Graham Corporation Reports 13% Revenue Growth to $209.9 Million for Fiscal Year Ending March 31, 2025

Graham Corporation reported a significant increase in financial performance for the fiscal year ending March 31, 2025, with net sales reaching $209.9 million, a 13% increase from $185.5 million in the previous fiscal year. This growth was primarily driven by a $22.4 million increase in sales to the Defense industry, attributed to enhanced execution and improved pricing strategies. The company also noted a contribution of $2.8 million from its recent acquisition of P3 Technologies, which was completed in November 2023. Gross profit for the year was $52.9 million, resulting in a gross margin of 25.2%, up from 21.9% in fiscal 2024.

In terms of operational developments, Graham Corporation's backlog increased to $412.3 million as of March 31, 2025, compared to $390.9 million a year earlier. Approximately 83% of this backlog is attributed to the Defense sector, indicating a strong demand for its products in this area. The company also reported a book-to-bill ratio of 1.1x for the fiscal year, reflecting a healthy order intake relative to sales. However, total orders booked decreased to $231.1 million from $268.4 million in the previous year, largely due to a record level of orders in fiscal 2024.

Strategically, Graham Corporation has focused on diversifying its market presence and enhancing its product offerings. The acquisition of P3 Technologies is expected to broaden its turbomachinery solutions and support growth in the Space and New Energy markets. The company has also invested in expanding its manufacturing capabilities, including a new 30,000 square foot facility in Batavia, NY, funded primarily by a strategic investment from a Defense customer. This expansion is anticipated to be completed in the first quarter of fiscal 2026.

The company’s workforce as of March 31, 2025, consisted of 636 employees, with a commitment to fostering a diverse and inclusive work environment. Graham Corporation has emphasized the importance of employee development through various training programs and partnerships with educational institutions. The company’s focus on operational excellence and stakeholder engagement is expected to drive continued improvement in performance.

Looking ahead, Graham Corporation projects net sales for fiscal 2026 to be between $225 million and $235 million, with a gross profit margin of 24.5% to 25.5%. The company aims to achieve average annualized organic revenue growth of 8% to 10% by fiscal 2027, supported by its strategic initiatives and investments in technology and infrastructure. However, the outlook remains cautious due to potential impacts from inflation, supply chain disruptions, and geopolitical tensions that could affect operational costs and market demand.