Graham Corporation reported significant financial growth in its latest 10-Q filing for the third quarter of fiscal 2026, ending December 31, 2025. The company achieved net sales of $56.7 million, a 21% increase from $47.0 million in the same quarter of the previous year. For the first nine months of fiscal 2026, net sales reached $178.2 million, up from $150.6 million in the prior year. The gross profit for the third quarter was $13.5 million, reflecting a 15% increase compared to $11.7 million in the same period last year, although the gross profit margin slightly declined to 23.8% from 24.8%.
The company’s operating income for the third quarter was $3.1 million, up from $2.2 million a year earlier, while net income rose to $2.8 million, or $0.25 per diluted share, compared to $1.6 million, or $0.14 per diluted share, in the prior year. For the first nine months, net income totaled $10.5 million, translating to $0.95 per diluted share, compared to $7.8 million, or $0.71 per diluted share, in the same period last year. The increase in profitability was attributed to higher sales across multiple markets, particularly in the Defense sector, which saw a 31% increase in sales.
Strategically, Graham Corporation completed the acquisition of Xdot Bearing Technologies in October 2025 for $900, which is expected to enhance its capabilities in foil bearing technology. Additionally, the company announced the acquisition of FlackTek Manufacturing in January 2026 for $35 million, aimed at expanding its advanced mixing and material processing solutions. These acquisitions are anticipated to contribute to future revenue growth and operational synergies.
Operationally, Graham Corporation reported a record backlog of $515.6 million as of December 31, 2025, a 34% increase from $384.7 million a year prior. The increase in backlog was driven by strong demand in the Defense and Space markets, with orders booked in the third quarter reaching $71.7 million, significantly higher than the $24.8 million recorded in the same quarter of the previous year. The company’s domestic sales accounted for 85% of total sales, reflecting its strong position in the U.S. Defense market.
Looking ahead, Graham Corporation has raised its fiscal 2026 guidance for net sales to a range of $233 million to $239 million, up from the previous estimate of $225 million to $235 million. The company expects to maintain a gross profit margin of 24.0% to 25.0% and anticipates an effective tax rate of 16% to 18%. The outlook reflects confidence in continued demand across its markets, particularly in defense and energy sectors, despite potential challenges from global economic conditions and supply chain disruptions.
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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