Graham Corp【GHM】株式ニュース

Graham Corporation Reports Third Quarter Fiscal 2026 ResultsFebruary 6, 2026 6:30 AM
Business Wire
Third Quarter Fiscal 2026 Highlights:

Revenue increased 21% to $56.7 million

Gross profit increased 15% to $13.5 million; Gross profit margin was 23.8%

Net income per diluted share increased 79% to $0.25; adjusted net income per diluted share1 increased 72% to $0.31

Adjusted EBITDA1 increased 50% to $6.0 million; Adjusted EBITDA margin1 was 10.7%

Orders2 were $71.7 million; Book-to-Bill ratio2 of 1.3x and record backlog2 of $515.6 million

Strong balance sheet with no debt, $22.3 million in cash, and access to $43.0 million under its revolving credit facility at quarter end to support growth initiatives

Updating and increasing full year fiscal 2026 guidance; Remain on track to reach strategic goal of 8% to 10% annual organic revenue growth and low to mid-teen Adjusted EBITDA margins1 by fiscal 2027

Graham Corporation (NYSE: GHM) (“GHM” 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 its third quarter for the fiscal year ending March 31, 2026 (“fiscal 2026”).

Graham’s President and Chief Executive Officer, Matthew J. Malone stated, “Our third quarter results reflect continued strong, disciplined execution across the organization as we progress through the back half of fiscal 2026. Revenue growth and profitability were driven by solid performance across our end markets and supported by a record backlog, which provides meaningful visibility into future demand. Activity in our Defense market remains robust, while the Energy & Process and Space markets continue to perform in line with our expectations.”

Mr. Malone continued, “As we move through the remainder of the fiscal year, we remain focused on disciplined execution, operational efficiency, and advancing strategic initiatives that strengthen our competitive position. We continue to invest in automation, advanced testing, and new technical capabilities that enhance productivity and support margin expansion. In addition, the recent acquisition of FlackTek in January 2026 meaningfully expands our technology portfolio and further positions Graham to deliver differentiated, mission-critical solutions to our core end markets.”

1 Adjusted net income per diluted share, Adjusted EBITDA, and Adjusted EBITDA margin 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.

Third Quarter Fiscal 2026 Performance Review

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

($ in thousands except per share data)
Q3 FY26

Q3 FY25

$
Change

%
Change

YTD
FY 2026

YTD
FY 2025

Change

%
Change

Net sales

$

56,701

$

47,037

$

9,664

21%

$

178,215

$

150,551

$

27,664

18%

Gross profit

$

13,469

$

11,686

$

1,783

15%

$

42,496

$

36,853

$

5,643

15%

Gross margin

23.8%

24.8%

-100 bps

23.8%

24.5%

-70 bps

Operating income

$

3,124

$

2,210

$

914

41%

$

12,359

$

9,669

$

2,690

28%

Operating margin

5.5%

4.7%

+80 bps

6.9%

6.4%

+50 bps

Net income

$

2,845

$

1,588

$

1,257

79%

$

10,530

$

7,835

$

2,695

34%

Net income margin

5.0%

3.4%

+160 bps

5.9%

5.2%

+70 bps

Net income per diluted share

$

0.25

$

0.14

$

0.11

79%

$

0.95

$

0.71

$

0.24

34%

Adjusted net income*

$

3,514

$

1,966

$

1,548

79%

$

11,881

$

8,965

$

2,917

33%

Adjusted net income per diluted share*

$

0.31

$

0.18

$

0.13

72%

$

1.07

$

0.81

$

0.26

32%

Adjusted EBITDA*

$

6,044

$

4,027

$

2,017

50%

$

19,177

$

14,779

$

4,398

30%

Adjusted EBITDA margin*

10.7%

8.6%

+210 bps

10.8%

9.8%

+100 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.

Quarterly net sales of $56.7 million increased 21%, or $9.7 million over the prior year reflecting our diversified revenue base. Sales to the Defense market contributed $8.3 million to growth primarily due to the timing of project milestones, new programs, and growth in existing programs. Sales to the Energy & Process market increased $2.1 million or 13% over the prior year driven by Aftermarket sales, as well as continued momentum in our New Energy markets and in particular small modular reactors (“SMRs”). Aftermarket sales to the Energy & Process and Defense markets totaled $10.8 million for the quarter, 11% above the prior year. See supplemental data for a further breakdown of sales by market and region.

Gross profit for the quarter increased $1.8 million, or 15%, to $13.5 million compared to the prior-year period of $11.7 million. As a percentage of sales, gross profit margin decreased 100 basis points to 23.8%, compared to the third quarter of fiscal 2025. This decrease in gross profit margin reflects the mix of sales during the third quarter of fiscal 2026, and a higher level of material receipts which carry lower profit margins. Additionally, the third quarter and the first nine months of fiscal 2025 gross profit benefited $0.3 million and $1.5 million, respectively, from a grant received in the prior year from the BlueForge Alliance to reimburse the Company for the cost of its defense welder training programs in Batavia, which did not repeat in fiscal year 2026. For the first nine months of fiscal 2026, we estimate the impact of tariffs on our consolidated financial statements to be approximately $1.0 million compared to the prior year and was immaterial for the third quarter of fiscal 2026. For the full fiscal 2026, we now expect the potential impact of tariffs to be between an incremental $1.0 to $1.5 million compared to the prior year.

