Graham Corp (NYSE: GHM) lifts 2026 outlook after 21% Q3 sales jump

Rhea-AI Filing Summary

Graham Corporation reported a strong third quarter of fiscal 2026 with higher sales, earnings, and record backlog. Net sales were $56.7 million, up 21% from a year ago, driven mainly by Defense and Energy & Process markets. Net income rose 79% to $2.8 million, or $0.25 per diluted share, while adjusted EBITDA increased 50% to $6.0 million with a 10.7% margin.

Backlog reached a record $515.6 million, up 34%, with about 85% tied to Defense and a Q3 book‑to‑bill of 1.3x. The company ended the quarter with $22.3 million of cash and no debt. After quarter‑end, Graham acquired FlackTek for $35 million plus up to $25 million in potential earnouts, funded with cash and borrowings, resulting in pro forma leverage of about 1.2x.

Management raised full‑year fiscal 2026 guidance. Net sales are now expected at $233–$239 million and adjusted EBITDA at $24–$28 million. Gross margin guidance was slightly narrowed to 24.0%–25.0%, while the expected effective tax rate was reduced to 16%–18%.

Positive

• Strong revenue and earnings growth: Q3 FY26 net sales rose 21% to $56.7 million, net income increased 79% to $2.8 million, and adjusted EBITDA grew 50% to $6.0 million with margin expansion.
• Record backlog and healthy orders: Backlog reached $515.6 million, up 34%, with a Q3 book‑to‑bill ratio of 1.3x and roughly 85% of backlog in Defense, supporting multi‑year visibility.
• Strategic FlackTek acquisition with modest leverage: Graham acquired FlackTek for $35.0 million plus up to $25 million in earnouts, expanded its revolver to $80 million, and remains conservatively levered at about 1.2x pro forma.
• Raised full-year outlook: Fiscal 2026 guidance for net sales increased to $233–$239 million and adjusted EBITDA to $24–$28 million, reflecting confidence in ongoing demand and recent acquisitions.

Negative

• None.

Insights

Equity research analyst

Graham delivered strong Q3 growth, a record backlog, a strategic acquisition, and raised full-year guidance.

Graham Corporation posted Q3 fiscal 2026 net sales of $56.7 million, up 21%, with net income up 79% to $2.8 million. Adjusted EBITDA grew 50% to $6.0 million, and the adjusted EBITDA margin improved to 10.7%, reflecting operating leverage despite slightly lower gross margin from mix and prior-year grant benefits.

The order environment was robust, with Q3 orders of $71.7 million and a book‑to‑bill ratio of 1.3x. Backlog hit a record $515.6 million, up 34%, and about 85% is tied to Defense as of December 31, 2025, providing multi‑year revenue visibility. The company also reported solid liquidity with $22.3 million in cash and no debt at quarter‑end.

The January 23, 2026 acquisition of FlackTek for $35.0 million plus up to $25 million of potential earnouts adds advanced mixing as a third core technology platform. Funded with cash and revolver borrowings, it leaves pro forma leverage around 1.2x after expanding the credit facility to $80 million. Management raised fiscal 2026 net sales guidance to $233–$239 million and adjusted EBITDA to $24–$28 million, while trimming gross margin guidance and lowering the expected tax rate to 16–18%, underscoring confidence in demand and integration benefits.

GRAHAM CORP false 0000716314 0000716314 2026-02-06 2026-02-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 6, 2026

Graham Corporation

(Exact name of Registrant as specified in its charter)

Delaware		001-08462		16-1194720
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

20 Florence Avenue, Batavia, New York		14020
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (585) 343-2216

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.10 per share		GHM		NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On February 6, 2026, Graham Corporation (the “Company”) issued a press release describing its results of operations and financial condition for its third quarter ended December 31, 2025. The Company’s earnings press release is furnished to this Current Report on Form 8-K as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

On February 6, 2026, the Company will post on its website at www.grahamcorp.com supplemental data tables, furnished hereto as Exhibit 99.2, regarding historical sales, orders and backlog information.

