Graham Corporation · NYSE:GHM
Graham — Investor Presentation (June 2025)
30 slides from Graham's investor presentation, June 2025
Slide 1: Investor Presentation
Investor Presentation JUNE 2025 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: Graham at-a-Glance
Overview GRAHAM IS A MISSION CRITICAL SOLUTION SUPPLIER Graham at-a-Glance ACROSS THREE CORE END-MARKETS A GLOBAL LEADER in the Defense Mission-critical fluid, power, and 1936 Founded | 1968 IPO design and manufacture of heat transfer solutions for long- mission-critical fluid, power, vacuum, and he
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 $412M BACKLOG(2) >20%+ ROIC1 Extended Visibility Disciplined Growth Strategy Long-term visibility enables prioritized Strategic ROIC pro
Slide 5: Business Overview
01 Business Overview 5
Slide 6: Graham Portfolio
DEFENSE ENERGY & PROCESS SPACE 01 | Business Overview Graham Portfolio Defense Energy & Process Space 58% of FY25 Revenue 35% of FY25 Revenue 7% of FY25 Revenue Military Torpedoes Small Aircraft Aircraft & Refining, Modular Satellites & Carriers / & Power Rocket Unmanned Petrochem, Nuclear Life Supp
Slide 7: Defense Portfolio
ENERGY & PROCESS SPACE DEFENSE 01 | Business Overview REVENUE ($ 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 turbopump $15.9M $14.7 systems and satellite launch support $13.3 • Positioned for long-term growt
Slide 11: Growth Enablement
Image credit: Blue Origin 11 02 Growth Enablement
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 Stabilize Phase 75% Energy & 58% 7% Space ROIC(1) Hurdle Rate Completed Process Defense 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 Demand & Dat
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 REVENUE GROWTH EXPECTATIONS TARGET CATEGORY ATTRIBUTES COMPANY TYPE U.S. based, privately held, independently operated INDUSTRY FOCUS Fluid/power sectors supporting aerospace, defense, cryogenic,
Slide 17: Financials
03 Financials 17
Slide 18: Revenue Performance
03 | Financials Q4 FY25 sales up $10.3 million or 21% Revenue Performance + 28% Defense ($ in millions; narrative compared with prior-year period unless otherwise noted) + 27% Space QUARTERLY + 10% Energy & Process $53.6 $59.3 + 3% Aftermarket $49.1 $50.0 $47.0 Record yearly sales up $24.4 million o
Slide 19: Strong Gross Profit & Margin Expansion
03 | Financials QUARTERLY ANNUAL $18.0 28.0% $60.0 30.0% 27.0% 25.2% $16.0 27.0% $50.0 25.0% $14.0 21.9% 25.9% 26.0% $12.0 24.8% $40.0 20.0% 24.8% 16.2% $10.0 25.0% 23.9% $30.0 15.0% $8.0 24.0% $6.0 $20.0 10.0% 23.0% $4.0 22.0% $10.0 5.0% Strong Gross Profit & $2.0 $12.7 $12.4 $12.8 $11.7 $16.0 $25.
Slide 20: Adjusted EBITDA & Net Income
03 | Financials Adjusted EBITDA & Adjusted Net Income, Adj. Net Income Per EBITDA Margins(1) Diluted Share & Margin(1) Net Income per diluted share QUARTERLY $16.0 Adj. Net Income per diluted share Q UA R T E R LY $0.43 $0.40 $12.7 $12.4 $12.8 Percentages are net income margin and $11.7 adj. net inc
Slide 21: Long-Term Demand For Graham Diversified Portfolio
03 | Financials Total Orders(1) Backlog(1) Defense $412.3 Commercial $390.9 $71.7 $62.5 $268.4 $301.7 $231.1 $202.7 $256.5 $91.0 $58.1 $143.9 $96.5 $73.5 $121.6 $86.0 $328.4 $340.6 $80.7 $137.6 $243.6 $52.4 $177.4 $116.7 $134.6 $33.5 $183.1 $69.2 $63.2 Long-Term Demand $104.1 FY21 FY22 FY23 FY24 FY2
Slide 22: Balance Sheet & Liquidity
03 | Financials Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE FY25 Overview Capital Allocation Framework $24.3 01 M Cash provided by operating activities STRONG BALANCE SHEET • Strong cash generation and fiscal discipline $1
Slide 23: 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 24: Advancing Toward Long-Term Goals with Strategic Actions
03 | Financials Advancing Toward Long-Term Goals with Strategic Actions Engaging with customers to Expanded capital and R&D Engaging with key Operational Excellence to develop full life-cycle programs to support growth stakeholders to empower, drive competitive mission critical product initiatives;
Slide 25: Q&A
Q&A 25
Slide 26: Appendix
Appendix 26
Slide 27: 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 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) 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) - (
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
Slide 30: 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