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Graham Corporation FY 2026 | Annual Report 1
Dear Fellow Shareholders, Fiscal 2026 was a defining year for Graham. I m pleased to reflect on a successful year marked by strong progress and continued execution. We advanced the strategic priorities we have consistently communicated, by expanding our capacity and capabilities, strengthening our competitive position, investing for the future, and enhancing our technology portfolio which included the acquisitions of FlackTek and Xdot Bearing Technologies. We delivered record annual revenue of $245 million, record orders1 of $359 million, and record backlog1 of $533 million. Adjusted EBITDA2 increased 16% to $26 million and we ended the year with a book-to-bill ratio1 of 1.5x. These achievements reflect the strength of our diversified portfolio, the confidence our customers have in us to execute, and the growing demand for our mission-critical technologies across Defense, Space, Energy, and Process markets. While I officially assumed the role of President and Chief Executive Officer at the beginning of fiscal 2026, the strategy guiding Graham today remains consistent with the framework established over the past several years. Our focus remains straightforward: invest in our people and differentiated technologies, strengthen our operational capabilities and support our customers most critical applications and allocate capital in a disciplined manner that generates long-term shareholder value. Fiscal 2026 Review Fiscal 2026 represented another year of strong execution, but more importantly, it marked a transition from building the foundation to accelerating growth. Across our Defense business, demand remained robust. We continued to execute on key naval programs while benefiting from growth across existing platforms and contributions from new opportunities. During the year, we completed several strategic investments that strengthen our ability to support increasing production requirements, including our new Navy-focused manufacturing facility in Batavia, automated welding systems, and expanded X-ray capabilities. We expect these investments will improve throughput, enhance quality and position Graham to support critical U.S. Navy programs for decades to come. Beyond our traditional naval business, we are increasingly participating in next-generation Defense applications, including radar and directed energy systems where Graham s thermal management, cooling, power electronics and turbomachinery technologies provide meaningful competitive advantages. Many of these programs are transitioning from development into production and offer attractive multi-year growth opportunities. In Space, fiscal 2026 was a year of growing momentum. While revenue remained stable, orders1 and backlog1 increased significantly as customers continued to advance programs from development and qualification into production. We are seeing increasing demand for our highly engineered turbomachinery, cryogenic systems, pumps and precision components. Importantly, our investments in testing and manufacturing capabilities are now operational. Our liquid nitrogen testing facility is actively supporting customer programs, while our cryogenic testing capabilities in Florida are expanding our ability to validate and support increasingly complex applications. Adjusted EBITDA2 Expansion Strong Revenue Growth ($ in millions) $245.3 $185.5 ($ in millions) ($ in millions) $22.4 $26.0 $532.6 $13.3 $209.9 $8.5 $157.1 $256.5 $122.8 $(4.2) FY22 Robust Backlog1 FY23 FY24 FY25 FY26 FY22 2 FY23 FY24 FY25 FY26 FY22 FY26
As launch cadence increases and commercial space infrastructure continues to mature, we believe Graham is well positioned to participate in a growing number of applications across the space ecosystem including launch vehicles, satellites, lunar exploration systems, and other critical space platforms Within Energy & Process, we delivered another strong year despite continued uncertainty surrounding large capital projects in refining and petrochemicals. Revenue grew 14%, supported by continued strength in aftermarket activity, growing participation in new energy applications and contributions from our newest acquisition - FlackTek. Our installed base continues to provide significant opportunities for long-term growth. With more than $1 billion of installed equipment operating around the world, we are increasingly focused on expanding lifecycle support, bringing new technology to this industry, and aftermarket offerings. We believe this represents a substantial opportunity to drive recurring revenue, deepen customer relationships and improve profitability over time. Within our Energy & Process end market, New Energy continues to represent an increasingly important growth opportunity for Graham. We are seeing growing customer engagement across small modular nuclear reactors, cryogenic applications and other emerging energy technologies where our mission-critical equipment and engineering expertise provide meaningful differentiation. While many of these markets remain in the early stages of commercialization, customer activity continues to build, and we believe Graham is well