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GRAHAM CORPORATION
FY 2024
Annual Report
Building Better Companies
Graham is a global leader in the design and manufacture of mission critical
fluid, power, heat transfer and vacuum technologies for the defense, space,
energy and process industries.
The Graham Manufacturing, Barber-Nichols and P3 Technologies global
brands are built upon world-renowned engineering expertise in vacuum and
heat transfer, cryogenic pumps and turbomachinery technologies, as well as
our responsive and flexible service and the unsurpassed quality customers
have come to expect from our products and systems.
KhZ D/^^/KE
Build Better Companies to Deliver
Superior Performance
KhZ s/^/KE
Build an exceptional company that provides
mission-critical high compliance products
to diverse markets
Net Sales
Backlog  
$268.4
$390.9
$202.7
$143.9
$121.6
$301.7
$256.5
$185.5
$157.1
(Dollars in millions)
$80.0
+18% over FY23
Orders  
(Dollars in millions)
$112.4
$90.6
$185.5 million
$97.5
Record Revenue
$122.8
(Dollars in millions)
$137.6
^h   ^^&h>
 y  hd/KE K&
^dZ d 'z  ZKs 
^dZKE' &z    
Gross Margin 21.9%
+570 bps over FY23
2020 2021 2022 2023 2024
1
Record Orders
$268.4 million
2020 2021 2022 2023 2024
(Dollars in thousands,
s except per share
r dat a)
2024
Fisc
i al years
r ended March 31,
Nearly $400 million
Backlog
2020 2021 2022 2023 2024
2023
2022
2021
2020
Operating Performance
Net Sales
1

Gross profit
Gross margi
r in (%)
Selling, general and administrative
Debt Balance
Operatin
t g margi
r in (%)
Net income (loss)
Paid Off
Diluted net income (loss) per share

Weighted average common shares outstanding - diluted
185,533 $
157,118

122,814 $
97,489 $
90,604
40,585
25,408
9,129
20,469
18,148
21.9%
16.2%
7.4%
21.0%
20.0%
33,583
24,158
21,299
17,471
16,879
3.7%
0.8%
(9.2)%
2
3.1%
0.7%
4,556
367
(8,773)
2,374
1,872
0.42
0.03 $
10,844
10,654
(0.83) $
10,541
0.24 $
9,959
0.19
9,879
Year-End Financial Position
Total assets

Cash, cash equivalents and investments
233,879 $
FY24 Revenue by
Industry
Net book value per share

Dividends declared per share

144,280 $
148,120
14,741
65,032

11,744
18,378


105,566
96,933
96,494
97,929
96,724
9.73

9.10 $

73,003
9.15
9.83 $
9.79

0.33
0
0.44 $
0.43
23,904
2 ,

27,796
2 ,
76,675 $
77,443

Other Data
Working capital2
Refining
16%
Defense
54%
183,691 $
18,257
Long-term debt
Stockholders' equity
203,918

16,939
Chem/
Petrochem
11%
Space
7%
Other
12%

8,112

Depreciation and amortization
5,432
5,987
5,599
1,945
Purchase of property, plant and equipment
9,226
3,749
2,324
2,158
390,868 $
301,734

