Graham (NYSE:GHM) Issues Quarterly Earnings Results

Graham (NYSE:GHM) released its quarterly earnings data on Friday. The industrial products company reported $0.31 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.14, FiscalAI reports. The company had revenue of $56.70 million for the quarter, compared to the consensus estimate of $52.36 million. Graham had a return on equity of 12.44% and a net margin of 6.00%.

Here are the key takeaways from Graham’s conference call:

• Revenue rose 21% to $56.7 million and adjusted EBITDA increased 50% to $6.0 million, with an adjusted EBITDA margin of 10.7%, reflecting improved operating leverage and productivity initiatives.
• Record backlog of $515.6 million (up 34% YoY) and a Q3 book‑to‑bill of 1.3x (year‑to‑date 1.6x), with management expecting ~35–40% of backlog to convert to revenue in the next 12 months, providing strong near‑term visibility.
• Completed strategic deals—XDot technology purchase and the $35 million FlackTek acquisition (85% cash/15% equity plus up to $25M earn‑out)—which management says expands engineered‑products capability, adds recurring consumables revenue, and brings the Mega large‑scale mixer to Graham’s addressable market.
• Raised fiscal 2026 guidance to $233–239 million in revenue and $24–28 million in adjusted EBITDA, and reaffirmed longer‑term targets of 8–10% organic growth and low‑to‑mid‑teen adjusted EBITDA margins by fiscal 2027.
• Near‑term risks include estimated tariff impacts of approximately $1.0–1.5 million for the year, lumpy material receipts that pressured gross margin this quarter, and slowing large CapEx demand in the energy/process market driven by lower oil prices and macro uncertainty.

Graham Stock Up 13.3%

Shares of NYSE GHM opened at $83.59 on Friday. Graham has a fifty-two week low of $24.78 and a fifty-two week high of $84.58. The business has a 50 day moving average price of $68.12 and a two-hundred day moving average price of $59.37. The firm has a market cap of $918.65 million, a PE ratio of 67.41 and a beta of 0.92.

Institutional Trading of Graham

A number of hedge funds have recently made changes to their positions in the stock. Raymond James Financial Inc. raised its holdings in Graham by 1.5% in the third quarter. Raymond James Financial Inc. now owns 21,608 shares of the industrial products company’s stock valued at $1,186,000 after acquiring an additional 319 shares in the last quarter. BNP Paribas Financial Markets raised its stake in shares of Graham by 62.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,063 shares of the industrial products company’s stock valued at $53,000 after purchasing an additional 410 shares in the last quarter. Two Sigma Investments LP lifted its position in shares of Graham by 14.7% during the third quarter. Two Sigma Investments LP now owns 5,467 shares of the industrial products company’s stock worth $300,000 after purchasing an additional 700 shares during the last quarter. Comerica Bank grew its stake in Graham by 396.2% in the third quarter. Comerica Bank now owns 1,052 shares of the industrial products company’s stock worth $58,000 after purchasing an additional 840 shares in the last quarter. Finally, Bank of America Corp DE grew its stake in Graham by 6.6% in the third quarter. Bank of America Corp DE now owns 28,087 shares of the industrial products company’s stock worth $1,542,000 after purchasing an additional 1,739 shares in the last quarter. Institutional investors and hedge funds own 69.46% of the company’s stock.

Key Stories Impacting Graham

Here are the key news stories impacting Graham this week:

• Positive Sentiment: Q3 results beat on both EPS and revenue — EPS of $0.31 vs. ~$0.17 estimate and revenue $56.7M vs. ~$52.3M, signaling stronger demand and improved margins. Graham: Fiscal Q3 Earnings Snapshot
• Positive Sentiment: Official press release/corporate commentary highlights the quarter’s strength and provides management context on drivers (Defense, Energy & Process, Space). Useful for assessing sustainability of orders and backlog. Graham Corporation Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Company raised FY2026 revenue guidance to a $233.0M–$239.0M range (vs. consensus ~$235.9M), which supports the upside in the stock but keep an eye on how execution tracks against the midpoint. Graham Delivers Strong Q3 Results and Raises Guidance
• Positive Sentiment: At least one analyst raised the price target to $85, reflecting the better-than-expected quarter and refreshed guidance (can support further upside if upgrades continue). Graham (GHM) price target increased by 11.11% to 85.00
• Neutral Sentiment: Analyst and media write-ups summarizing the beat and guidance provide color, but investors should review the company slide deck and call for backlog, margin outlook, and capital allocation details before extrapolating future growth. View Press Release / Slide Deck

Analyst Upgrades and Downgrades

Several research firms have issued reports on GHM. Weiss Ratings downgraded shares of Graham from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, January 12th. Wall Street Zen upgraded Graham from a “sell” rating to a “hold” rating in a report on Sunday, November 16th. Noble Financial cut Graham from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 21st. Finally, Northland Securities lowered Graham from an “outperform” rating to a “market perform” rating and set a $80.00 target price for the company. in a research note on Tuesday, January 27th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $72.50.

Graham Company Profile

Graham Corporation (NYSE: GHM) is a U.S.-based industrial engineering company that designs, manufactures and services vacuum and heat transfer equipment. Its core offerings include liquid ring vacuum pumps, surface condensers, heat exchangers and custom-engineered vacuum systems. These products play a critical role in energy-intensive industries, where reliable removal of non-condensable gases and efficient heat exchange are vital to process performance.

The company’s technologies find application across a range of end markets, including power generation, petrochemical, oil and gas, LNG, and semiconductor manufacturing.