25 | 0.18 ≈ | 0.33 |
| Operating cash flow | 13.9 m ≈ | 5.2 m ≈ | -3.6 m | -2.3 m | 13.6 m ≈ | 4.8 m ≈ | -151.0 k | -12.7 m |
| Capex | 3.5 m ≈ | 7.3 m ≈ | 5.2 m | 7.0 m | 4.1 m ≈ | 2.3 m ≈ | 2.6 m | 2.6 m |
| Share repurchases | 44.0 k ≈ | 0 ≈ | 0 | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 68 percentile of its own 25-quarter history (min 26.2, median 59.3, max 13,997.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 91.8 m | 90.6 m | 97.5 m | 122.8 m | 157.1 m | 185.5 m | 209.9 m | 245.3 m |
| Revenue YoY | +18.4% | −1.3% | +7.6% | +26.0% | +27.9% | +18.1% | +13.1% | +16.9% |
| Net income | -308.0 k | 1.9 m | 2.4 m | -8.8 m | 367.0 k | 4.6 m | 12.2 m | 12.5 m |
| Net income YoY | unavailable | unavailable | +26.8% | −469.5% | unavailable | +1,141.4% | +168.4% | +2.2% |
| Diluted EPS | -0.03 | 0.19 | 0.24 | -0.83 | 0.03 | 0.42 | 1.11 | 1.12 |
| Diluted EPS YoY | unavailable | unavailable | +26.3% | −445.8% | unavailable | +1,300.0% | +164.3% | +0.9% |
| net % | -0.3% | 2.1% | 2.4% | -7.1% | 0.2% | 2.5% | 5.8% | 5.1% |
| Free cash flow | 5.8 m | -1.2 m | -3.9 m | -4.5 m | 10.2 m | 18.9 m | 5.4 m | -121.0 k |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 6.6 m USD
- Financial debt
- 13.0 m USD
- Net debt
- 6.4 m USD
- Equity
- 140.3 m USD
- Total assets
- 323.6 m USD
- Debt / equity
- 0.09x
- Current ratio
- 1.00x
- ROE
- 9.6%
- ROA
- 4.3%
- FCF margin
- -0.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 97.5 m | 122.8 m | 157.1 m | 185.5 m | 209.9 m | 245.3 m | SEC (XBRL)· 08 Jun 2026verified |
| Cost of revenue | 77.0 m | 113.7 m | 131.7 m | 144.9 m | 157.0 m | 187.5 m | SEC (XBRL)· 08 Jun 2026verified |
| Gross profit | 20.5 m | 9.1 m | 25.4 m | 40.6 m | 52.9 m | 57.8 m | SEC (XBRL)· 08 Jun 2026verified |
| Research & development | 3.4 m | 3.8 m | 4.1 m | 3.9 m | 4.0 m | 6.4 m | SEC (XBRL)· 08 Jun 2026verified |
| SG&A | 17.5 m | 20.4 m | 23.1 m | 32.2 m | 37.1 m | 41.6 m | SEC (XBRL)· 08 Jun 2026verified |
| Operating income | 3.0 m | -11.3 m | 1.3 m | 6.9 m | 15.2 m | 15.0 m | SEC (XBRL)· 08 Jun 2026verified |
| Depreciation & amortisation | — | — | 6.0 m | 5.4 m | 5.9 m | 7.8 m | SEC (XBRL)· 08 Jun 2026verified |
| EBITDA | — | — | 7.2 m ≈ | 12.4 m ≈ | 21.1 m ≈ | 22.9 m ≈ | SEC (XBRL)· 08 Jun 2026derived |
| Interest expense | 11.0 k | 400.0 k | 939.0 k | 248.0 k | -583.0 k | -257.0 k | SEC (XBRL)· 08 Jun 2026verified |
| Pre-tax income | 3.3 m | -11.2 m | 561.0 k | 5.6 m | 15.4 m | 14.8 m | SEC (XBRL)· 08 Jun 2026verified |
| Income tax | 893.0 k | -2.4 m | 194.0 k | 1.0 m | 3.2 m | 2.3 m | SEC (XBRL)· 08 Jun 2026verified |
| Net income | 2.4 m | -8.8 m | 367.0 k | 4.6 m | 12.2 m | 12.5 m | SEC (XBRL)· 08 Jun 2026verified |
| Diluted EPS | 0.24 | -0.83 | 0.03 | 0.42 | 1.11 | 1.12 | SEC (XBRL)· 08 Jun 2026verified |
| Weighted average diluted shares | 10.0 m | 10.5 m | 10.7 m | 10.8 m | 11.1 m | 11.1 m | SEC (XBRL)· 08 Jun 2026verified |
| Dividend per share | 0.44 | 0.33 | 0.00 | 0.00 | — | — | SEC (XBRL)· 07 Jun 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 59.5 m | 14.7 m | 18.3 m | 16.9 m | 21.6 m | 6.6 m | SEC (XBRL)· 08 Jun 2026verified |
| Receivables | 17.4 m | 27.6 m | 24.0 m | 44.4 m | 35.5 m | 33.8 m | SEC (XBRL)· 08 Jun 2026verified |
| Inventories | 17.3 m | 17.4 m | 26.3 m | 33.4 m | 40.0 m | 50.8 m | SEC (XBRL)· 08 Jun 2026verified |
| Current assets | 120.2 m | 87.2 m | 110.1 m | 126.3 m | 141.4 m | 156.5 m | SEC (XBRL)· 08 Jun 2026verified |
| Property, plant & equipment, net | 17.6 m | 24.9 m | 25.5 m | 32.1 m | 50.6 m | 60.3 m | SEC (XBRL)· 08 Jun 2026verified |