595
538
Backlog1
Number of employees

256,536
2 ,
491
137,567 $
331
1
Orders and backlog are key
k perfor
f rmance metri
t cs. Refer
f to    Orders,
r Backlo
k og and Book-t
k to-Bill
i Ratio    on page
a 33 of the 10K
2
Workin
k g capital
t equals current ass
a ets
t minus current liabilit
i ties.
1,968
2,417
112,389
337
> dd Z dK ^, Z ,K>  Z^
Dear Fellow Shareholders,
s
I am incredibly proud of our team for achieving another significant
milestone in our multi-year strategy by exceeding our plan for fiscal 2024,
keeping us on track toward our 2027 aspirational goals and corroborating
our mission to Build Better Companies. Our commitment to growth and
improved profitability has yielded impressive results. Following fiscal
2023   s 28% revenue growth and return to profitability, in fiscal 2024, we delivered $185.5 million in
revenue, an 18% increase as well as net income of $4.6 million and adjusted EBITDA   of $13.3 million,
marking a 56% increase over fiscal 2023. The perseverance and collaboration of our team have been
paramount in this turnaround.
Fisc
i al 2024
0 : Deliv
l vered Success
We achieved robust results driven by our strategic initiatives and a focus on team building, employee
development and engagement. Key actions included:
x
Financial Flexibility: A new credit agreement provided us with the financial flexibility needed
to pursue growth opportunities, including the acquisition of P3 Technologies.
x
Improved Cash Flow: Consistent financial discipline and contract modifications significantly
enhanced our cash flow allowing us to repay our debt and continue to invest in our operations
and people.
x
Profitability Focus: We shipped the remainder of our lower profit first article jobs, resulting in
a more profitable backlog for the future. Additionally, we have taken the lessons learned
throughout the first article process to enable greater production efficiencies on subsequent
orders.
x
Strategic Adjustments: Market positioning and pricing adjustments further enhanced our
profitability, solidifying our business performance.
These accomplishments underscore the critical importance of a committed and engaged workforce in
driving business success. However, we recognize that there is much more to do.
Strong Strategi
e c Advan
v tage
a s
We are building an exceptional company that provides mission-critical, high compliance equipment to
diverse markets. Our strategic advantages have been instrumental in propelling our success and
positioning us for sustained growth.
A strong, cohesive team lies at the heart of our achievements, driving innovation and operational
excellence. By pursuing diversified markets, we believe we have mitigated risks and capitalized on a
broad range of opportunities. Strengthening our balance sheet has provided the financial stability
necessary to invest in key initiatives and weather business challenges. Our commitment to continuous
improvement fosters an environment of renewal and adaptability, helping to ensure we remain
competitive in a rapidly evolving world. Moreover, the unwavering support of our customers has been
a cornerstone of our success, reinforcing the value proposition of our highly reliable, superior quality
products.
Fiscal 2025 and Beyond:
Our Strategic Path Forward
MARKET
TARGETING
OPERATIONAL
EXCELLENCE
ENGAGEMENT
CAPITAL
PRIORITIZATION
Focus on markets where our
technology is critical to our
customers' success
Drive continuous
improvement and maximize
innovation, quality, and
efficiency across all
operations
Create value through
meaningful stakeholder
engagement and robust
employee development
programs
Ensure efficient use of
capital to maximize return
on investment
Fisc
i al 2025
0 and Beyon
y d
Our strategies remain largely the same as when we
started this journey over two years ago, with some
enhancements to help ensure we continue to grow and
thrive. This includes adding a fourth strategic pillar
focusing on the allocation and deployment of capital.
We have the opportunity and fiduciary duty to allocate
the cash we will generate from increasing profitability
wisely for the benefit of our shareholders and
stakeholders. With a long list of opportunities, both
organic and inorganic, we plan to prioritize investments
that we expect will result in the highest return and
meaningfully exceed our cost of capital in order to
strategically grow our capacity and capabilities, and to
deliver sustainable, long-term shareholder value. To
support our capital discipline, the Board of Directors
has developed long-term incentives associated with a
return on invested capital metric.
A Brigh
i t Future Ahead
We are excited about the future of Graham
Corporation. While still in the early innings, we are right
on track with our journey initially communicated in our
2022 strategic plan. We are creating the foundation
with our team, tools and markets that we believe will
enable us to grow and execute well into the future. I
want to thank our associates who made fiscal 2024 such
a success and thank you, our shareholders, for your
support and patience. We are enjoying the journey and
hope you share in our excitement.
Sincerely,
Daniiell J.
D
J Th
Thoren
President and Chief Executive Offi
f cer
July 8, 2024
 • shareholder letter icon 7/8/2024 Letter Continued (Full PDF)
 • stockholder letter icon 7/10/2023 GHM Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon GHM Benford's Law Stock Score = 94


