Graham Corporation (GHM) Bundle
A Brief History of Graham Corporation
Graham Corporation, a leading manufacturer of vacuum and heat transfer equipment, has seen significant growth and transformation over the years. As of 2024, the company has established itself in various sectors, primarily focusing on the defense and petrochemical markets.
Recent Financial Performance
For the three months ended September 30, 2024, Graham Corporation reported net sales of $53,563 thousand, an increase from $45,076 thousand in the same period of 2023. The net income for this quarter was $3,281 thousand, compared to $411 thousand in the prior year, showcasing a remarkable growth trajectory.
The company's performance for the six months ended September 30, 2024, also reflects this upward trend, with net sales reaching $103,514 thousand, up from $92,645 thousand in the same period of 2023. The net income for the first half of fiscal 2025 was $6,247 thousand, significantly higher than the $3,051 thousand recorded in the first half of fiscal 2024.
| Period | Net Sales (in $ thousands) | Net Income (in $ thousands) | Income per Diluted Share |
|---|---|---|---|
| Q2 FY2025 | 53,563 | 3,281 | 0.30 |
| Q2 FY2024 | 45,076 | 411 | 0.04 |
| 6M FY2025 | 103,514 | 6,247 | 0.57 |
| 6M FY2024 | 92,645 | 3,051 | 0.28 |
Market Segmentation and Backlog
As of September 30, 2024, Graham Corporation reported a total backlog of $407,009 thousand, which represents a significant increase from $313,343 thousand in the previous year. The backlog is largely attributed to the defense sector, which comprised approximately 80% of total backlog, reflecting the company's strategic focus on defense contracts.
| Market Segment | Backlog as of September 30, 2024 (in $ thousands) | Percentage of Total Backlog | Year-over-Year Change (in $ thousands) |
|---|---|---|---|
| Defense | 327,438 | 80% | 76,706 |
| Refining | 30,653 | 8% | 1,537 |
| Chemical/Petrochemical | 21,633 | 5% | 7,928 |
| Space | 18,180 | 4% | 10,917 |
| Other | 9,105 | 2% | (3,422) |
Cash Flow and Capital Expenditures
As of September 30, 2024, Graham Corporation reported cash and cash equivalents of $32,318 thousand, a significant increase from $16,939 thousand at the end of the previous fiscal year. The net cash provided by operating activities for the first six months of fiscal 2025 was $22,649 thousand, compared to $11,898 thousand for the same period in fiscal 2024.
Capital expenditures for the first six months of fiscal 2025 were $6,464 thousand, driven by investments in production capabilities and infrastructure improvements. The company has increased its expected capital expenditures for fiscal 2025 to between $13,000 thousand and $18,000 thousand, up from previous estimates of $10,000 thousand to $15,000 thousand due to strategic growth initiatives.
| Metrics | Amount (in $ thousands) |
|---|---|
| Cash and Cash Equivalents (Sept 30, 2024) | 32,318 |
| Net Cash Provided by Operating Activities (6M FY2025) | 22,649 |
| Capital Expenditures (6M FY2025) | 6,464 |
| Expected Capital Expenditures (FY2025) | 13,000 - 18,000 |
Graham Corporation's focus on expanding its market presence, particularly in the defense sector, coupled with strong financial performance, positions the company favorably for future growth opportunities in 2024 and beyond.
A Who Owns Graham Corporation (GHM)
Major Shareholders
As of 2024, Graham Corporation (GHM) has a diverse ownership structure. The major shareholders include institutional investors, mutual funds, and individual stakeholders. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group | 10.5% |
| Institutional Investor | BlackRock, Inc. | 8.7% |
| Institutional Investor | Dimensional Fund Advisors | 6.3% |
| Mutual Fund | Invesco Ltd. | 4.2% |
| Individual Stakeholder | CEO and Executive Management | 5.1% |
| Other Investors | Various Individuals | 65.2% |
Stock Performance
Graham Corporation's stock has shown fluctuations in its performance over the past year. As of the latest available data in 2024, the stock price was approximately $17.50 per share, reflecting a year-to-date increase of 15%. The market capitalization of the company stands at approximately $191 million.
Recent Financial Highlights
For the fiscal year ending September 30, 2024, Graham Corporation reported the following financial highlights:
| Financial Metric | Amount |
|---|---|
| Net Sales | $103.5 million |
| Net Income | $6.25 million |
| Earnings Per Share (Diluted) | $0.57 |
| Total Assets | $249.5 million |
| Total Liabilities | $137.1 million |
| Total Stockholders' Equity | $112.4 million |
Recent Developments
In 2024, Graham Corporation completed the acquisition of P3 Technologies, LLC, which is expected to enhance its capabilities in the defense and space markets. This acquisition is projected to contribute an additional $859,000 in revenue for the fiscal year.
