GRAHAM CORP

Current report (Form 8-K) · Jun 8, 2026 · Financial results · Investor press release · Financial statements

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GRAHAM CORP

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Financial results

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Jun 8, 2026

Filing summary Workforce analysis SEC documents(27)Filing text Exhibits(3)

EX-99.1 · d79259dex991.htm

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EX-99.1

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d79259dex991.htm

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EX-99.1 · d79259dex991.htm EX-99.1 2 d79259dex991.htm EX-99.1 Exhibit 99.1 News Release Graham Corporation 20 Florence Avenue Batavia, NY 14020 IMMEDIATE RELEASE Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results Record quarterly and full year revenue increased 13% to $67.1 million and 17% to $245.3 million, respectively Quarterly net income per diluted share was $0.18; Fiscal 2026 net income per diluted share was $1.12 Quarterly Adjusted net income per diluted share 1 was $0.33; Fiscal 2026 Adjusted net income per diluted share 1 increased 13% to $1.40 Quarterly Adjusted EBITDA 1 was $6.8 million; Fiscal 2026 Adjusted EBITDA 1 increased 16% to $26.0 million Record backlog 2 of $532.6 million, increasing 29% year-over-year, benefiting from record full year orders 2 of $359 million (Book-to-Bill 2 1.5x) Completed acquisition of FlackTek , establishing advanced mixing and materials processing as Graham’s third core technology platform and further expanding capabilities across all our markets Fiscal 2027 revenue and Adjusted EBITDA 1 guidance reflects continued growth and is in line with our long-term goals BATAVIA, NY, June 8, 2026 – Graham Corporation (NYSE: GHM) (“GHM,” “Graham,” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense, Energy & Process, and Space industries, today reported financial results for the fourth quarter and fiscal year ended March 31, 2026 (“fiscal 2026”). Graham’s President and Chief Executive Officer, Matthew J. Malone stated, “Fiscal 2026 was another year of strong execution and continued momentum across Graham. We delivered record annual revenue, orders, and backlog, as well as a 1.5x book-to-bill ratio, reflecting sustained demand across our core end markets and the strength of our diversified business model. During the year, we continued executing on strategic initiatives to drive sustainable long-term value creation including investments focused on capability and capacity expansion, operational excellence, and next generation technology, which are expected to deliver returns on invested capital above 20%.” Mr. Malone continued, “As we enter fiscal 2027, we remain focused on disciplined execution and strategic investments that enhance our capabilities and support long-term profitable growth. We believe our record backlog, strong pipeline, and ongoing integration initiatives provide meaningful visibility and line of sight to deliver our fiscal 2027 objectives.” 1 Adjusted net income per diluted share and Adjusted EBITDA are non-GAAP measures. See attached tables and other information for important disclosures regarding Graham’s use of these non-GAAP measures. 2 Orders, backlog and book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics. Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 2 of 11 Fourth Quarter and Full Year Fiscal 2026 Performance Review (All comparisons are with the same prior-year period unless noted otherwise.) ($ in thousands except per share data) Q4 FY26 Q4 FY25 $ Change % Change FY 2026 FY 2025 Change % Change Net sales $ 67,078 $ 59,345 $ 7,733 13 % $ 245,293 $ 209,896 $ 35,397 17 % Gross profit $ 15,254 $ 16,008 $ (754 ) -5 % $ 57,750 $ 52,861 $ 4,889 9 % Gross margin 22.7 % 27.0 % -430 bps 23.5 % 25.2 % -170 bps Operating income $ 2,658 $ 5,519 $ (2,861 ) -52 % $ 15,017 $ 15,188 $ (171 ) -1 % Operating margin 4.0 % 9.3 % -530 bps 6.1 % 7.2 % -110 bps Net income $ 1,970 $ 4,395 $ (2,425 ) -55 % $ 12,500 $ 12,230 $ 270 2 % Net income margin 2.9 % 7.4 % -450 bps 5.1 % 5.8 % -70 bps Net income per diluted share $ 0.18 $ 0.40 $ (0.22 ) -55 % $ 1.12 $ 1.11 $ 0.01 1 % Adjusted net income* $ 3,717 $ 4,752 $ (1,035 ) -22 % $ 15,598 $ 13,716 $ 1,882 14 % Adjusted net income per diluted share* $ 0.33 $ 0.43 $ (0.10 ) -23 % $ 1.40 $ 1.24 $ 0.16 13 % Adjusted EBITDA* $ 6,818 $ 7,650 $ (832 ) -11 % $ 25,995 $ 22,429 $ 3,566 16 % Adjusted EBITDA margin* 10.2 % 12.9 % -270 bps 10.6 % 10.7 % -10 bps * Graham believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), adjusted net income, adjusted net income per diluted share, adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP measures, help in the understanding of its operating performance. See attached tables and other information provided at the end of this press release for important disclosures regarding Graham’s use of these non-GAAP measures. Fourth Quarter Fiscal 2026 Commentary Quarterly net sales increased 13% to a record $67.1 million compared with the prior-year period, driven primarily by continued strength in the Defense market, building momentum in the Space market, and contributions from recently acquired businesses. Sales to the Defense market continued to benefit from strong program execution, capability and capacity expansion, and demand across key naval defense platforms. Space revenue increased 14% over the prior year due to the ramp up of existing programs. Sales to the Energy & Process market remained consistent with the prior year quarter, supported by solid aftermarket demand, continued activity within New Energy applications, including small modular reactor opportunities, and the recent acquisition of FlackTek Manufacturing, LLC and FlackTek Sales, LLC (collectively, “FlackTek”), which contributed $2.8 million to sales during the quarter. While elevated oil prices have supported steady maintenance activity levels, customers continue to exhibit caution around large capital project spending amid ongoing geopolitical uncertainty. Gross profit for the quarter was $15.3 million, or 22.7% of sales, compared with 27.0% in the prior-year period. Gross margin reflected a less favorable mix, including an increased level of lower-margin Defense sales and FlackTek revenue due to purchase accounting adjustments, as well as lower Aftermarket sales in comparison to the prior year, partially offset by improved operational execution. Selling, general and administrative expense (“SG&A”), including amortization, increased primarily due to acquisition and integration costs, additional SG&A costs related to the recently acquired FlackTek operations, and continued investments in people, processes, and technology. Full-Year Fiscal 2026 Commentary Net sales for fiscal 2026 increased 17% to a record $245.3 million compared with fiscal 2025, driven primarily by continued growth within the Defense market, sustained demand across Graham’s diversified end markets, and contributions from acquisitions. Defense revenue increased significantly year-over-year primarily due to new programs, growth in existing programs, and the timing of project milestones. Space market revenue was Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 3 of 11 consistent with the prior year, but is expected to ramp in fiscal 2027 as orders increased 76% year-over-year, reflecting strong long-term demand fundamentals and program growth. Revenue within the Energy & Process market increased 14% year-over-year as strong aftermarket activity, growth within New Energy applications and contributions from the FlackTek acquisition were partially offset by continued softness in large capital project spending. Gross profit increased 9% to $57.8 million, and gross margin was 23.5% of sales. Profitability continued to benefit from higher production volumes, operational efficiencies, pricing discipline, and strategic investments made throughout the business but were offset by a higher mix of lower margin sales including increased material content and Defense revenue, incremental tariff impacts of approximately $1.0 million, and the non-recurrence of the prior year BlueForge Alliance grant related to defense welder training initiatives. SG&A, including amortization, totaled $43.4 million compared with $38.9 million in the prior year, reflecting continued investments in people, processes, and technologies, acquisition and integration activities, and additional SG&A costs related to the recently acquired FlackTek operations. Cash Management and Balance Sheet Cash provided by operating activities for fiscal 2026 was $15.9 million, reflecting strong cash net income partially offset by higher working capital balances. Note that cash flow from operations for the fourth quarter of fiscal 2026 were negatively impacted by approximately $4 million related to transaction bonuses assumed in the FlackTek acquisition that were awarded by the previous owners of FlackTek but paid by the Company and was a reduction to the cash purchase price paid. As of March 31, 2026, cash and cash equivalents were $6.6 million compared with $21.6 million on March 31, 2025. Capital expenditures, net for fiscal 2026 were $15.8 million and focused primarily on capability and capacity expansion, automation, productivity improvements, and advanced manufacturing capabilities, all of which are expected to deliver returns on invested capital above 20%. During the first quarter of fiscal 2027, Graham further strengthened its balance sheet and financial flexibility through a $50 million investment from accounts advised by T. Rowe Price. The Company utilized $13 million of the proceeds for debt repayment and is expected to utilize the remaining proceeds to help fund future organic and inorganic growth opportunities. The Company currently has access to approximately $74 million of liquidity under its revolving credit facility. Orders, Backlog, and Book-to-Bill Ratio See supplemental data filed with the Securities and Exchange Commission on Form 8-K and provided on the Company’s website for a further breakdown of orders and backlog by market. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics ($ in millions). Q1 25 Q2 25 Q3 25 Q4 25 FY25 Q1 26 Q2 26 Q3 26 Q4 26 FY26 Orders $ 55.8 $ 63.7 $ 24.8 $ 86.9 $ 231.1 $ 125.9 $ 83.2 $ 71.7 $ 78.7 $ 359.4 Backlog $ 396.8 $ 407.0 $ 384.7 $ 412.3 $ 412.3 $ 482.9 $ 500.1 $ 515.6 $ 532.6 $ 532.6 Orders for the fourth quarter of fiscal 2026 were $78.7 million, representing a book-to-bill ratio of 1.2x. Full year fiscal 2026 orders were a record $359.4 million, resulting in a book-to-bill ratio of 1.5x. Backlog at fiscal year-end reached a record $532.6 million, increasing 29% compared with the prior year, driven primarily by continued strength in the Defense and Space markets. The Company continues to experience strong demand across its core Defense, Space, and New Energy platforms and expects favorable long-term market fundamentals supporting future growth. Management believes the Company’s backlog provides visibility into future revenue generation and supports its long-term growth objectives. Approximately 35% to 40% of backlog is expected to convert to revenue over the next twelve months, with the remainder extending over multiple years, primarily within the Defense market. Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 4 of 11 Fiscal 2027 Outlook (as of June 8, 2026) Fiscal 2027 Guidance Net Sales $285 million to $295 million Gross Margin 24.5% to 25.5% of sales SG&A expense (including amortization) (1)(2) 16.5% to 17.5% of sales Adjusted EBITDA (2)(3)(4) $35 million to $40 million Effective Tax Rate 18% to 20% Capital Expenditures $18.0 million to $22.0 million (1) Includes approximately $4.0 million to $5.0 million of equity-based compensation, net acquisition & integration costs, and enterprise resource planning (“ERP”) conversion costs included in SG&A. (2) Includes approximately $2.5 million of incremental costs to invest in people, processes, and technology to enable future growth and accelerate the commercialization of Graham products and technologies. (3) Excludes net interest (income) expense, income taxes, depreciation, and amortization from net income, as well as approximately $4.0 million to $5.0 million of equity-based compensation, net acquisition & integration costs, and ERP conversion costs. (4) See “Forward-Looking Non-GAAP Measures” below for additional information. Graham’s Chief Financial Officer, Christopher J. Thome, said, “We are pleased with our fiscal 2026 performance which met our raised guidance for the year and reflected continued operational execution, strong order activity, and disciplined investment across the business. During the year, we continued investing in automation, advanced manufacturing capacity and capabilities, our technology, and strategic growth initiatives intended to support long-term scalable growth and margin expansion, and are expected to generate returns on invested capital above 20%. “As we enter fiscal 2027, we remain focused on disciplined execution, integrating FlackTek, and continuing to invest in our people, processes, and technology to enable future growth and accelerate the commercialization of our products and technologies. We believe the underlying momentum of the business remains strong and supports our long-term profitability objectives. Our fiscal 2027 revenue and Adjusted EBITDA guidance reflects continued growth and is in line with our long-term goals.” Webcast and Conference Call GHM’s management will host a conference call and live webcast on June 8, 2026, at 11:00 a.m. Eastern Time (“ET”) to review its financial results as well as its strategy and outlook. The review will be accompanied by a slide presentation, which will be made available immediately prior to the conference call on GHM’s investor relations website. A question-and-answer session will follow the formal presentation. GHM’s conference call can be accessed by calling (201)-689-8560. Alternatively, the webcast can be monitored from the events section of GHM’s investor relations website. A telephonic replay will be available from 3:00 p.m. ET today through Monday June 15, 2026. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13760742 or access the webcast replay via the Company’s website at ir.grahamcorp.com, where a transcript will also be posted once available. About Graham Corporation Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense, Energy & Process, and Space industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise, proprietary technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com , where additional information on Graham Corporation and its businesses can be found. Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 5 of 11 Safe Harbor Regarding Forward Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “continue,” “estimate,” “expects,” “future,” “outlook,” “believes,” “could,” “guidance,” “goal,” “may”, “will,” “plan” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the Defense industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, return on invested capital, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit margins, tax rates, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release. Non-GAAP Financial Measures Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, equity-based compensation, ERP implementation costs, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Graham believes that providing non-GAAP information, such as Adjusted EBITDA and Adjusted EBITDA margin, is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand operating performance. Moreover, Graham’s credit facility also contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted EBITDA, and Adjusted EBITDA margin, as presented, may not be directly comparable to other similarly titled measures used by other companies. Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year’s net income and net income per diluted share to the historical periods’ net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions and other unusual and non-recurring items, provides a more comparable metric to other companies that are not as acquisitive as Graham and is more reflective of our underlying business. Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 6 of 11 Forward-Looking Non-GAAP Measures Forward-looking return on invested capital, Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s fiscal 2027 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material. Forward-looking return on invested capital is defined as a return on invested capital and is calculated by dividing net operating profit after taxes by the total invested capital. Forward-looking return on invested capital is not a measure determined in accordance with GAAP. Nevertheless, the Company believes that providing forward-looking return on invested capital is important for investors and other readers of the Company’s financial statements, as it is used as an analytical indicator by the Company’s management to better understand profitability and efficiency of use of capital for certain projects. Because forward-looking return on invested capital is a non-GAAP measure and is thus susceptible to varying calculations, forward-looking return on invested capital, as presented, may not be directly comparable to other similarly titled measures used by other companies. Key Performance Indicators In addition to the foregoing non-GAAP measures, management uses the following key performance metrics to analyze and measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent definitive agreements with customers to provide products and/or services. Backlog is defined as the total dollar value of net orders received for which revenue has not yet been recognized. Total backlog can include both funded and unfunded orders under government contracts. Management believes tracking orders and backlog are useful as they often times are leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer. The book-to-bill ratio is an operational measure that management uses to track the growth prospects of the Company. The Company calculates the book-to-bill ratio for a given period as net orders divided by net sales. Given that each of orders, backlog, and book-to-bill ratio are operational measures and that the Company’s methodology for calculating orders, backlog and book-to-bill ratio does not meet the definition of a non-GAAP measure, as that term is defined by the SEC, a quantitative reconciliation for each is not required or provided. For more information, contact: Christopher J. Thome Tom Cook Vice President - Finance and CFO Investor Relations Phone: (585) 343-2216 (203) 682-8250 Tom.Cook@icrinc.com Source: Graham Corporation Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 7 of 11 Consolidated Statements of Operations - Unaudited ($in thousands, except per share data) Three Months Ended March 31, Year Ended March 31, 2026 2025 % Change 2026 2025 % Change Net sales $ 67,078 $ 59,345 13 % $ 245,293 $ 209,896 17 % Cost of products sold 51,824 43,337 20 % 187,543 157,035 19 % Gross profit 15,254 16,008 (5 %) 57,750 52,861 9 % Gross margin 22.7 % 27.0 % 23.5 % 25.2 % Operating expenses and income: Selling, general and administrative 12,247 10,322 19 % 41,562 37,143 12 % Selling, general and administrative – amortization 484 436 11 % 1,792 1,745 3 % Other operating income (135 ) (269 ) (50 %) (621 ) (1,215 ) (49 %) Operating income 2,658 5,519 (52 %) 15,017 15,188 (1 %) Operating margin 4.0 % 9.3 % 6.1 % 7.2 % Other expense, net 180 91 98 % 514 364 41 % Interest expense (income), net 157 (141 ) (211 %) (257 ) (583 ) (56 %) Income before provision for income taxes 2,321 5,569 (58 %) 14,760 15,407 (4 %) Provision for income taxes 351 1,174 (70 %) 2,260 3,177 (29 %) Net income $ 1,970 $ 4,395 (55 %) $ 12,500 $ 12,230 2 % Per share data: Basic: Net income $ 0.18 $ 0.40 (55 %) $ 1.14 $ 1.12 2 % Diluted: Net income $ 0.18 $ 0.40 (55 %) $ 1.12 $ 1.11 1 % Weighted average common shares outstanding: Basic 11,052 10,898 10,988 10,884 Diluted 11,233 11,115 11,138 11,066 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 8 of 11 Consolidated Balance Sheets (Amounts in thousands, except per share data) March 31, 2026 March 31, 2025 Assets Current assets: Cash and cash equivalents $ 6,580 $ 21,577 Trade accounts receivable, net of allowances ($195 and $630 at March 31 2026 and 2025, respectively) 33,809 35,507 Unbilled revenue 59,868 38,494 Inventories 50,758 40,025 Prepaid expenses and other current assets 4,255 4,249 Income taxes receivable 1,184 1,520 Total current assets 156,454 141,372 Property, plant and equipment, net 60,330 50,649 Prepaid pension asset 6,633 5,950 Operating lease assets 6,740 6,386 Goodwill 38,078 25,520 Customer relationships, net 15,372 13,159 Technology and technical know-how, net 23,232 10,310 Tradenames, net 13,458 6,858 Deferred income tax asset 131 1,502 Other assets 3,188 2,404 Total assets $ 323,616 $ 264,110 Liabilities and stockholders’ equity Current liabilities: Current portion of finance lease obligations $ 23 $ 21 Accounts payable 25,740 27,309 Accrued compensation 21,547 19,161 Accrued expenses and other current liabilities 4,728 4,322 Customer deposits 102,421 84,062 Operating lease liabilities 1,806 1,275 Income taxes payable 5 — Total current liabilities 156,270 136,150 Long-term debt 13,000 — Finance lease obligations 21 44 Operating lease liabilities 5,343 5,514 Deferred income tax liability 897 24 Accrued pension and postretirement benefit liabilities 1,145 1,192 Other long-term liabilities 6,625 1,609 Total liabilities 183,301 144,533 Stockholders’ equity: Preferred stock, $1.00 par value, 500 shares authorized — — Common stock, $0.10 par value, 25,500 shares authorized, 11,247 and 11,077 shares issued and 11,073 and 10,903 shares outstanding at March 31, 2026 and 2025, respectively 1,124 1,107 Capital in excess of par value 41,699 34,616 Retained earnings 106,729 94,229 Accumulated other comprehensive loss (5,849 ) (6,987 ) Treasury stock (174 shares at March 31, 2026 and 2025, respectively) (3,388 ) (3,388 ) Total stockholders’ equity 140,315 119,577 Total liabilities and stockholders’ equity $ 323,616 $ 264,110 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 9 of 11 Consolidated Statements of Cash Flows (Amounts in thousands) Year Ended March 31, 2026 2025 Operating activities: Net income $ 12,500 $ 12,230 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 5,337 3,718 Amortization 2,506 2,218 Adjustments for credit losses (256 ) 829 Amortization of actuarial losses 840 781 Equity-based compensation expense 2,131 1,957 Gain on disposal or sale of property, plant and equipment (52 ) — Change in fair value of contingent consideration (568 ) (1,215 ) Deferred income taxes 1,928 1,471 (Increase) decrease in operating assets, net of acquisitions: Accounts receivable 5,930 7,999 Unbilled revenue (21,387 ) (10,595 ) Inventories (6,785 ) (6,627 ) Income taxes receivable 326 (2,235 ) Prepaid expenses and other current and non-current assets (121 ) (2,190 ) Operating lease assets 1,435 1,294 Prepaid pension asset (115 ) (234 ) Increase (decrease) in operating liabilities, net of acquisitions: Accounts payable (794 ) 3,491 Accrued compensation, accrued expenses and other current and non-current liabilities (1,849 ) 639 Customer deposits 16,418 12,090 Operating lease liabilities (1,428 ) (1,272 ) Long-term portion of accrued compensation, accrued pension and postretirement benefit liabilities (63 ) (33 ) Net cash provided by operating activities 15,933 24,316 Investing activities: Purchase of property, plant and equipment (16,054 ) (18,957 ) Proceeds from disposal of property, plant and equipment 274 — Acquisitions, net of cash acquired (27,285 ) (170 ) Net cash used by investing activities (43,065 ) (19,127 ) Financing activities: Borrowings of debt obligations 33,000 — Principal repayments on debt (20,000 ) — Repayments on finance lease obligations (335 ) (320 ) Issuance of common stock 832 653 Tax withholdings related to net share settlements of restricted stock units and awards (1,541 ) (854 ) Net cash provided (used) by financing activities 11,956 (521 ) Effect of exchange rate changes on cash 179 (30 ) Net (decrease) increase in cash and cash equivalents (14,997 ) 4,638 Cash and cash equivalents at beginning of period 21,577 16,939 Cash and cash equivalents at end of period $ 6,580 $ 21,577 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 10 of 11 Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended March 31, Year Ended March 31, 2026 2025 2026 2025 Net income $ 1,970 $ 4,395 $ 12,500 $ 12,230 Acquisition & integration expense (income), net 1,148 (270 ) 1,305 (1,170 ) ERP Implementation costs 122 178 213 882 Net interest expense (income) 157 (141 ) (257 ) (583 ) Income tax expense 351 1,174 2,260 3,177 Equity-based compensation expense 404 753 2,131 1,957 Depreciation & amortization 2,666 1,561 7,843 5,936 Adjusted EBITDA $ 6,818 $ 7,650 $ 25,995 $ 22,429 Net sales $ 67,078 $ 59,345 $ 245,293 $ 209,896 Net income margin 2.9 % 7.4 % 5.1 % 5.8 % Adjusted EBITDA margin 10.2 % 12.9 % 10.6 % 10.7 % Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation (Unaudited, $ in thousands, except per share amounts) Three Months Ended March 31, Year Ended March 31, 2026 2025 2026 2025 Net income $ 1,970 $ 4,395 $ 12,500 $ 12,230 Acquisition & integration expense (income), net 1,148 (270 ) 1,305 (1,170 ) Amortization of intangible assets 999 555 2,506 2,218 ERP Implementation costs 122 178 213 882 Tax impact of adjustments (1) (522 ) (106 ) (926 ) (444 ) Adjusted net income $ 3,717 $ 4,752 $ 15,598 $ 13,716 GAAP net income per diluted share $ 0.18 $ 0.40 $ 1.12 $ 1.11 Adjusted net income per diluted share $ 0.33 $ 0.43 $ 1.40 $ 1.24 Diluted weighted average common shares outstanding 11,233 11,115 11,138 11,066 (1) Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate of 23%. Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results June 8, 2026 Page 11 of 11 Acquisition and integration expense (income) are incremental costs that are directly related to and as a result of acquisition related activity or the subsequent accounting for any contingent earn-out liability. These costs (income) may include, among other things, professional, consulting and other fees, system integration costs, and contingent consideration fair value adjustments. ERP implementation costs primarily relate to consulting costs (training, data conversion, and project management) incurred in connection with the ERP system being implemented at our Batavia, New York facility in order to enhance efficiency and productivity and are not expected to recur once the project is completed.