Selling, general and administrative expense (“SG&A”), including intangible amortization, totaled $10.6 million, an increase of $0.9 million compared with the prior year due to the investments being made in operations, employees, and technology, higher acquisition and integration costs due to the Xdot and FlackTek acquisitions, as well as higher performance-based compensation due to Graham’s increased profitability, which was partially offset by a reversal of bad debt reserves. As a percentage of sales, SG&A, including amortization of 18.6%, decreased 200 basis points compared to the prior year period, reflecting the higher level of sales during the quarter, as well as our continued financial discipline.

Cash Management and Balance Sheet

Cash provided by operating activities totaled $4.8 million for the quarter ended December 31, 2025. As of December 31, 2025, cash and cash equivalents were $22.3 million.

Capital expenditures, net for the third quarter fiscal 2026 were $2.2 million, focused on capacity expansion, increasing capabilities, and productivity improvements.

The Company had no debt outstanding as of December 31, 2025, with $43.0 million available on its revolving credit facility after taking into account outstanding letters of credit.

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

FY26

Orders

$

55.8

$

63.7

$

24.8

$

86.9

$

231.1

$

125.9

$

83.2

$

71.7

$

280.8

Backlog

$

396.8

$

407.0

$

384.7

$

412.3

$

412.3

$

482.9

$

500.1

$

515.6

$

515.6

Orders for the third quarter of fiscal 2026 were $71.7 million. This increase was primarily in the Defense and Space markets, which continue to exhibit strong tail-winds. Energy & Process orders were consistent with prior year levels, as strong demand in New Energy offset weaker Aftermarket orders. Total Aftermarket orders for the third quarter of fiscal 2026 decreased $5.2 million to $8.0 million from the record levels of the prior year.

Note that our orders tend to be lumpy given the nature of our business (i.e. large capital projects) and in particular, orders to the Defense industry, which span multiple years and can be significantly larger in size.

Backlog at quarter end was a record $515.6 million, a 34% increase over the prior-year period, driven by strong bookings including contributions from Xdot of $0.5 million, primarily in the Defense and Space markets. For the quarter, the Company achieved a book-to bill ratio of 1.3x. Approximately 35% to 40% of orders currently in backlog are expected to be converted to sales in the next twelve months, another 25% to 30% are expected to convert to sales within one to two years, and the remaining beyond two years. Approximately 85% of our backlog as of December 31, 2025, was to the Defense industry, which provides stability and visibility to our business.

FlackTek Acquisition

On January 23, 2026, subsequent to the end of the third quarter, Graham acquired FlackTek Manufacturing, LLC and FlackTek Sales, LLC (collectively, “FlackTek”). The acquisition establishes advanced mixing and materials processing as a third core technology platform for Graham, complementing its existing vacuum, heat transfer, and turbomachinery capabilities and further aligning with the Company’s Defense, Energy & Process, and Space end markets.

Under the terms of the transaction, Graham acquired 100% of the equity of FlackTek for a purchase price of $35.0 million, comprised of 85% cash and 15% using 75,818 shares of Graham’s common stock, along with the potential to earn an additional $25 million in future performance-based cash earnouts over four years beginning in fiscal year 2027, based upon achieving progressively increasing adjusted EBITDA performance targets. The base purchase price represents approximately 12x FlackTek’s projected adjusted EBITDA for 2026. The transaction was funded through a combination of cash on-hand and borrowings under the Company’s revolving credit facility.

In connection with the acquisition, Graham amended its revolving credit agreement with Wells Fargo Bank, National Association, increasing the borrowing limit from $50 million to $80 million. Following the closing of the transaction, the Company’s pro forma leverage ratio is approximately 1.2x.

Fiscal 2026 Outlook

Based upon the results for the first nine months of fiscal 2026, our expectations for the remainder of the fiscal year, and inclusive of the acquisition of FlackTek and Xdot, Graham is updating its full year fiscal 2026 guidance as follows:

(as of February 6, 2026)

Fiscal 2026 Guidance (New)

Fiscal 2026 Guidance (Old)

Net Sales

$233 million to $239 million

$225 million to $235 million

Gross Margin(1)

24.0% to 25.0% of sales

24.5% to 25.5% of sales

SG&A expense (including amortization)(2)

17.5% to 18.5% of sales

17.5% to 18.5% of sales

Adjusted EBITDA(1)(3)

$24 million to $28 million

$22 million to $28 million

Effective Tax Rate

16% to 18%

20% to 22%

Capital Expenditures

$15.0 million to $18.0 million

$15.0 million to $18.0 million

(1)

Includes the estimated impact of increased tariffs over the prior year of approximately $1.0 million to $1.5 million.

(2)

Includes approximately $7.0 million to $8.0 million of Barber-Nichols supplemental performance bonus, equity-based compensation, acquisition & integration, and enterprise resource planning (“ERP”) conversion costs included in SG&A expense.

(3)

Excludes net interest expense (income), income taxes, depreciation, and amortization from net income, as well as approximately $3.0 million to $4.0 million of equity-based compensation, net acquisition & integration, and ERP conversion costs included in SG&A expense, net.

Graham's Chief Financial Officer, Christopher J. Thome, said, “We are pleased with our performance through the first nine months of fiscal 2026 and continue to see strong demand across most of the markets we serve. Reflecting this momentum, including the contribution from the FlackTek acquisition, we are increasing our full-year fiscal 2026 guidance.

