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Stock impact report

Graham Corporation: Double-Digit Growth, Higher Bar For H2 [Seeking Alpha]

Graham Corporation (GHM) 
NASDAQ:AMEX Investor Relations: graham-mfg.com/investor-relations-contacts
Company Research Source: Seeking Alpha
TTM revenue growth is ~16% with quarterly volatility; defense rose 32% in Q2, space 17%, and energy/process 11%, pushing book-to-bill to 1.3x and backlog to a record ~$500M. Gross margin expanded from ~7% in 2022 to ~25% in 2025, driven by mix, pricing, and execution; Q2 margin dipped 220 bps on tariffs, mix, and comps. Capital allocation is now central: CapEx/R&D lifted to ~10–12% of sales (from ~2% in 2022), free cash flow near-term pressured, but aimed at ROIC 20% and EBITDA margin of 13–15%. Key risks: high valuation sensitivity, execution on cost/mix to meet margin guide, heavy defence exposure in backlog, and payback on stepped-up investment and M&A not meeting expectations. AndreyPopov/iStock via Getty Images Introduction Graham Corporation ( GHM ) has seen strong price appreciation the past year. It is up almost 40% YTD and 6.71% the last month. The rise is backed by increased profitability, strong orders, and increased guidance over the last 11 months. Despite Show less Read more
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