The information furnished pursuant to these Items 2.02 and 7.01, including Exhibit 99.1 and Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press Release dated February 6, 2026 describing the results of operations and financial condition for Graham Corporation’s third quarter ended December 31, 2025.
99.2		Supplemental Data Tables.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

						Graham Corporation
Date: February 6, 2026				By:		/s/ Christopher J. Thome
						Christopher J. Thome
						Vice President – Finance, Chief Financial Officer and Chief Accounting Officer

Exhibit 99.1

News Release

Graham Corporation ¨ 20 Florence Avenue ¨ Batavia, NY 14020

IMMEDIATE RELEASE

Graham Corporation Reports Third Quarter Fiscal 2026 Results

Third Quarter Fiscal 2026 Highlights:

• Revenue increased 21% to $56.7 million

• Gross profit increased 15% to $13.5 million; Gross profit margin was 23.8%

• Net income per diluted share increased 79% to $0.25; adjusted net income per diluted share¹ increased 72% to $0.31

• Adjusted EBITDA¹ increased 50% to $6.0 million; Adjusted EBITDA margin¹ was 10.7%

• Orders² were $71.7 million; Book-to-Bill ratio² of 1.3x and record backlog² of $515.6 million

• Strong balance sheet with no debt, $22.3 million in cash, and access to $43.0 million under its revolving credit facility at quarter end to support growth initiatives

• Updating and increasing full year fiscal 2026 guidance; Remain on track to reach strategic goal of 8% to 10% annual organic revenue growth and low to mid-teen Adjusted EBITDA margins¹ by fiscal 2027

BATAVIA, NY, February 6, 2026 – Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense, Energy & Process, and Space industries, today reported financial results for its third quarter for the fiscal year ending March 31, 2026 (“fiscal 2026”).

Graham’s President and Chief Executive Officer, Matthew J. Malone stated, “Our third quarter results reflect continued strong, disciplined execution across the organization as we progress through the back half of fiscal 2026. Revenue growth and profitability were driven by solid performance across our end markets and supported by a record backlog, which provides meaningful visibility into future demand. Activity in our Defense market remains robust, while the Energy & Process and Space markets continue to perform in line with our expectations.”

Mr. Malone continued, “As we move through the remainder of the fiscal year, we remain focused on disciplined execution, operational efficiency, and advancing strategic initiatives that strengthen our competitive position. We continue to invest in automation, advanced testing, and new technical capabilities that enhance productivity and support margin expansion. In addition, the recent acquisition of FlackTek in January 2026 meaningfully expands our technology portfolio and further positions Graham to deliver differentiated, mission-critical solutions to our core end markets.”

¹ Adjusted net income per diluted share, Adjusted EBITDA, and Adjusted EBITDA margin are non-GAAP measures. See attached tables and other information for important disclosures regarding Graham’s use of these non-GAAP measures.

² Orders, backlog, and book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics.

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 2 of 11

Third Quarter Fiscal 2026 Performance Review

(All comparisons are with the same prior-year period unless noted otherwise.)

($ in thousands except per share data)		Q3 FY26				Q3 FY25				$ Change				% Change				YTD FY 2026				YTD FY 2025				Change				% Change
Net sales		$	56,701			$	47,037			$	9,664				21	%		$	178,215			$	150,551			$	27,664				18	%
Gross profit		$	13,469			$	11,686			$	1,783				15	%		$	42,496			$	36,853			$	5,643				15	%
Gross margin			23.8	%			24.8	%							-100 bps				23.8	%			24.5	%							-70 bps
Operating income		$	3,124			$	2,210			$	914				41	%		$	12,359			$	9,669			$	2,690				28	%
Operating margin			5.5	%			4.7	%							+80 bps				6.9	%			6.4	%							+50 bps
Net income		$	2,845			$	1,588			$	1,257				79	%		$	10,530			$	7,835			$	2,695				34	%
Net income margin			5.0	%			3.4	%							+160 bps				5.9	%			5.2	%							+70 bps
Net income per diluted share		$	0.25			$	0.14			$	0.11				79	%		$	0.95			$	0.71			$	0.24				34	%
Adjusted net income*		$	3,514			$	1,966			$	1,548				79	%		$	11,881			$	8,965			$	2,917				33	%
Adjusted net income per diluted share*		$	0.31			$	0.18			$	0.13				72	%		$	1.07			$	0.81			$	0.26				32	%
Adjusted EBITDA*		$	6,044			$	4,027			$	2,017				50	%		$	19,177			$	14,779			$	4,398				30	%
Adjusted EBITDA margin*			10.7	%			8.6	%							+210 bps				10.8	%			9.8	%							+100 bps