Mr. Thome continued, “After the acquisition of FlackTek, our balance sheet remains strong with low leverage, a modest amount of debt of $20 million, and increased capacity under our line of credit. We believe this increased capacity, along with our strong operating cash flow, provides us ample liquidity to continue to execute our capital allocation strategy and future growth.”

Webcast and Conference Call

GHM’s management will host a conference call and live webcast on February 6, 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 Friday, February 13, 2026. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13757532 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.

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,” “may”, “will,” 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, 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, its acquisition and growth strategy, realization of benefits from the acquisition of FlackTek, and the integration and operation of FlackTek 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, provides a better representation of the cash earnings of the Company.

Forward-Looking Non-GAAP Measures

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 2026 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.

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 U.S. Securities and Exchange Commission, a quantitative reconciliation for each is not required or provided.

Consolidated Statements of Operations - Unaudited

($ in thousands, except per share data)

Three Months Ended

Nine Months Ended

December 31,

December 31,

2025

2024

% Change

2025

2024

% Change

Net sales

$

56,701

$

47,037

21%

$

178,215

$

150,551

18%

Cost of products sold

43,232

35,351

22%

135,719

113,698

19%

Gross profit

13,469

11,686

15%

42,496

36,853

15%

Gross margin

23.8

%

24.8

%

23.8

%

24.5

%

Operating expenses and income:

Selling, general and administrative

10,129

9,260

9%

29,315

26,821

9%

Selling, general and administrative – amortization

435

436

(0%)

1,308

1,309

(0%)

Other operating income

(219

)

(220

)

(0%)

(486

)

(946

)

(49%)

Operating income

3,124

2,210

41%

12,359

9,669

28%

Operating margin

5.5

%

4.7

%

6.9

%

6.4

%

Other expense, net

90

91

(1%)

334

273

22%

Interest income, net

(169

)

(128

)

32%

(414

)

(442

)

(6%)

Income before provision for income taxes

3,203

2,247

43%

12,439

9,838

26%

Provision for income taxes

358

659

(46%)

1,909

2,003

(5%)

Net income

$

2,845

$

1,588

79%

$

10,530

$

7,835

34%

Per share data:

Basic:

Net income

$

0.26

$

0.15

73%

$

0.96

$

0.72

33%

Diluted:

Net income

$

0.25

$

0.14

79%

$

0.95

$

0.71

34%

Weighted average common shares outstanding:

Basic

10,988

10,890

10,967

10,880

Diluted

11,157

11,057

11,108

11,016

Consolidated Balance Sheets

(Amounts in thousands, except per share data)

December 31,

March 31,

2025

2025

Assets

Current assets:

Cash and cash equivalents

$

22,254

$

21,577

Trade accounts receivable, net of allowances ($360 and $630 at December 31 and March 31, 2025, respectively)

31,704

35,507

Unbilled revenue

57,823

38,494

Inventories

48,523

40,025

Prepaid expenses and other current assets

3,491

4,249

Income taxes receivable

19

1,520

Total current assets

163,814

141,372

Property, plant and equipment, net

57,321

50,649

Prepaid pension asset

6,055

5,950

Operating lease assets

5,587

6,386

Goodwill

26,181

25,520

Customer relationships, net

12,304

13,159

Technology and technical know-how, net

10,383

10,310

Tradenames, net

6,783

6,858

Deferred income tax asset

1,531

1,502

Other assets

2,968

2,404

Total assets

$

292,927

$

264,110

Liabilities and stockholders’ equity

Current liabilities:

Current portion of finance lease obligations

$

23

$

21

Accounts payable

17,509

27,309

Accrued compensation

18,503

19,161

Accrued expenses and other current liabilities

4,530

4,322

Customer deposits

111,984

84,062

Operating lease liabilities

1,460

1,275

Income taxes payable

660

-

Total current liabilities

154,669

136,150

Finance lease obligations

27

44

Operating lease liabilities

4,544

5,514

Deferred income tax liability

74

-

Accrued pension and postretirement benefit liabilities

1,191

1,192

Other long-term liabilities

1,112

1,633

Total liabilities

161,617

144,533

Stockholders’ equity:

Preferred stock, $1.00 par value, 500 shares authorized

-

-

Common stock, $0.10 par value, 25,500 shares authorized, 11,162 and 11,077 shares issued and 10,988 and 10,903 shares outstanding at December 31 and March 31, 2025, respectively

1,116

1,107

Capital in excess of par value

35,260

34,616

Retained earnings

104,759

94,229

Accumulated other comprehensive loss

(6,437

)

(6,987

)

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

(3,388

)

(3,388

)

Total stockholders’ equity

131,310

119,577

Total liabilities and stockholders’ equity

$

292,927

$

264,110

Consolidated Statements of Cash Flows

(Amounts in thousands)

Nine Months Ended

December 31,

2025

2024

Operating activities:

Net income

$

10,530

$

7,835

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

Depreciation

3,670

2,712

Amortization

1,507

1,663

Bad debt reserves

(369

)

-

Amortization of actuarial losses

630

586

Equity-based compensation expense

1,727

1,204

Gain on disposal or sale of property, plant and equipment

(38

)

-

Change in fair value of contingent consideration

(486

)

(946

)

Deferred income taxes

(39

)

(91

)

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

Accounts receivable

4,169

9,394

Unbilled revenue

(19,308

)

(9,879

)

