Graham Corporation Reports 23.8% Gross Margin for Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy GHM?
Source: moomoo
- Company Overview: Graham Corporation reported a gross margin of 23.8% for the third quarter.
- Financial Performance: The reported gross margin indicates a significant aspect of the company's financial health and operational efficiency.
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Analyst Views on GHM
Wall Street analysts forecast GHM stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 83.880
Low
100.00
Averages
100.50
High
101.00
Current: 83.880
Low
100.00
Averages
100.50
High
101.00
About GHM
Graham Corporation is engaged in the design and manufacture of mission-critical fluid, power, heat transfer and vacuum technologies for the defense, energy and process, and space industries. It designs and manufactures custom-engineered vacuum, heat transfer, cryogenic pump and turbomachinery technologies. For the defense industry, its equipment is used in nuclear and non-nuclear propulsion, power, fluid transfer, and thermal management systems. For the energy and process industries, the Company supplies equipment for vacuum, heat transfer, and fluid transfer applications used in oil refining, downstream chemical facilities, fertilizers, ethylene, methanol, edible oil, food and beverage, pulp and paper, and multiple alternative energy applications such as hydrogen, small modular nuclear, concentrated solar and geothermal processes. For the space industry, its equipment is used in propulsion, power and thermal management systems, and for life support systems.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

- Significant Revenue Growth: Graham Corporation reported Q3 revenue of $56.7 million, reflecting a 21% year-over-year increase driven by key milestones in defense projects and contributions from both new and existing programs, showcasing the company's strong execution across diversified markets.
- Strategic Acquisition Strengthening: The completion of the acquisition of Xdot Bearing Technologies enhances Graham's competitive position in aerospace, defense, and energy transition sectors, while the $35 million acquisition of FlackTek is expected to drive sustainable recurring revenue streams and optimize the revenue mix.
- Optimistic Outlook: CFO Thome raised the fiscal 2026 net sales guidance to a range of $233 million to $239 million and adjusted EBITDA expectations to between $24 million and $28 million, reflecting robust market demand and a record backlog, with 35% to 40% of the backlog expected to convert to revenue in the next 12 months.
- Investment and Expansion: The completion of the Navy manufacturing facility in Batavia and expansion projects in Colorado, along with a new cryogenic test facility in Florida, are set to enhance throughput and quality, supporting ongoing growth in defense and energy programs.
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- Earnings Beat: Graham Corporation reported a Q3 Non-GAAP EPS of $0.31, surpassing estimates by $0.13, which reflects a significant improvement in profitability and boosts market confidence in future growth.
- Strong Revenue Growth: The company achieved revenue of $56.7 million in Q3, marking a 20.5% year-over-year increase and exceeding market expectations by $4.35 million, indicating sustained demand for its products and driving overall performance.
- Significant EBITDA Increase: Adjusted EBITDA rose by 50% to $6.0 million, with an EBITDA margin of 10.7%, showcasing the company's success in cost control and operational efficiency, further solidifying its financial health.
- Updated Financial Guidance: Graham updated its fiscal 2026 guidance, projecting net sales between $233 million and $239 million, reflecting an optimistic outlook for future growth and a commitment to achieving 8% to 10% annual organic revenue growth.
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- Q3 Operating Income: Graham Corporation reported an operating income of USD 3.124 million for the third quarter.
- Financial Performance: The reported figure reflects the company's financial performance during the specified period.
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- Company Overview: Graham Corporation reported a gross margin of 23.8% for the third quarter.
- Financial Performance: The reported gross margin indicates a significant aspect of the company's financial health and operational efficiency.
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