Graham Corporation · NYSE:GHM
Graham — Q1 2027 Earnings Presentation
20 slides from Graham's earnings presentation, Aug 6, 2026
Slide 1: First Quarter Fiscal 2027 Financial Results
First Quarter Fiscal 2027 Financial Results August 6, 2026 GRAHAM CORPORATION 1 © 2025 GRAHAM CORPORATION, ALL RIGHTS 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 Performance Supported by Healthy End Market Demand and Strong Backlog
Strong First Quarter Performance Supported by Healthy End Market Financial Highlights Demand and Strong Backlog Graham is a GLOBAL Q1 FY27 Highlights LEADER in the design and manufacture of mission-critical $71.3 +29% M Revenue fluid, power, vacuum, heat transfer, and advanced mixing solutions 25.0%
Slide 4: Market Outlook
Market Outlook Revenue Market Vertical End Markets Exposure Trend Defense Expansion of defense budgets; Accelerating shipbuilding schedules; Geopolitical tensions; GHM quality and 58% execution; Advances in technology and production volume Macro Environment Space Accelerating launch cadence; Demand
Slide 5: Organic Investments Fueling Future Growth
Organic Investments Fueling Future Growth Strategic >20% ROIC(1) projects nearing completion will drive sustainable growth DEFENSE SPACE ENERGY & PROCESS GRAHAM CORPORATE ✓ New Navy Facility in ✓ Cryogenic Test Facility in ✓ Renovated Assembly & ✓ IT infrastructure upgrade Batavia, NY completed in J
Slide 6: Revenue Performance
Revenue Performance ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERLY Q1 FY27 sales up $15.9 million or 29% $80.0 + 86% Space $70.0 $71.3 + 40% Defense $60.0 $66.0 $67.1 $50.0 $56.7 + 20% Aftermarket $55.5 $40.0 + $6.6M Contributed by FlackTek $30.0 $20.0 $1
Slide 7: Strong Gross Profit & Steady Margins
QUARTERLY ANNUAL $20.0 26.5% 28.0% $70.0 26.0% 21.7% 25.0% 25.2% $18.0 23.8% 22.7% 23.0% $60.0 25.0% $16.0 $14.0 $50.0 23.5% 18.0% 23.3% 24.0% $12.0 $40.0 $10.0 13.0% 23.0% $30.0 $8.0 8.0% 22.0% $6.0 $20.0 $4.0 3.0% $10.0 21.0% Strong Gross Profit & $2.0 $14.7 $14.3 $13.5 $15.3 $17.8 $52.9 $57.8 $60
Slide 8: Adjusted EBITDA & Adjusted EBITDA Margins
Adjusted EBITDA & Adjusted EBITDA Net Income, Adj. Net Income Per Diluted Share & Margins(1) Margin(1) per Net Income per diluted share Adj. Net Income diluted share Percentages are net income margin and adj. net income margin $0.49 QUARTERLY Q UA R T E R LY $8.8 $0.42 $0.45 $6.8 $6.8 $0.31 $0.31 $0
Slide 9: Long-Term Demand For Graham Diversified Portfolio
Total Orders(1) Backlog(1) $532.6 $557.2 $500.1 $515.6 Defense $482.9 $86.7 Commercial $76.9 $82.5 $65.1 $75.8 $359.4 $329.4 $268.4 $107.2 $122.1 $231.1 $202.7 $91.0 $450.1 $470.5 $96.5 $417.8 $424.3 $438.8 $86.0 $116.7 $177.4 $134.6 $252.2 $207.3 Long-Term Demand FY23 FY24 FY25 FY26 TTM Q1 FY27 Q1
Slide 10: Balance Sheet & Liquidity
Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE Q1 FY27 Overview Capital Allocation Framework STRONG BALANCE SHEET $12.7 (2) M Cash used by operating activities • Strong cash generation and fiscal discipline • Completed $50 mi
Slide 11: Fiscal 2027 Outlook
Fiscal 2027 Outlook (As of August 6, 2026) Fiscal 2027 Guidance Net Sales $285 million to $295 million Gross Margin 24.5% to 25.5% of sales • FY 2027 guidance in-line with long-term goals SG&A expense (including amortization)(1)(2) 16.5% to 17.5% of sales Adjusted EBITDA(2)(3)(4) $35 million to $40
Slide 12: Driving the Next Phase of Growth: Three-Year Strategic Plan
Driving the Next Phase of Growth: Three-Year Strategic Plan (FY2027 – FY2029) 8% to 10% 14% - 16% Capital and R&D to support growth initiatives; targeted Organic Revenue Growth(2) Adjusted EBITDA Margin(2) ROIC(2) >20% Revenue Gross Profit % Adjusted EBITDA % Approaching $400 Top Quartile Revenue Gr
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix 14
Slide 15: M&A Growth
M&A Growth DISCIPLINED ACQUISITION STRATEGY TO SUPPLEMENT 8-10% ANNUAL ORGANIC GROWTH(1) EXPECTATIONS TARGET CATEGORY ATTRIBUTES COMPANY TYPE Privately held, independently operated INDUSTRY FOCUS Fluid/power sectors supporting aerospace, defense, cryogenic, and niche industrial markets MANAGEMENT Le
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 management uses the following key performance metrics to uses to track the growth prospects of the Company. The Company
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Net income $ 4,595 $ 3,090 $ 2,845 $ 1,970 $ 3,912 Acquisition & integration (income) expense, net (76) (87) 320 1,148 1,179 Equity-based compensation 532 553 642 404 645
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) FY 2025 FY 2026 TTM Q1 FY 2027 Net income $ 12,230 $ 12,500 $ 11,817 Acquisition & integration (income) expense, net (1,170) 1,305 2,560 ERP Implementation costs 882 213 333 Net interest income (583) (257) (200
Slide 19: Adjusted Net Income & Adjusted Diluted EPS Reconciliation
Adjusted Net Income & Adjusted Diluted EPS Reconciliation Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Net income $ 4,595 $ 3,090 $ 2,845 $ 1,970 $ 3,912 Acquisition & integration (income) expense, net (76) (87) 320 1,148 1,179 Amortization of intangible assets 499 498 510 999 1,050 ERP implementation co
Slide 20: Adjusted Net Income & Adjusted Diluted EPS Reconciliation
Adjusted Net Income & Adjusted Diluted EPS Reconciliation FY 2025 FY 2026 TTM Q1 FY 2027 Net income $ 12,230 $ 12,500 $ 11,817 Acquisition & integration (income) expense, net (1,170) 1,305 2,560 Amortization of intangible assets 2,218 2,506 3,057 ERP Implementation costs 882 213 333 Tax impact of ad