Document text

EX-99.1 · d79259dex991.htm

EX-99.1
 2
 d79259dex991.htm
 EX-99.1

 Exhibit 99.1

 News Release

 Graham Corporation  20 Florence Avenue  Batavia, NY 14020

 IMMEDIATE RELEASE
 Graham Corporation
Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 

 Record quarterly and full year revenue increased 13% to $67.1 million and 17% to $245.3 million,
respectively

 

 Quarterly net income per diluted share was $0.18; Fiscal 2026 net income per diluted share was $1.12

 

 Quarterly Adjusted net income per diluted share 1 was $0.33; Fiscal 2026 Adjusted net income per diluted share 1 increased 13% to $1.40

 

 Quarterly Adjusted EBITDA 1 was $6.8 million; Fiscal
2026 Adjusted EBITDA 1 increased 16% to $26.0 million

 

 Record backlog 2 of $532.6 million, increasing 29%
year-over-year, benefiting from record full year orders 2 of $359 million (Book-to-Bill 2 1.5x)

 

 Completed acquisition of FlackTek  , establishing
advanced mixing and materials processing as Graham’s third core technology platform and further expanding capabilities across all our markets

 

 Fiscal 2027 revenue and Adjusted EBITDA 1 guidance reflects
continued growth and is in line with our long-term goals

 BATAVIA, NY, June 8, 2026 – Graham Corporation
(NYSE: GHM) (“GHM,” “Graham,” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense,
Energy & Process, and Space industries, today reported financial results for the fourth quarter and fiscal year ended March 31, 2026 (“fiscal 2026”).