Market Position
Graham Corporation continues to strengthen its market position, particularly in the defense sector, which accounted for 83% of its total backlog as of September 30, 2024. The company’s backlog reached approximately $407 million, reflecting a robust pipeline of contracts and projects.
Ownership Trends
Ownership trends indicate a growing interest from institutional investors, which may enhance the company's stability and market perception. The increase in institutional ownership over the past year has positively influenced the stock price and liquidity.
Graham Corporation (GHM) Mission Statement
Overview of Mission Statement
The mission of Graham Corporation is to provide innovative engineering solutions, focusing on the design and manufacturing of critical equipment for the defense, space, refining, and chemical industries. The company aims to enhance customer operations through advanced technology and high-quality products while maintaining a commitment to sustainability and operational excellence.
Core Values
- Innovation: Continuous investment in research and development to deliver cutting-edge solutions.
- Quality: Commitment to the highest standards in manufacturing processes and product performance.
- Integrity: Upholding ethical practices in all aspects of business operations.
- Customer Focus: Prioritizing the needs and satisfaction of customers in all endeavors.
- Sustainability: Promoting environmentally responsible practices in operations and product lifecycle management.
Financial Performance Metrics
As of September 30, 2024, Graham Corporation reported strong financial performance, reflecting its mission-driven strategy:
| Metric | Q2 FY2025 | Q2 FY2024 | YTD FY2025 | YTD FY2024 |
|---|---|---|---|---|
| Net Sales | $53,563K | $45,076K | $103,514K | $92,645K |
| Gross Profit | $12,799K | $7,191K | $25,167K | $18,168K |
| Net Income | $3,281K | $411K | $6,247K | $3,051K |
| Income per Diluted Share | $0.30 | $0.04 | $0.57 | $0.28 |
Market Segmentation
Graham Corporation's mission is supported by its diversification across various markets. The following table outlines net sales by market for the second quarter of FY2025:
| Market | Net Sales (Q2 FY2025) | Change from Q2 FY2024 |
|---|---|---|
| Refining | $8,416K | +15% |
| Chemical/Petrochemical | $5,422K | +24% |
| Defense | $30,897K | +23% |
| Space | $3,416K | +23% |
| Other | $5,412K | -2% |
Strategic Initiatives
In alignment with its mission statement, Graham Corporation has undertaken several strategic initiatives:
- Investment in state-of-the-art manufacturing technologies to enhance production efficiency.
- Expansion into emerging markets, particularly in Asia and North America, to capture new business opportunities.
- Development of sustainable practices across all operations, including reducing waste and energy consumption.
Backlog and Future Outlook
The company's backlog as of September 30, 2024, was $407,009K, demonstrating robust demand for its products:
| Market | Backlog Amount | Percentage of Total Backlog |
|---|---|---|
| Refining | $30,653K | 8% |
| Chemical/Petrochemical | $21,633K | 5% |
| Space | $18,180K | 4% |
| Defense | $327,438K | 80% |
| Other | $9,105K | 2% |
With a strong market presence and strategic focus, Graham Corporation continues to position itself as a leader in its industry, committed to fulfilling its mission and delivering value to its stakeholders.
How Graham Corporation (GHM) Works
Business Overview
Graham Corporation (GHM) is a global leader in the design and manufacturing of vacuum and heat transfer equipment. The company primarily serves the defense, space, refining, and chemical/petrochemical markets. In fiscal 2025, GHM's operations are heavily focused on defense contracts, which represent a significant portion of their backlog and revenue.
Financial Performance
For the fiscal year ending September 30, 2024, Graham Corporation reported the following financial highlights:
| Metrics | Q2 FY2025 | Q2 FY2024 | YTD FY2025 | YTD FY2024 |
|---|---|---|---|---|
| Net Sales | $53,563 | $45,076 | $103,514 | $92,645 |
| Net Income | $3,281 | $411 | $6,247 | $3,051 |
| Income per Diluted Share | $0.30 | $0.04 | $0.57 | $0.28 |
| Gross Profit Margin | 23.9% | 16% | 24.3% | 20% |
| SG&A Expenses | $9,160 | $6,388 | $18,434 | $13,681 |
Revenue Breakdown
Graham Corporation's revenue is diversified across various markets, with significant contributions from the defense sector. The following table provides a breakdown of net sales by market segment for the second quarter of fiscal 2025:
| Market Segment | Q2 FY2025 Sales | Q2 FY2024 Sales |
|---|---|---|
| Refining | $8,416 | $7,289 |
| Chemical/Petrochemical | $5,422 | $4,365 |
| Defense | $30,897 | $25,118 |
| Space | $3,416 | $2,775 |
| Other | $5,412 | $5,529 |
Backlog and Orders
As of September 30, 2024, Graham Corporation's backlog stood at $407,009, reflecting a robust increase driven primarily by the defense and space markets. The following table summarizes the backlog by market:
| Market | Backlog Amount | Percentage of Total Backlog |
|---|---|---|
| Refining | $30,653 | 8% |
| Chemical/Petrochemical | $21,633 | 5% |
| Space | $18,180 | 4% |
| Defense | $327,438 | 80% |
| Other | $9,105 | 2% |
Cash Flow and Liquidity
For the first six months of fiscal 2025, net cash provided by operating activities was $22,649, compared to $11,898 in the prior year. The cash and cash equivalents at the end of September 2024 were $32,318, significantly up from $16,939 at the end of March 2024. This increase is primarily attributed to improved cash management and increased customer deposits from long-term defense contracts.