positioned to benefit as these technologies scale over time. A major milestone during fiscal 2026 was the acquisition of FlackTek and Xdot. FlackTek establishes advanced materials processing as Graham s third core technology platform alongside vacuum, heat transfer systems, and turbomachinery. The business brings differentiated intellectual property, attractive recurring revenue and growth characteristics, and exposure to several end markets where Graham already maintains strong customer relationships. We are particularly excited about the commercialization opportunities associated with FlackTek s technology portfolio, including its MEGA platform. The acquisition broadens our ability to solve increasingly complex customer challenges while expanding our participation across Aerospace, Defense, Space, Energy, and Process markets. Integration has progressed very well and we remain confident that FlackTek will create meaningful long-term value for shareholders. We also completed the acquisition of Xdot, an engineering-led business with patented foil-bearing technology and deep expertise in high-speed rotating machinery. Xdot complements Barber-Nichols' turbomachinery capabilities, expands our engineered product portfolio and enhances our ability to develop advanced pumps, compressors and rotating systems across aerospace, defense, energy transition and industrial applications. Together, FlackTek and Xdot strengthen Graham's technology portfolio and reinforce our disciplined capital allocation strategy. Over the past several years, we have invested heavily in expanding manufacturing capacity, enhancing testing infrastructure, increasing automation, strengthening engineering capabilities and modernizing our systems. Today, many of those investments are operational and just beginning to contribute to performance. These include our Batavia Navy facility, advanced welding automation systems, enhanced inspection capabilities, expanded assembly and testing facilities in Colorado, cryogenic testing infrastructure in Florida, and ongoing ERP modernization efforts. Each investment was evaluated using our disciplined capital allocation framework and is expected to generate returns above our 20% ROIC3 threshold. As we look ahead, we believe Graham is well positioned for continued success. The long-term demand and momentum across our core markets remains favorable. Defense modernization initiatives, submarine and naval production acceleration, emerging radar and directed energy platforms, growing space activity, increasing energy needs and continued investment in advanced technologies all support our longterm outlook. We are also benefiting from a business model that is increasingly diversified. While Defense remains a foundational growth driver, we continue to see meaningful opportunities across Space, Aftermarket services, New Energy applications, advanced materials processing and commercial industrial markets. Importantly, many of the technologies we develop are market agnostic, allowing us to leverage core engineering competencies across multiple end markets. 3
Over the next several years, our priorities remain clear. We will continue expanding our participation in attractive end markets. We will drive increased adoption of proprietary technologies and advanced products. We will grow our Aftermarket and recurring revenue streams. We will continue investing in operational excellence, automation, digital transformation and productivity initiatives. We will pursue disciplined acquisitions that strengthen our technology portfolio and complement our organic growth strategy. Lastly, we will remain focused on delivering profitable growth and attractive returns on invested capital. At our recent Analyst and Investor Day, we outlined our objective of delivering 8% to 10% organic revenue growth while expanding adjusted EBITDA margins3 to 14% to 16% through fiscal 2029 with our sites set on top-quartile performance after that. While we recognize there is still a lot of work ahead, we believe the foundation we have built, the backlog we have accumulated and the opportunities emerging across our end markets provide confidence in our ability to achieve these goals. Most importantly, our culture remains our greatest strength. Every day, our employees solve some of the most complex engineering challenges in mission-critical applications where performance matters. Their dedication, expertise and commitment to continuous improvement enable Graham to serve our customers with excellence and position the Company for long-term success. To our employees, customers, partners and shareholders, thank you for your continued trust and support. We are proud of what we ve accomplished during fiscal 2026, excited about the opportunities ahead and committed to creating enduring value for all stakeholders. Sincerely, Matthew J. Malone President and Chief Executive Officer 4
 • shareholder letter icon 7/14/2026 Letter Continued (Full PDF)
 • stockholder letter icon 7/10/2023 GHM Stockholder Letter
 • stockholder letter icon 7/8/2024 GHM Stockholder Letter
 • stockholder letter icon 7/15/2025 GHM Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon GHM Benford's Law Stock Score = 73


