GRAHAM CORP (GHM) FY2025 10-K Annual Report

Filed: Jun 9, 2025
Industrials
General Industrial Machinery & EquipmentSEC EDGAR

GRAHAM CORP (GHM) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Jun 9, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

GRAHAM CORP FY2025 10-K Analysis

Business Overview

  • Core business: Custom-engineered mission critical fluid, power, heat transfer, and vacuum technologies for Defense, Energy & Process, and Space industries
  • Acquisition of P3 Technologies in Nov 2023 expanding turbomachinery solutions for Space, New Energy, Defense, and Medical markets under Barber-Nichols
  • New product launch: NextGen™ steam ejector nozzle reducing steam consumption, lowering costs, increasing system capacity, and minimizing carbon footprint in fiscal 2025
  • Fiscal 2025 backlog $412.3M, up from $390.9M in fiscal 2024, with 81% domestic sales and 58% Defense industry concentration reflecting increased U.S. Navy focus
  • Added patent-protected P3 intellectual property including multi-channel diffuser and magnetic pump technologies enhancing pump and compressor efficiency

Management Discussion & Analysis

  • Revenue reclassification: Refining, Chemical/Petrochemical, Other combined into "Energy & Process" segment, prior periods restated for consistency
  • Acquisition of P3 for $11,238 ($1,930 stock, $7,268 cash from credit line), with up to $3,000 contingent earn-out, broadening turbomachinery offerings
  • No disclosed revenue, profitability, margin, cash flow, or forward-looking guidance details in provided text

Risk Factors

  • Regulatory risk: Potential liability from self-reported unauthorized export of technical data under ITAR to DDTC, with compliance program strengthening underway
  • Macroeconomic risk: Energy & Process sales highly cyclical, down to 35% of revenue in 2025 from 75% in 2021, impacted by crude oil and natural gas price volatility due to Ukraine-Russia and Israel-Hamas wars
  • Operational risk: Large Defense contracts (3-7 year duration) require ongoing government funding; funding lapses or shutdowns could disrupt production and shipping
  • Competitive risk: U.S. Navy’s fleet expansion may be hampered by supply chain constraints, affecting Graham’s growth in Defense segment
  • Financial risk: Customer concentration with Defense sales at 58% of total revenue in 2025, creating dependency risk if Navy funding or projects are disrupted

GRAHAM CORP FY2025 Key Financial Metrics
XBRL

Revenue

$210M

+13.1% YoY

Net Income

$12M

+168.4% YoY

Gross Margin

25.2%

+331bp YoY

Operating Margin

7.2%

+351bp YoY

Net Margin

5.8%

+337bp YoY

ROE

10.2%

+591bp YoY

Total Assets

$264M

+12.9% YoY

EPS (Diluted)

$1.11

+164.3% YoY

Operating Cash Flow

$24M

-13.5% YoY

Source: XBRL data from GRAHAM CORP FY2025 10-K filing on SEC EDGAR. All figures in USD.

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