Graham Corporation
- Open
- 86.75
- Day high
- 87.47
- Day low
- 83.70
- Prev close
- 86.08
- Volume
- 238K
- Mkt cap
- $1.0B
- P/E (TTM)
- 82.3
- EPS (TTM)
- $1.06
- P/B
- 5.3
- P/S
- 3.9
- Yield
- —
- Per share
- —
Graham Corporation (GHM) is a Industrials company listed on NYSE. The stock is up 80% over the past year. Drillr has 1 published research article covering GHM.
Graham Corporation (GHM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GHM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $0.27 | $0.34 | +25.9% | $71M | +8.7% |
| Jun 8, 2026 | $0.30 | $0.33 | +10.0% | $67M | +11.9% |
| Feb 6, 2026 | $0.17 | $0.31 | +82.4% | $57M | -6.2% |
| Nov 7, 2025 | $0.33 | $0.31 | -6.1% | $66M | +22.3% |
| Jun 9, 2025 | $0.26 | $0.43 | +65.4% | $59M | +6.6% |
| Feb 7, 2025 | $0.16 | $0.18 | +12.5% | $47M | -15.5% |
| Nov 8, 2024 | $0.14 | $0.31 | +121.4% | $54M | +7.8% |
| Jun 7, 2024 | $0.04 | $0.15 | +275.0% | $49M | +10.3% |
| Jun 8, 2023 | $-0.05 | $-0.05 | +0.0% | $43M | +17.9% |
| Jul 29, 2022 | $-0.08 | $0.06 | +175.0% | $36M | +3.1% |
| Jun 8, 2022 | $-0.00 | $-0.02 | -332.9% | $40M | +4.6% |
| Feb 7, 2022 | $0.21 | $-0.35 | -266.7% | $29M | -21.2% |
GHM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 11, 2026 | Scholes Richard Alanofficer: Chief Growth & Enblmnt Officer | Grant | 1,563 | — |
| Aug 11, 2026 | Scholes Richard Alanofficer: Chief Growth & Enblmnt Officer | Grant | 3,678 | — |
| Jun 10, 2026 | Thome Christopher J.officer: VP-Finance; CFO | Grant | 8,619 | — |
| Jun 10, 2026 | Malone Matthewdirector, officer: President and CEO | Grant | 8,619 | — |
| Jun 10, 2026 | Malone Matthewdirector, officer: President and CEO | Tax | 2,477 | $95.34 |
| Jun 10, 2026 | Thoren Daniel J.director, officer: Executive Chairman | Grant | 22,101 | — |
| Jun 10, 2026 | Thoren Daniel J.director, officer: Executive Chairman | Tax | 8,095 | $95.34 |
| Jun 10, 2026 | Thome Christopher J.officer: VP-Finance; CFO | Tax | 3,193 | $95.34 |
| Jun 8, 2026 | Malone Matthewdirector, officer: President and CEO | Option | 1,291 | — |
| Jun 8, 2026 | Thome Christopher J.officer: VP-Finance; CFO | Option | 1,643 | — |
| Jun 8, 2026 | Thoren Daniel J.director, officer: Executive Chairman | Tax | 1,593 | $107.96 |
| Jun 8, 2026 | Thome Christopher J.officer: VP-Finance; CFO | Tax | 608 | $107.96 |
| Jun 8, 2026 | Thoren Daniel J.director, officer: Executive Chairman | Option | 5,543 | — |
| Jun 8, 2026 | Malone Matthewdirector, officer: President and CEO | Tax | 371 | $107.96 |
| May 18, 2026 | Malone Matthewdirector, officer: President and CEO | Tax | 682 | $98.28 |
Source: GHM SEC Form 4 filings, latest Aug 11, 2026. For informational purposes only — not investment advice.
See the full GHM insider & 13F page →Graham Corporation company profile
Overview
Graham Corporation (NYSE:GHM) is a specialized industrial equipment manufacturer founded in 1936 and headquartered in Batavia, New York. The company designs and manufactures critical fluid, power, heat transfer, and vacuum equipment serving demanding applications across defense, space, energy, and industrial markets. Through strategic acquisitions and organic growth, Graham has evolved from a traditional industrial equipment supplier into a diversified provider of engineered solutions for mission-critical applications, with particular strength in naval defense programs and emerging energy technologies.
