Graham Corporation · NYSE:GHM
Graham — Investor Presentation (June 2025)
29 slides from Graham's investor presentation, Jun 12, 2025
Slide 1: Graham Corporation June 2025 Investor Presentation
GRAHAM CORPORATION JUNE 2025 Investor Presentation Exhibit 99.1
Slide 2: Safe Harbor Regarding Forward Looking Statements
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 subject to risks, unc
Slide 3: Graham at-a-Glance
A GLOBAL LEADER in the design and manufacture of mission-critical fluid, power, vacuum, and heat transfer solutions GRAHAM IS A MISSION CRITICAL SOLUTION SUPPLIER ACROSS THREE CORE END-MARKETS Space Provider of critical fluid management, propulsion technologies, and thermal management systems for go
Slide 4: Investment Thesis Overview
Margin Expansion Operational excellence drives margin expansion, supported by >20% ROIC(1) projects Disciplined Growth Strategy Strategic ROIC projects will drive margin expansion Experienced Team Proven management after repositioning and focused on next phase of growth Extended Visibility Long-term
Slide 5: Business Overview
01 | Business Overview
Slide 6: Graham Portfolio
GRAHAM DEVELOPS HIGHLY ENGINEERED, SPECIALIZED PRODUCTS SERVING MISSION CRITICAL FUNCTIONS Defense 58% of FY25 Revenue Aircraft Carriers / Nuclear Submarines Military Aircraft & High-Energy Cooling Torpedoes & Unmanned Underwater Vehicles Key Products: Condensers Heat Exchangers Air Turbine Pumps To
Slide 7: Defense Portfolio
REVENUE ($ in millions) Defense Portfolio 01 | Business Overview CUSTOMERS CATEGORIES HIGHLIGHTS SUMMARY Strong and expanding demand supported by increased U.S. defense budgets and accelerated shipbuilding driven by geopolitical tensions Key supplier of mission-critical systems for submarines, aircr
Slide 8: 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 Build Plan (1) Build Timeline (1) GHM Revenue Potential ~$300M (3) ~$800M (3) ~$500M (3) 1 every 4 years Expected completion by FY5
Slide 9: Energy & Process Portfolio
REVENUE ($ in millions) Energy & Process Portfolio 01 | Business Overview CUSTOMERS CATEGORIES HIGHLIGHTS SUMMARY Stable demand in traditional O&G energy markets and strong aftermarket demand from global energy and chemical customers Increasing growth opportunities in international markets such as I
Slide 10: Space Portfolio
REVENUE1 ($ in millions) Space Portfolio 01 | Business Overview CUSTOMERS CATEGORIES HIGHLIGHTS SUMMARY Developing content commercial space through rocket engine turbopump systems and satellite launch support Positioned for long-term growth from extended space exploration and next-gen aerospace prop
Slide 11: Growth Enablement
Growth Enablement 02
Slide 12: Accelerating Growth From a Stable Foundation
STABILIZE COMPLETE, TRACKING TO FY27 TARGETS MOMENTUM BUILDING INTO IMPROVE & GROWTH PHASES Stabilize Improve Growth FY23 - 25 FY26 - 27 FY27 & Beyond STABILIZE IMPROVE GROWTH Accelerating Growth From a Stable Foundation 02 | Growth Enablement STABILIZE IMPROVE GROWTH TODAY
Slide 13: Credibility Through Action & Results
Stabilize Phase Completed >20% ROIC(1) Hurdle Rate FY21 FY25 Robust Backlog Growth Expanded Portfolio Diversification Disciplined Capital Allocation Adj. EBITDA Margin(1) Expansion Credibility Through Action & Results STABILIZE IMPROVE GROWTH Revenue $97.5M Revenue $210M 15.2% 10.7% (1) See the Safe
Slide 14: Phased Approach to Sustainable, Long-Term Growth
PROACTIVELY POSITIONING THE BUSINESS TO LONG-TERM GROWTH TRENDS LEVERAGING CORE COMPETENCY DEFENSE SPACE GRAHAM CORPORATE ENERGY & PROCESS Naval Ship and Submarine Demand Accelerating Expansion Driven by Geopolitics Operational Excellence is at the Core Rising Grid Demand From AI & Data Centers | Di
Slide 15: Enabling the Growth Phase Through Product Lifecycle
PRODUCT LIFECYCLE c VALUE IDENTIFICATION VALUE CREATION VALUE EXTRACTION Market & Customer Need Technology & Product Solution Service & Aftermarket Commercialization & Production Scale 1. Disruptive Solutions Utilize innovative R&D to enhance competitive advantage in new and existing markets Ex. Nex
Slide 16: M&A Growth: Opportunistic Acquisition Strategy
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 MANAGEMENT & CULTURE Leadership with a commitment to long-term growth and a high-quality, continuous im
Slide 17: Financials
Financials 03
Slide 18: Revenue Performance
Revenue Performance Q4 FY25 sales up $10.3 million or 21% Revenue Impacts + 28% Defense + 27% Space + 10% Energy & Process + 3% Aftermarket + Growth in existing programs + Improved pricing and execution + Timing of key project milestones + Increased sales in the Energy & Process industry Increased s
Slide 19: Strong Gross Profit & Margin Expansion
Strong Gross Profit & Margin Expansion Q4 FY25 Gross Profit Increased $3.3 Million or 26% FY25 Gross Profit Increased $12.3 million or 30% Gross margin expanded 110 bps to 27.0% Q4 FY25 gross margin impacts were driven by: + Volume + Improved pricing and execution ̶ Partially offset by higher incent
Slide 20: Adjusted EBITDA & Net Income
Adjusted EBITDA & Adjusted EBITDA Margins(1) (1) See appendix for additional important disclosures regarding Graham’s use of the non-GAAP measures of Adjusted EBITDA, Adjusted EBITDA Margins, Adjusted Net income and Adjusted Net Income per diluted share. Net Income, Adj. Net Income Per Diluted Share
Slide 21: Long-Term Demand For Graham Diversified Portfolio
Long-Term Demand For Graham Diversified Portfolio Highlights Orders increased 251% vs. the sequential quarter and 113% vs. the prior year quarter with record backlog of $412.3 million Approximately 45% of backlog expected to convert to sales in next 12 months; another 25% to 30% expected to convert
Slide 22: Balance Sheet & Liquidity
Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE $44.7M $21.6M Cash provided by operating activities Cash and cash equivalents Remaining on revolving credit facility $24.3M $0.0M Debt outstanding $19.0M Capital Expenditures FY2
Slide 23: FY26 Financial Outlook
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 Effective Tax Rate 20% to 22% Capital Expenditures $15 million
Slide 24: Advancing Toward Long-Term Goals with Strategic Actions
Advancing Toward Long-Term Goals with Strategic Actions Engaging with customers to develop full life-cycle mission critical product opportunities $97.5M $185.5M $209.9M $245M - $255M(2) BN earnout bonus expense completes at end of FY26, expected to contribute ~200 bps to Adj EBITDA margin in FY27 Mi
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Key Performance Indicators
Key Performance Indicators In addition to the non-GAAP measures used in this presentation, 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. Management uses orders and b
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA 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 ERC tax credit, net - (702) - (702) Debt amendment costs - 37 - 781 ERP Implementation cos
Slide 29: 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