| Goodwill | 0 | 23.5 m | 23.5 m | 25.5 m | 25.5 m | 38.1 m | SEC (XBRL)· 08 Jun 2026verified |
| Intangibles (excl. goodwill) | — | — | 20.8 m | 25.8 m | 23.6 m | 38.7 m | SEC (XBRL)· 08 Jun 2026verified |
| Total assets | 144.3 m | 183.7 m | 203.9 m | 233.9 m | 264.1 m | 323.6 m | SEC (XBRL)· 08 Jun 2026verified |
| Accounts payable | 18.0 m | 16.7 m | 20.2 m | 20.8 m | 27.3 m | 25.7 m | SEC (XBRL)· 08 Jun 2026verified |
| Short-term debt | 0 | 0 | 0 | 0 | — | — | SEC (XBRL)· 07 Jun 2024verified |
| Long-term debt | 0 | 16.4 m | 9.7 m | 0 | 0 | 13.0 m | SEC (XBRL)· 08 Jun 2026verified |
| Current liabilities | 43.6 m | 59.4 m | 86.2 m | 118.2 m | 136.2 m | 156.3 m | SEC (XBRL)· 08 Jun 2026verified |
| Total liabilities | 46.4 m | 87.2 m | 107.0 m | 128.3 m | 144.5 m | 183.3 m | SEC (XBRL)· 08 Jun 2026verified |
| Equity | 97.9 m † | 96.5 m † | 96.9 m † | 105.6 m † | 119.6 m † | 140.3 m † | SEC (XBRL)· 08 Jun 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -1.7 m | -2.2 m | 13.9 m | 28.1 m | 24.3 m | 15.9 m | SEC (XBRL)· 08 Jun 2026verified |
| Capex | 2.2 m | 2.3 m | 3.7 m | 9.2 m | 19.0 m | 16.1 m | SEC (XBRL)· 08 Jun 2026verified |
| Free cash flow | -3.9 m ≈ | -4.5 m ≈ | 10.2 m ≈ | 18.9 m ≈ | 5.4 m ≈ | -121.0 k ≈ | SEC (XBRL)· 08 Jun 2026derived |
| Investing cash flow | 32.4 m | -57.1 m | -3.7 m | -16.0 m | -19.1 m | -43.1 m | SEC (XBRL)· 08 Jun 2026verified |
| Financing cash flow | -4.5 m | 14.4 m | -6.4 m | -13.4 m | -521.0 k | 12.0 m | SEC (XBRL)· 08 Jun 2026verified |
| Dividends paid | 4.4 m | 3.5 m | 0 | 0 | — | — | SEC (XBRL)· 07 Jun 2024verified |
| Share repurchases | 23.0 k | 41.0 k | 21.0 k | 58.0 k | 854.0 k | — | SEC (XBRL)· 09 Jun 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 40 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 816.0 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet87
- Growth100
- Valuation0
- Quality3
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 16.28 – 31.08 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/EBITDA26.00 – 31.08 (Mid 28.54)3 companies used · median multiple 13.3x · quartiles 12.0x – 14.5xGTES, IR, ZBRA
- Peers: P/E16.28 – 27.39 (Mid 25.80)8 companies used · median multiple 24.9x · quartiles 15.7x – 26.4xEFXT, GTEC, GTES, IR, ITW, TWIN, ZBRA, ZWS
- Dividend discount (DDM)unavailable · the base of the ratio is not positive
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 40/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 7.3% | 0 (vs peers) | 12% |
| Net margin · Quality | 4.5% | 13 (vs peers) | 7% |
| FCF conversion · Quality | -51.8% | 0 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 16.0% | 100 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 234.2% | 100 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | -1.2x | 100 (on a fixed band) | 12% |
| Interest coverage · Balance sheet | 55.3x | 100 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.2x | 36 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 67.1x | 0 (vs peers) | 12% |
| EV/EBITDA · Valuation | 33.9x | 0 (on a fixed band) | 12% |
| FCF yield · Valuation | -0.7% | 0 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet87/100 · 3/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality3/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation0/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
GRAHAM CORPORATION (GHM). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 245.3 m USD in 2026; YoY growth 16.9%; net margin 4.5%; ROE 7.5%; net debt/EBITDA -1.2x.