GHM Shareholder/Stockholder Letter Transcript:

GRAHAM CORPORATION
FY 2024
Annual Report
Building Better Companies

Graham is a global leader in the design and manufacture of mission critical
fluid, power, heat transfer and vacuum technologies for the defense, space,
energy and process industries.
The Graham Manufacturing, Barber-Nichols and P3 Technologies global
brands are built upon world-renowned engineering expertise in vacuum and
heat transfer, cryogenic pumps and turbomachinery technologies, as well as
our responsive and flexible service and the unsurpassed quality customers
have come to expect from our products and systems.
KhZ D/^^/KE
Build Better Companies to Deliver
Superior Performance
KhZ s/^/KE
Build an exceptional company that provides
mission-critical high compliance products
to diverse markets

Net Sales
Backlog  
$268.4
$390.9
$202.7
$143.9
$121.6
$301.7
$256.5
$185.5
$157.1
(Dollars in millions)
$80.0
+18% over FY23
Orders  
(Dollars in millions)
$112.4
$90.6
$185.5 million
$97.5
Record Revenue
$122.8
(Dollars in millions)
$137.6
^h   ^^&h>
 y  hd/KE K&
^dZ d 'z  ZKs 
^dZKE' &z    
Gross Margin 21.9%
+570 bps over FY23
2020 2021 2022 2023 2024
1
Record Orders
$268.4 million
2020 2021 2022 2023 2024
(Dollars in thousands,
s except per share
r dat a)
2024
Fisc
i al years
r ended March 31,
Nearly $400 million
Backlog
2020 2021 2022 2023 2024
2023
2022
2021
2020
Operating Performance
Net Sales
1

Gross profit
Gross margi
r in (%)
Selling, general and administrative
Debt Balance
Operatin
t g margi
r in (%)
Net income (loss)
Paid Off
Diluted net income (loss) per share

Weighted average common shares outstanding - diluted
185,533 $
157,118

122,814 $
97,489 $
90,604
40,585
25,408
9,129
20,469
18,148
21.9%
16.2%
7.4%
21.0%
20.0%
33,583
24,158
21,299
17,471
16,879
3.7%
0.8%
(9.2)%
2
3.1%
0.7%
4,556
367
(8,773)
2,374
1,872
0.42
0.03 $
10,844
10,654
(0.83) $
10,541
0.24 $
9,959
0.19
9,879
Year-End Financial Position
Total assets

Cash, cash equivalents and investments
233,879 $
FY24 Revenue by
Industry
Net book value per share

Dividends declared per share

144,280 $
148,120
14,741
65,032

11,744
18,378


105,566
96,933
96,494
97,929
96,724
9.73

9.10 $

73,003
9.15
9.83 $
9.79

0.33
0
0.44 $
0.43
23,904
2 ,

27,796
2 ,
76,675 $
77,443

Other Data
Working capital2
Refining
16%
Defense
54%
183,691 $
18,257
Long-term debt
Stockholders' equity
203,918

16,939
Chem/
Petrochem
11%
Space
7%
Other
12%

8,112

Depreciation and amortization
5,432
5,987
5,599
1,945
Purchase of property, plant and equipment
9,226
3,749
2,324
2,158
390,868 $
301,734

595
538
Backlog1
Number of employees

256,536
2 ,
491
137,567 $
331
1
Orders and backlog are key
k perfor
f rmance metri
t cs. Refer
f to    Orders,
r Backlo
k og and Book-t
k to-Bill
i Ratio    on page
a 33 of the 10K
2
Workin
k g capital
t equals current ass
a ets
t minus current liabilit
i ties.
1,968
2,417
112,389
337

