Start here if you're new
what it is
Graham builds specialized pumps, condensers, ejectors, and naval nuclear parts for energy, defense, and chemical plants.
how it gets paid
Last year Ghm made $210M in revenue. Defense was the main engine at $78M, or 37% of sales.
why it's growing
Revenue grew 13.1% last year. The quarter showed strong top-line growth and better scale.
what just happened
Latest quarter revenue hit $56.7 million, up 21%, with gross margin at 23.8%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
25/100 earnings predictability — expect surprises
59.3x trailing p/e — you're paying up for this one
10.2% return on capital — nothing to write home about
$1.11 fy2024 eps est
xvary composite: 55/100 — below average
What they do
Graham builds specialized pumps, condensers, ejectors, and naval nuclear parts for energy, defense, and chemical plants.
This is a niche equipment shop, not a commodity metal bender. Graham sells custom gear for refineries, chemical plants, and U.S. Navy nuclear propulsion systems, and that work helped lift annual revenue to $210 million, up 13.1% vs. prior year. If your system is mission-critical, switching suppliers is painful, and Graham gets paid for that pain.
How they make money
$210M
annual revenue · their business grew +13.1% last year
Defense
$78M
+21.0%
Chemical & petrochemical
$63M
+13.1%
Power & nuclear energy
$42M
+11.0%
Other industrial applications
$27M
+13.1%
The products that matter
engineered fluid and vacuum equipment
Energy & Petrochemical systems
$126M · 60% of revenue shown
this is the biggest segment at $126M, up 18% from last year. it pays the bills, but it also ties you to customer project timing.
largest segment
mission-critical defense hardware
Defense & Space
$63M · +25% growth
this $63M segment is 30% of revenue shown here and the fastest grower. if you are paying 59.3x earnings, this is one place the market expects more scale.
growth engine
service and replacement work
Aftermarket & Other
$21M · 10% of revenue shown
it is the smallest piece at $21M and was flat from last year. that makes it useful for stability, but not large enough yet to smooth out project swings on its own.
stability, not scale
Key numbers
59.3x
trailing p/e
P/E → stock price divided by earnings → so what, you are paying a premium price for a business that just earned about $1 per share.
$210M
annual revenue
This is the current size of the company, which matters because an $886 million market cap means the market values each revenue dollar at about 4.2x.
9.5%
operating margin
Operating margin → profit after running the business → so what, Graham is profitable, but not enough to make a 59.3x multiple feel cheap.
10.2%
return on capital
Return on capital → profit earned on the money tied up in the business → so what, 10.2% is decent, but it does not scream premium valuation.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $5M (1% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for GHM right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $56.7 million, up 21%, with gross margin at 23.8%.
The quarter showed strong top-line growth and better scale. EPS in the latest quarter was $0.95 on the supplied data, while quarterly history in shows fiscal 2025's fourth quarter at $0.40, so the source set is not perfectly aligned.
$56.7M
revenue
$0.95
eps
23.8%
gross margin
the number that mattered
The 23.8% gross margin matters most because margin, not demand, is the thing that decides whether this valuation holds.
source: company earnings report, 2026
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What could go wrong
the #1 risk is backlog concentration in a few large defense, space, and energy projects.
med
Backlog concentration
Backlog sits at $500.1M against about $210M of annual revenue shown on this page. That gap is great for visibility. It also means a few delayed projects can distort a full year fast.
If backlog conversion slips, revenue timing becomes the story and the 59.3x multiple stops looking patient.
med
Gross margin pressure
Gross margin fell 100 basis points to 23.8% in Q3 FY2026. Revenue growth covered the problem for one quarter. That does not make the problem disappear.
Another 100-basis-point drop would pressure earnings in a stock already priced for cleaner execution.
med
Leadership transition during scale-up
The president of Graham Manufacturing retires effective Apr. 1, 2026. Transitions matter more when you are trying to turn record backlog into on-time deliveries.
The direct financial hit is not quantified here, but execution risk rises when operating leadership changes mid-cycle.
A $500.1M backlog against roughly $210M of annual revenue is a gift if execution stays clean and a problem if it does not. Small timing misses can move a full year's numbers.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q4 FY2026 earnings report
Expected on or around Jun. 3, 2026. You want to see backlog convert without another margin giveback.
metric
Backlog stays above the current $500.1M mark
The bull case needs both delivery and replenishment. If backlog burns down without replacement, the visibility argument weakens fast.
trend
Defense & Space keeps growing faster than the rest
At +25%, it is the fastest-growing segment shown here. If that pace fades, the premium multiple loses one of its cleanest supports.
risk
Gross margin finds a floor
23.8% is workable. A second step down would tell you growth is being bought with lower-quality revenue.
Analyst rankings
earnings predictability
25 / 100
in human-speak, analysts do not see this as a smooth quarter-to-quarter story.
risk rank
3
that points to a middling risk profile — safer than the weakest names, nowhere near a bunker stock.
source: institutional data
Institutional activity
institutional ownership data for GHM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$80
current price
n/a
target midpoint · n/a from current
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