Slide 1: Third Quarter FY25 Teleconference
Graham Corporation Third Quarter FY25 Teleconference February 7, 2025 Daniel J. Thoren, Chief Executive Officer Matthew J. Malone, President and Chief Operating Officer Christopher J. Thome, Vice President - Finance and Chief Financial Officer www.GrahamCorp.com
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: Steady Progress Throughout our Business
Steady Progress Throughout our Business Long-term growth driven by highly engineered product portfolio, continued operational efficiencies, strategic capital investment and tailwinds to key programs over the next decade (All comparisons are to prior fiscal year) Quarterly Revenue Gross Margin Net In
Slide 4: Leadership Transition
Leadership Transition Key Highlights Phase 1: February 5, 2025 • Strengthens leadership team to support future growth opportunities Matthew J. Malone Appointed as President & Chief Operating Officer Previously: VP & General Manager of Barber-Nichols • Appointments reflect ability to develop internal
Slide 5: Revenue Growth Across End Markets
Revenue Growth Across End Markets ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERS Q3 FY25 sales up $3.2 million or 7.3% + 64% Chemical/Petrochemical $53.6 $49.1 $50.0 $47.0 + 30% Space $43.8 + 11% Defense + 2.4% Aftermarket - 16% Refining Q3 FY25 Revenue im
Slide 6: Strong Gross Profit and Margin Expansion
Strong Gross Profit and Margin Expansion ($ in millions; narrative compared with prior-year period unless otherwise noted) QUARTERS Q3 FY25 gross profit increased $2.0 million or 20% Margin expanded 260 bps to 24.8% $12.7 $12.4 $12.8 $11.7 $9.7 Q3 FY25 gross margin impacts + Volume + Favorable mix 2
Slide 7: Strengthened Earnings Power
Strengthened Earnings Power ($ in millions; except per share data; narrative compared with prior-year period unless otherwise noted) NET INCOME PER DILUTED SHARE AND NET INCOME PER DILUTED SHARE AND ADJUSTED NET INCOME PER DILUTED SHARE(1) ADJUSTED NET INCOME PER DILUTED SHARE(1) Net Income per dilu
Slide 8: Financial Flexibility to Drive Strategic Initiatives
Financial Flexibility to Drive Strategic Initiatives ($ in millions) CAPITALIZATION No debt with strong cash flow December 31, March 31, $43 million available on revolving credit facility, taking 2024 2024 into account outstanding letters of credit Cash and cash equivalents $30.0 $16.9 CapEx of $7.3
Slide 9: Long-term Demand for Graham Diversified Portfolio
Long-term Demand for Graham Diversified Portfolio ($ in millions; narrative compared with prior-year period unless otherwise noted) Key Highlights TOTAL ORDERS(1) • YTD Book-to-Bill(1) of 1.0x $268.4 • As expected, Q3 orders were lower given strong performance in the $202.7 first half of fiscal 2025
Slide 10: Reiterating Guidance for Sales and Adjusted EBITDA; Raising FY2025 Gross Margins
Reiterating Guidance for Sales and Adjusted EBITDA(2) ; Raising FY2025 Gross Margins (as of February 7, 2025) Updated Fiscal 2025 Guidance Previous Guidance Net Sales $200 million to $210 million $200 million to $210 million Gross Margin 24% to 25% of sales 23% to 24% of sales SG&A expense (includin
Slide 11: 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 Operational Excellence to drive competitive positioning Expanded capital and R&D programs to support growth initiatives; targeted ROIC >20% Engaging with
Slide 12: Supplemental Information
=6HM SUPPLEMENTAL INFORMATION
Slide 13: Key Performance Metrics
Key Performance Metrics Key Performance Indicators In addition to the foregoing non-GAAP measures, 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 orde
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Nine Months Ended December 31, December 31, 2024 2023 2024 2023 Net income $ 1,588 $ 165 $ 7,835 $ 3,216 Acquisition & integration (income) expense (220) 274 (900) 274 Debt amendment costs - 744 - 744 ERP Implementation costs 157 56 704 56 Net intere
Slide 15: Adjusted Net Income and Adjusted Diluted EPS Reconciliation
Adjusted Net Income and Adjusted Diluted EPS Reconciliation Three Months Ended Nine Months Ended December 31, December 31, 2024 2023 2024 2023 Net income $ 1,588 $ 165 $ 7,835 $ 3,216 Acquisition & integration (income) expense (220) 274 (900) 274 Amortization of intangible assets 554 596 1,663 1,487
Slide 16: M&A Criteria for Core Growth Targets
M&A Criteria for Core Growth Targets Opportunistic acquisition strategy to supplement 8-10% annual organic growth expectations TARGET PROFILE PRODUCT/OPERATIONS & FINANCIALS Company Type: Product Alignment: U.S. based, privately held, independently operated Complementary to GHM turbomachinery, heat
Slide 17: Third Quarter FY25 Teleconference
Graham Corporation Third Quarter FY25 Teleconference February 7, 2025 Daniel J. Thoren, Chief Executive Officer Matthew J. Malone, President and Chief Operating Officer Christopher J. Thome, Vice President - Finance and Chief Financial Officer www.GrahamCorp.com