Slide 1: Fourth Quarter and Full Year 2024 Teleconference
Graham Corporation Fourth Quarter and Full Year 2024 Teleconference June 7, 2024 Daniel J. Thoren, President and Chief Executive Officer Christopher J. Thome, Vice President - Finance and Chief Financial Officer www.GrahamCorp.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are
Slide 3: Results Validate Effectiveness of Strategic Growth and Profitability Initiatives
RESULTS VALIDATE THE EFFECTIVENESS OF STRATEGIC GROWTH AND PROFITABILITY INITIATIVES (All comparisons are to prior fiscal year) Record Revenue in FY24 Gross Margin Record Orders(1) $185.5M +18% 21.9% +570 bps $268.4M • Defense projects • Higher volume • Reflects repeat orders for critical • Aftermar
Slide 4: Strategic Approach Drives Growth and Diversified Revenue Mix
Strategic Approach Drives Growth and Diversified Revenue Mix Refining 16% FY 2021 Revenue: $97.5 Million Chem/Petrochem Defense 11% 54% Other 9% 22.2% Space 7% Defense 25% Other 12% Refining 41% Chem/Petrochem 25% FY 2024 Revenue: $185.5 Million 4
Slide 5: Record Revenue
Record Revenue Q4 record sales up $6.0 million or 14% ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERS + 43% defense + 37% Refining $47.6 $49.1 22% Aftermarket $45.1 $43.8 + $43.0 + 0% Chemical/petrochem - 60% Space Record yearly sales up $28.4 million or 18
Slide 6: Strong Gross Profit and Margin Expansion
Strong Gross Profit and Margin Expansion ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERS Q4 gross profit increased $5.5 million or 77% Margin expanded 930 bps to 25.9% $12.7 $11.0 $9.7 Yearly gross profit increased $15.2 million or 60% $7.2 $7.2 Margin expa
Slide 7: Strengthened Margins Drove Measurably Improved EPS
Strengthened Margins Drove Measurably Improved EPS ($ in millions; except per share date; narrative compared with prior-year period unless otherwise noted) NET INCOME (LOSS) PER DILUTED SHARE AND NET INCOME (LOSS) PER DILUTED SHARE AND ADJUSTED NET INCOME PER DILUTED SHARE(1) -QUARTERS ADJUSTED NET
Slide 8: Improved Adjusted EBITDA and Margin
Improved Adjusted EBITDA and Margin(1) ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERS Q4 Adj. EBITDA increased $1.5 million or 103% Margin expanded 260 bps to 6.0% $5.1 FY24 Adj. EBITDA increased $4.7 million or 56% $3.0 $3.0 Margin expanded 180 bps to 7.2
Slide 9: Cash Generation Enabled Debt Repayment and Strategic Investments
Cash Generation Enabled Debt Repayment and Strategic Investments ($ in millions) Cash from operating activities in FY24 was CAPITALIZATION $28.1M, more than double prior year March 31, March 31, 2024 2023 Paid off full debt balance of $12.5M during the year Cash and cash equivalents $16.9 $18.3 Acce
Slide 10: Record Full Year Orders Driven By U.S. Navy Programs
Record Full Year Orders(1) Driven By U.S. Navy Programs ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERS FY24 RECORD ORDERS (1) BY INDUSTRY $123.3 $20.1 $67.9 Refining 12% $50.8 $40.8 $34.9 $36.5 $103.2 $22.8 $15.6 $20.4 Defense $28.0 $33.0 $20.8 $20.4 66% C
Slide 11: Backlog of nearly $400 Million Provides Visibility and Stability
Backlog(1) of nearly $400 Million Provides Visibility and Stability ($ in millions; narrative compared with prior-year period unless otherwise noted) TOTAL BACKLOG(1) FY24 BACKLOG(1) : BY INDUSTRY $399.2 $390.9 Refining 8% $64.7 $62.5 $322.0 $313.3 Chem/ Petrochem 3% $301.7 Space 3% Defense $68.6 $6
Slide 12: Fiscal 2025 Revenue and Adjusted EBITDA Outlook
Fiscal 2025 Revenue and Adjusted EBITDA Outlook(1) Revenue: $200 million to $210 million FY25 Guidance(1) • Implies 11% revenue growth at midpoint of range • Implies 35% adjusted EBITDA(3) growth at midpoint Gross margin: 22% to 23% of range • Implies 9% adjusted EBITDA margin (3) at midpoint SG&A(2
Slide 13: Strategic Initiatives Furthering Progress Toward Long-term Goals
Strategic Initiatives Furthering Progress Toward Long-term Goals Engaging with customers to develop full life-cycle product opportunities • Middle East and India new equipment opportunities are increasing • Re-engaging market channels to expand aftermarket potential R&D focused on improving operatio
Slide 14: Supplemental Information
=6HM SUPPLEMENTAL INFORMATION
Slide 15: Disclaimer Regarding Key Performance Metrics
Disclaimer Regarding Key Performance Metrics Key Performance Indicators In addition to the foregoing non-GAAP measures, management uses the following key performance metrics to analyze and measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio.
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) ADJUSTED EBITDA FY 2023 FY 2024 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 Net income (loss) $ 676 $ (196) $ 368 $ (481) $ 367 $ 2,640 $ 411 $ 165 $ 1,340 $ 4,556 Acquisition & integration costs 54 - - - 54 - - 27
Slide 17: Adjusted Net Income and Adjusted Diluted EPS Reconciliation
Adjusted Net Income and Adjusted Diluted EPS Reconciliation ($ in thousands; except per share date) ADJUSTED NET INCOME FY 2023 FY 2024 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 Net income (loss) $ 676 $ (196) $ 368 $ (481) $ 367 $ 2,640 $ 411 $ 165 $ 1,340 $
Slide 18: Fourth Quarter and Full Year 2024 Teleconference
Graham Corporation Fourth Quarter and Full Year 2024 Teleconference June 7, 2024 Daniel J. Thoren, President and Chief Executive Officer Christopher J. Thome, Vice President - Finance and Chief Financial Officer www.GrahamCorp.com