Graham Corporation · NYSE:GHM
Graham — Investor Presentation (October 2025)
34 slides from Graham's investor presentation, October 2025
Slide 1: Investor Presentation
Investor Presentation October 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: Graham at-a-Glance
Overview GRAHAM IS A MISSION CRITICAL SOLUTION SUPPLIER Graham at-a-Glance ACROSS THREE CORE END-MARKETS Defense 1936 Founded | 1968 IPO A GLOBAL LEADER in the Mission-critical fluid, power, and design and manufacture of heat transfer solutions for long- mission-critical fluid, power, term strategic
Slide 4: Investment Thesis
Overview Investment Thesis 13-15% Adj. EBITDA Margin(1) BY FY27 Margin Expansion Operational excellence drives margin expansion, supported by >20% ROIC(1) projects $483M BACKLOG(2) >20%+ ROIC(1) Extended Visibility Disciplined Growth Strategy Long-term visibility enables prioritized Strategic ROIC p
Slide 5: Business Overview
01 Business Overview 5
Slide 6: Graham Portfolio
DEFENSE ENERGY & PROCESS SPACE 01 | Business Overview Graham Portfolio Defense Energy & Process Space 58% of FY25 Revenue 35% of FY25 Revenue 7% of FY25 Revenue Military Torpedoes Small Aircraft Aircraft & Refining, Modular Satellites & Carriers / & Power Rocket Unmanned Petrochem, Nuclear Life Supp
Slide 7: Defense Portfolio
ENERGY & PROCESS SPACE DEFENSE 01 | Business Overview REVENUE ($ in millions) Defense Portfolio $121.9 CATEGORIES HIGHLIGHTS $99.5 • Strong and expanding demand supported by increased U.S. defense budgets and accelerated shipbuilding driven by geopolitical tensions $65.3 • Key supplier of mission-cr
Slide 8: Long-Cycle Visibility on Key Navy Nuclear Programs
ENERGY & PROCESS SPACE DEFENSE 01 | Business Overview Long-Cycle Visibility on Key Navy Nuclear Programs GRAHAM REVENUE OPPORTUNITY ~$1.7 BILLION(2) THROUGH 2056 BASED ON STRATEGIC PLATFORM PROJECTIONS CVN Ford Class Carrier SSN Virginia Class Subs SSBN Columbia Class Subs Torpedoes • 2 Completed •
Slide 9: Energy & Process Portfolio
DEFENSE SPACE ENERGY & PROCESS 01 | Business Overview REVENUE ($ in millions) Energy & Process Portfolio Energy & Process CATEGORIES HIGHLIGHTS $72.8 $73.3 $70.6 • Stable demand in traditional O&G energy markets and strong aftermarket demand from global energy and chemical customers $54.9 • Increasi
Slide 10: Space Portfolio
DEFENSE ENERGY & PROCESS SPACE 01 | Business Overview REVENUE1 ($ in millions) Space Portfolio $21.2 $5.3M Virgin CATEGORIES HIGHLIGHTS Orbit • Developing content commercial space through rocket engine $15.9M $14.7 turbopump systems and satellite launch support $13.3 • Positioned for long-term growt
Slide 11: Growth Enablement
Image credit: Blue Origin 11 02 Enablement Growth
Slide 12: Accelerating Growth From a Stable Foundation
STABILIZE IMPROVE GROWTH 02 | Growth Enablement STABILIZE COMPLETE, TRACKING TO FY27 TARGETS MOMENTUM BUILDING INTO IMPROVE & GROWTH PHASES TODAY Accelerating Growth From a Stable Foundation GROWTH Growth IMPROVE Improve STABILIZE Stabilize FY23 - 25 FY26 - 27 FY27 & Beyond 12
Slide 13: Stabilize Phase Completed
IMPROVE GROWTH STABILIZE 02 | Growth Enablement Credibility Through Action & Results FY25 FY21 25% 35% >20% Defense Energy & Process Revenue Revenue $97.5M $210M 75% 7% ROIC(1) Hurdle Rate Stabilize Phase Completed Energy & Process 58% Defense Space Expanded Portfolio Diversification Disciplined Cap
Slide 14: Phased Approach to Sustainable, Long-Term Growth
STABILIZE IMPROVE GROWTH 02 | Growth Enablement Phased Approach to Sustainable, Long-Term Growth PROACTIVELY POSITIONING THE BUSINESS TO LONG-TERM GROWTH TRENDS LEVERAGING CORE COMPETENCY DEFENSE ENERGY & PROCESS SPACE GRAHAM CORPORATE Rising Grid Demand From AI Naval Ship and Submarine Operational
Slide 15: Enabling the Growth Phase Through Product Lifecycle Expansion
STABILIZE IMPROVE GROWTH 02 | Growth Enablement Enabling the Growth Phase Through Product Lifecycle Expansion PRODUCT LIFECYCLE VALUE IDENTIFICATION c VALUE CREATION VALUE EXTRACTION Market & Technology & Commercialization Service & 1 2 & 3 4 Customer Need Product Solution Production Scale Aftermark
Slide 16: M&A Growth