 Graham’s President and Chief Executive Officer, Matthew J. Malone stated, “Fiscal 2026 was another year of strong execution and continued momentum
across Graham. We delivered record annual revenue, orders, and backlog, as well as a 1.5x book-to-bill ratio, reflecting sustained demand across our core end markets and
the strength of our diversified business model. During the year, we continued executing on strategic initiatives to drive sustainable long-term value creation including investments focused on capability and capacity expansion, operational
excellence, and next generation technology, which are expected to deliver returns on invested capital above 20%.”
 Mr. Malone continued,
“As we enter fiscal 2027, we remain focused on disciplined execution and strategic investments that enhance our capabilities and support long-term profitable growth. We believe our record backlog, strong pipeline, and ongoing integration
initiatives provide meaningful visibility and line of sight to deliver our fiscal 2027 objectives.”

 1
 Adjusted net income per diluted share and Adjusted EBITDA are
 non-GAAP measures. See attached tables and other information for important disclosures regarding Graham’s use of these non-GAAP measures.

 2
 Orders, backlog and
 book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these
metrics.

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 2
 of 11

 Fourth Quarter and Full Year Fiscal 2026 Performance Review

 (All comparisons are with the same prior-year period unless noted otherwise.)

 ($ in thousands except per share data)

 Q4 FY26

 Q4 FY25

 $ Change

 % Change

 FY 2026

 FY 2025

 Change

 % Change

 Net sales

 $
 67,078

 $
 59,345

 $
 7,733

 13
 %

 $
 245,293

 $
 209,896

 $
 35,397

 17
 %

 Gross profit

 $
 15,254

 $
 16,008

 $
 (754
 )

 -5
 %

 $
 57,750

 $
 52,861

 $
 4,889

 9
 %

 Gross margin

 22.7
 %

 27.0
 %

 -430
 bps

 23.5
 %

 25.2
 %

 -170
 bps

 Operating income

 $
 2,658

 $
 5,519

 $
 (2,861
 )

 -52
 %

 $
 15,017

 $
 15,188

 $
 (171
 )

 -1
 %

 Operating margin

 4.0
 %

 9.3
 %

 -530
 bps

 6.1
 %

 7.2
 %

 -110
 bps

 Net income

 $
 1,970

 $
 4,395

 $
 (2,425
 )

 -55
 %

 $
 12,500

 $
 12,230

 $
 270

 2
 %

 Net income margin

 2.9
 %

 7.4
 %

 -450
 bps

 5.1
 %

 5.8
 %

 -70
 bps

 Net income per diluted share

 $
 0.18

 $
 0.40

 $
 (0.22
 )

 -55
 %

 $
 1.12

 $
 1.11

 $
 0.01

 1
 %

 Adjusted net income*

 $
 3,717

 $
 4,752

 $
 (1,035
 )

 -22
 %

 $
 15,598

 $
 13,716

 $
 1,882

 14
 %

 Adjusted net income per diluted share*

 $
 0.33

 $
 0.43

 $
 (0.10
 )

 -23
 %

 $
 1.40

 $
 1.24

 $
 0.16

 13
 %

 Adjusted EBITDA*

 $
 6,818

 $
 7,650

 $
 (832
 )

 -11
 %

 $
 25,995

 $
 22,429

 $
 3,566

 16
 %

 Adjusted EBITDA margin*

 10.2
 %

 12.9
 %

 -270
 bps

 10.6
 %

 10.7
 %

 -10
 bps

 *
 Graham believes that, when used in conjunction with measures prepared in accordance with U.S. generally
accepted accounting principles (“GAAP”), adjusted net income, adjusted net income per diluted share, adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP measures, help in the
understanding of its operating performance. See attached tables and other information provided at the end of this press release for important disclosures regarding Graham’s use of these non-GAAP
measures.

 Fourth Quarter Fiscal 2026 Commentary

 Quarterly net sales increased 13% to a record $67.1 million compared with the prior-year period, driven primarily by continued strength in the Defense
market, building momentum in the Space market, and contributions from recently acquired businesses. Sales to the Defense market continued to benefit from strong program execution, capability and capacity expansion, and demand across key naval
defense platforms. Space revenue increased 14% over the prior year due to the ramp up of existing programs.
 Sales to the Energy & Process market
remained consistent with the prior year quarter, supported by solid aftermarket demand, continued activity within New Energy applications, including small modular reactor opportunities, and the recent acquisition of FlackTek Manufacturing, LLC and
FlackTek Sales, LLC (collectively, “FlackTek”), which contributed $2.8 million to sales during the quarter. While elevated oil prices have supported steady maintenance activity levels, customers continue to exhibit caution around
large capital project spending amid ongoing geopolitical uncertainty.
 Gross profit for the quarter was $15.3 million, or 22.7% of sales, compared
with 27.0% in the prior-year period. Gross margin reflected a less favorable mix, including an increased level of lower-margin Defense sales and FlackTek revenue due to purchase accounting adjustments, as well as lower Aftermarket sales in
comparison to the prior year, partially offset by improved operational execution.
 Selling, general and administrative expense (“SG&A”),
including amortization, increased primarily due to acquisition and integration costs, additional SG&A costs related to the recently acquired FlackTek operations, and continued investments in people, processes, and technology.

 Full-Year Fiscal 2026 Commentary
 Net sales for fiscal
2026 increased 17% to a record $245.3 million compared with fiscal 2025, driven primarily by continued growth within the Defense market, sustained demand across Graham’s diversified end markets, and contributions from acquisitions.
Defense revenue increased significantly year-over-year primarily due to new programs, growth in existing programs, and the timing of project milestones. Space market revenue was

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 3
 of 11

consistent with the prior year, but is expected to ramp in fiscal 2027 as orders increased 76% year-over-year, reflecting strong long-term demand fundamentals and program growth. Revenue within
the Energy & Process market increased 14% year-over-year as strong aftermarket activity, growth within New Energy applications and contributions from the FlackTek acquisition were partially offset by continued softness in large capital
project spending.
 Gross profit increased 9% to $57.8 million, and gross margin was 23.5% of sales. Profitability continued to benefit from higher
production volumes, operational efficiencies, pricing discipline, and strategic investments made throughout the business but were offset by a higher mix of lower margin sales including increased material content and Defense revenue, incremental
tariff impacts of approximately $1.0 million, and the non-recurrence of the prior year BlueForge Alliance grant related to defense welder training initiatives.

 SG&A, including amortization, totaled $43.4 million compared with $38.9 million in the prior year, reflecting continued investments in people,
processes, and technologies, acquisition and integration activities, and additional SG&A costs related to the recently acquired FlackTek operations.

 Cash Management and Balance Sheet
 Cash provided by
operating activities for fiscal 2026 was $15.9 million, reflecting strong cash net income partially offset by higher working capital balances. Note that cash flow from operations for the fourth quarter of fiscal 2026 were negatively impacted by
approximately $4 million related to transaction bonuses assumed in the FlackTek acquisition that were awarded by the previous owners of FlackTek but paid by the Company and was a reduction to the cash purchase price paid.

 As of March 31, 2026, cash and cash equivalents were $6.6 million compared with $21.6 million on March 31, 2025. Capital expenditures, net
for fiscal 2026 were $15.8 million and focused primarily on capability and capacity expansion, automation, productivity improvements, and advanced manufacturing capabilities, all of which are expected to deliver returns on invested capital
above 20%.
 During the first quarter of fiscal 2027, Graham further strengthened its balance sheet and financial flexibility through a $50 million
investment from accounts advised by T. Rowe Price. The Company utilized $13 million of the proceeds for debt repayment and is expected to utilize the remaining proceeds to help fund future organic and inorganic growth opportunities.

 The Company currently has access to approximately $74 million of liquidity under its revolving credit facility.

 Orders, Backlog, and Book-to-Bill Ratio

 See supplemental data filed with the Securities and Exchange Commission on Form 8-K and provided on the
Company’s website for a further breakdown of orders and backlog by market. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics ($ in millions).

 Q1 25

 Q2 25

 Q3 25

 Q4 25

 FY25

 Q1 26

 Q2 26

 Q3 26

 Q4 26

 FY26

 Orders

 $
 55.8

 $
 63.7

 $
 24.8

 $
 86.9

 $
 231.1

 $
 125.9

 $
 83.2

 $
 71.7

 $
 78.7

 $
 359.4

 Backlog

 $
 396.8

 $
 407.0

 $
 384.7

 $
 412.3

 $
 412.3

 $
 482.9

 $
 500.1

 $
 515.6

 $
 532.6

 $
 532.6

 Orders for the fourth quarter of fiscal 2026 were $78.7 million, representing a book-to-bill ratio of 1.2x. Full year fiscal 2026 orders were a record $359.4 million, resulting in a book-to-bill ratio of
1.5x.
 Backlog at fiscal year-end reached a record $532.6 million, increasing 29% compared with the prior
year, driven primarily by continued strength in the Defense and Space markets.
 The Company continues to experience strong demand across its core Defense,
Space, and New Energy platforms and expects favorable long-term market fundamentals supporting future growth. Management believes the Company’s backlog provides visibility into future revenue generation and supports its long-term growth
objectives.
 Approximately 35% to 40% of backlog is expected to convert to revenue over the next twelve months, with the remainder extending over multiple
years, primarily within the Defense market.

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 4
 of 11

 Fiscal 2027 Outlook

 (as of June 8, 2026)

 Fiscal 2027 Guidance

 Net Sales

 $285 million to $295 million

 Gross Margin

 24.5% to 25.5% of sales

 SG&A expense (including
amortization) (1)(2)

 16.5% to 17.5% of sales

 Adjusted EBITDA (2)(3)(4)

 $35 million to $40 million

 Effective Tax Rate

 18% to 20%

 Capital Expenditures

 $18.0 million to $22.0 million

 (1)
 Includes approximately $4.0 million to $5.0 million of equity-based compensation, net
acquisition & integration costs, and enterprise resource planning (“ERP”) conversion costs included in SG&A.

 (2)
 Includes approximately $2.5 million of incremental costs to invest in people, processes, and technology
to enable future growth and accelerate the commercialization of Graham products and technologies.

 (3)
 Excludes net interest (income) expense, income taxes, depreciation, and amortization from net income, as
well as approximately $4.0 million to $5.0 million of equity-based compensation, net acquisition & integration costs, and ERP conversion costs.

 (4)
 See “Forward-Looking Non-GAAP Measures” below for
additional information.

 Graham’s Chief Financial Officer, Christopher J. Thome, said, “We are pleased with our fiscal
2026 performance which met our raised guidance for the year and reflected continued operational execution, strong order activity, and disciplined investment across the business. During the year, we continued investing in automation, advanced
manufacturing capacity and capabilities, our technology, and strategic growth initiatives intended to support long-term scalable growth and margin expansion, and are expected to generate returns on invested capital above 20%.

 “As we enter fiscal 2027, we remain focused on disciplined execution, integrating FlackTek, and continuing to invest in our people, processes, and
technology to enable future growth and accelerate the commercialization of our products and technologies. We believe the underlying momentum of the business remains strong and supports our long-term profitability objectives. Our fiscal 2027 revenue
and Adjusted EBITDA guidance reflects continued growth and is in line with our long-term goals.”
 Webcast and Conference Call

 GHM’s management will host a conference call and live webcast on June 8, 2026, at 11:00 a.m. Eastern Time (“ET”) to review its financial
results as well as its strategy and outlook. The review will be accompanied by a slide presentation, which will be made available immediately prior to the conference call on GHM’s investor relations website.

 A question-and-answer session will follow the formal presentation. GHM’s
conference call can be accessed by calling (201)-689-8560. Alternatively, the webcast can be monitored from the events section of GHM’s investor relations website.

