Graham Acquires FlackTek for $35 Million
Graham announced the acquisition of FlackTek Manufacturing and FlackTek Sales. FlackTek will operate as a wholly owned subsidiary of Graham Corporation, maintaining its headquarters in Louisville, Colorado with a satellite location in Greenville, South Carolina, and will be integrated into Graham's financial, compliance, and operational infrastructure. Under the terms of the transaction, Graham acquired 100% of the equity of FlackTek for a purchase price of $35M, which was paid 85% in cash and 15% using 75,818 shares of Graham's common stock, along with the potential to earn an additional $25M in future performance-based cash earnouts over four years beginning with the company's fiscal year 2027, based upon achieving progressively increasing adjusted EBITDA performance targets each year. The base purchase price represents approximately 12x FlackTek's projected adjusted EBITDA for 2026.
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Artemis II Mission Progress and Stock Implications
- Launch Preparation Progress: NASA successfully moved the SLS rocket and Orion spacecraft to Launch Pad 39B at Kennedy Space Center on January 17, preparing for the Artemis II mission's approximately 10-day crewed flight test scheduled for February 6, marking a significant step towards returning humans to the moon.
- Market Potential Analysis: The long-term goals of the Artemis program include returning to the moon and exploring Mars, which is expected to boost stock performance for smaller companies like Karman Holdings, MDA Space, and Graham Corp., all of which play critical roles in the initiative.
- Karman Holdings Acquisition: Karman Holdings recently acquired Seemann Composites LLC for $220 million, expanding its operations into the maritime defense market while providing machining and welding services for key Artemis components, showcasing its growth potential in the aerospace sector.
- Graham Corp. Performance Growth: Graham Corp. reported a 23% year-over-year revenue increase to $66 million in its second-quarter earnings, with a significant rise in order volume leading to a book-to-bill ratio of 1.3, indicating strong market demand and optimistic future growth prospects.
Daily Upgrade Report for Validea's Peter Lynch Strategy - November 18, 2025
Validea's Upgrades: Today's upgrades for Validea's P/E/Growth Investor model, based on Peter Lynch's strategy, show increased ratings for several stocks, indicating improved fundamentals and valuations.
Mercantile Bank Corp (MBWM): This small-cap value stock in the Money Center Banks industry received a rating increase from 72% to 74%, reflecting its strong balance sheet and reasonable price relative to earnings growth.
Cheesecake Factory Inc (CAKE): The mid-cap value stock in the Restaurants industry also saw its rating rise from 72% to 74%, highlighting its solid fundamentals and valuation metrics.
Graham Corp (GHM): This small-cap growth stock in the Misc. Capital Goods industry achieved a significant rating increase from 87% to 91%, indicating strong interest based on its underlying fundamentals and valuation.
