Graham Corp Q1 revenue misses estimates
Overview
Graham Corp fiscal Q1 revenue rises 11% but missed analyst expectations
Adjusted EBITDA for fiscal Q1 beats estimates, rising 33% to $6.8 mln
Net income per diluted share increases 56% to $0.42
Outlook
Graham Corp reiterates fiscal 2026 net sales guidance of $225 mln to $235 mln
Company expects fiscal 2026 gross margin between 24.5% and 25.5%
Graham Corp projects fiscal 2026 adjusted EBITDA of $22 mln to $28 mln
Company anticipates fiscal 2026 capital expenditures of $15 mln to $18 mln
Result Drivers
ENERGY & PROCESS GROWTH - Revenue growth driven by major commercial projects and robust aftermarket demand in Energy & Process markets
DEFENSE ORDERS - Large defense orders, including Virginia Class submarine and MK48 Mod 7 Heavyweight Torpedo programs, boosted results
MARGIN IMPROVEMENT - Improved gross profit margin due to better execution and pricing on defense contracts and higher margin aftermarket sales
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Miss | $55.49 mln | $56.60 mln (4 Analysts) |
Q1 EPS | $0.42 | ||
Q1 Net Income | $4.60 mln | ||
Q1 Adjusted EBITDA | Beat | $6.84 mln | $5.35 mln (3 Analysts) |
Q1 Gross Margin | 26.5% | ||
Q1 Operating Income | $4.96 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Graham Corp is $59.50, about 3.5% above its August 4 closing price of $57.43
The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 26 three months ago
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