 A telephonic replay will be available from 3:00 p.m. ET today through Monday June 15, 2026. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13760742 or access the webcast replay via the Company’s website at ir.grahamcorp.com, where a transcript will also be posted once available.

 About Graham Corporation
 Graham is a global leader in
the design and manufacture of mission critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense, Energy & Process, and Space industries. Graham Corporation and its family of global brands are built upon
world-renowned engineering expertise, proprietary technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely
posts news and other important information on its website, grahamcorp.com , where additional information on Graham Corporation and its businesses can be found.

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 5
 of 11

 Safe Harbor Regarding Forward Looking Statements

 This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended.
 Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by
words such as “continue,” “estimate,” “expects,” “future,” “outlook,” “believes,” “could,” “guidance,” “goal,” “may”,
“will,” “plan” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to,
profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the Defense industry, its ability to secure future projects and applications, expected expansion
and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, return on invested capital, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit
margins, tax rates, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the
economic recovery in its markets, and its acquisition and growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and
uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other
reports filed with the SEC.
 Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying
assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham
Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

 Non-GAAP Financial Measures

 Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, other acquisition related
expenses, equity-based compensation, ERP implementation costs, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures
determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Graham believes that providing non-GAAP information, such as Adjusted EBITDA
and Adjusted EBITDA margin, is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand operating performance. Moreover,
Graham’s credit facility also contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted
EBITDA, and Adjusted EBITDA margin, as presented, may not be directly comparable to other similarly titled measures used by other companies.
 Adjusted net
income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not
measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income
and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year’s net income
and net income per diluted share to the historical periods’ net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions and other
unusual and non-recurring items, provides a more comparable metric to other companies that are not as acquisitive as Graham and is more reflective of our underlying business.

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 6
 of 11

 Forward-Looking Non-GAAP Measures

 Forward-looking return on invested capital, Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The
Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such
information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of
our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on
the Company’s fiscal 2027 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with
purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above
may be material.
 Forward-looking return on invested capital is defined as a return on invested capital and is calculated by dividing net operating profit
after taxes by the total invested capital. Forward-looking return on invested capital is not a measure determined in accordance with GAAP. Nevertheless, the Company believes that providing forward-looking return on invested capital is important for
investors and other readers of the Company’s financial statements, as it is used as an analytical indicator by the Company’s management to better understand profitability and efficiency of use of capital for certain projects. Because
forward-looking return on invested capital is a non-GAAP measure and is thus susceptible to varying calculations, forward-looking return on invested capital, as presented, may not be directly comparable to
other similarly titled measures used by other companies.
 Key Performance Indicators

 In addition to the foregoing non-GAAP measures, management uses the following key performance metrics to analyze and
measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio. Management uses orders and backlog as measures of
current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent definitive agreements with customers to provide products and/or services. Backlog is defined as the
total dollar value of net orders received for which revenue has not yet been recognized. Total backlog can include both funded and unfunded orders under government contracts. Management believes tracking orders and backlog are useful as they often
times are leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

 The book-to-bill ratio is an operational measure that management uses to track
the growth prospects of the Company. The Company calculates the book-to-bill ratio for a given period as net orders divided by net sales.

 Given that each of orders, backlog, and book-to-bill ratio are operational
measures and that the Company’s methodology for calculating orders, backlog and book-to-bill ratio does not meet the definition of a
 non-GAAP measure, as that term is defined by the SEC, a quantitative reconciliation for each is not required or provided.

 For more information, contact:

 Christopher J. Thome

 Tom Cook

 Vice President - Finance and CFO  

 Investor Relations

 Phone: (585) 343-2216

 (203) 682-8250

 Tom.Cook@icrinc.com

 Source: Graham Corporation

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 7
 of 11

 Consolidated Statements of Operations - Unaudited

 ($in thousands, except per share data)

 Three Months Ended March 31,

 Year Ended March 31,

 2026

 2025

 % Change

 2026

 2025

 % Change

 Net sales

 $
 67,078

 $
 59,345

 13
 %

 $
 245,293

 $
 209,896

 17
 %

 Cost of products sold

 51,824

 43,337

 20
 %

 187,543

 157,035

 19
 %

 Gross profit

 15,254

 16,008

 (5
 %)

 57,750

 52,861

 9
 %

 Gross margin

 22.7
 %

 27.0
 %

 23.5
 %

 25.2
 %

 Operating expenses and income:

 Selling, general and administrative

 12,247

 10,322

 19
 %

 41,562

 37,143

 12
 %

 Selling, general and administrative – amortization

 484

 436

 11
 %

 1,792

 1,745

 3
 %

 Other operating income

 (135
 )

 (269
 )

 (50
 %)

 (621
 )

 (1,215
 )

 (49
 %)

 Operating income

 2,658

 5,519

 (52
 %)

 15,017

 15,188

 (1
 %)

 Operating margin

 4.0
 %

 9.3
 %

 6.1
 %

 7.2
 %

 Other expense, net

 180

 91

 98
 %

 514

 364

 41
 %

 Interest expense (income), net

 157

 (141
 )

 (211
 %)

 (257
 )

 (583
 )

 (56
 %)

 Income before provision for income taxes

 2,321

 5,569

 (58
 %)

 14,760

 15,407

 (4
 %)

 Provision for income taxes

 351

 1,174

 (70
 %)

 2,260

 3,177

 (29
 %)

 Net income

 $
 1,970

 $
 4,395

 (55
 %)

 $
 12,500

 $
 12,230

 2
 %

 Per share data:

 Basic:

 Net income

 $
 0.18

 $
 0.40

 (55
 %)

 $
 1.14

 $
 1.12

 2
 %

 Diluted:

 Net income

 $
 0.18

 $
 0.40

 (55
 %)

 $
 1.12

 $
 1.11

 1
 %

 Weighted average common shares outstanding:

 Basic

 11,052

 10,898

 10,988

 10,884

 Diluted

 11,233

 11,115

 11,138

 11,066

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 8
 of 11

 Consolidated Balance Sheets

 (Amounts in thousands, except per share data)

 March 31,
2026

 March 31,
2025

 Assets

 Current assets:

 Cash and cash equivalents

 $
 6,580

 $
 21,577

 Trade accounts receivable, net of allowances ($195 and $630 at March 31 2026 and 2025,
respectively)

 33,809

 35,507

 Unbilled revenue

 59,868

 38,494

 Inventories

 50,758

 40,025

 Prepaid expenses and other current assets

 4,255

 4,249

 Income taxes receivable

 1,184

 1,520

 Total current assets

 156,454

 141,372

 Property, plant and equipment, net

 60,330

 50,649

 Prepaid pension asset

 6,633

 5,950

 Operating lease assets

 6,740

 6,386

 Goodwill

 38,078

 25,520

 Customer relationships, net

 15,372

 13,159

 Technology and technical know-how, net

 23,232

 10,310

 Tradenames, net

 13,458

 6,858

 Deferred income tax asset

 131

 1,502

 Other assets

 3,188

 2,404

 Total assets

 $
 323,616

 $
 264,110

 Liabilities and stockholders’ equity

 Current liabilities:

 Current portion of finance lease obligations

 $
 23

 $
 21

 Accounts payable

 25,740

 27,309

 Accrued compensation

 21,547

 19,161

 Accrued expenses and other current liabilities

 4,728

 4,322

 Customer deposits

 102,421

 84,062

 Operating lease liabilities

 1,806

 1,275

 Income taxes payable

 5

 — 

 Total current liabilities

 156,270

 136,150

 Long-term debt

 13,000

 — 

 Finance lease obligations

 21

 44

 Operating lease liabilities

 5,343

 5,514

 Deferred income tax liability

 897

 24

 Accrued pension and postretirement benefit liabilities

 1,145

 1,192

 Other long-term liabilities

 6,625

 1,609

 Total liabilities

 183,301

 144,533

 Stockholders’ equity:

 Preferred stock, $1.00 par value, 500 shares authorized

 — 

 — 

 Common stock, $0.10 par value, 25,500 shares authorized, 11,247 and 11,077 shares issued and
11,073 and 10,903 shares outstanding at March 31, 2026 and 2025, respectively

 1,124

 1,107

 Capital in excess of par value

 41,699

 34,616

 Retained earnings

 106,729

 94,229

 Accumulated other comprehensive loss

 (5,849
 )

 (6,987
 )

 Treasury stock (174 shares at March 31, 2026 and 2025, respectively)

 (3,388
 )

 (3,388
 )

 Total stockholders’ equity

 140,315

 119,577

 Total liabilities and stockholders’ equity

 $
 323,616

 $
 264,110

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 9
 of 11

 Consolidated Statements of Cash Flows

 (Amounts in thousands)

 Year Ended March 31,

 2026

 2025

 Operating activities:

 Net income

 $
 12,500

 $
 12,230

 Adjustments to reconcile net income to net cash provided by operating activities:

 Depreciation

 5,337

 3,718

 Amortization

 2,506

 2,218

 Adjustments for credit losses

 (256
 )

 829

 Amortization of actuarial losses

 840

 781

 Equity-based compensation expense

 2,131

 1,957

 Gain on disposal or sale of property, plant and equipment

 (52
 )

 — 

 Change in fair value of contingent consideration

 (568
 )

 (1,215
 )

 Deferred income taxes

 1,928

 1,471

 (Increase) decrease in operating assets, net of acquisitions:

 Accounts receivable

 5,930

 7,999

 Unbilled revenue

 (21,387
 )

 (10,595
 )

 Inventories

 (6,785
 )

 (6,627
 )

 Income taxes receivable

 326

 (2,235
 )

 Prepaid expenses and other current and non-current
assets

 (121
 )

 (2,190
 )

 Operating lease assets

 1,435

 1,294

 Prepaid pension asset

 (115
 )

 (234
 )

 Increase (decrease) in operating liabilities, net of acquisitions:

 Accounts payable

 (794
 )

 3,491

 Accrued compensation, accrued expenses and other current and
 non-current liabilities

 (1,849
 )

 639

 Customer deposits

 16,418

 12,090

 Operating lease liabilities

 (1,428
 )

 (1,272
 )

 Long-term portion of accrued compensation, accrued pension and postretirement benefit
liabilities

 (63
 )

 (33
 )

 Net cash provided by operating activities

 15,933

 24,316

 Investing activities:

 Purchase of property, plant and equipment

 (16,054
 )

 (18,957
 )

 Proceeds from disposal of property, plant and equipment

 274

 — 

 Acquisitions, net of cash acquired

 (27,285
 )

 (170
 )

 Net cash used by investing activities

 (43,065
 )

 (19,127
 )

 Financing activities:

 Borrowings of debt obligations

 33,000

 — 

 Principal repayments on debt

 (20,000
 )

 — 

 Repayments on finance lease obligations

 (335
 )

 (320
 )

 Issuance of common stock

 832

 653

 Tax withholdings related to net share settlements of restricted stock units and awards

 (1,541
 )

 (854
 )

 Net cash provided (used) by financing activities

 11,956

 (521
 )

 Effect of exchange rate changes on cash

 179

 (30
 )

 Net (decrease) increase in cash and cash equivalents

 (14,997
 )

 4,638

 Cash and cash equivalents at beginning of period

 21,577

 16,939

 Cash and cash equivalents at end of period

 $
 6,580

 $
 21,577

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 10
 of 11

 Adjusted EBITDA Reconciliation

 (Unaudited, $ in thousands)

 Three Months Ended
March 31,

 Year Ended
March 31,

 2026

 2025

 2026

 2025

 Net income

 $
 1,970

 $
 4,395

 $
 12,500

 $
 12,230

 Acquisition & integration expense (income), net

 1,148

 (270
 )

 1,305

 (1,170
 )

 ERP Implementation costs

 122

 178

 213

 882

 Net interest expense (income)

 157

 (141
 )

 (257
 )

 (583
 )

 Income tax expense

 351

 1,174

 2,260

 3,177

 Equity-based compensation expense

 404

 753

 2,131

 1,957

 Depreciation & amortization

 2,666

 1,561

 7,843

 5,936

 Adjusted EBITDA

 $
 6,818

 $
 7,650

 $
 25,995

 $
 22,429

 Net sales

 $
 67,078

 $
 59,345

 $
 245,293

 $
 209,896

 Net income margin

 2.9
 %

 7.4
 %

 5.1
 %

 5.8
 %

 Adjusted EBITDA margin

 10.2
 %

 12.9
 %

 10.6
 %

 10.7
 %

 Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation

 (Unaudited, $ in thousands, except per share amounts)

 Three Months Ended
March 31,

 Year Ended
March 31,

 2026

 2025

 2026

 2025

 Net income

 $
 1,970

 $
 4,395

 $
 12,500

 $
 12,230

 Acquisition & integration expense (income), net

 1,148

 (270
 )

 1,305

 (1,170
 )

 Amortization of intangible assets

 999

 555

 2,506

 2,218

 ERP Implementation costs

 122

 178

 213

 882

 Tax impact of adjustments (1)

 (522
 )

 (106
 )

 (926
 )

 (444
 )

 Adjusted net income

 $
 3,717

 $
 4,752

 $
 15,598

 $
 13,716

 GAAP net income per diluted share

 $
 0.18

 $
 0.40

 $
 1.12

 $
 1.11

 Adjusted net income per diluted share

 $
 0.33

 $
 0.43

 $
 1.40

 $
 1.24

 Diluted weighted average common shares outstanding

 11,233

 11,115

 11,138

 11,066

 (1)
 Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate of 23%.