Capital Expenditures
Graham Corporation's capital expenditures for the first six months of fiscal 2025 were $6,464, an increase from $3,312 in the previous year. The company anticipates total capital expenditures in the range of $13,000 to $18,000 for fiscal 2025, driven by investments in machinery, equipment, and facility improvements to enhance defense production capabilities.
Market Outlook
For fiscal 2025, Graham Corporation expects to achieve net sales between $200,000 and $210,000, with gross profit margins projected between 23% and 24% of sales. The company remains focused on expanding its presence in the defense market while navigating challenges in other sectors.
How Graham Corporation (GHM) Makes Money
Revenue Streams
Graham Corporation generates revenue primarily through manufacturing and selling engineered systems and components for various markets, notably in defense, refining, and chemical/petrochemical sectors. As of September 30, 2024, net sales for the quarter were $53,563,000, a 19% increase compared to $45,076,000 for the same quarter in 2023.
| Market Segment | Q2 FY2025 Sales ($000) | Q2 FY2024 Sales ($000) | % Change |
|---|---|---|---|
| Defense | 30,897 | 25,118 | 23% |
| Refining | 8,416 | 7,289 | 15% |
| Chemical/Petrochemical | 5,422 | 4,365 | 24% |
| Space | 3,416 | 2,775 | 23% |
| Other | 5,412 | 5,529 | -2% |
Geographic Distribution of Sales
Sales are concentrated in the domestic market, with 85% of total sales attributed to U.S. customers. The company also sees international sales, particularly in Asia and Canada.
| Geographic Region | Q2 FY2025 Sales ($000) | Q2 FY2024 Sales ($000) |
|---|---|---|
| Asia | 4,274 | 2,980 |
| Canada | 1,665 | 1,092 |
Profitability Metrics
Graham Corporation reported a gross profit of $12,799,000 for the second quarter of fiscal 2025, resulting in a gross profit margin of 24%. This reflects improved efficiency and cost management compared to a gross profit of $7,191,000 and a margin of 16% in the same quarter of fiscal 2024.
| Metric | Q2 FY2025 | Q2 FY2024 |
|---|---|---|
| Gross Profit ($000) | 12,799 | 7,191 |
| Gross Profit Margin (%) | 24% | 16% |
| Net Income ($000) | 3,281 | 411 |
| Net Income per Diluted Share | $0.30 | $0.04 |
Operating Expenses
Selling, General and Administrative (SG&A) expenses increased to $9,160,000 in Q2 FY2025 from $6,388,000 in Q2 FY2024, reflecting investments in operations, technology, and personnel.
| Expense Type | Q2 FY2025 ($000) | Q2 FY2024 ($000) |
|---|---|---|
| SG&A Expenses | 9,160 | 6,388 |
| SG&A as % of Sales | 17% | 14% |
Acquisition Impact
In fiscal 2025, the acquisition of P3 Technologies contributed approximately $859,000 to revenue growth, while the integration costs impacted SG&A expenses. The increase in revenue from the defense segment is attributed to new programs and expanded contracts.
Backlog and Future Revenue Expectations
As of September 30, 2024, Graham Corporation's backlog stood at $407,009,000, an increase from $390,868,000 at March 31, 2024. The backlog is primarily driven by defense contracts, which constitute 83% of the total backlog.
| Market Segment | Backlog ($000) | % of Total Backlog |
|---|---|---|
| Defense | 327,438 | 80% |
| Chemical/Petrochemical | 21,633 | 5% |
| Space | 18,180 | 4% |
| Refining | 30,653 | 8% |
| Other | 9,105 | 2% |
Cash Flow and Financial Health
Net cash provided by operating activities for the first six months of fiscal 2025 was $22,649,000, compared to $11,898,000 for the same period in fiscal 2024. Cash and cash equivalents at the end of the second quarter of fiscal 2025 totaled $32,318,000.
| Financial Metric | Q2 FY2025 ($000) | Q2 FY2024 ($000) |
|---|---|---|
| Net Cash from Operating Activities | 22,649 | 11,898 |
| Cash and Cash Equivalents | 32,318 | 25,800 |
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Updated on 16 Nov 2024
Resources:
- Graham Corporation (GHM) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Graham Corporation (GHM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Graham Corporation (GHM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.