Graham Corporation · NYSE:GHM
Graham — Q1 2026 Earnings Presentation
17 slides from Graham's earnings presentation, Aug 5, 2025
Slide 1: First Quarter Fiscal 2026 Financial Results
First Quarter Fiscal 2026 Financial Results August 5, 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 First Quarter Results Driven by Continued Demand and Execution Across Product Portfolio
Strong First Quarter Results Driven by Continued Demand and Financial Highlights Execution Across Product Portfolio Graham is a GLOBAL Q1 FY26 Highlights LEADER in the design and manufacture of mission- $55.5 +11% RevenueM critical fluid, power, vacuum, and heat transfer solutions 26.5% +170 bps Gro
Slide 4: Organic Investments Fueling Future Growth
Organic Investments Fueling Future Growth Strategic >20% ROIC(1) projects nearing completion will drive sustainable growth DEFENSE ENERGY & PROCESS SPACE GRAHAM CORPORATE ✓ New Navy Facility ✓ Renovated Assembly & • P3 Cryogenic Test ✓ IT infrastructure completed in 1QFY26 Test Facility completed Fa
Slide 5: Revenue Performance
Revenue Performance ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERLY Q1 FY26 sales up $5.5 million or 11% $70.0 + 33% Energy & Process $60.0 + 33% Aftermarket $59.3 $50.0 $50.0 $53.6 $55.5 + 2% Defense $40.0 $47.0 ̶ 14% Space $30.0 $20.0 $10.0 $0.0 Q1 FY25
Slide 6: Strong Gross Profit & Margin Expansion
QUARTERLY ANNUAL $18.0 28.0% $60.0 25.6% 26.0% 27.0% 25.2% $16.0 26.5% 27.0% $50.0 25.0% $14.0 24.8% 26.0% $12.0 $40.0 24.0% $10.0 24.8% 25.0% 23.9% $30.0 23.0% $8.0 24.0% 21.9% $6.0 $20.0 22.0% 23.0% $4.0 22.0% $10.0 21.0% $2.0 Strong Gross Profit & $0.0 $12.4 $12.8 $11.7 $16.0 $14.7 21.0% $0.0 $40
Slide 7: Adjusted EBITDA & Adjusted EBITDA Margins
Adjusted EBITDA & Adjusted EBITDA Net Income, Adj. Net Income Per Diluted Share & Margins(1) Margin(1) Net Income per diluted share QUARTERLY $7.7 Adj. Net Income per diluted share Q U AR T E R LY $0.45 $0.43 $0.42 $6.8 Percentages are net income margin $0.40 and adj. net income margin $5.6 $0.33 $5
Slide 8: Long-Term Demand For Graham Diversified Portfolio
Total Orders(1) Backlog(1) Defense Commercial $482.9 $396.8 $407.0 $412.3 $65.1 $384.7 $301.2 $268.4 $69.0 $79.6 $71.7 $77.6 $231.1 $88.6 $202.7 $91.0 $143.9 $96.5 $417.8 $86.0 $327.8 $327.4 $340.6 $307.1 $80.7 $212.6 $177.4 $116.7 $134.6 $63.2 Long-Term Demand FY22 FY23 FY24 FY25 TTM Q1 FY26 Q1 FY2
Slide 9: Balance Sheet & Liquidity
Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE Q1 FY26 Overview Capital Allocation Framework $(2.3) M Cash used by operating activities $7.0 M Capital Expenditures 01 STRONG BALANCE SHEET • Strong cash generation and fiscal d
Slide 10: 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 Adjusted EBITDA(1)(3) $22 million to $28 million FY26 Financial Outlook Effective Tax Rate 20% to 22% Capital Expenditures $15 million
Slide 11: 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 12: Q&A
Q&A 12
Slide 13: Appendix
Appendix 13
Slide 14: 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 15: 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 analyze management uses to track the growth prospects of the and measure t
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended June 30, 2025 2024 Net income $ 4,595 $ 2,966 Acquisition & integration income, net (76) (93) Equity-based compensation 532 344 ERP implementation costs 23 342 Net interest income (177) (161)
Slide 17: Adjusted Net Income & Adjusted Diluted EPS Reconciliation
Adjusted Net Income & Adjusted Diluted EPS Reconciliation Three Months Ended June 30, 2025 2024 Net income $ 4,595 $ 2,966 Acquisition & integration income, net (76) (93) Amortization of intangible assets 499 554 ERP implementation costs 23 342 Tax impact of adjustments(1) (103) (185) Adjusted net i