 Graham Corporation Reports Fourth Quarter and Full-Year Fiscal 2026 Results

 June 8, 2026
 Page
 11
 of 11

 Acquisition and integration expense (income) are incremental costs that are directly related to and as a
result of acquisition related activity or the subsequent accounting for any contingent earn-out liability. These costs (income) may include, among other things, professional, consulting and other fees, system
integration costs, and contingent consideration fair value adjustments. ERP implementation costs primarily relate to consulting costs (training, data conversion, and project management) incurred in connection with the ERP system being implemented at
our Batavia, New York facility in order to enhance efficiency and productivity and are not expected to recur once the project is completed.

EX-99.2 · d79259dex992.htm

Type

EX-99.2

File

d79259dex992.htm

Document text
EX-99.2 · d79259dex992.htm EX-99.2 3 d79259dex992.htm EX-99.2 Exhibit 99.2 Graham Corporation Q4 FY 2026 Supplemental Information - Unaudited ($ in thousands) SALES BY MARKET FY 2025 FY 2026 Q4 26 vs Q4 25 Q4 26 vs Q3 26 FYTD26 vs FYTD25 Q1 % of Q2 % of Q3 % of Q4 % of YTD % of Q1 % of Q2 % of Q3 % of Q4 % of YTD % of 2025 Total 2025 Total 2025 Total 2025 Total 2025 Total 2026 Total 2026 Total 2026 Total 2026 Total 2026 Total Variance Variance Variance Defense $ 29,094 58 % $ 30,897 58 % $ 27,023 57 % $ 34,911 59 % $ 121,925 58 % $ 29,535 53 % $ 40,750 62 % $ 35,283 62 % $ 41,877 62 % $ 147,445 60 % $ 6,966 20 % $ 6,594 19 % $ 25,520 21 % Energy & Process 16,910 34 % 19,250 36 % 16,193 34 % 20,934 35 % 73,287 35 % 22,574 41 % 21,278 32 % 18,287 32 % 21,204 32 % 83,343 34 % 270 1 % 2,917 16 % 10,056 14 % Space 3,947 8 % 3,416 6 % 3,821 8 % 3,500 6 % 14,684 7 % 3,378 6 % 3,999 6 % 3,131 6 % 3,997 6 % 14,505 6 % 497 14 % 866 28 % (179 ) -1 % $ 49,951 100 % $ 53,563 100 % $ 47,037 100 % $ 59,345 100 % $ 209,896 100 % $ 55,487 100 % $ 66,027 100 % $ 56,701 100 % $ 67,078 100 % $ 245,293 100 % $ 7,733 13 % $ 10,377 18 % $ 35,397 17 % SALES BY REGION FY 2025 FY 2026 Q4 26 vs Q4 25 Q4 26 vs Q3 26 FYTD26 vs FYTD25 Q1 % of Q2 % of Q3 % of Q4 % of YTD % of Q1 % of Q2 % of Q3 % of Q4 % of YTD % of 2025 Total 2025 Total 2025 Total 2025 Total 2025 Total 2026 Total 2026 Total 2026 Total 2026 Total 2026 Total Variance Variance Variance United States $ 40,930 82 % $ 45,460 85 % $ 39,675 84 % $ 43,878 74 % $ 169,943 81 % $ 46,322 83 % $ 55,098 83 % $ 48,112 85 % $ 60,096 90 % $ 209,628 85 % $ 16,218 37 % $ 11,984 25 % $ 39,685 23 % Middle East 983 2 % 794 1 % 1,551 3 % 3,760 6 % 7,088 3 % 1,346 2 % 1,770 3 % 1,402 2 % 2,485 4 % 7,003 3 % (1,275 ) -34 % 1,083 77 % (85 ) -1 % Asia 5,304 11 % 4,274 8 % 2,273 5 % 5,033 8 % 16,884 8 % 3,283 6 % 4,452 7 % 3,425 6 % 1,470 2 % 12,630 5 % (3,563 ) -71 % (1,955 ) -57 % (4,254 ) -25 % Other 2,734 5 % 3,035 6 % 3,538 8 % 6,674 11 % 15,981 8 % 4,536 8 % 4,707 7 % 3,762 7 % 3,027 5 % 16,032 7 % (3,647 ) -55 % (735 ) -20 % 51 0 % $ 49,951 100 % $ 53,563 100 % $ 47,037 100 % $ 59,345 100 % $ 209,896 100 % $ 55,487 100 % $ 66,027 100 % $ 56,701 100 % $ 67,078 100 % $ 245,293 100 % $ 7,733 13 % $ 10,377 18 % $ 35,397 17 % ORDERS BY MARKET FY 2025 FY 2026 Q4 26 vs Q4 25 Q4 26 vs Q3 26 FYTD26 vs FYTD25 Q1 % of Q2 % of Q3 % of Q4 % of YTD % of Q1 % of Q2 % of Q3 % of Q4 % of YTD % of 2025 Total 2025 Total 2025 Total 2025 Total 2025 Total 2026 Total 2026 Total 2026 Total 2026 Total 2026 Total Variance Variance Variance Defense 28,617 51 % 30,507 48 % 6,723 27 % 68,724 79 % 134,571 58 % 106,690 85 % 47,305 57 % 49,570 69 % 48,605 62 % 252,170 70 % $ (20,119 ) -29 % $ (965 ) -2 % $ 117,599 87 % Energy & Process 25,796 46 % 19,633 31 % 14,828 60 % 16,170 19 % 76,427 33 % 18,795 15 % 21,116 25 % 14,582 20 % 17,463 22 % 71,956 20 % 1,293 8 % 2,881 20 % (4,471 ) -6 % Space 1,354 2 % 13,538 21 % 3,235 13 % 1,988 2 % 20,114 9 % 413 0 % 14,779 18 % 7,519 10 % 12,606 16 % 35,316 10 % 10,618 534 % 5,087 68 % 15,202 76 % $ 55,767 100 % $ 63,678 100 % $ 24,786 100 % $ 86,882 100 % $ 231,112 100 % $ 125,898 100 % $ 83,200 100 % $ 71,671 100 % $ 78,674 100 % $ 359,442 100 % $ (8,208 ) -9 % $ 7,003 10 % $ 128,330 56 % BACKLOG BY MARKET FY 2025 FY 2026 Q4 26 vs Q4 25 Q4 26 vs Q3 26 Q1 % of Q2 % of Q3 % of Q4 % of YTD % of Q1 % of Q2 % of Q3 % of Q4 % of YTD % of 2025 Total 2025 Total 2025 Total 2025 Total 2025 Total 2026 Total 2026 Total 2026 Total 2026 Total 2026 Total Variance Variance Defense 327,827 83 % 327,438 80 % 307,138 80 % 340,613 83 % 340,613 83 % 417,768 87 % 424,323 85 % 438,762 85 % 450,125 85 % 450,125 85 % $ 109,512 32 % $ 11,363 3 % Energy & Process 60,890 15 % 61,391 15 % 59,969 16 % 55,640 13 % 55,640 13 % 51,975 11 % 51,852 10 % 48,274 9 % 45,135 8 % 45,135 8 % (10,505 ) -19 % (3,139 ) -7 % Space 8,058 2 % 18,180 4 % 17,594 5 % 16,082 4 % 16,082 4 % 13,117 3 % 23,897 5 % 28,597 6 % 37,377 7 % 37,377 7 % 21,295 132 % 8,780 31 % $ 396,775 100 % $ 407,009 100 % $ 384,701 100 % $ 412,335 100 % $ 412,335 100 % $ 482,860 100 % $ 500,072 100 % $ 515,633 100 % $ 532,637 100 % $ 532,637 100 % $ 120,302 29 % $ 17,004 3 % BOOK-TO-BILL RATIO 1.1 1.2 0.5 1.5 1.1 2.3 1.3 1.3 1.2 1.5

Document text

EX-99.2 · d79259dex992.htm

EX-99.2
 3
 d79259dex992.htm
 EX-99.2

 Exhibit 99.2

 Graham Corporation
 Q4
FY 2026
 Supplemental Information - Unaudited

 ($ in thousands)

 SALES BY MARKET

 FY 2025

 FY 2026

 Q4 26 vs Q4 25

 Q4 26 vs Q3 26

 FYTD26 vs FYTD25

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 Variance

 Variance

 Variance

 Defense

 $
 29,094

 58
 %

 $
 30,897

 58
 %

 $
 27,023

 57
 %

 $
 34,911

 59
 %

 $
 121,925

 58
 %

 $
 29,535

 53
 %

 $
 40,750

 62
 %

 $
 35,283

 62
 %

 $
 41,877

 62
 %

 $
 147,445

 60
 %

 $
 6,966

 20
 %

 $
 6,594

 19
 %

 $
 25,520

 21
 %

 Energy & Process

 16,910

 34
 %

 19,250

 36
 %

 16,193

 34
 %

 20,934

 35
 %

 73,287

 35
 %

 22,574

 41
 %

 21,278

 32
 %

 18,287

 32
 %

 21,204

 32
 %

 83,343

 34
 %

 270

 1
 %

 2,917

 16
 %

 10,056

 14
 %

 Space

 3,947

 8
 %

 3,416

 6
 %

 3,821

 8
 %

 3,500

 6
 %

 14,684

 7
 %

 3,378

 6
 %

 3,999

 6
 %

 3,131

 6
 %

 3,997

 6
 %

 14,505

 6
 %

 497

 14
 %

 866

 28
 %

 (179
 )

 -1
 %

 $
 49,951

 100
 %

 $
 53,563

 100
 %

 $
 47,037

 100
 %

 $
 59,345

 100
 %

 $
 209,896

 100
 %

 $
 55,487

 100
 %

 $
 66,027

 100
 %

 $
 56,701

 100
 %

 $
 67,078

 100
 %

 $
 245,293

 100
 %

 $
 7,733

 13
 %

 $
 10,377

 18
 %

 $
 35,397

 17
 %

 SALES BY REGION

 FY 2025

 FY 2026

 Q4 26 vs Q4 25

 Q4 26 vs Q3 26

 FYTD26 vs FYTD25

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 Variance

 Variance

 Variance

 United States

 $
 40,930

 82
 %

 $
 45,460

 85
 %

 $
 39,675

 84
 %

 $
 43,878

 74
 %

 $
 169,943

 81
 %

 $
 46,322

 83
 %

 $
 55,098

 83
 %

 $
 48,112

 85
 %

 $
 60,096

 90
 %

 $
 209,628

 85
 %

 $
 16,218

 37
 %

 $
 11,984

 25
 %

 $
 39,685

 23
 %

 Middle East

 983

 2
 %

 794

 1
 %

 1,551

 3
 %

 3,760

 6
 %

 7,088

 3
 %

 1,346

 2
 %

 1,770

 3
 %

 1,402

 2
 %

 2,485

 4
 %

 7,003

 3
 %

 (1,275
 )

 -34
 %

 1,083

 77
 %

 (85
 )

