Graham Corporation achieved record financial results for fiscal 2026, reporting annual revenue of $245 million and a record backlog of $533 million. The company attributes this growth to strong demand in its defense and space markets, alongside strategic acquisitions and capacity expansions. For fiscal 2027, Graham guided revenue to be between $285 million and $295 million, with adjusted EBITDA expected to range between $35 million and $40 million.

Financial Performance

Fiscal 2026 was a record-breaking year for Graham, with revenue increasing 17% to $245 million. This growth was driven by a 21% increase in defense revenue and a 14% rise in energy and process revenue. The company also reported record orders of $359 million, resulting in a book-to-bill ratio of 1.5 times. Net income for the year rose to $12.5 million, or $1.12 per diluted share, compared to $12.2 million, or $1.11 per diluted share, in the prior year.

Strategic Initiatives and Acquisitions

During the year, Graham advanced strategic growth initiatives, including the acquisitions of XDOT and Flacktech. The company expanded its capacity and technical capabilities, implemented new automation and manufacturing technologies, and enhanced its testing infrastructure. These investments are designed to strengthen Graham's competitive moat and support future growth. Notably, the company opened a new Navy facility in Batavia and commissioned automated welding systems.

Market Outlook

Graham sees continued momentum in its core markets. In defense, demand remains robust, supported by fleet modernization initiatives and submarine production requirements. The space market is building momentum, with customers transitioning from development to higher-rate production. The company expects approximately 35% to 40% of its record backlog to convert to revenue over the next 12 months, providing substantial visibility into fiscal 2027 performance.