Graham (GHM) Investor presentation summary

Business overview and market positioning

• Provides mission-critical engineered products for defense, space, energy, and process industries, serving over 100 countries with 8 global locations and 730+ employees.

• Portfolio diversified across defense (60% FY26 revenue), energy & process (34%), and space (6%), with strong synergies and cross-market opportunities.

• Defense segment benefits from long-term U.S. Navy programs, high barriers to entry, and recurring revenue from installed base; space and energy segments leverage proprietary technologies and global demand.

• Materials processing business adds recurring revenue through consumables and services, with $30M revenue expected in FY27.

Growth strategy and operational excellence

• Strategic plan follows a phased approach: stabilize, improve, and growth, with FY23-25 focused on stabilization and FY26-27 on improvement.

• Completed major facility investments, including new Navy and cryogenic test facilities, to expand capacity and reduce lead times.

• Growth driven by product lifecycle investments, R&D, global expansion (notably in India), and proactive aftermarket acceleration.

• Disciplined M&A strategy targets engineered product companies with strong IP, aiming for 8-10% annual organic growth supplemented by acquisitions every 12-18 months.

Financial performance and outlook

• Q1 FY27 sales rose 29% YoY to $71.3M, with strong growth in space (+86%), defense (+40%), and aftermarket (+20%).

• Gross profit increased 21% YoY in Q1 FY27, though gross margin declined to 25% due to a higher mix of lower-margin defense sales.

• Adjusted EBITDA margin reached 12.3% in Q1 FY27; annual guidance for FY27 targets $285-295M net sales, 24.5-25.5% gross margin, and 13% adjusted EBITDA margin.

• Record backlog of $557M, with 35-40% expected to convert to sales in the next 12 months; book-to-bill ratio at 1.3x.

• Balance sheet strengthened by $50M PIPE financing, zero debt, and $27M cash; capex and R&D investments support future growth.