Inventories

(8,474

)

(5,628

)

Prepaid expenses and other current and non-current assets

4

(1,665

)

Income taxes receivable

1,501

(46

)

Operating lease assets

1,011

965

Prepaid pension asset

(105

)

(175

)

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

Accounts payable

(6,690

)

3,914

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

(551

)

(1,380

)

Customer deposits

27,830

21,000

Operating lease liabilities

562

(646

)

Income taxes payable

(995

)

(948

)

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

(2

)

4

Net cash provided by operating activities

16,084

27,873

Investing activities:

Purchase of property, plant and equipment

(13,482

)

(13,800

)

Proceeds from disposal of property, plant and equipment

154

-

Acquisitions, net of cash acquired

(895

)

(170

)

Net cash used by investing activities

(14,223

)

(13,970

)

Financing activities:

Principal repayments on debt

(8,000

)

-

Proceeds from the issuance of debt

8,000

-

Repayments on finance lease obligations

(251

)

(237

)

Issuance of common stock

458

334

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

(1,532

)

(854

)

Net cash used by financing activities

(1,325

)

(757

)

Effect of exchange rate changes on cash

141

(39

)

Net increase in cash and cash equivalents

677

13,107

Cash and cash equivalents at beginning of period

21,577

16,939

Cash and cash equivalents at end of period

$

22,254

$

30,046

Adjusted EBITDA Reconciliation

(Unaudited, $ in thousands)

Three Months Ended

Nine Months Ended

December 31,

December 31,

2025

2024

2025

2024

Net income

$

2,845

$

1,588

$

10,530

$

7,835

Acquisition & integration expense (income), net

320

(220

)

157

(900

)

ERP Implementation costs

39

157

91

704

Net interest income

(169

)

(128

)

(414

)

(442

)

Income tax expense

358

659

1,909

2,003

Equity-based compensation expense

642

426

1,727

1,204

Depreciation & amortization

2,009

1,545

5,177

4,375

Adjusted EBITDA

$

6,044

$

4,027

$

19,177

$

14,779

Net sales

$

56,701

$

47,037

$

178,215

$

150,551

Net income margin

5.0

%

3.4

%

5.9

%

5.2

%

Adjusted EBITDA margin

10.7

%

8.6

%

10.8

%

9.8

%

Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation

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

Three Months Ended

Nine Months Ended

December 31,

December 31,

2025

2024

2025

2024

Net income

$

2,845

$

1,588

$

10,530

$

7,835

Acquisition & integration expense (income), net

320

(220

)

157

(900

)

Amortization of intangible assets

510

554

1,507

1,663

ERP Implementation costs

39

157

91

704

Tax impact of adjustments(1)

(200

)

(113

)

(404

)

(337

)

Adjusted net income

$

3,514

$

1,966

$

11,881

$

8,965

GAAP net income per diluted share

$

0.25

$

0.14

$

0.95

$

0.71

Adjusted net income per diluted share

$

0.31

$

0.18

$

1.07

$

0.81

Diluted weighted average common shares outstanding

11,157

11,057

11,108

11,016

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

Acquisition and integration (income) costs, net are incremental costs that are directly related to and as a result of the P3, Xdot, and FlackTek acquisitions or the subsequent accounting for the related contingent earn-out liabilities. 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 throughout our Batavia, New York facility in order to enhance efficiency and productivity and are not expected to recur once the project is completed.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205698839/en/
For more information, contact:

Christopher J. Thome

Vice President - Finance and CFO

Phone: (585) 343-2216
Tom Cook

Investor Relations

(203) 682-8250

Tom.Cook@icrinc.com

Original: Graham Corporation Reports Third Quarter Fiscal 2026 Results

BUSINESSWIRE
Graham Corporation Reports 19.8% Increase in Sales for the Third Quarter of Fiscal 2009

Graham Corporation Reports 19.8% Increase in Sales for the Third Quarter of
Fiscal 2009

Net sales of $24.7 million in the quarter, up $4.1 million

BATAVIA, N.Y., Jan 30, 2009 (BUSINESS WIRE) -- --On track for record year: Fiscal
2009 expected to be peak of current cycle; downturn expected in fiscal 2010

--Strong balance sheet: $45.4 million in cash and investments and no long-term
debt

--Reaffirms fiscal 2009 revenue and margin guidance

--Board authorizes stock repurchase program

Graham Corporation (NYSE-A: GHM), a manufacturer of critical equipment for the
oil refinery, petrochemical and power industries, today reported financial
results for its fiscal 2009 third quarter ended December 31, 2008. Net sales were
$24.7 million in the quarter, up $4.1 million, or 19.8%, compared with net sales
of $20.6 million in the prior year's third quarter. Net income was $3.8 million,
or $0.37 per diluted share, in the third quarter, approximately the same as net
income in the same period the prior fiscal year. Graham's fiscal 2009 ends March
31, 2009.

Mr. James R. Lines, President and Chief Executive Officer of Graham, commented,
"Our third quarter financial results were in line with our expectations and
support our previously announced outlook that fiscal 2009 would be a record year
for sales and earnings. However, we believe that fiscal 2009 will represent the
peak of the current cycle that began for us in the latter half of fiscal 2004. We
took measured steps during the current cycle to control our growth, to maintain a
solid balance sheet and to make important gains in productivity. We expect that
these gains will help to reduce the effect of declining revenue as we head into
fiscal 2010. Moreover, we believe that our strong balance sheet and expected
operating performance during fiscal 2010 will allow us to maintain a strong
financial position that will enable us to take advantage of opportunities that
may present themselves during the downturn."