 -1
 %

 Asia

 5,304

 11
 %

 4,274

 8
 %

 2,273

 5
 %

 5,033

 8
 %

 16,884

 8
 %

 3,283

 6
 %

 4,452

 7
 %

 3,425

 6
 %

 1,470

 2
 %

 12,630

 5
 %

 (3,563
 )

 -71
 %

 (1,955
 )

 -57
 %

 (4,254
 )

 -25
 %

 Other

 2,734

 5
 %

 3,035

 6
 %

 3,538

 8
 %

 6,674

 11
 %

 15,981

 8
 %

 4,536

 8
 %

 4,707

 7
 %

 3,762

 7
 %

 3,027

 5
 %

 16,032

 7
 %

 (3,647
 )

 -55
 %

 (735
 )

 -20
 %

 51

 0
 %

 $
 49,951

 100
 %

 $
 53,563

 100
 %

 $
 47,037

 100
 %

 $
 59,345

 100
 %

 $
 209,896

 100
 %

 $
 55,487

 100
 %

 $
 66,027

 100
 %

 $
 56,701

 100
 %

 $
 67,078

 100
 %

 $
 245,293

 100
 %

 $
 7,733

 13
 %

 $
 10,377

 18
 %

 $
 35,397

 17
 %

 ORDERS BY MARKET

 FY 2025

 FY 2026

 Q4 26 vs Q4 25

 Q4 26 vs Q3 26

 FYTD26 vs FYTD25

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 Variance

 Variance

 Variance

 Defense

 28,617

 51
 %

 30,507

 48
 %

 6,723

 27
 %

 68,724

 79
 %

 134,571

 58
 %

 106,690

 85
 %

 47,305

 57
 %

 49,570

 69
 %

 48,605

 62
 %

 252,170

 70
 %

 $
 (20,119
 )

 -29
 %

 $
 (965
 )

 -2
 %

 $
 117,599

 87
 %

 Energy & Process

 25,796

 46
 %

 19,633

 31
 %

 14,828

 60
 %

 16,170

 19
 %

 76,427

 33
 %

 18,795

 15
 %

 21,116

 25
 %

 14,582

 20
 %

 17,463

 22
 %

 71,956

 20
 %

 1,293

 8
 %

 2,881

 20
 %

 (4,471
 )

 -6
 %

 Space

 1,354

 2
 %

 13,538

 21
 %

 3,235

 13
 %

 1,988

 2
 %

 20,114

 9
 %

 413

 0
 %

 14,779

 18
 %

 7,519

 10
 %

 12,606

 16
 %

 35,316

 10
 %

 10,618

 534
 %

 5,087

 68
 %

 15,202

 76
 %

 $
 55,767

 100
 %

 $
 63,678

 100
 %

 $
 24,786

 100
 %

 $
 86,882

 100
 %

 $
 231,112

 100
 %

 $
 125,898

 100
 %

 $
 83,200

 100
 %

 $
 71,671

 100
 %

 $
 78,674

 100
 %

 $
 359,442

 100
 %

 $
 (8,208
 )

 -9
 %

 $
 7,003

 10
 %

 $
 128,330

 56
 %

 BACKLOG BY MARKET

 FY 2025

 FY 2026

 Q4 26 vs Q4 25

 Q4 26 vs Q3 26

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 Q1

 % of

 Q2

 % of

 Q3

 % of

 Q4

 % of

 YTD

 % of

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2025

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 2026

 Total

 Variance

 Variance

 Defense

 327,827

 83
 %

 327,438

 80
 %

 307,138

 80
 %

 340,613

 83
 %

 340,613

 83
 %

 417,768

 87
 %

 424,323

 85
 %

 438,762

 85
 %

 450,125

 85
 %

 450,125

 85
 %

 $
 109,512

 32
 %

 $
 11,363

 3
 %

 Energy & Process

 60,890

 15
 %

 61,391

 15
 %

 59,969

 16
 %

 55,640

 13
 %

 55,640

 13
 %

 51,975

 11
 %

 51,852

 10
 %

 48,274

 9
 %

 45,135

 8
 %

 45,135

 8
 %

 (10,505
 )

 -19
 %

 (3,139
 )

