Graham(NYSE) GHM

Graham Corporation makes equipment that moves liquids and heat. These tools help power submarines, rockets, and energy plants. The company supports defense, space, and industrial customers.

Heat, Power, and Precision

• Defense Systems: Equipment for nuclear propulsion, thermal management, and power systems; accounted for 58% of net sales in the first quarter of fiscal 2027.
• Space Solutions: Turbomachinery and life support systems for rockets and satellites; made up 9% of net sales in the first quarter of fiscal 2027.
• Energy and Process Equipment: Heat exchangers and vacuum systems used in oil refining and chemical plants; represented 33% of net sales in the first quarter of fiscal 2027.
• Advanced Mixing: Patented technology used to process materials for electronics and adhesives; added $6.6 million to net sales in the first quarter of fiscal 2027.

Expanding Through Strategic Deals

• Acquired FlackTek on Jan. 23, 2026, to add advanced mixing and material processing technologies.
• Sold 600,000 shares of common stock on April 14, 2026, to raise $50 million for growth initiatives.
• Developed NextGen steam ejector nozzles to help industrial plants lower operating costs and carbon emissions.

Engineering for Critical Needs

Graham holds sole-source positions for several U.S. Navy systems, which helps limit direct competition. The company uses its expertise in heat transfer and vacuum technology to serve emerging markets like hydrogen and small modular nuclear reactors.

Record Orders and Growing Sales

• Net sales reached $71.3 million in the first quarter of fiscal 2027, up 29% year over year.
• Total backlog hit a record $557.2 million as of June 30, 2026, up 15% year over year.
• Orders for the first quarter of fiscal 2027 reached $95.9 million, supported by U.S. Navy submarine contracts.
• Cash and cash equivalents reached $27.0 million as of June 30, 2026, up from $6.6 million on March 31, 2026.

Bottom Line

Graham has transitioned from a traditional energy equipment maker into a diversified industrial company focused on defense. Its growing backlog and recent acquisitions support its expansion into high-tech space and alternative energy markets.