Slide 1: Second Quarter Fiscal 2026 Financial Results
Second Quarter Fiscal 2026 Financial Results November 7, 2025 GRAHAM CORPORATION © 2025 GRAHAM CORPORATION, ALL RIGHTS 1 RESERVED
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: Strong Second Quarter Performance Driven by Robust Demand and Execution
Strong Second Quarter Performance Driven by Robust Demand and Financial Highlights Execution Across Product Portfolio Graham is a GLOBAL Q2 FY26 Highlights LEADER in the design and manufacture of mission- $66.0 +23% M Revenue critical fluid, power, vacuum, and heat transfer solutions 21.7% -220 bps
Slide 4: Organic Investments Fueling Future Growth
Organic Investments Fueling Future Growth Strategic >20% ROIC(1) projects nearing completion will drive sustainable growth DEFENSE ENERGY & PROCESS SPACE GRAHAM CORPORATE ✓ New Navy Facility in ✓ Renovated Assembly & ✓ Cryogenic Test Facility in ✓ IT infrastructure upgrade Batavia, NY completed Test
Slide 5: Xdot Bearing Technologies Acquisition
Acquisition strengthens BN’s position in advanced, energy-efficient rotating machinery markets Xdot Bearing Technologies Acquisition About Xdot • Specialized in foil bearing design and engineering for last 20 years • Holds patented technology improving performance and lowering cost • Served automoti
Slide 6: Revenue Performance
Revenue Performance ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERLY Q2 FY26 sales up $12.5 million or 23% $70.0 + 32% Defense $60.0 $66.0 + 17% Space $50.0 $59.3 $53.6 $55.5 + 11% Energy & Process $40.0 $47.0 + 0.3% Aftermarket (+15% YTD) $30.0 $20.0 $10.0
Slide 7: Strong Gross Profit & Margin Expansion
QUARTERLY ANNUAL 24.8% 27.0% 26.5% $18.0 23.9% 28.0% $60.0 24.9% 26.0% 21.7% 25.2% $16.0 23.0% $50.0 25.0% $14.0 $12.0 18.0% $40.0 24.0% $10.0 13.0% $30.0 23.0% $8.0 21.9% $6.0 8.0% $20.0 22.0% $4.0 3.0% $10.0 21.0% $2.0 Strong Gross Profit & $0.0 $12.8 $11.7 $16.0 $14.7 14.3 -2.0% $0.0 $40.6 $52.9
Slide 8: Adjusted EBITDA & Adjusted EBITDA Margins
Adjusted EBITDA & Adjusted EBITDA Net Income, Adj. Net Income Per Diluted Share & Margins(1) Margin(1) QUARTERLY Net Income per diluted share Q U AR T E R LY Adj. Net Income per diluted share $0.45 $7.7 $0.43 $0.42 Percentages are net income margin $0.40 $6.8 6.3 and adj. net income margin $5.6 $0.3
Slide 9: Long-Term Demand For Graham Diversified Portfolio
Total Orders(1) Backlog(1) $500.1 $482.9 Defense Commercial $407.0 $65.1 $75.8 $412.3 $384.7 $320.8 $71.7 $79.6 $268.4 $77.6 $231.1 $91.4 $202.7 $91.0 $143.9 $417.8 $424.3 $96.5 $86.0 $327.4 $340.6 $307.1 $80.7 $229.4 $177.4 $116.7 $134.6 $63.2 Long-Term Demand FY22 FY23 FY24 FY25 TTM Q2 FY26 Q2 FY2
Slide 10: Balance Sheet & Liquidity
Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE Q2 FY26 Overview Capital Allocation Framework $13.6 Cash provided by operating activities 01 M STRONG BALANCE SHEET • Strong cash generation and fiscal discipline $4.1 M Capital
Slide 11: FY26 Financial Outlook
Fiscal 2026 Guidance Net Sales $225 million to $235 million Gross Margin(1) 24.5% to 25.5% of sales SG&A Expense (including amortization)(2) 17.5% to 18.5% of sales FY26 Financial Adjusted EBITDA(1)(3) $22 million to $28 million Outlook Effective Tax Rate 20% to 22% Capital Expenditures $15 million
Slide 12: Advancing Toward Long-Term Goals with Strategic Actions
Advancing Toward Long-Term Goals with Strategic Actions Engaging with customers to Expanded capital and R&D Engaging with key develop full life-cycle Operational Excellence to programs to support growth stakeholders to empower, mission critical product drive competitive positioning initiatives; targ
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix 14
Slide 15: M&A Growth
M&A Growth OPPORTUNISTIC ACQUISITION STRATEGY TO SUPPLEMENT 8-10% ANNUAL ORGANIC GROWTH EXPECTATIONS TARGET CATEGORY ATTRIBUTES COMPANY TYPE U.S. based, privately held, independently operated INDUSTRY FOCUS Fluid/power sectors supporting aerospace, defense, cryogenic, and niche industrial markets VA
Slide 16: Key Performance Metrics
Key Performance Metrics Key Performance Indicators In addition to the non-GAAP measures used in this presentation, The book-to-bill ratio is an operational measure that management uses the following key performance metrics to management uses to track the growth prospects of the analyze and measure t
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Net income $ 3,090 $ 3,281 $ 7,685 $ 6,247 Acquisition & integration income, net (87) (587) (163) (680) ERP Implementation cos
Slide 18: Adjusted Net Income & Adjusted Diluted EPS Reconciliation
Adjusted Net Income & Adjusted Diluted EPS Reconciliation Three Months Ended Six Months Ended September 30, September 30, 2025 2024 2025 2024 Net income $ 3,090 $ 3,281 $ 7,685 $ 6,247 Acquisition & integration income, net (87) (587) (163) (680) Amortization of intangible assets 498 555 997 1,109 ER