The estimated value range is 21.14–29.23 USD per share (median of 2 methods, agreement: same basis (multiples on one peer group, not independent confirmations)); assumptions are illustrative. Against the central value of 27.17 USD, the price of 69.52 USD leaves a potential of -60.9% (value / price − 1) and a margin of safety of -155.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 40/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 16.0%
- EPS CAGR 3Y: 234.2%
- Net debt / EBITDA: -1.2x
- Interest coverage: 55.3x
What contradicts it
- ROIC: 7.3%
- Net margin: 4.5%
- FCF conversion: -51.8%
- P/E (TTM): 67.1x
- EV/EBITDA: 33.9x
- FCF yield: -0.7%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
General Industrial Machinery & Equipment (SIC 3560) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ITWIllinois Tool Works Inc | 83.4 bn | 26.1 | 101.7% | 19.4% | +0.9% | +18% / +21% |
| IRIngersoll Rand Inc. | 32.3 bn | 23.7 | 13.4% | 17.2% | +5.7% | +5% / +18% |
| ZBRAZebra Technologies Corporation | 15.7 bn | 26.8 | 16.5% | 9.8% | +8.3% | +32% / +40% |
| ZWSZurn Elkay Water Solutions Corporation | 7.5 bn | 26.3 | 17.7% | 15.9% | +8.3% | −5% / +53% |
| GTESGates Industrial Corporation Ltd. | 6.1 bn | 17.0 | 10.6% | 10.4% | +1.0% | +7% / +100% |
| EFXTEnerflex Ltd | 2.5 bn | 39.3 | 6.0% | 2.5% | +6.5% | +46% / +377% |
| GHMGraham Corporation | 816.0 m | 67.1 | 7.5% | 4.5% | +16.9% | +12% / +309% |
| TWINTwin Disc, Incorporated | 370.7 m | 11.9 | 16.3% | 8.0% | +11.9% | +64% / +86% |
| GTECGreenland Technologies Holding Corporation | 10.7 m | 0.9 | 16.0% | 12.3% | +8.0% | −51% / −79% |
1- and 3-year price returns: for GHM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 44.17 Total return -36% · Per year -36% | 77.74 Total return 12% · Per year 12% | 116.61 Total return 68% · Per year 68% |
| 3 years | 52.40 Total return -25% · Per year -9% | 102.81 Total return 48% · Per year 14% | 167.92 Total return 142% · Per year 34% |
| 5 years | 62.15 Total return -11% · Per year -2% | 135.97 Total return 96% · Per year 14% | 241.80 Total return 248% · Per year 28% |
- Exit P/E± 25.70
- Net margin± 17.99
- Annual revenue growth± 13.42
- Annual dilution± 1.51
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Graham Corporation designs and manufactures mission critical equipment for fluids, power, heat transfer, vacuum and advanced mixing for the defense, energy and process, and space industries. Sales rose to 245,293 thousand dollars in fiscal 2026 and backlog reached a record, which makes the company relevant to investors tracking its shift from a cyclical energy business toward defense and space. The 17% sales increase in fiscal 2026 shows momentum, but the concentration on defense customers remains a key point of analysis.
SWOT
Strengths
- The company holds a strategic supplier position and, in many cases, a sole source position for defense systems, which gives long-term stability and visibility 1.
- The ability to manage complex custom orders with high-level integrated engineering is a competitive advantage recognized by management 1.
- The balance sheet strengthened in the first quarter of fiscal 2027 with no debt outstanding, giving flexibility for investment 3.
Weaknesses
- Customer concentration is high, and a few large customers make up a substantial part of sales, which amplifies the risk of losing one important contract 1.
- Gross margins declined due to a sales mix with lower margins and higher material and tariff costs 12.
