Graham (GHM) Investor presentation summary

Business overview and market positioning

• Supplies critical equipment for defense, space, energy, and process industries, with a mission to build better companies for superior performance.

• Operates globally with locations in the US, India, and China, offering products like condensers, ejectors, heat exchangers, pumps, and regulators.

• Market capitalization of $323 million, with 75% institutional and 6% insider ownership.

• Revenue mix has shifted significantly toward defense (56%) and space (7%) as of TTM Q1 FY25.

Financial performance and outlook

• FY 2024 revenue reached $185.5 million, with TTM Q1 FY25 at $187.9 million.

• Adjusted EBITDA margin improved to 7.2% in FY24 and 7.1% in TTM Q1 FY25.

• FY25 revenue guidance is $200–$210 million, with gross margin of 22–23% and adjusted EBITDA of $16.5–$19.5 million.

• Implies 11% revenue growth and 35% adjusted EBITDA growth at midpoint for FY25.

• FY27 revenue goal is $240–$250 million, targeting 8–10% annualized organic growth.

Defense and government contracts

• Long-term US Navy contracts provide recurring revenue and visibility.

• $13.5M investment from a defense customer and $2.1M BlueForge Alliance grant support capacity and workforce expansion.

• Revenue potential from Navy projects estimated at $1.2–$1.4 billion through FY2058, including carriers and submarines.

• Recent orders include MK48 torpedo alternators, Columbia-class air turbine pumps, and space cryogenic pumps.