Sales on Track for Record Fiscal Year

The increase in third quarter sales of ejectors, heat exchangers and pump
packages was offset slightly by a decrease in sales of condensers and aftermarket
products. Ejector sales were $10.3 million, or 41.6% of total net sales, in the
third quarter, a 47.7% increase compared with $7.0 million, or 33.8% of total net
sales, in the same period during the prior year. The increase in ejector sales
reflects a greater number of oil refinery projects in the period.

Higher sales of heat exchangers were driven by more focused sales activities that
targeted a wider variety of end markets. Heat exchanger sales increased 23.9%
year-over-year to $3.0 million, or 12.1% of total net sales, in the third quarter
compared with $2.4 million, or 11.7% of total net sales, in the same period the
prior fiscal year. Pump package sales increased three-fold to $1.8 million, or
7.5% of total net sales, in the third quarter compared with $0.6 million, or 2.9%
of net sales, in the third quarter of fiscal 2008. The timing of customer
requirements for repair parts impacted our aftermarket product sales, which
decreased 21.8% to $2.8 million, or 11.3% of total net sales, in the third
quarter of fiscal 2009, compared with $3.6 million, or 17.3% of total net sales,
in the prior fiscal year's third quarter.

Sales of condensers declined in the third quarter to $6.8 million, or 27.5% of
total net sales, compared with $7.1 million, or 34.3% of total net sales, in the
same period the prior fiscal year, as the petrochemical industry slowed during
the latter part of 2008.

U.S. sales were $14.4 million, or 58% of total sales, in the third quarter,
compared with $10.7 million, or 52% of total sales, in the same quarter of fiscal
2008. International sales were $10.3 million, or 42% of total sales, in the third
quarter, slightly above $9.9 million, or 48%, in the same quarter a year ago.
Increased sales to Canada, the Middle East and Western Europe were mostly offset
by decreases in sales to South and Central America and Asia. Fluctuations in
sales among products and geographic locations can vary measurably from
quarter-to-quarter based on the timing and magnitude of projects, and we
generally do not believe that such fluctuations are indicative of business
trends.

By industry, 46% of sales in the third quarter were to the refining industry,
compared with 38% in the same period the prior fiscal year. Approximately 27% of
sales were to the chemical/petrochemical industry and 21% to other industrial
applications during the current quarter, as compared with 42% and 19%,
respectively, in the third quarter of fiscal 2008. Power industry sales accounted
for 6% of sales during the third quarter of fiscal 2009, while that industry
represented approximately one percent of sales during the same period the prior
year.

Additional historical information regarding sales by industry and region are
contained in the tables at the end of this news release.

Managing Operational Effectiveness

Gross profit was $9.4 million, or 37.9% of sales, in the third quarter of fiscal
2009, compared with $8.6 million, or 41.9% of sales, in the same period the prior
fiscal year. The decline in margin during the quarter occurred as a result of a
contract in process requiring international fabrication that carried a lower
margin than those in the same quarter of fiscal 2008. Approximately 8% of
manufacturing production hours were outsourced in the third quarter of fiscal
2009.

Selling, general and administrative ("SG&A") expenses were $3.6 million, or 14.4%
of sales, in the third quarter of fiscal 2009 compared with $3.2 million, or
15.7% of sales, in the third quarter of fiscal 2008, but were below SG&A expenses
of $3.9 million, or 16.4% of sales in the trailing second quarter of fiscal 2009.
Costs related to Graham's ongoing initiatives to improve manufacturing
efficiencies and increased bonus and commission accruals, as a result of higher
sales and net income, caused the slight increase in SG&A expenses in the current
fiscal year quarter compared with the same quarter in the prior year.

Taking into account current backlog, the new order environment and the
productivity gains made over the past several years, in January of 2009 Graham
eliminated approximately 5% of its workforce. Graham believes that the
elimination of these positions better align its operating structure and costs. A
$365 thousand restructuring charge is expected to be recognized in the fourth
quarter of fiscal 2009, and on-going cost savings are expected to be
approximately $2.0 million per year. Excluding the restructuring charge, for the
remainder of fiscal 2009, SG&A expenses are expected to be in the range of 15% to
16% of sales.

Mr. Lines noted, "We've reduced our cost structure as we enter a period of
declining revenue. We will, however, remain disciplined about our ongoing
internal improvement efforts. The personnel reductions we made in January were
difficult but necessary. We believe we are prepared for the downturn and view it
as an opportunity to continue to drive improvement into the company, strengthen
our relationships with customers, capture additional market share, enter new
markets and be able to take greater advantage of the next up-cycle."

Interest income in the third quarter of fiscal 2009 declined to $83 thousand
compared with $304 thousand in the same period the prior fiscal year, primarily
as a result of a significant decline in current treasury yields compared with a
year ago.

Graham has revised its estimated fiscal 2009 effective tax rate upward by half a
percentage point to 34% in light of the actual rates experienced on its
recently-filed tax returns which resulted in an effective tax rate for the third
quarter of fiscal 2009 of 35.5%.

