Graham Corporation reported a strong financial performance for the fiscal year ending March 31, 2026, with net sales reaching $245.3 million, an increase of 17% from $209.9 million in the previous year. The growth was driven primarily by a 21% increase in sales to the Defense market, which accounted for 60% of total sales, and a 14% rise in the Energy & Process market. The company also noted that incremental revenue from the acquisition of FlackTek contributed approximately $2.8 million to the overall sales increase. Despite the growth in sales, gross profit margins declined to 23.5% from 25.2% in the prior year, attributed to a higher proportion of lower-margin Defense sales and increased tariffs.
In terms of strategic developments, Graham Corporation completed two significant acquisitions during the fiscal year. The acquisition of FlackTek on January 23, 2026, added advanced mixing and material processing solutions to its portfolio, while the earlier acquisition of Xdot Bearing Technologies on October 20, 2025, enhanced its capabilities in foil bearing technology. These acquisitions are expected to expand Graham's market reach and product offerings, particularly in the Defense and Energy sectors.
Operationally, Graham Corporation's backlog reached a record $532.6 million as of March 31, 2026, up 29% from $412.3 million a year earlier. This increase was primarily driven by strong demand in the Defense and Space markets, with approximately 85% of the backlog attributed to Defense contracts. The company reported a book-to-bill ratio of 1.5x for the fiscal year, indicating robust order growth. However, aftermarket sales declined by 12% compared to the previous year, reflecting a shift in focus towards new projects.
Looking ahead, Graham Corporation provided an optimistic outlook for fiscal 2027, projecting net sales between $285 million and $295 million, with gross profit margins expected to range from 24.5% to 25.5%. The company anticipates continued strong demand in the Defense sector, driven by U.S. government budget plans and geopolitical tensions. However, it also acknowledged potential challenges in the Energy & Process markets due to ongoing volatility and delays in large capital projects. The company plans to maintain its focus on strategic investments and operational excellence to support long-term growth.
About GRAHAM CORP
Graham Corporation designs and manufactures mission-critical fluid, heat transfer, vacuum, and turbomachinery products for defense, energy, and space markets. Its offerings include custom-engineered systems for nuclear propulsion, oil refining, renewable energy, and space exploration. Serving government agencies, OEMs, and industrial clients worldwide, the company emphasizes advanced engineering, quality, and flexible production to deliver complex, high-reliability solutions across diverse, enduring markets.
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