 -7
 %

 Space

 8,058

 2
 %

 18,180

 4
 %

 17,594

 5
 %

 16,082

 4
 %

 16,082

 4
 %

 13,117

 3
 %

 23,897

 5
 %

 28,597

 6
 %

 37,377

 7
 %

 37,377

 7
 %

 21,295

 132
 %

 8,780

 31
 %

 $
 396,775

 100
 %

 $
 407,009

 100
 %

 $
 384,701

 100
 %

 $
 412,335

 100
 %

 $
 412,335

 100
 %

 $
 482,860

 100
 %

 $
 500,072

 100
 %

 $
 515,633

 100
 %

 $
 532,637

 100
 %

 $
 532,637

 100
 %

 $
 120,302

 29
 %

 $
 17,004

 3
 %

 BOOK-TO-BILL RATIO

 1.1

 1.2

 0.5

 1.5

 1.1

 2.3

 1.3

 1.3

 1.2

 1.5

EX-99.3 · d79259dex993.htm

Type

EX-99.3

File

d79259dex993.htm

Document text
EX-99.3 · d79259dex993.htm EX-99.3 4 d79259dex993.htm EX-99.3 Exhibit 99.3 Fourth Quarter & Full-Year Fiscal 2026 Financial Results June 8, 2026 GRAHAM CORPORATION © 2025 GRAHAM CORPORATION, ALL RIGHTS RESERVED 1 Safe Harbor Statement Safe Harbor Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “future,” “outlook,” “anticipates,” “believes,” “could,” “guidance,” “should,” “target,” ”may”, “will,” “plan,” “project” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the defense industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit margins, tax rates, tariffs, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this presentation. Use of Key Performance Indicators This presentation includes key performance indicators, such as orders, backlog, and book-to-bill ratio. See the slide entitled Disclaimer Regarding Key Performance Metrics in this presentation for information regarding these key performance indicators. Use of Non-GAAP Measures This presentation includes non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income and Adjusted Net income per diluted share. See the Appendix for information regarding these non-GAAP measures, including reconciliations to the most directly comparable U.S. GAAP financial measures. Use of Forward-Looking Non-GAAP Financial Measures Forward-looking ROIC, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material. Forward-looking ROIC is defined as a return on invested capital and is calculated by dividing net operating profit after taxes by the total invested capital. Forward-looking ROIC is not a measure determined in accordance with GAAP. Nevertheless, Graham believes that providing forward-looking ROIC is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand profitability and efficiency of use of capital for certain projects. Because forward-looking ROIC is a non-GAAP measure and is thus susceptible to varying calculations, forward-looking ROIC, as presented, may not be directly comparable to other similarly titled measures used by other companies. 2 Strong Fourth Quarter & Full-Year Performance Driven by Strong End- Market Demand and Robust Backlog Financial Highlights 4Q26 Highlights FY26 Highlights Graham is a GLOBAL LEADER in the design and manufacture of Revenue Revenue $67.1M $245.3M mission-critical fluid, power, heat transfer, vacuum, and advanced Gross Margin Gross Margin 23.5% 22.7% mixing technologies Net Income Net Income $2.0M $12.5M (1) (1) Adj. EBITDA Adj. EBITDA $6.8M $26.0M (2) Record Backlog of $532.6 million (2) Record FY26 Orders of $359.4 million (2) Book-to-Bill ratio of 1.5x Acquisition and integration of Xdot Bearing Technologies and FlackTek (1) See appendix for additional important disclosures regarding Graham’s use of the non-GAAP measure of Adjusted EBITDA and the reconciliation of Net Income to Adjusted EBITDA. (2) See appendix for additional information regarding Graham’s use of key performance metrics. 3 Organic Investments Fueling Future Growth (1) Strategic >20% ROIC projects nearing completion will drive sustainable growth DEFENSE ENERGY & PROCESS SPACE GRAHAM CORPORATE ü Cryogenic Test Facility in ü Renovated Assembly & ü New Navy Facility in ü IT infrastructure upgrade Jupiter, FL completed in Test Facility in Arvada, Batavia, NY completed in in Arvada, CO completed 4QFY26 CO completed 1QFY26 2QFY26 in 1QFY26 o Commissioning through end o Fully operational with o $17.6 million expansion • Batavia ERP upgrade of fiscal year product & people backed by $13.5 million scheduled for “go-live” in customer grant ü Liquid Nitrogen Testing in ü Kicked off aftermarket 2QFY27 Arvada, CO completed in ü Automated welding acceleration initiative o Streamline workstreams, 2QFY26 machines installed & utilizing AI improve transactional commissioned o First units successfully efficiency, and standardize ü Grew India team and tested & delivered cross-functional comms ü Batavia, NY X-Ray consolidated in Pune Facility completed in Q1 FY27 (1) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC 4 Completed Strategic Facility Expansions New Navy Facility in Batavia, NY (Completed 2QFY26) Cryogenic Test Facility in Jupiter, FL (Completed 4QFY26) Liquid Nitrogen Testing at Barber Nichols (Completed 2QFY26) Assembly & Test Facility at Barber Nichols (Completed 1QFY26) 5 Revenue Performance ($ in millions; narrative compared with prior-year period unless otherwise noted) Q4 FY26 sales up $7.7 million or 13% QUARTERLY + 20% Defense $80.0 $70.0 + 14% Space $60.0 $67.1 $66.0 + 1% Energy & Process $56.7 $50.0 $59.3 $55.5 $40.0 - 24% Aftermarket $30.0 $20.0 $10.0 Revenue Impacts $0.0 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY 26 Q4 FY26 + Strong execution + Capability and capacity expansion + New programs & growth in existing programs ANNUAL + Timing of project milestones (material receipts) $245.3 + Tailwinds in Space and New Energy end-markets $209.9 + Aftermarket remains strong but down from record levels $185.5 + $3 million from FlackTek (Primarily Energy & Process) FY 2024 FY 2025 FY 2026 6 QUARTERLY ANNUAL 27.0% 26.5% $16.5 28.0% $70.0 26.0% 21.7% 25.2% 23.8% $16.0 22.7% $60.0 23.0% 25.0% $15.5 $50.0 23.5% $15.0 18.0% 24.0% $40.0 $14.5 13.0% 23.0% $14.0 $30.0 $13.5 8.0% 22.0% $20.0 21.9% $13.0 3.0% 21.0% $10.0 $12.5 $16.0 $14.7 $14.3 $13.5 $15.3 $40.6 $52.9 $57.8 Strong Gross Profit & Margin $12.0 -2.0% $0.0 20.0% Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 FY 2024 FY 2025 FY 2026 ($ in millions; narrative compared with prior-year period unless otherwise noted) Q4 FY26 Gross Profit Decreased $0.8 Million or 5% FY26 Gross Profit Increased $4.9 Million or 9% • Gross margin decreased 430 bps to 22.7% • Gross margin decreased 170 bps to 23.5% • FY26 gross margin impacted by: • FY26 gross margin impacted by: - Product mix - higher Defense; lower - Product mix - higher level of Defense and Aftermarket material receipts; lower Aftermarket - FlackTek purchase accounting amortization - Non recurrence of BlueForge Alliance grant - Tough comparable - Tariff impact ~$1 million + Volume & operational execution + Volume & operational execution 7 Adjusted EBITDA & Adjusted Net Income, Adj. Net Income Per Diluted (1) (1) EBITDA Margins Share & Margin ($ in millions except per share data) ($ in millions except per share data) Net Income per diluted share Adj. Net Income per diluted QUARTERLY QUARTERLY share $0.45 Percentages are net income $0.43 $0.42 margin and adj. net income $0.40 $7.7 margin $6.8 $6.8 $6.3 $0.33 $6.0 $0.31 $0.31 7.4% $0.28 8.0% $0.25 8.3% 8.9% 4.7% 5.2% 6.2% 5.0% $0.18 5.5% 2.9% 7.4%3.4 8% .0% 4.7% 5.0% 6.2% 10.2% 4.2% 8.9% 5.2% 9.5% 8.3% 12.9% 12.3% 10.7% Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 ANNUAL ANNUAL $1.40 $26.0 $1.24 $1.11 $1.12 $22.4 6.5% 5.8% $13.3 $0.63 7.0% $0.42 7.2% 10.7% 10.6% 3.7% 2.52 % .5% 3.7% 5.8% 6.5% 5.1% 6.4% FY 2024 FY 2025 FY 2026 FY 2024 FY 2025 FY 2026 8 (1) See appendix for additional important disclosures regarding Graham’s use of the non-GAAP measures of Adjusted EBITDA, Adjusted EBITDA Margins, Adjusted Net income and Adjusted Net Income per diluted share. (1) (1) Total Orders Backlog $532.6 Defense $515.6 $500.1 $359.4 Commercial $482.9 $82.5 $76.9 $75.8 $412.3 $65.1 $107.2 $268.4 $71.7 $231.1 $202.7 $91.0 $96.5 $143.9 $86.0 $450.1 $438.8 $417.8 $424.3 $252.2 $340.6 $80.7 $177.4 $134.6 $116.7 $63.2 Long-Term Demand FY22 FY23 FY24 FY25 FY26 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 (1) FY26 Book-to-Bill of 1.5x For Graham H ighlights Q 4 Backlog by Industry Diversified Portfolio ($ in millions; narrative compared with prior-year period unless otherwise noted) • Record orders of $359.4 million • Book-to-bill 1.2x (1.5x YTD) Defense • Record backlog of $532.6 million 85% • Continued momentum in Defense, Space, and Energy & Process 8% New Energy • Aftermarket orders down from record levels Space • E&P large capital projects delayed 7% • Expect approximately 35% to 40% of backlog to convert to sales in the next 12 months; another 20% to 25% the following year 9 (1) See appendix for additional information regarding Graham’s use of key performance metrics. Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE F Y26 Overview C apital Allocation Framework STRONG BALANCE SHEET Cash provided by operating activities • Strong cash generation and fiscal discipline $15.9M • Reduced $4M due to FlackTek Acquisition • Completed $50 million PIPE with accounts advised by T. Rowe Price in April 2026 0 1 Net Capital Expenditures • Proceeds used for debt repayment and to fund $15.8M organic and inorganic growth ORGANIC GROWTH Cash and cash equivalents $ 6.6M • Capex 7-10% of sales / R&D 1-2% of sales 02 1 • Greater than >20% ROIC investments $80.0M Amended revolving credit agreement M&A Debt outstanding (2) • Leverage <3.0x $13.0M 03 • Pipeline remains active (1) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC 10 (2) Debt was repaid in April 2026 after PIPE (As of June 8, 2026) Fiscal 2027 Guidance Net Sales $285 million to $295 million Gross Margin 24.5% to 25.5% of sales (1)(2) SG&A expense (including amortization) 16.5% to 17.5% of sales (2)(3)(4) Adjusted EBITDA $35 million to $40 million Effective Tax Rate 18% to 20% Capital Expenditures $18.0 million to $22.0 million FY27 Financial Outlook H ighlights • Implies 18% revenue growth at midpoint of range (4) • Implies 44% Adjusted EBITDA growth at midpoint of range (4) • Implies 13% Adjusted EBITDA margin at midpoint of range Our expectations for sales and profitability assumes that we will be able to operate our production facilities at planned capacity, have access to our global supply chain including our subcontractors, do not experience any global disruptions, and experience no impact from any other unforeseen events. (1) Includes approximately $4.0 to $5.0 million of equity-based compensation, net acquisition & integration costs, and enterprise resource planning (“ERP”) conversion costs included in SG&A. (2) Includes approximately $2.5 million of incremental costs to invest in people, processes, and technology to enable future growth and accelerate the commercialization of Graham products and technologies. (3) Excludes net interest (income) expense, income taxes, depreciation, and amortization from net income, as well as approximately $4.0 million to $5.0 million of equity-based compensation, net acquisition & integration, and ERP conversion costs. (4) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward- looking adjusted EBITDA and Adjusted EBITDA margin. 11 Advancing Toward Long-Term Goals with Strategic Actions Expanded Capital and R&D Proven Track Record of Operational Excellence to Disciplined and Strategic to Support Growth Strong, Consistent Drive Continuous Capital Allocation with M&A (3) Initiatives; Targeted ROIC Performance Improvement as an Accelerator >20% 35.0% Revenue Gross Profit % Adjusted EBITDA % BN earnout 30.0% bonus 25.2% Mid-20s 23.5% expense 25.0% 21.9% 21.0% completed in 20.0% FY26 ~12%-14% 15.0% 10.7% 10.6% $2.5M of 10.0% 7.2% incremental 6.1% $285M - investment (2) 5.0% $295M $97.5M $185.5M $209.9M $245.3M in FY27 to 0.0% drive FY21 FY24 FY25 FY26 FY27 Goal(1) organic growth (1) Mid-point of FY27 guidance as of June 8, 2026 (2) Goal is ~8% to 10% annualized organic revenue growth per year which implies approximately $285M to $295M in revenue based off FY27 guidance (3) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC 12 Q&A 1 13 3 Appendix 1 14 4 Key Performance Metrics Key Performance Indicators The book-to-bill ratio is an operational measure that management In addition to the non-GAAP measures used in this presentation, management uses the following key performance metrics to uses to track the growth prospects of the Company. The Company analyze and measure the Company’s financial performance and calculates the book-to-bill ratio for a given period as net orders results of operations: orders, backlog, and book-to-bill ratio. divided by net sales. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be Given that each of orders, backlog, and book-to-bill ratio are comparable with measures provided by other companies. Orders operational measures and that the Company's methodology for represent written communications received from customers calculating orders, backlog, and book-to-bill ratio does not meet requesting the Company to provide products and/or services. the definition of a non-GAAP measure, as that term is defined by Backlog is defined as the total dollar value of net orders received the U.S. Securities and Exchange Commission, a quantitative for which revenue has not yet been recognized. Management reconciliation for each is not required or provided. believes tracking orders and backlog are useful as it often times is a leading indicator of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer. 15 Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Three Months Ended Year Ended March 31, March 31, 2026 2025 2026 2025 Net income $ 1 ,970 $ 4 ,395 $ 12,500 $ 12,230 Acquisition & integration expense (income), net 1,148 ( 270) 1 ,305 ( 1,170) ERP Implementation costs 1 22 178 213 8 82 Net interest Expense (Income) 1 57 ( 141) ( 257) (583) Income tax expense 3 51 1 ,174 2 ,260 3,177 Equity-based compensation expense 4 04 753 2 ,131 1,957 Depreciation & amortization 2,666 1 ,561 7 ,843 5,936 Adjusted EBITDA $ 6,818 $ 7 ,650 $ 25,995 $ 22,429 Net sales $ 6 7,078 $ 5 9,345 $ 245,293 $ 2 09,896 Net income margin 2.9% 7.4% 5.1% 5.8% Adjusted EBITDA margin 10.2% 12.9% 10.6% 10.7% Non-GAAP Financial Measure: Adjusted EBITDA is defined as consolidated net income before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Graham believes that providing non-GAAP information, such as Adjusted EBITDA and Adjusted EBITDA margin, is important for investors and other readers of Graham's financial statements, as it is used as an analytical indicator by Graham's management to better understand operating performance. Moreover, Graham’s credit facility also contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted EBITDA, and Adjusted EBITDA margin, as presented, may not be directly comparable to other similarly titled measures used by other companies. 16 Adjusted Net Income & Adjusted Diluted EPS Reconciliation Three Months Ended Year Ended March 31, March 31, 2026 2025 2026 2025 Net income $ 1,970 $ 4,395 $ 12,500 $ 12,230 Acquisition & integration expense (income), net 1,148 (270) 1 ,305 (1,170) Amortization of intangible assets 999 555 2 ,506 2 ,218 ERP Implementation costs 122 178 213 882 (1) (522) (106) (926) (444) Tax impact of adjustments Adjusted net income $ 3,717 $ 4,752 $ 15,598 $ 13,716 GAAP net income per diluted share $ 0.18 $ 0.40 $ 1 .12 $ 1.11 Adjusted net income per diluted share $ 0.33 $ 0 .43 $ 1.40 $ 1.24 Diluted weighted average common shares 11,233 11,115 1 1,138 11,066 outstanding (1) Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate of 23%. Non-GAAP Financial Measure: Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year's net income and net income per diluted share to the historical periods' net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions, provides a better representation of the cash earnings of the Company. 17

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EX-99.3 · d79259dex993.htm

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 EX-99.3

 Exhibit 99.3 Fourth Quarter & Full-Year Fiscal 2026 Financial
Results June 8, 2026 GRAHAM CORPORATION © 2025 GRAHAM CORPORATION, ALL RIGHTS RESERVED 1

 Safe Harbor Statement Safe Harbor Regarding Forward Looking Statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks,
uncertainties and assumptions and are identified by words such as “expects,” “future,” “outlook,” “anticipates,” “believes,” “could,” “guidance,”
“should,” “target,” ”may”, “will,” “plan,” “project” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation
expects or anticipates will occur in the future, including but not limited to, profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the defense
industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, capital expenditures and SG&A expenses, the timing of
conversion of backlog to sales, orders, market presence, profit margins, tax rates, tariffs, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions
and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of
important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under
the heading entitled “Risk Factors”, and in other reports filed with the SEC. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual
results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update
or publicly announce any revisions to any of the forward-looking statements contained in this presentation. Use of Key Performance Indicators This presentation includes key performance indicators, such as orders, backlog, and book-to-bill ratio. See
the slide entitled Disclaimer Regarding Key Performance Metrics in this presentation for information regarding these key performance indicators. Use of Non-GAAP Measures This presentation includes non-GAAP measures, such as Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted Net income and Adjusted Net income per diluted share. See the Appendix for information regarding these non-GAAP measures, including reconciliations to the most directly comparable U.S. GAAP financial measures. Use of
Forward-Looking Non-GAAP Financial Measures Forward-looking ROIC, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures
to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because
forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or
misleading to investors. The unavailable information could have a significant impact on the Company’s financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among
others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material. Forward-looking ROIC is
defined as a return on invested capital and is calculated by dividing net operating profit after taxes by the total invested capital. Forward-looking ROIC is not a measure determined in accordance with GAAP. Nevertheless, Graham believes that
providing forward-looking ROIC is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand profitability and efficiency of use of
capital for certain projects. Because forward-looking ROIC is a non-GAAP measure and is thus susceptible to varying calculations, forward-looking ROIC, as presented, may not be directly comparable to other similarly titled measures used by other
companies. 2

 Strong Fourth Quarter & Full-Year Performance Driven by Strong End-
Market Demand and Robust Backlog Financial Highlights 4Q26 Highlights FY26 Highlights Graham is a GLOBAL LEADER in the design and manufacture of Revenue Revenue $67.1M $245.3M mission-critical fluid, power, heat transfer, vacuum, and advanced Gross
Margin Gross Margin 23.5% 22.7% mixing technologies Net Income Net Income $2.0M $12.5M (1) (1) Adj. EBITDA Adj. EBITDA $6.8M $26.0M (2) Record Backlog of $532.6 million (2) Record FY26 Orders of $359.4 million (2) Book-to-Bill ratio of 1.5x
Acquisition and integration of Xdot Bearing Technologies and FlackTek (1) See appendix for additional important disclosures regarding Graham’s use of the non-GAAP measure of Adjusted EBITDA and the reconciliation of Net Income to Adjusted
EBITDA. (2) See appendix for additional information regarding Graham’s use of key performance metrics. 3

 Organic Investments Fueling Future Growth (1) Strategic >20% ROIC
projects nearing completion will drive sustainable growth DEFENSE ENERGY & PROCESS SPACE GRAHAM CORPORATE ü Cryogenic Test Facility in ü Renovated Assembly & ü New Navy Facility in ü IT infrastructure upgrade Jupiter, FL
completed in Test Facility in Arvada, Batavia, NY completed in in Arvada, CO completed 4QFY26 CO completed 1QFY26 2QFY26 in 1QFY26 o Commissioning through end o Fully operational with o $17.6 million expansion • Batavia ERP upgrade of fiscal
year product & people backed by $13.5 million scheduled for “go-live” in customer grant ü Liquid Nitrogen Testing in ü Kicked off aftermarket 2QFY27 Arvada, CO completed in ü Automated welding acceleration initiative o
Streamline workstreams, 2QFY26 machines installed & utilizing AI improve transactional commissioned o First units successfully efficiency, and standardize ü Grew India team and tested & delivered cross-functional comms ü Batavia,
NY X-Ray consolidated in Pune Facility completed in Q1 FY27 (1) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC 4

