Graham Corporation reported strong third quarter fiscal 2026 results, driven by robust execution and demand across its end markets, particularly in Defense. The company saw significant revenue and profitability growth, supported by a record backlog and strategic acquisitions, leading to an increase in full-year guidance.
Revenue increased 21% to $56.7 million, driven by strong performance in the Defense market and growth in Energy & Process.
positiveNet income per diluted share increased 79% to $0.25, and adjusted net income per diluted share increased 72% to $0.31.
positiveAdjusted EBITDA increased 50% to $6.0 million, with Adjusted EBITDA margin expanding 210 basis points to 10.7%.
positiveOrders were $71.7 million, resulting in a book-to-bill ratio of 1.3x and a record backlog of $515.6 million, providing strong future visibility.
positiveThe company updated and increased its full-year fiscal 2026 guidance for Net Sales and Adjusted EBITDA.
positiveGross profit margin decreased 100 basis points to 23.8% due to sales mix and higher material receipts with lower profit margins.
attentionThe prior year's gross profit benefited from a $0.3 million grant from the BlueForge Alliance for defense welder training programs, which did not repeat in fiscal year 2026.
attentionTariffs are estimated to have an incremental impact of $1.0 to $1.5 million in fiscal 2026 compared to the prior year.
attentionAftermarket orders decreased $5.2 million to $8.0 million from record levels in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Third quarter results reflect continued strong, disciplined execution across the organization.
Revenue growth and profitability were driven by solid performance across our end markets and supported by a record backlog.
We remain focused on disciplined execution, operational efficiency, and advancing strategic initiatives that strengthen our competitive position.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.