GHM Overview

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.

Earnings Report: Graham Corp reported a profit of $3.09 million, or $0.28 per share, for the second quarter, down from $3.28 million, or $0.30 per share, in the previous year.

Adjusted Earnings: Excluding certain items, the company reported adjusted earnings of $3.43 million, or $0.31 per share.

Revenue Growth: The company's revenue increased by 23.3% to $66.03 million, compared to $53.56 million in the same period last year.

Future Guidance: Graham Corp provided full-year revenue guidance of $225 million to $235 million.

Acquisition Announcement: Graham Corporation has acquired specific assets of Xdot Bearing Technologies, a firm specializing in foil bearing technology, which is expected to enhance Graham's capabilities in high-speed rotating machines.

Integration and Growth Potential: The integration of Xdot's patented technology with Barber-Nichols' expertise aims to accelerate growth in high-performance markets, particularly in aerospace, defense, and energy transition sectors.

Business Strength: Flowserve Corporation is experiencing growth in its Pump and Flow Control Divisions, driven by strong demand in various global markets, particularly in North America, the Middle East, and Africa, with a notable increase in bookings across general industries and power end markets.

Expansion Efforts: The recent acquisition of MOGAS Industries has enhanced Flowserve's valve and automation product portfolio, contributing positively to sales growth and supporting its 3D growth strategy, which focuses on diversification, decarbonization, and digitization.

End Market Strength: Flowserve's strategic focus on investments in stormwater infrastructure and chemical production facilities, along with ongoing global investments in energy projects, has led to robust booking levels, including a record $1.1 billion in the second quarter of 2025.

Rewards to Shareholders: The company is committed to returning value to shareholders through significant dividend payments and share buybacks, having allocated over $108 million in the first half of 2025 for these purposes.

Appointment Announcement: Graham Corporation has appointed Mauro Gregorio to its Board of Directors, effective September 1, 2025, bringing extensive leadership experience from his previous roles, including President of the Performance Materials & Coatings division at Dow Inc.

Expertise and Vision: Mr. Gregorio's background in the Energy & Process markets and his commitment to innovation align with Graham's growth objectives, as expressed by President and CEO Matthew J. Malone, who anticipates his contributions will enhance the company's strategic plan and shareholder value.