- Large orders are lumpy and quarterly results can be volatile, which makes short-term forecasting difficult 1.
Opportunities
- If defense and space programs expand, the company could strengthen its position as a supplier for new generations of ships and systems 12.
- Integrating recent acquisitions could open new markets for advanced mixing and high-speed bearings 1.
- Demand for new energy, including modular reactors and hydrogen, could generate additional orders in the energy and process segment 13.
Threats
- Cuts in federal spending or interruption of annual defense program funding could directly affect demand and revenue 1.
- Geopolitical uncertainty and tariffs could further delay large capital projects in energy 1.
- Competitors may respond to the company's defense market penetration, and customers may look to foreign suppliers if deliveries are delayed 1.
Risks
- Concentration on the U.S. Navyhigh
Most defense customers ultimately depend on the same end customer, which creates risk if funding or program interruptions occur 1.
- Fixed-price contractshigh
A substantial part of sales comes from fixed-price contracts, and cost overruns or delays can reduce profitability 1.
- Government shutdownsmedium
Lapses in federal appropriations can prevent shipments abroad and affect relationships with customers 1.
- Quarterly volatilitymedium
Large defense contracts can be delayed during the revenue recognition cycle, increasing short-term volatility in results 1.
- Integration of acquisitionsmedium
Integrating FlackTek and Xdot and paying conditional earn-outs may consume resources and create unexpected costs 12.
Investment thesis
What would need to be true (bull case)
- Defense and space demand is growing and the order backlog has reached a record level, which gives visibility for the coming period 13.
- The sole source position on certain defense systems and a broader customer base from recent acquisitions could support long-term growth and margins 12.
- A strengthened balance sheet with no debt gives flexibility for new investments and acquisitions without refinancing pressure 3.
What would break the thesis
- Dependence on one final customer and on annual funding of defense programs makes revenue vulnerable to budget or political changes 1.
- Gross margins have declined, and fixed-price contracts expose the company to cost increases it cannot fully pass on to customers 12.
- Traditional energy markets remain weak, and further delays in large projects could extend pressure on energy orders 1.
What to watch
- Delivery of fiscal 2027 sales guidance and gross margin targetnext 10-K
- Contribution of FlackTek and Xdot to quarterly revenue and marginsQ2 2027
- Resumption of large capital project orders in energy and process2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Graham Corporation (NYSE: GHM) is a global leader in designing and manufacturing mission critical fluid, power, heat transfer, vacuum and advanced mixing technologies 1. Its products serve the defense, energy and process, and space industries, from nuclear and non-nuclear propulsion systems for the U.S. Navy to pumps for rocket engines. The corporate headquarters is co-located with production facilities in Batavia, NY, and the company relies on custom engineering for complex, made-to-order orders 1.
Over the past year Graham expanded its portfolio through acquisitions: Xdot Bearing Technologies, a foil bearing specialist integrated into Barber-Nichols, and FlackTek, a provider of advanced mixing solutions acquired in January 2026 1. Both deals aim to extend the company's ability to deliver high-speed rotating machines and mixing systems into new markets. The company describes its move from a highly cyclical energy business to a diversified business across defense, space and process 1.
Graham sells mainly through directly employed sales engineers, and its principal customers include tier one and tier two defense and aerospace suppliers, refineries, petrochemical plants and engineering firms that build installations 1. Two customers each accounted for more than 10% of revenue in fiscal 2026 1, so the relationship with a small number of large customers is central to the company's results.
Segments
Defense
The defense segment, dominated by U.S. Navy programs, covers systems for aircraft carriers, submarines and torpedoes, as well as thermal management and advanced mixing systems 1. Defense sales represented 60% of the business in fiscal 2026 1, and the backlog is concentrated in the same proportion, which gives visibility but also dependence on federal program funding.
Energy and process
The energy and process segment covers vacuum, heat transfer, turbines, compressors and mixing equipment for refineries, petrochemicals, fertilizers, food and alternative energy such as hydrogen and small modular reactors 1. Orders for large capital projects in this segment were delayed, while aftermarket orders and demand for new energy supported activity 23.
Market context
The company operates in markets supported by defense budgets and naval shipbuilding programs, but also in energy markets in transition, where investment in large projects has been delayed by gas price volatility, tariffs and geopolitical uncertainty 1. Over the long term, management expects population growth and a growing global middle class to support demand for new capacity in petrochemicals and fertilizers 1.
Guidance for fiscal 2027 calls for net sales of 285 to 295 million dollars and a gross margin of 24.5% to 25.5% 3. These targets remain conditional on the timing of large projects and on execution of defense programs, and if delays in energy persist, the growth pace could be slower than announced.