> dd Z dK ^, Z ,K>  Z^
Dear Fellow Shareholders,
s
I am incredibly proud of our team for achieving another significant
milestone in our multi-year strategy by exceeding our plan for fiscal 2024,
keeping us on track toward our 2027 aspirational goals and corroborating
our mission to Build Better Companies. Our commitment to growth and
improved profitability has yielded impressive results. Following fiscal
2023   s 28% revenue growth and return to profitability, in fiscal 2024, we delivered $185.5 million in
revenue, an 18% increase as well as net income of $4.6 million and adjusted EBITDA   of $13.3 million,
marking a 56% increase over fiscal 2023. The perseverance and collaboration of our team have been
paramount in this turnaround.
Fisc
i al 2024
0 : Deliv
l vered Success
We achieved robust results driven by our strategic initiatives and a focus on team building, employee
development and engagement. Key actions included:
x
Financial Flexibility: A new credit agreement provided us with the financial flexibility needed
to pursue growth opportunities, including the acquisition of P3 Technologies.
x
Improved Cash Flow: Consistent financial discipline and contract modifications significantly
enhanced our cash flow allowing us to repay our debt and continue to invest in our operations
and people.
x
Profitability Focus: We shipped the remainder of our lower profit first article jobs, resulting in
a more profitable backlog for the future. Additionally, we have taken the lessons learned
throughout the first article process to enable greater production efficiencies on subsequent
orders.
x
Strategic Adjustments: Market positioning and pricing adjustments further enhanced our
profitability, solidifying our business performance.
These accomplishments underscore the critical importance of a committed and engaged workforce in
driving business success. However, we recognize that there is much more to do.
Strong Strategi
e c Advan
v tage
a s
We are building an exceptional company that provides mission-critical, high compliance equipment to
diverse markets. Our strategic advantages have been instrumental in propelling our success and
positioning us for sustained growth.
A strong, cohesive team lies at the heart of our achievements, driving innovation and operational
excellence. By pursuing diversified markets, we believe we have mitigated risks and capitalized on a
broad range of opportunities. Strengthening our balance sheet has provided the financial stability
necessary to invest in key initiatives and weather business challenges. Our commitment to continuous
improvement fosters an environment of renewal and adaptability, helping to ensure we remain
competitive in a rapidly evolving world. Moreover, the unwavering support of our customers has been
a cornerstone of our success, reinforcing the value proposition of our highly reliable, superior quality
products.

Fiscal 2025 and Beyond:
Our Strategic Path Forward
MARKET
TARGETING
OPERATIONAL
EXCELLENCE
ENGAGEMENT
CAPITAL
PRIORITIZATION
Focus on markets where our
technology is critical to our
customers' success
Drive continuous
improvement and maximize
innovation, quality, and
efficiency across all
operations
Create value through
meaningful stakeholder
engagement and robust
employee development
programs
Ensure efficient use of
capital to maximize return
on investment
Fisc
i al 2025
0 and Beyon
y d
Our strategies remain largely the same as when we
started this journey over two years ago, with some
enhancements to help ensure we continue to grow and
thrive. This includes adding a fourth strategic pillar
focusing on the allocation and deployment of capital.
We have the opportunity and fiduciary duty to allocate
the cash we will generate from increasing profitability
wisely for the benefit of our shareholders and
stakeholders. With a long list of opportunities, both
organic and inorganic, we plan to prioritize investments
that we expect will result in the highest return and
meaningfully exceed our cost of capital in order to
strategically grow our capacity and capabilities, and to
deliver sustainable, long-term shareholder value. To
support our capital discipline, the Board of Directors
has developed long-term incentives associated with a
return on invested capital metric.
A Brigh
i t Future Ahead
We are excited about the future of Graham
Corporation. While still in the early innings, we are right
on track with our journey initially communicated in our
2022 strategic plan. We are creating the foundation
with our team, tools and markets that we believe will
enable us to grow and execute well into the future. I
want to thank our associates who made fiscal 2024 such
a success and thank you, our shareholders, for your
support and patience. We are enjoying the journey and
hope you share in our excitement.
Sincerely,
Daniiell J.
D
J Th
Thoren
President and Chief Executive Offi
f cer
July 8, 2024



shareholder letter icon 7/8/2024 Letter Continued (Full PDF)
 

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