Nine-Month Review

Net sales for the first nine months of fiscal 2009 were $76.3 million, up 19.8%
compared with $63.7 million in the first nine months of fiscal 2008. Gross margin
was 42.1% for the nine-month period compared with 39.6% in the same period the
prior fiscal year. Higher aftermarket sales, particularly in the first quarter,
improved product mix and engineering and manufacturing operating efficiencies all
contributed to the year-over-year increase. Approximately 9% of manufacturing
production hours were outsourced in the first nine months of fiscal 2009. Graham
expects that outsourced manufacturing hours will be between 8% and 10% for the
full fiscal year 2009.

SG&A expenses were $11.3 million, or 14.8% of sales, in the first nine months of
fiscal 2009 compared with $9.8 million, or 15.3% of sales, in the same period of
fiscal 2008. The increase was related to higher variable compensation costs and
outside consulting fees.

Net income for the first nine months of fiscal 2009 was up 28.1% to $13.9
million, compared with $10.8 million in the same period the prior year. On a per
diluted share basis, net income grew to $1.36, a 25.9% increase over $1.08 in the
same period the prior fiscal year.

Strong, Flexible Balance Sheet with Significant Cash Position

Cash, cash equivalents and investments at December 31, 2008 were $45.4 million,
compared with $36.8 million at March 31, 2008 and $42.9 million at September 30,
2008. Net cash provided by operating activities was $7.4 million in the first
nine months of fiscal 2009, compared with $16.0 million in the same period the
prior fiscal year. The year-over-year decrease was a result of higher working
capital requirements, primarily from an increase in Graham's accounts receivable
balance due to the timing of customer billings. Approximately $41.2 million was
invested in United States Treasury notes with maturity periods of 91 to 180 days
at December 31, 2008. As of December 31, 2008, Graham had no borrowings and $7.5
million of outstanding letters of credit under its $30.0 million revolving line
of credit facility.

Capital expenditures were $398 thousand in the third quarter of fiscal 2009 and
$1.2 million for the nine-month period, compared with $212 thousand and $659
thousand in the third quarter and nine-month period of fiscal 2008, respectively.
Capital expenditures for the full-year fiscal 2009 are expected to be in the
range of $1.8 to $2.0 million, of which approximately 50% will be allocated for
machinery and equipment, 40% for information technology and 10% for other
expenditures. An estimated 75% of the fiscal 2009 capital spending is expected to
be used for productivity improvements and the remaining 25% for capitalized
maintenance and other general purposes.

Addressing the Down Slope of a Cycle

Orders began to slow during September and October as the world reacted to the
unprecedented worldwide financial crisis and the seizure of capital markets, and
we experienced a rapid and severe decline in order activity in November and
December. While we maintain our strong market position, orders received in the
third quarter of fiscal 2009, net of cancellations, were an unusually low $8.1
million compared with orders of $26.6 million in the same period the prior fiscal
year. Oil refiners have curtailed or cancelled many projects as they evaluate the
changing outlook on demand for oil and its many by-products resulting from the
worldwide economic slowdown. Because of the magnitude of certain individual
orders and shipment timing, there can be significant variability in sales and
orders from quarter-to-quarter. Graham does not believe such fluctuations are
indicative of business trends.

Graham's backlog was $52.5 million at December 31, 2008, down 16.7% compared with
$63.0 million at December 31, 2007. Backlog was reduced by $1.6 million due to
the cancellation of an order for a refinery project. Included in backlog is
approximately $5.7 million in orders for refinery projects that customers have
currently suspended subject to their further review of the related projects.
Approximately 45% of projects in backlog are for refinery projects, 33% for
chemical and petrochemical projects and 22% for power and other industrial
commercial applications, compared with 50%, 23% and 27%, respectively, at the end
of the third quarter of fiscal 2008. Approximately 90% of backlog is expected to
ship in the next twelve months.

"The significant decline during the quarter is the most severe
quarter-over-quarter swing that I have seen in the 25 years I have been with
Graham. Since we may experience significant variability in sales and orders from
quarter-to-quarter, we analyze business trends over multiple quarterly periods.
For the nine-month period ended December 31, 2008, we received $53.4 million in
new orders. Nonetheless, we expect that we will be near $100 million in sales for
fiscal 2009, as we had previously projected, and expect gross margins will be
consistent with our previous guidance of approximately 39% to 42%," stated Mr.
Lines.

He added, "What is not clear is the extent or duration of the down slope of this
new cycle. Oil companies are reducing capital budgets by an estimated 12% for
2009 and many higher cost projects, such as oil sands, have been cancelled.
Petrochemical companies are facing difficult times and investment in new capacity
has been dramatically scaled down. Consequently, we are prepared for a measurably
lower level of sales in fiscal 2010. Notwithstanding current conditions, we
continue to believe that longer-term overall global growth will continue to drive
demand for our products."

He concluded, "Strategically, our goal remains to double the size of Graham over
the next three to five years. Moreover, we see this downturn and our financial
strength as an opportunity for us to be very selective and effective with our
acquisition strategy."

Stock Buyback Program Authorized

On January 29, 2009, Graham's Board of Directors authorized a stock repurchase
program, permitting Graham to repurchase up to 1,000,000 shares of its common
stock in open market and privately negotiated transactions. Graham's repurchase
program will continue until the earlier of July 29, 2009, until such time that
all 1,000,000 shares have been repurchased or until the Board of Directors
terminates the program. Graham intends to use cash on hand to fund any stock
repurchases under the program.