GHM Shareholder/Stockholder Letter Transcript:

Graham Corporation
FY 2026 | Annual Report
1


Dear Fellow Shareholders,
Fiscal 2026 was a defining year for Graham.
I   m pleased to reflect on a successful year marked by strong progress and continued execution. We advanced the
strategic priorities we have consistently communicated, by expanding our capacity and capabilities, strengthening
our competitive position, investing for the future, and enhancing our technology portfolio which included the
acquisitions of FlackTek and Xdot Bearing Technologies.
We delivered record annual revenue of $245 million, record orders1 of $359 million, and record backlog1 of $533
million. Adjusted EBITDA2 increased 16% to $26 million and we ended the year with a book-to-bill ratio1 of 1.5x.
These achievements reflect the strength of our diversified portfolio, the confidence our customers have in us to
execute, and the growing demand for our mission-critical technologies across Defense, Space, Energy, and
Process markets.
While I officially assumed the role of President and Chief Executive Officer at the beginning of fiscal 2026, the
strategy guiding Graham today remains consistent with the framework established over the past several years. Our
focus remains straightforward: invest in our people and differentiated technologies, strengthen our operational
capabilities and support our customers    most critical applications and allocate capital in a disciplined manner that
generates long-term shareholder value.
Fiscal 2026 Review
Fiscal 2026 represented another year of strong execution, but more importantly, it marked a transition from building
the foundation to accelerating growth.
Across our Defense business, demand remained robust. We continued to execute on key naval programs while
benefiting from growth across existing platforms and contributions from new opportunities. During the year, we
completed several strategic investments that strengthen our ability to support increasing production requirements,
including our new Navy-focused manufacturing facility in Batavia, automated welding systems, and expanded X-ray
capabilities. We expect these investments will improve throughput, enhance quality and position Graham to support
critical U.S. Navy programs for decades to come.
Beyond our traditional naval business, we are increasingly participating in next-generation Defense applications,
including radar and directed energy systems where Graham   s thermal management, cooling, power electronics and
turbomachinery technologies provide meaningful competitive advantages. Many of these programs are transitioning
from development into production and offer attractive multi-year growth opportunities.
In Space, fiscal 2026 was a year of growing momentum. While revenue remained stable, orders1 and backlog1
increased significantly as customers continued to advance programs from development and qualification into
production. We are seeing increasing demand for our highly engineered turbomachinery, cryogenic systems,
pumps and precision components.
Importantly, our investments in testing and manufacturing capabilities are now operational. Our liquid nitrogen
testing facility is actively supporting customer programs, while our cryogenic testing capabilities in Florida are
expanding our ability to validate and support increasingly complex applications.
Adjusted EBITDA2 Expansion
Strong Revenue Growth
($ in millions)
$245.3
$185.5
($ in millions)
($ in millions)
$22.4
$26.0
$532.6
$13.3
$209.9
$8.5
$157.1
$256.5
$122.8
$(4.2)
FY22
Robust Backlog1
FY23
FY24
FY25
FY26
FY22
2
FY23
FY24
FY25
FY26
FY22
FY26