Business
Graham Corporation operates in the specialized industrial machinery sector, focusing on highly engineered equipment that handles extreme conditions involving fluids, heat, vacuum, and power systems. The company's products are essential components in complex industrial processes where reliability and precision are paramount. The company's core offerings span several interconnected product categories. Heat transfer and vacuum systems include ejectors, process condensers, surface condensers, liquid ring pumps, heat exchangers, and specialized nozzles that manage thermal energy and create vacuum conditions in industrial processes. Power plant systems encompass ejectors and surface condensers used in electricity generation facilities. Turbomachinery products consist of turbines, generators, compressors, and pumps that convert energy between different forms. For defense applications, Graham manufactures torpedo ejection and power systems including turbines, alternators, regulators, pumps, and blowers that enable submarine operations. The company also produces thermal management systems and rocket propulsion systems such as turbopumps and fuel pumps for space and defense vehicles. Additionally, Graham provides life support systems including fans, pumps, and blowers that maintain habitable environments in submarines and spacecraft. Graham's business is organized around market segments rather than product lines. Defense represents approximately 42% of revenue, driven primarily by naval nuclear propulsion programs. Refining and petrochemical markets contribute about 31% of revenue through both new equipment sales and aftermarket services. Space applications account for roughly 13% of revenue, while emerging energy markets including hydrogen, geothermal, and small modular nuclear comprise the remaining 14%. The company also maintains a significant aftermarket business providing spare parts and services for its installed equipment base.
Revenue model
Graham Corporation generates revenue through multiple complementary channels that leverage its specialized engineering capabilities and installed equipment base. The primary revenue stream comes from custom equipment sales where the company designs and manufactures highly specialized systems for specific customer applications. These projects typically involve long lead times, substantial engineering content, and premium pricing due to the mission-critical nature of the applications. A significant portion of revenue derives from defense contracts, particularly with the U.S. Navy for nuclear propulsion systems. These contracts often involve multi-year programs with milestone-based payments and can include strategic investments from customers to fund specialized manufacturing capabilities. Defense contracts provide revenue stability but require strict quality standards and security clearances. The aftermarket services business generates recurring revenue through spare parts sales, maintenance services, and equipment upgrades for Graham's installed base. This segment has shown strong growth, with aftermarket sales increasing 59% in recent quarters, driven by high refinery utilization rates and proactive customer engagement. Aftermarket revenue typically carries higher margins than new equipment sales. Graham also earns revenue from engineering services and technology licensing where the company provides specialized design expertise or licenses its proprietary technologies to other manufacturers. The company has expanded this capability through acquisitions like P3 Technologies, which brought additional engineering talent and customer relationships. Several factors influence Graham's profitability margins. Positive factors include the specialized nature of its products, which limits direct competition and supports premium pricing. Long-term customer relationships and high switching costs for installed equipment provide pricing power. The growing defense budget and naval shipbuilding programs create sustained demand. Emerging energy markets like hydrogen and small modular nuclear offer new growth opportunities. Negative margin pressures include skilled labor shortages, particularly for specialized welders, which can increase costs and limit production capacity. Raw material price volatility affects project profitability, especially for large, long-term contracts. Intense competition for defense contracts can pressure margins. Economic downturns in energy markets can reduce demand for new equipment and aftermarket services. Additionally, the custom nature of many projects creates execution risk where cost overruns can erode margins.