 Completed Strategic Facility Expansions New Navy Facility in Batavia, NY
(Completed 2QFY26) Cryogenic Test Facility in Jupiter, FL (Completed 4QFY26) Liquid Nitrogen Testing at Barber Nichols (Completed 2QFY26) Assembly & Test Facility at Barber Nichols (Completed 1QFY26) 5

 Revenue Performance ($ in millions; narrative compared with prior-year
period unless otherwise noted) Q4 FY26 sales up $7.7 million or 13% QUARTERLY + 20% Defense $80.0 $70.0 + 14% Space $60.0 $67.1 $66.0 + 1% Energy & Process $56.7 $50.0 $59.3 $55.5 $40.0 - 24% Aftermarket $30.0 $20.0 $10.0 Revenue Impacts $0.0 Q4
FY25 Q1 FY26 Q2 FY26 Q3 FY 26 Q4 FY26 + Strong execution + Capability and capacity expansion + New programs & growth in existing programs ANNUAL + Timing of project milestones (material receipts) $245.3 + Tailwinds in Space and New Energy
end-markets $209.9 + Aftermarket remains strong but down from record levels $185.5 + $3 million from FlackTek (Primarily Energy & Process) FY 2024 FY 2025 FY 2026 6

 QUARTERLY ANNUAL 27.0% 26.5% $16.5 28.0% $70.0 26.0% 21.7% 25.2% 23.8%
$16.0 22.7% $60.0 23.0% 25.0% $15.5 $50.0 23.5% $15.0 18.0% 24.0% $40.0 $14.5 13.0% 23.0% $14.0 $30.0 $13.5 8.0% 22.0% $20.0 21.9% $13.0 3.0% 21.0% $10.0 $12.5 $16.0 $14.7 $14.3 $13.5 $15.3 $40.6 $52.9 $57.8 Strong Gross Profit & Margin $12.0
-2.0% $0.0 20.0% Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 FY 2024 FY 2025 FY 2026 ($ in millions; narrative compared with prior-year period unless otherwise noted) Q4 FY26 Gross Profit Decreased $0.8 Million or 5% FY26 Gross Profit Increased $4.9
Million or 9% • Gross margin decreased 430 bps to 22.7% • Gross margin decreased 170 bps to 23.5% • FY26 gross margin impacted by: • FY26 gross margin impacted by: - Product mix - higher Defense; lower - Product mix - higher
level of Defense and Aftermarket material receipts; lower Aftermarket - FlackTek purchase accounting amortization - Non recurrence of BlueForge Alliance grant - Tough comparable - Tariff impact ~$1 million + Volume & operational execution +
Volume & operational execution 7

 Adjusted EBITDA & Adjusted Net Income, Adj. Net Income Per Diluted
(1) (1) EBITDA Margins Share & Margin ($ in millions except per share data) ($ in millions except per share data) Net Income per diluted share Adj. Net Income per diluted QUARTERLY QUARTERLY share $0.45 Percentages are net income $0.43 $0.42
margin and adj. net income $0.40 $7.7 margin $6.8 $6.8 $6.3 $0.33 $6.0 $0.31 $0.31 7.4% $0.28 8.0% $0.25 8.3% 8.9% 4.7% 5.2% 6.2% 5.0% $0.18 5.5% 2.9% 7.4%3.4 8% .0% 4.7% 5.0% 6.2% 10.2% 4.2% 8.9% 5.2% 9.5% 8.3% 12.9% 12.3% 10.7% Q4 FY25 Q1 FY26 Q2
FY26 Q3 FY26 Q4 FY26 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 ANNUAL ANNUAL $1.40 $26.0 $1.24 $1.11 $1.12 $22.4 6.5% 5.8% $13.3 $0.63 7.0% $0.42 7.2% 10.7% 10.6% 3.7% 2.52 % .5% 3.7% 5.8% 6.5% 5.1% 6.4% FY 2024 FY 2025 FY 2026 FY 2024 FY 2025 FY 2026
8 (1) See appendix for additional important disclosures regarding Graham’s use of the non-GAAP measures of Adjusted EBITDA, Adjusted EBITDA Margins, Adjusted Net income and Adjusted Net Income per diluted share.

 (1) (1) Total Orders Backlog $532.6 Defense $515.6 $500.1 $359.4
Commercial $482.9 $82.5 $76.9 $75.8 $412.3 $65.1 $107.2 $268.4 $71.7 $231.1 $202.7 $91.0 $96.5 $143.9 $86.0 $450.1 $438.8 $417.8 $424.3 $252.2 $340.6 $80.7 $177.4 $134.6 $116.7 $63.2 Long-Term Demand FY22 FY23 FY24 FY25 FY26 Q4 FY25 Q1 FY26 Q2 FY26
Q3 FY26 Q4 FY26 (1) FY26 Book-to-Bill of 1.5x For Graham H ighlights Q 4 Backlog by Industry Diversified Portfolio ($ in millions; narrative compared with prior-year period unless otherwise noted) • Record orders of $359.4 million •
Book-to-bill 1.2x (1.5x YTD) Defense • Record backlog of $532.6 million 85% • Continued momentum in Defense, Space, and Energy & Process 8% New Energy • Aftermarket orders down from record levels Space • E&P large
capital projects delayed 7% • Expect approximately 35% to 40% of backlog to convert to sales in the next 12 months; another 20% to 25% the following year 9 (1) See appendix for additional information regarding Graham’s use of key
performance metrics.

 Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST
RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE F Y26 Overview C apital Allocation Framework STRONG BALANCE SHEET Cash provided by operating activities • Strong cash generation and fiscal discipline $15.9M • Reduced $4M due
to FlackTek Acquisition • Completed $50 million PIPE with accounts advised by T. Rowe Price in April 2026 0 1 Net Capital Expenditures • Proceeds used for debt repayment and to fund $15.8M organic and inorganic growth ORGANIC GROWTH Cash
and cash equivalents $ 6.6M • Capex 7-10% of sales / R&D 1-2% of sales 02 1 • Greater than >20% ROIC investments $80.0M Amended revolving credit agreement M&A Debt outstanding (2) • Leverage <3.0x $13.0M 03 •
Pipeline remains active (1) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC 10 (2) Debt was repaid in April 2026 after PIPE

 (As of June 8, 2026) Fiscal 2027 Guidance Net Sales $285 million to
$295 million Gross Margin 24.5% to 25.5% of sales (1)(2) SG&A expense (including amortization) 16.5% to 17.5% of sales (2)(3)(4) Adjusted EBITDA $35 million to $40 million Effective Tax Rate 18% to 20% Capital Expenditures $18.0 million to $22.0
million FY27 Financial Outlook H ighlights • Implies 18% revenue growth at midpoint of range (4) • Implies 44% Adjusted EBITDA growth at midpoint of range (4) • Implies 13% Adjusted EBITDA margin at midpoint of range Our
expectations for sales and profitability assumes that we will be able to operate our production facilities at planned capacity, have access to our global supply chain including our subcontractors, do not experience any global disruptions, and
experience no impact from any other unforeseen events. (1) Includes approximately $4.0 to $5.0 million of equity-based compensation, net acquisition & integration costs, and enterprise resource planning (“ERP”) conversion costs
included in SG&A. (2) Includes approximately $2.5 million of incremental costs to invest in people, processes, and technology to enable future growth and accelerate the commercialization of Graham products and technologies. (3) Excludes net
interest (income) expense, income taxes, depreciation, and amortization from net income, as well as approximately $4.0 million to $5.0 million of equity-based compensation, net acquisition & integration, and ERP conversion costs. (4) See the
Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward- looking adjusted EBITDA and Adjusted EBITDA margin. 11

 Advancing Toward Long-Term Goals with Strategic Actions Expanded
Capital and R&D Proven Track Record of Operational Excellence to Disciplined and Strategic to Support Growth Strong, Consistent Drive Continuous Capital Allocation with M&A (3) Initiatives; Targeted ROIC Performance Improvement as an
Accelerator >20% 35.0% Revenue Gross Profit % Adjusted EBITDA % BN earnout 30.0% bonus 25.2% Mid-20s 23.5% expense 25.0% 21.9% 21.0% completed in 20.0% FY26 ~12%-14% 15.0% 10.7% 10.6% $2.5M of 10.0% 7.2% incremental 6.1% $285M - investment (2)
5.0% $295M $97.5M $185.5M $209.9M $245.3M in FY27 to 0.0% drive FY21 FY24 FY25 FY26 FY27 Goal(1) organic growth (1) Mid-point of FY27 guidance as of June 8, 2026 (2) Goal is ~8% to 10% annualized organic revenue growth per year which implies
approximately $285M to $295M in revenue based off FY27 guidance (3) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC 12

 Q&A 1 13 3

 Appendix 1 14 4

 Key Performance Metrics Key Performance Indicators The book-to-bill
ratio is an operational measure that management In addition to the non-GAAP measures used in this presentation, management uses the following key performance metrics to uses to track the growth prospects of the Company. The Company analyze and
measure the Company’s financial performance and calculates the book-to-bill ratio for a given period as net orders results of operations: orders, backlog, and book-to-bill ratio. divided by net sales. Management uses orders and backlog as
measures of current and future business and financial performance, and these may not be Given that each of orders, backlog, and book-to-bill ratio are comparable with measures provided by other companies. Orders operational measures and that the
Company's methodology for represent written communications received from customers calculating orders, backlog, and book-to-bill ratio does not meet requesting the Company to provide products and/or services. the definition of a non-GAAP measure, as
that term is defined by Backlog is defined as the total dollar value of net orders received the U.S. Securities and Exchange Commission, a quantitative for which revenue has not yet been recognized. Management reconciliation for each is not required
or provided. believes tracking orders and backlog are useful as it often times is a leading indicator of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the
discretion of the customer. 15

 Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation
(Unaudited, $ in thousands) Three Months Ended Year Ended March 31, March 31, 2026 2025 2026 2025 Net income $ 1 ,970 $ 4 ,395 $ 12,500 $ 12,230 Acquisition & integration expense (income), net 1,148 ( 270) 1 ,305 ( 1,170) ERP Implementation
costs 1 22 178 213 8 82 Net interest Expense (Income) 1 57 ( 141) ( 257) (583) Income tax expense 3 51 1 ,174 2 ,260 3,177 Equity-based compensation expense 4 04 753 2 ,131 1,957 Depreciation & amortization 2,666 1 ,561 7 ,843 5,936 Adjusted
EBITDA $ 6,818 $ 7 ,650 $ 25,995 $ 22,429 Net sales $ 6 7,078 $ 5 9,345 $ 245,293 $ 2 09,896 Net income margin 2.9% 7.4% 5.1% 5.8% Adjusted EBITDA margin 10.2% 12.9% 10.6% 10.7% Non-GAAP Financial Measure: Adjusted EBITDA is defined as consolidated
net income before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted
EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Graham believes that providing non-GAAP information, such as
Adjusted EBITDA and Adjusted EBITDA margin, is important for investors and other readers of Graham's financial statements, as it is used as an analytical indicator by Graham's management to better understand operating performance. Moreover,
Graham’s credit facility also contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted EBITDA, and Adjusted EBITDA margin, as
presented, may not be directly comparable to other similarly titled measures used by other companies. 16

 Adjusted Net Income & Adjusted Diluted EPS Reconciliation Three
Months Ended Year Ended March 31, March 31, 2026 2025 2026 2025 Net income $ 1,970 $ 4,395 $ 12,500 $ 12,230 Acquisition & integration expense (income), net 1,148 (270) 1 ,305 (1,170) Amortization of intangible assets 999 555 2 ,506 2 ,218 ERP
Implementation costs 122 178 213 882 (1) (522) (106) (926) (444) Tax impact of adjustments Adjusted net income $ 3,717 $ 4,752 $ 15,598 $ 13,716 GAAP net income per diluted share $ 0.18 $ 0.40 $ 1 .12 $ 1.11 Adjusted net income per diluted share $
0.33 $ 0 .43 $ 1.40 $ 1.24 Diluted weighted average common shares 11,233 11,115 1 1,138 11,066 outstanding (1) Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate of 23%. Non-GAAP Financial
Measure: Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per
diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net
income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year's net income and net income per
diluted share to the historical periods' net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions, provides a better representation
of the cash earnings of the Company. 17

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