Webcast and Conference Call

Graham will host a conference call and live webcast today at 11:00 a.m. ET.
During the conference call and webcast, James R. Lines, President and Chief
Executive Officer, and Jennifer Condame, Chief Accounting Officer, will review
Graham's financial and operating results for the third quarter and first nine
months of fiscal 2009 as well as Graham's strategy and outlook. A
question-and-answer session will follow.

Graham's conference call and live webcast can be accessed as follows:

-- The live webcast can be found at http://www.graham-mfg.com. Participants
should go to the website 10 -15 minutes prior to the scheduled conference in
order to register and download any necessary audio software.

-- The teleconference can be accessed by dialing 1-201-689-8560 and referencing
conference ID number 309815 approximately 5 - 10 minutes prior to the call.

The conference call and webcast will be archived and can be reviewed as follows:

-- The webcast will be archived at http://www.graham-mfg.com and a transcript
will be posted once available. The webcast and transcript will remain available
on the website for approximately 30 days.

-- A replay can be heard by calling 1-201-612-7415, and entering the account
number 3055 and conference ID number 309815. The telephonic replay will be
available through February 6, 2009 at 11:59 p.m. Eastern Time.

ABOUT GRAHAM CORPORATION

With world-renowned engineering expertise in vacuum and heat transfer technology,
Graham Corporation is a global designer, manufacturer and supplier of ejectors,
pumps, condensers, vacuum systems and heat exchangers. Over the past 72 years,
Graham has built a reputation for top quality, reliable products and
high-standards of customer service. Sold either as components or complete system
solutions, the principal markets for Graham's equipment are the petrochemical,
oil refining and electric power generation industries, including cogeneration and
geothermal plants. Graham's equipment can be found in diverse applications, such
as metal refining, pulp and paper processing, ship-building, water heating,
refrigeration, desalination, food processing, pharmaceutical, heating,
ventilating and air conditioning.

Graham Corporation's reach spans the globe. Its equipment is installed in
facilities from North and South America to Europe, Asia, Africa and the Middle
East. Graham routinely posts news and other important information on its website,
http://www.graham-mfg.com, where additional comprehensive information on the
Company can be found.

Safe Harbor Regarding Forward Looking Statements

This press 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 "expects," "estimates," "projects," "anticipates," "believes," "could," 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, statements relating to anticipated
revenues, profit margins, foreign sales operations, its strategy to build its
global sales representative channel, the effectiveness of automation in expanding
its engineering capacity, its ability to improve cost competitiveness, customer
preferences, changes in market conditions in the industries in which Graham
Corporation operates, changes in general economic conditions and customer
behavior and Graham Corporation's acquisition 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 and Quarterly
Reports filed with the Securities and Exchange Commission, including under the
heading entitled "Risk Factors." 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 press release.
Graham Corporation Third Quarter Fiscal 2009
Consolidated Statements of Operations and Retained Earnings
(Amounts in thousands, except per share data)
(Unaudited)
Three Months EndedNine Months Ended
December 31,December 31,
2008200720082007
(Amounts in thousands, except per share data)
Net sales$24,701$20,625$76,263$63,672
Cost of products sold15,33911,97844,18438,449
Gross profit9,3628,64732,07925,223
Gross profit margin37.9%41.9%42.1%39.6%
Other expenses:
Selling, general and administrative3,5673,23911,3209,756
Operating profit5,7955,40820,75915,467
Operating profit margin23.5%26.2%27.2%24.3%
Interest income(83)(304)(386)(799)
Interest expense1149
Total other expenses and income3,4852,93610,9388,966
Income before income taxes5,8775,71121,14116,257
Provision for income taxes2,0871,9487,2555,414
Net income3,7903,76313,88610,843
Retained earnings at beginning of period46,99529,55937,21622,675
Dividends(203)(148)(557)(344)
Effect of adoption of measurement date provisions of Statement of--37-
Financial Accounting Standards No. 158
Retained earnings at end of period$50,582$33,174$50,582$33,174
Per share data:
Basic:
Net income$.37$.38$1.37$1.10
Diluted:
Net income$.37$.37$1.36$1.08
Weighted average common shares outstanding:
Basic:10,1819,94310,1459,871
Diluted:10,21110,12410,22110,035
Dividends declared per share$.02$.015$.055$.035

Graham Corporation Third Quarter Fiscal 2009
Consolidated Balance Sheets
(Amounts in thousands, except per share data)
(Unaudited)
December 31,March 31,
20082008
(Amounts in thousands, except per share data)
Assets
Current assets:
Cash and cash equivalents$4,229$2,112
Investments41,15234,681
Trade accounts receivable, net of allowances ($21 and $41 at8,4195,052
December 31, and March 31, 2008, respectively)
Unbilled revenue8,5568,763
Inventories5,0194,797
Income taxes receivable6181,502
Prepaid expenses and other current assets826463
Total current assets68,81957,370
Property, plant and equipment, net9,6159,060
Deferred income tax asset15670
Prepaid pension asset7,0154,186
Other assets1625
Total assets$85,621$70,711
Liabilities and stockholders' equity
Current liabilities:
Current portion of capital lease obligations$27$20
Accounts payable4,0565,461
Accrued compensation4,1564,517
Accrued expenses and other liabilities1,9492,114
Customer deposits6,0805,985
Deferred income tax liability2,2752,275
Total current liabilities18,54320,372
Capital lease obligations3936
Accrued compensation241232
Deferred income tax liability1,344315
Accrued pension liability259271
Accrued postretirement benefits941949
Total liabilities21,36722,175
Stockholders' equity:
Preferred stock, $1.00 par value - Authorized, 500 shares
Common stock, $.10 par value - Authorized, 25,500 and 6,000 shares
at December 31 and March 31, 2008, respectively
Issued 10,127 and 9,982 shares at December 31 and March 31, 2008,1,013499
respectively
Capital in excess of par value14,86612,674
Retained earnings50,58237,216
Accumulated other comprehensive loss(2,163 )(1,820 )
Other(44)(33)
Total stockholders' equity64,25448,536
Total liabilities and stockholders' equity$85,621$70,711