Competitive moat
Graham Corporation possesses a moderate but meaningful competitive moat built on several interconnected factors, though it faces challenges from both established competitors and potential technological disruption. The company's primary moat stems from its specialized engineering expertise in extreme operating conditions, particularly in applications involving high temperatures, pressures, and corrosive environments where failure is not an option. The company's strongest moat exists in naval defense applications, where it has developed deep relationships with the U.S. Navy and specialized manufacturing capabilities that would be difficult and expensive for competitors to replicate. The security clearances, quality certifications, and proven track record required for naval nuclear propulsion systems create significant barriers to entry. The strategic investment of $13.5 million from a defense customer to fund specialized equipment further solidifies this position by creating dedicated manufacturing capacity. Graham's installed equipment base provides a modest moat through aftermarket revenue streams. Once customers install Graham's specialized equipment, the switching costs are high due to the critical nature of the applications and the need for compatible spare parts and services. This creates a recurring revenue stream that competitors cannot easily disrupt without displacing the entire system. However, Graham's moat has limitations. In commercial markets like refining and petrochemical, the company faces competition from larger industrial equipment manufacturers with greater resources and broader product portfolios. The custom nature of many projects means Graham must compete for each new opportunity rather than benefiting from strong recurring revenue models. Additionally, the company's relatively small size limits its ability to invest in research and development compared to larger competitors. Potential disruption could come from several sources. Larger industrial conglomerates could acquire specialized capabilities through acquisitions or internal development. Technological advances in materials science or manufacturing processes could reduce the barriers to entry in specialized applications. Changes in energy markets, such as a shift away from traditional refining or defense spending reductions, could undermine demand for Graham's products. The emergence of new energy technologies might require different types of equipment where Graham lacks established expertise, though the company is actively investing in hydrogen and other emerging markets to address this risk.
Risks & safety
Graham Corporation presents a moderate margin of safety with manageable financial risks but elevated valuation concerns. The company maintains a solid balance sheet with low debt levels and adequate liquidity, though profitability remains modest. • Liquidity and Solvency: Strong cash position of $30 million with minimal debt (debt-to-equity ratio of 0.06). Current ratio of 1.03 indicates tight but adequate short-term liquidity. Free cash flow turned negative at -$2.1 million in recent quarter but historically positive. • Debt and Financial Flexibility: Very low debt burden with recent refinancing providing $50 million revolving credit facility. Total debt represents less than 6% of equity, providing significant financial flexibility for acquisitions and investments. • Valuation Metrics: Elevated valuation multiples present risk - P/E ratio of 76x, EV/EBITDA of 30x, and price-to-book of 4.2x suggest high expectations built into current price. Graham Number of 5.87 indicates potential overvaluation relative to intrinsic value. • Profitability and Cash Generation: Net margin of 3.4% and ROE of 1.4% indicate modest profitability. EBITDA margin of 8% shows operational leverage potential but remains below peer averages. • Other Considerations: Large backlog of nearly $400 million provides revenue visibility but execution risk remains. Dependence on defense spending and energy market cycles creates revenue volatility. Skilled labor shortages pose operational challenges.
Recent development
Graham Corporation has undergone significant strategic transformation over the past few years, evolving from a traditional industrial equipment supplier into a diversified provider of mission-critical systems across defense, space, and emerging energy markets. The most significant development was the acquisition of Barber-Nichols, which dramatically expanded Graham's capabilities in defense and space applications, contributing $47.9 million in revenue and establishing the company's presence in turbomachinery and rocket propulsion systems. The company has aggressively pursued defense market expansion, with defense revenue growing from minimal levels to representing 42% of total revenue. This growth culminated in a strategic $13.5 million investment from a defense customer to fund specialized manufacturing equipment for naval nuclear propulsion programs. Graham has successfully shipped first article units for these programs and expects this relationship to generate substantial revenue over the next 8-10 years. In emerging energy markets, Graham has positioned itself for the hydrogen economy transition by developing cryogenic pumps and heat exchangers for hydrogen applications. The company is also exploring opportunities in geothermal lithium extraction, small modular nuclear reactors, and sustainable aviation fuel production. These initiatives represent a strategic pivot toward next-generation energy technologies that could drive long-term growth. Operationally, Graham has invested heavily in manufacturing capabilities and workforce expansion. The company increased its workforce by 44 people (9% growth) and expanded welding capacity by 25%. Major capital investments include automated welding equipment, facility expansions at both Batavia and Denver locations, and a comprehensive ERP system upgrade representing a $3 million investment over 12-18 months. The recent acquisition of P3 Technologies for $6 million in annual revenue further expanded Graham's engineering capabilities and customer base, particularly in space propulsion pumps and medical cryogenic applications. This acquisition, combined with a new $50 million revolving credit facility, positions Graham for additional strategic acquisitions while maintaining financial flexibility. Graham has also strengthened its aftermarket business through proactive sales initiatives and improved customer engagement, resulting in 59% growth in aftermarket revenue. The company is implementing AI-driven customer engagement tools and has renegotiated payment terms with defense customers to improve working capital management.
GHM company profile · for informational purposes only — not investment advice.
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