Trends
Competitive position
The market is highly competitive, and Graham competes on technology, price, performance, reputation, delivery and quality 1. In defense, the company often holds a sole source position for certain systems, which protects it from outside competition 1.
In energy and process, competition comes from firms specializing in pumps, compressors and turbomachinery, as well as producers of mixers, and outside North America local producers in Asia and Europe also appear 1. Competitive pressure is stronger on capital projects than on aftermarket parts.
- Gardner Denver
Competitor in pumps and equipment for energy and process, listed among the company's competitors 1.
- L3Harris TechnologiesLHX
Competitor in turbomachinery for defense and space, named in the competitive analysis 1.
- AmetekAME
Competitor in turbomachinery for defense and space, included among the principal competitors 1.
- Kratos Defense & Security SolutionsKTOS
Competitor in turbomachinery for defense and security systems, named as a rival in the defense segment 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Time to rethink sanctions against Russia: a realistic way aheadNew Eastern Europe (PL, EN) · 05 Nov 2026 · EN
- Cei mai mari câștigători și perdanți ai alegerilor din SUASpotMedia.ro · 05 Nov 2026 · RO
- „Premiere” istorice în alegerile intermediare din SUA - Vietnam.vnSurge — Google News · 05 Nov 2026 · RO
- Key Pentagon priorities in peril after Democratic sweepAxios · 04 Nov 2026 · EN
- Democrats took Congress overnight, but Ukraine isn’t their top-three priority: What midterm win really means for KyivEuromaidan Press (UA, EN) · 04 Nov 2026 · EN
- Alegeri în SUA: Premiere istorice pentru femei și minorități - radioromania.roSurge — Google News · 04 Nov 2026 · RO
- US midterms 2026: Five key takeaways as Democrats sweep CongressCGTN — World · 04 Nov 2026 · EN
- Trump Loses Congress, but Retains Control of World Politics - Ziarul BursaBURSA.ro · 04 Nov 2026 · RO
- Trump arată cu degetul spre propriul partid după victoria democraților: Am crezut că se vor descurca mai bine - Cotidianul ROSurge — Google News · 04 Nov 2026 · RO
- Cine e pediatra care i-a dat planurile peste cap lui Donald Trump. Cum a învins-o pe sora senatorului decedat subit în vară - PRO TV.roSurge — Google News · 04 Nov 2026 · RO
- „Tsunami albastru” în SUA. Imagini cu bucuria de la americani, după ce democrații au câștigat majoritatea în Congres - Stirile ProTVSurge — Google News · 04 Nov 2026 · RO
- Alegeri intermediare din SUA: Democrații își recapătă majoritatea, Trump își exprimă opinia - Vietnam.vnSurge — Google News · 04 Nov 2026 · RO
- O serie de victorii „în primă fază” la alegerile de la jumătatea mandatului din SUA. - Vietnam.vnSurge — Google News · 04 Nov 2026 · RO
- Reacții internaționale și detalii electorale: Obama salută victoria Democrată, Ghalibaf interpretat respingerea războiului - www.goldring.roSurge — Google News · 04 Nov 2026 · RO
- „Valul albastru” a cuprins noaptea alegerilor de la jumătatea mandatului din SUA. - Vietnam.vnSurge — Google News · 04 Nov 2026 · RO
- Cele mai mari surprize la alegerile din SUA: Bastioanele republicane care au căzut în fața democraților - UnimediaSurge — Google News · 04 Nov 2026 · RO
- Alegeri SUA 2026. Victorie zdrobitoare a democraților care obțin majoritatea în Camera Reprezentanților și în Senat. Surprize uriașe în mai multe stateMediafax · 04 Nov 2026 · RO
- Democrații au câștigat alegerile intermediare (midterms) din SUA - R3mediaSurge — Google News · 04 Nov 2026 · RO
- Alegerile din SUA aduc premiere istorice: Prima femeie de culoare guvernator și primul senator homosexualSpotMedia.ro · 04 Nov 2026 · RO
- 11 historic firsts after the US elections - Spotmedia.roSpotMedia.ro · 04 Nov 2026 · RO
SEC filings
- Current report27 Aug 2026Shareholder vote
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement14 Jul 2026
- Current report18 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Current report17 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Annual report08 Jun 2026
- Current report08 Jun 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report05 Jun 2026Departure or appointment of officers · Financial statements and exhibits
- Current report15 Apr 2026Material agreement · Item 3.02 · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Graham Corporation · 08 Jun 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Graham Corporation · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Graham Corporation · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.