Graham Corporation Earnings
Graham Corporation, a prominent force in designing and manufacturing essential fluid, power, heat transfer, and vacuum technologies, reported its financial results for the third quarter ending December 31, 2024. The company demonstrated significant growth and operational efficiency, evidenced by a strong rise in revenue and net income.
Key Financial Metrics
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $47.0M | $43.8M | +7.3% |
| Gross Profit Margin | 24.8% | 22.2% | +260 bps |
| Net Income per Diluted Share | $0.14 | $0.02 | +600% |
| Adjusted Net Income per Diluted Share | $0.18 | Not Provided | +38% |
Graham Corporation recorded a total revenue of $47.0 million, marking a commendable year-over-year increase of 7.3%. This growth was predominantly driven by strong performances in the defense and chemical/petrochemical markets. The significant improvement in the gross profit margin by 260 basis points to 24.8% can be attributed to better execution and enhanced pricing strategies.
Graham Corporation Results
The company reported a notable increase in net income per diluted share, surging by 600% year-over-year to $0.14. When adjusted, net income per diluted share was $0.18, showcasing an impressive 38% improvement. This growth reflects the company's successful strategy in capitalizing on demand and optimizing operational efficiency.
Revenue Breakdown
The revenue growth was widely distributed across Graham Corporation's key segments:
| Segment | Revenue Q3 2025 | Revenue Q3 2024 | YoY Change |
|---|---|---|---|
| Defense | $27.0M | $24.3M | +11.1% |
| Chemical/Petrochemical | $10.0M | $7.3M | +37% |
| Aftermarket | $9.7M | $9.5M | +2.4% |
In-Depth Analysis
The defense segment reported a substantial growth of 11.1%, driven by the successful launch and expansion of several defense programs, showcasing Graham Corporation's expertise and reliability in the industry. The chemical/petrochemical sector experienced even greater growth, expanding by 37% year-over-year due to elevated equipment sales and heightened demand.
Sales within the aftermarket segment were solid, increasing by 2.4%, which demonstrates the continued customer reliance on Graham's products for long-term operational support and effectiveness.
Key Developments
Throughout the quarter, Graham Corporation achieved significant operational milestones, cementing its status as a dynamic and adaptive participant in its markets. Orders for Q3 2025 reached $24.8 million, with notable demand in the defense, space, and aftermarket domains. The book-to-bill ratio stood at an enviable 1.0x, and the backlog reached an impressive $384.7 million, providing a solid foundation for future earnings potential.
Noteworthy is the company's robust financial position, with a cash reserve of $30.0 million and no debt. Capital expenditures increased as a strategic maneuver to expedite the execution of ongoing projects, further enhancing the company's operational capabilities.
Comments from Company Officers
Daniel J. Thoren, the CEO of Graham Corporation, emphasized the company's robust operational performance and high demand across crucial segments. He highlighted ongoing dialogues for emerging programs and customer expansions, reinforcing the corporation's confidence in reaching its long-term growth objectives.
Dividends and Share Repurchases
Graham Corporation did not announce any new dividend plans or share repurchase programs this quarter.
Graham Corporation Stock Forecast
Following the release of its earnings report, Graham Corporation's stock experienced a decline of roughly 4.91%, with the latest price recorded at $47.28. Despite this setback, the company maintains a market capitalization of $304,375,792.
Stock Price Projections
High Projection: Given the robust operational performance, ongoing project execution, and strategic financial position, the stock could potentially rebound to a range of $52 to $55, assuming continued demand and favorable market conditions.
Low Projection: Conversely, if market challenges persist or operational growth does not meet expectations, the stock could settle in the range of $44 to $46.
In summary, Graham Corporation remains well-positioned for sustained growth and stability, bolstered by its strategic initiatives and formidable order backlog. Investors and stakeholders should carefully monitor ongoing developments and market responses to continue assessing investment propositions effectively.
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