Graham (NYSE:GHM) Issues Quarterly Earnings Results, Beats Estimates By $0.14 EPS

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

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

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

Graham Stock Performance

NYSE GHM traded up $9.81 on Friday, hitting $83.56. The stock had a trading volume of 154,592 shares, compared to its average volume of 107,754. The firm has a 50-day moving average of $67.60 and a 200-day moving average of $59.15. The company has a market capitalization of $918.30 million, a price-to-earnings ratio of 67.38 and a beta of 0.92. Graham has a 52-week low of $24.78 and a 52-week high of $84.58.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On Graham

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in shares of Graham by 2.2% during the third quarter. Vanguard Group Inc. now owns 602,448 shares of the industrial products company’s stock worth $33,074,000 after purchasing an additional 12,974 shares in the last quarter. Wasatch Advisors LP increased its stake in Graham by 6.1% in the second quarter. Wasatch Advisors LP now owns 316,203 shares of the industrial products company’s stock valued at $15,655,000 after acquiring an additional 18,084 shares during the last quarter. Alyeska Investment Group L.P. purchased a new stake in Graham during the third quarter valued at about $10,356,000. Invesco Ltd. boosted its holdings in shares of Graham by 1,396.0% in the 2nd quarter. Invesco Ltd. now owns 115,893 shares of the industrial products company’s stock worth $5,738,000 after purchasing an additional 108,146 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in shares of Graham by 24.6% during the 3rd quarter. Russell Investments Group Ltd. now owns 107,592 shares of the industrial products company’s stock valued at $5,907,000 after purchasing an additional 21,234 shares during the last quarter. 69.46% of the stock is currently owned by hedge funds and other institutional investors.

Graham News Summary

Here are the key news stories impacting Graham this week:

• Positive Sentiment: Q3 results beat expectations (EPS $0.31 vs. $0.17 est.; revenue $56.7M vs. $52.35M) and management commentary highlighted strength across end markets — the core driver for the stock rally. Graham Corporation Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Market writeups and snapshots emphasizing the beat and guidance lift (Yahoo/MarketBeat-style coverage) are amplifying investor interest. Graham: Fiscal Q3 Earnings Snapshot
• Positive Sentiment: Analyst and news coverage highlighting the strong quarter (Zacks summary) reinforces the narrative of improving fundamentals. Graham (GHM) Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Broker/market commentary raised Graham’s price target (reported increases reflect growing analyst confidence). Graham (GHM) price target increased by 11.11% to 85.00
• Neutral Sentiment: Fiscal 2026 revenue guidance ($233M–$239M) sits roughly around street estimates — supportive but not a large upside surprise; investors will watch quarterly cadence and margin outlook. (Guidance summary from company update.)
• Neutral Sentiment: Inclusion in sector lists and dividend-safety roundups (Seeking Alpha / industry roundups) may attract income/quality-focused investors but has limited immediate impact versus the earnings/guidance news. 14 Ideal ‘Safer’ Dividend Buys…

About Graham

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

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