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

by · The Cerbat Gem

Graham (NYSE:GHM – Get Free Report) announced its earnings results on Thursday. The industrial products company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.18, FiscalAI reports. The business had revenue of $69.76 million during the quarter, compared to the consensus estimate of $71.07 million. Graham had a net margin of 4.53% and a return on equity of 11.09%.

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 Stock Up 8.0%

Shares of GHM traded up $5.80 during trading on Friday, reaching $77.90. The company’s stock had a trading volume of 273,652 shares, compared to its average volume of 258,936. The company has a market cap of $914.51 million, a price-to-earnings ratio of 67.74 and a beta of 1.16. The company has a fifty day moving average of $80.15 and a two-hundred day moving average of $91.09. Graham has a twelve month low of $52.57 and a twelve month high of $125.82.

More Graham News

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

Analysts Set New Price Targets

GHM has been the topic of several analyst reports. Weiss Ratings downgraded shares of Graham from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, October 2nd. JPMorgan Chase & Co. assumed coverage on shares of Graham in a research report on Friday, October 2nd. They issued an “overweight” rating and a $120.00 price objective for the company. Oppenheimer lowered their target price on Graham from $130.00 to $115.00 and set an “outperform” rating for the company in a research note on Thursday, October 8th. Finally, Wall Street Zen raised Graham from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $123.33.

Check Out Our Latest Stock Report on GHM

About Graham

(Get Free Report)

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.

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