Graham Corporation Third Quarter Fiscal 2009
Condensed Consolidated Statements of Cash Flows
(Dollar amounts in thousands)
(Unaudited)
Nine Months Ended
December 31,
20082007
(Amounts in thousands)
Operating activities:
Net income$13,886$10,843
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization826706
Discount accretion on investments(371)(693)
Stock-based compensation expense315125
Loss on disposal of property, plant and equipment2-
Deferred income taxes1,1783,035
(Increase) decrease in operating assets:
Accounts receivable(3,365)4,248
Unbilled revenue208507
Inventories(222)173
Income taxes receivable/payable884(687)
Prepaid expenses and other current and non-current assets(358)(376)
Prepaid pension asset(3,630)(2,028)
Increase (decrease) in operating liabilities:
Accounts payable(1,483)(1,866)
Accrued compensation, accrued expenses and other current and(531)214
non-current liabilities
Customer deposits821,745
Long-term portion of accrued compensation, accrued pension2468
liability and accrued postretirement benefits
Net cash provided by operating activities7,44516,014
Investing activities:
Purchase of property, plant and equipment(1,193)(659)
Proceeds from sale of property, plant and equipment144
Purchase of investments(102,550 )(65,271 )
Redemption of investments at maturity96,45049,750
Net cash used by investing activities(7,292)(16,136 )
Financing activities:
Proceeds from issuance of long-term debt2,45069
Principal repayments on long-term debt(2,471)(97)
Issuance of common stock695970
Dividends paid(557)(344)
Excess tax deduction on stock awards1,6961,198
Other(10)39
Net cash provided by financing activities1,8031,835
Effect of exchange rates on cash16130
Net increase in cash and cash equivalents2,1171,743
Cash and cash equivalents at beginning of period2,1121,375
Cash and cash equivalents at end of period$4,229$3,118

Graham Corporation Third Quarter Fiscal 2009
Additional Information
ORDER AND BACKLOG TREND
($, in millions)
Q108Q208Q308Q408FY 2008Q109Q209Q3099-Months
FY2009
6/30/079/30/0712/31/073/31/083/31/086/30/089/30/0812/31/0812/31/08
Orders$ 24.9$ 20.5$ 26.6$ 35.1$ 107.1$ 27.8$ 17.5$ 8.1$ 53.4
Backlog$ 59.2$ 56.8$ 63.0$ 75.7$ 75.7$ 76.0$ 69.7$ 52.5$ 52.5

SALES BY INDUSTRY FISCAL 2009
($, in millions)
Q109%Q209%Q309%9-Months%
FY2009
6/30/08Total9/30/08Total12/31/08Total12/31/08Total
Refining$14.452%$11.147%$11.346%$36.848%
Chem/ Petrochemical$5.319%$6.427%$6.627%$18.324%
Power$1.35%$2.08%$1.56%$4.86%
Other$6.624%$4.418%$5.321%$16.422%
Total$27.6$23.9$24.7$76.3

SALES BY INDUSTRY FISCAL 2008
($, in millions)
Q108%Q208%Q308%Q408%FY 2008%
6/30/07Total9/30/07Total12/31/07Total3/31/08Total3/31/08Total
Refining$9.748%$12.052%$7.838%$7.533%$37.043%
Chem/ Petrochemical$4.623%$6.528%$8.542%$7.332%$26.931%
Power$0.84%$0.42%$0.11%$0.10%$1.42%
Other$4.925%$4.218%$4.119%$7.935%$21.124%
Total$20.0$23.1$20.5$22.8$86.4

SALES BY REGION FISCAL 2009
($, in millions)
Q109%Q209%Q309%9-Months%
FY 2009
6/30/08Total9/30/08Total12/31/08Total12/31/08Total
North America$20.976%$17.071%$16.667%$54.471%
Middle East$2.07%$3.013%$2.811%$7.810%
Asia$3.011%$1.04%$3.715%$7.810%
Other$1.76%$2.912%$1.67%$6.39%
Total$27.6$23.9$24.7$76.3

SALES BY REGION FISCAL 2008
($, in millions)
Q108%Q208%Q308%Q408%FY 2008%
6/30/07Total9/30/07Total12/31/07Total3/31/08Total3/31/08Total
North America$11.759%$17.877%$11.255%$12.053%$52.761%
Middle East$4.221%$0.52%$1.68%$3.716%$10.011%
Asia$2.512%$2.19%$3.919%$4.319%$12.815%
Other$1.68%$2.712%$3.818%$2.812%$10.913%
Total$20.0$23.1$20.5$22.8$86.4

SOURCE: Graham Corporation

Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
dpawlowski@keiadvisors.com

Copyright Business Wire 2009