Graham (GHM) Q4 2026 earnings summary

Executive summary

• Achieved record annual revenue of $245.3 million for FY26, up 17% year-over-year, with record orders of $359.4 million and backlog of $533 million; book-to-bill ratio was 1.5x.

• Net income for FY26 was $12.5 million ($1.12/share); adjusted net income was $15.6 million ($1.40/share), and adjusted EBITDA reached $26.0 million, up 16%.

• Strategic acquisitions of Xdot and FlackTek were completed, expanding technology portfolio and establishing a third core platform.

• Major facility expansions and IT infrastructure upgrades completed in Batavia, NY; Jupiter, FL; and Arvada, CO, supporting scalability.

• Operational excellence initiatives and capacity investments strengthened long-term growth prospects.

Financial highlights

• Q4 FY26 revenue rose 13% year-over-year to $67.1 million, driven by Defense, Space, and FlackTek contributions.

• FY26 gross margin was 23.5% (down from 25.2%); Q4 gross margin was 22.7% (down from 27%).

• Q4 FY26 net income was $2.0 million ($0.18/share); adjusted net income $3.7 million ($0.33/share).

• FY26 adjusted EBITDA margin was 10.6%; net income margin was 5.1%.

• Record FY26 orders of $359.4 million and backlog of $532.6 million.

Outlook and guidance

• FY27 revenue guidance: $285 million–$295 million (18% growth at midpoint); gross margin expected at 24.5%–25.5%.

• Adjusted EBITDA guidance of $35 million–$40 million (44% growth at midpoint); margin expected at 18%–20%.

• SG&A expense expected at 16.5%–17.5% of sales; capital expenditures projected at $18 million–$22 million.

• Effective tax rate expected between 18%–20%.

• Guidance assumes stable operations and supply chain access.