As launch cadence increases and commercial space infrastructure continues to mature, we believe Graham is well
positioned to participate in a growing number of applications across the space ecosystem including launch vehicles,
satellites, lunar exploration systems, and other critical space platforms
Within Energy & Process, we delivered another strong year despite continued uncertainty surrounding large capital
projects in refining and petrochemicals. Revenue grew 14%, supported by continued strength in aftermarket
activity, growing participation in new energy applications and contributions from our newest acquisition - FlackTek.
Our installed base continues to provide significant opportunities for long-term growth. With more than $1 billion of
installed equipment operating around the world, we are increasingly focused on expanding lifecycle support,
bringing new technology to this industry, and aftermarket offerings. We believe this represents a substantial
opportunity to drive recurring revenue, deepen customer relationships and improve profitability over time.
Within our Energy & Process end market, New Energy continues to represent an increasingly important growth
opportunity for Graham. We are seeing growing customer engagement across small modular nuclear reactors,
cryogenic applications and other emerging energy technologies where our mission-critical equipment and
engineering expertise provide meaningful differentiation. While many of these markets remain in the early stages of
commercialization, customer activity continues to build, and we believe Graham is well positioned to benefit as
these technologies scale over time.
A major milestone during fiscal 2026 was the acquisition of FlackTek and Xdot.
FlackTek establishes advanced materials processing as Graham   s third core technology platform alongside
vacuum, heat transfer systems, and turbomachinery. The business brings differentiated intellectual property,
attractive recurring revenue and growth characteristics, and exposure to several end markets where Graham
already maintains strong customer relationships.
We are particularly excited about the commercialization opportunities associated with FlackTek   s technology
portfolio, including its MEGA platform. The acquisition broadens our ability to solve increasingly complex customer
challenges while expanding our participation across Aerospace, Defense, Space, Energy, and Process markets.
Integration has progressed very well and we remain confident that FlackTek will create meaningful long-term value
for shareholders.
We also completed the acquisition of Xdot, an engineering-led business with patented foil-bearing technology and
deep expertise in high-speed rotating machinery. Xdot complements Barber-Nichols' turbomachinery capabilities,
expands our engineered product portfolio and enhances our ability to develop advanced pumps, compressors and
rotating systems across aerospace, defense, energy transition and industrial applications. Together, FlackTek and
Xdot strengthen Graham's technology portfolio and reinforce our disciplined capital allocation strategy.
Over the past several years, we have invested heavily in expanding manufacturing capacity, enhancing testing
infrastructure, increasing automation, strengthening engineering capabilities and modernizing our systems. Today,
many of those investments are operational and just beginning to contribute to performance.
These include our Batavia Navy facility, advanced welding automation systems, enhanced inspection capabilities,
expanded assembly and testing facilities in Colorado, cryogenic testing infrastructure in Florida, and ongoing ERP
modernization efforts. Each investment was evaluated using our disciplined capital allocation framework and is
expected to generate returns above our 20% ROIC3 threshold.
As we look ahead, we believe Graham is well positioned for continued success.
The long-term demand and momentum across our core markets remains favorable. Defense modernization
initiatives, submarine and naval production acceleration, emerging radar and directed energy platforms, growing
space activity, increasing energy needs and continued investment in advanced technologies all support our longterm outlook.
We are also benefiting from a business model that is increasingly diversified. While Defense remains a foundational
growth driver, we continue to see meaningful opportunities across Space, Aftermarket services, New Energy
applications, advanced materials processing and commercial industrial markets. Importantly, many of the
technologies we develop are market agnostic, allowing us to leverage core engineering competencies across
multiple end markets.
3

Over the next several years, our priorities remain clear.
We will continue expanding our participation in attractive end markets. We will drive increased adoption of
proprietary technologies and advanced products. We will grow our Aftermarket and recurring revenue streams. We
will continue investing in operational excellence, automation, digital transformation and productivity initiatives. We
will pursue disciplined acquisitions that strengthen our technology portfolio and complement our organic growth
strategy. Lastly, we will remain focused on delivering profitable growth and attractive returns on invested capital.
At our recent Analyst and Investor Day, we outlined our objective of delivering 8% to 10% organic revenue growth
while expanding adjusted EBITDA margins3 to 14% to 16% through fiscal 2029 with our sites set on top-quartile
performance after that. While we recognize there is still a lot of work ahead, we believe the foundation we have
built, the backlog we have accumulated and the opportunities emerging across our end markets provide confidence
in our ability to achieve these goals.
Most importantly, our culture remains our greatest strength.
Every day, our employees solve some of the most complex engineering challenges in mission-critical applications
where performance matters. Their dedication, expertise and commitment to continuous improvement enable
Graham to serve our customers with excellence and position the Company for long-term success.
To our employees, customers, partners and shareholders, thank you for your continued trust and support. We are
proud of what we   ve accomplished during fiscal 2026, excited about the opportunities ahead and committed to
creating enduring value for all stakeholders.
Sincerely,
Matthew J. Malone
President and Chief Executive Officer
4


shareholder letter icon 7/14/2026 Letter Continued (Full PDF)
 

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