Graham Corporation stock: Q2 margin expands as backlog reaches record
Published on 11/12/2026 at 02:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSResults sharpen Graham's outlook
- Fiscal second-quarter revenue rose 6 percent year over year, while adjusted EBITDA increased 64 percent.
- Backlog reached a seventh consecutive quarterly record, led by Defense and Space demand.
- Management reaffirmed fiscal 2027 sales and adjusted EBITDA guidance and raised its gross-margin outlook.
Graham Corporation reported stronger profitability and a record backlog for the fiscal second quarter ended September 30, 2026. In its investor-relations release published November 5, the company said revenue increased 6 percent year over year to USD 69.8 million.
Profitability improves sharply
Gross profit rose 38 percent to USD 19.7 million, lifting the gross margin to 28.2 percent from 21.7 percent a year earlier. Adjusted EBITDA increased 64 percent to USD 10.3 million, while adjusted EBITDA margin reached 14.8 percent. Net income rose 50 percent to USD 4.6 million, and diluted earnings per share increased to USD 0.39 from USD 0.28.
Defense sales increased 12 percent and Space sales rose 59 percent. Energy and Process sales declined 17 percent as large capital projects and international activity remained softer. FlackTek, acquired by Graham, contributed USD 9.5 million of quarterly revenue.
Backlog supports forward visibility
Orders totaled USD 73.7 million, producing a quarterly book-to-bill ratio of 1.1. Backlog reached USD 561.3 million, a 12 percent increase from the prior-year period and the seventh consecutive quarterly record. Defense accounted for 83 percent of backlog, while Space backlog more than doubled year over year.
Graham Corporation stock traded at 78.65 euros on Lang & Schwarz at 11:00 p.m. CET on Wednesday, November 11, 2026.
Guidance remains in place
Management reaffirmed fiscal 2027 revenue guidance of USD 285 million to USD 295 million and adjusted EBITDA guidance of USD 35 million to USD 40 million. The company raised its gross-margin outlook to 25.0 percent to 26.0 percent of sales from 24.5 percent to 25.5 percent and lowered its capital-expenditure range to USD 15 million to USD 20 million.
Graham's industrial technology focus
Graham Corporation designs and manufactures mission-critical fluid, power, heat-transfer, vacuum and advanced-mixing technologies. Its main markets are Defense, Space, and Energy & Process, with operations centered in the United States. The company presents itself as a specialized engineering and manufacturing provider serving programs where its technologies support demanding industrial and government applications.
Graham Corporation at a glance
- Company: Graham Corporation
- ISIN: US3845561063
- Ticker: GHM
- Exchange: NYSE
- Price: 78.65 euros on November 11, 2026 at 11:00 p.m. CET
Defense and space demand remain central to the investment case, while weaker Energy and Process activity is a counterweight for the remainder of fiscal 2027. The broader US equity market can be followed through current S&P 500 market reports.
