Graham Corporation (NYSE:GHM) delivered a standout set of fiscal third-quarter 2026 results, comfortably beating market expectations as strength across its defense, energy and space businesses lifted earnings and revenue.
Shares of Graham Corporation rose 1.69% in premarket trading on Friday following the announcement. The maker of mission-critical fluid and power systems reported adjusted earnings of $0.31 per diluted share for the quarter ended December 31, 2025, far ahead of the $0.18 analysts had forecast—a jump of 72%.
Revenue climbed 21% year on year to $56.7 million, topping the $53.25 million consensus estimate and rising sharply from $47.0 million in the same period last year.
“Our third quarter results reflect continued strong, disciplined execution across the organization as we progress through the back half of fiscal 2026,” said Matthew J. Malone, Graham’s President and CEO. “Revenue growth and profitability were driven by solid performance across our end markets and supported by a record backlog, which provides meaningful visibility into future demand.”
Defense was the key growth engine during the quarter, contributing $8.3 million to revenue growth, helped by the timing of project milestones and expansions across several programs. Energy and process sales also advanced, rising 13% to $2.1 million, supported by aftermarket demand and continued momentum in new energy markets, particularly small modular reactors.
Profitability improved markedly, with adjusted EBITDA increasing 50% to $6.0 million. EBITDA margin expanded to 10.7%, up from 8.6% a year earlier. Graham ended the quarter with a solid balance sheet, holding $22.3 million in cash and carrying no debt.
Order intake remained strong, totaling $71.7 million for the quarter. This translated into a book-to-bill ratio of 1.3x and pushed backlog to a record $515.6 million, up 34% from the prior year.
Reflecting the strong performance and demand visibility, Graham raised its full-year fiscal 2026 revenue outlook to a range of $233 million to $239 million, up from its previous forecast of $225 million to $235 million, while keeping its adjusted EBITDA guidance unchanged at $24 million to $28 million.