Graham(NYSE) GHM

Graham makes machines that help submarines run and rockets fly. These tools move heat and fluids for the military and space firms. They help energy plants turn raw materials into fuel and chemicals.

What Graham Builds

• Defense Equipment: Power plant systems, torpedo propulsion, and thermal management for the US Navy; accounts for 60% of total sales.
• Energy and Process Systems: Heat transfer and vacuum tools for oil refineries and chemical plants; accounts for 34% of total sales.
• Space Technology: Rocket pumps and life support systems for space exploration and satellite cooling.
• Advanced Mixing: Bladeless centrifugal mixers used to process batteries, medicines, and industrial coatings.

Recent Strategic Moves

• Completed the acquisition of Xdot Bearing Technologies on October 20, 2025, to expand high-speed rotating machine capabilities.
• Acquired FlackTek Manufacturing and FlackTek Sales on January 23, 2026, to add patented precision mixing technology.
• Launched the NextGen steam ejector nozzle in fiscal 2025 to help refineries lower fuel use and carbon footprints.
• Integrated patented pump and compressor technology from the acquisition of P3 Technologies to improve equipment efficiency.

Why Engineering Matters

The company uses specialized welding and milling to build machines that meet strict military and industrial standards. Its ability to manage complex, custom orders from design to service life creates high barriers for competitors.

The Financial Scorecard

• Revenue reached $67 million in Q4 2025, up 13% from the previous year.
• Net income was $2 million in Q4 2025, down 55% year-over-year.
• Funded and unfunded backlog grew to $532 million at March 31, 2026, up from $412 million the prior year.
• Operating income was negative $135,000 in Q4 2025, worsening from $5.5 million in the same period last year.

Evolution and Adaptability

Graham has shifted from a cyclical energy focus to a diversified supplier for national defense and space exploration. This move into mission-critical government programs provides a larger and more stable project pipeline.