02 | Growth Enablement 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 Fluid/power sectors supporting aerospace, defense, cryogenic, and niche industrial IN
Slide 17: Xdot Bearing Technologies Acquisition
02 | Growth Enablement 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
Slide 18: Financials
es as \- Stoo =e Financials tH an i : A |) OB 03
Slide 19: Revenue Performance
03 | Financials Revenue Performance 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 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Revenue Impacts ANNUAL $215.4 + Gr
Slide 20: Strong Gross Profit & Margin Expansion
03 | Financials 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% Strong Gross Profit & $2.0 $12.4 $12.8 $11.7 $16.0 $14.7 $40
Slide 21: Adjusted EBITDA & Net Income
Adjusted EBITDA & Adjusted EBITDA Margins(1) Net Income, Adj. Net Income Per Diluted Share & Margin(1) Net Income per diluted share QUARTERLY $7.7 Adj. Net Income per diluted share Q UA R T ER 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 22: Long-Term Demand For Graham Diversified Portfolio
03 | Financials 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 For FY22 FY23 FY24 FY2
Slide 23: Balance Sheet & Liquidity
03 | Financials 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) 01 M Cash used by operating activities STRONG BALANCE SHEET • Strong cash generation and fiscal discipline $7
Slide 24: FY26 Financial Outlook
03 | Financials 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 Expenditu
Slide 25: Advancing Toward Long-Term Goals with Strategic Actions
03 | Financials Advancing Toward Long-Term Goals with Strategic Actions Engaging with key Engaging with customers to Expanded capital and R&D Operational Excellence to drive stakeholders to empower, develop full life-cycle mission programs to support growth competitive positioning expand and broaden
Slide 26: Q&A
Q&A 26
Slide 27: Appendix
Appendix 27
Slide 28: Growth Index
Growth Businesses with Strategies for Expanding Margins Graham Market Positioning Higher Space Target Market Growth Drivers: • Targeting New Energy • Growing end markets and applications • Increasing Defense • Market share and market penetration Growth Index • Innovating • New products and solutions
Slide 29: Key Performance Metrics
Key Performance Metrics Key Performance Indicators In addition to the non-GAAP measures used in this The book-to-bill ratio is an operational measure that presentation, management uses the following key performance management uses to track the growth prospects of the metrics to analyze and measure t
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Net income $ 2,966 $ 3,281 $ 1,588 $ 4,395 $ 4,595 Acquisition & integration income, net (93) (587) (220) (270) (76) Equity-based compensation 344 434 426 753 532 ERP imp
Slide 31: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) FY 2021 FY2022 FY2023 FY2024 FY2025 Net income $ 2,374 $ (8,773) $ 367 $ 4,556 $ 12,230 Acquisition & integration expense (income), net - (1,243) 54 432 (1,170) Equity-based compensation 864 809 806 1,279 1,957
Slide 32: Adjusted Net Income & Adjusted Diluted EPS Reconciliation
Adjusted Net Income & Adjusted Diluted EPS Reconciliation Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Net income $ 2,966 $ 3,281 $ 1,588 $ 4,395 $ 4,595 Acquisition & integration income, net (93) (587) (220) (270) (76) Amortization of intangible assets 554 555 554 555 499 ERP implementation costs 342 20
Slide 33: Adjusted Net Income & Adjusted Diluted EPS Reconciliation
Adjusted Net Income & Adjusted Diluted EPS Reconciliation Three Months Ended Year Ended March 31, March 31, 2025 2024 2025 2024 Net income $ 4,395 $ 1,340 $ 12,230 $ 4,556 Acquisition & integration (income) expense (270) 158 (1,170) 432 Amortization of intangible assets 555 670 2,218 2,157 ERC tax c
Slide 34: Competitors
Competitors North America Market Principal Competitors Defense DC Fabricators; Joseph Oat; PCC; Triumph Aerospace; Xylem Energy & Process Croll Reynolds Company, Inc.; Gardner Denver, Inc.; Schutte Koerting; GEA Wiegand GmbH Ametek, Inc.; Concepts NREC; Curtiss Wright; Honeywell; Kratos Defense & Se