* Graham believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), adjusted net income, adjusted net income per diluted share, adjusted EBITDA, and adjusted EBITDA margin, which are non-GAAP measures, help in the understanding of its operating performance. See attached tables and other information provided at the end of this press release for important disclosures regarding Graham’s use of these non-GAAP measures.

Quarterly net sales of $56.7 million increased 21%, or $9.7 million over the prior year reflecting our diversified revenue base. Sales to the Defense market contributed $8.3 million to growth primarily due to the timing of project milestones, new programs, and growth in existing programs. Sales to the Energy & Process market increased $2.1 million or 13% over the prior year driven by Aftermarket sales, as well as continued momentum in our New Energy markets and in particular small modular reactors (“SMRs”). Aftermarket sales to the Energy & Process and Defense markets totaled $10.8 million for the quarter, 11% above the prior year. See supplemental data for a further breakdown of sales by market and region.

Gross profit for the quarter increased $1.8 million, or 15%, to $13.5 million compared to the prior-year period of $11.7 million. As a percentage of sales, gross profit margin decreased 100 basis points to 23.8%, compared to the third quarter of fiscal 2025. This decrease in gross profit margin reflects the mix of sales during the third quarter of fiscal 2026, and a higher level of material receipts which carry lower profit margins. Additionally, the third quarter and the first nine months of fiscal 2025 gross profit benefited $0.3 million and $1.5 million, respectively, from a grant received in the prior year from the BlueForge Alliance to reimburse the Company for the cost of its defense welder training programs in Batavia, which did not repeat in fiscal year 2026. For the first nine months of fiscal 2026, we estimate the impact of tariffs on our consolidated financial statements to be approximately $1.0 million compared to the prior year and was immaterial for the third quarter of fiscal 2026. For the full fiscal 2026, we now expect the potential impact of tariffs to be between an incremental $1.0 to $1.5 million compared to the prior year.

Selling, general and administrative expense (“SG&A”), including intangible amortization, totaled $10.6 million, an increase of $0.9 million compared with the prior year due to the investments being made in operations, employees, and technology, higher acquisition and integration costs due to the Xdot and FlackTek acquisitions, as well as higher performance-based compensation due to Graham’s increased profitability, which was partially offset by a reversal of bad debt reserves. As a percentage of sales, SG&A, including amortization of 18.6%, decreased 200 basis points compared to the prior year period, reflecting the higher level of sales during the quarter, as well as our continued financial discipline.

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 3 of 11

Cash Management and Balance Sheet

Cash provided by operating activities totaled $4.8 million for the quarter ended December 31, 2025. As of December 31, 2025, cash and cash equivalents were $22.3 million.

Capital expenditures, net for the third quarter fiscal 2026 were $2.2 million, focused on capacity expansion, increasing capabilities, and productivity improvements.

The Company had no debt outstanding as of December 31, 2025, with $43.0 million available on its revolving credit facility after taking into account outstanding letters of credit.

Orders, Backlog, and Book-to-Bill Ratio

See supplemental data filed with the Securities and Exchange Commission on Form 8-K and provided on the Company’s website for a further breakdown of orders and backlog by market. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics ($ in millions).

		Q1 25				Q2 25				Q3 25				Q4 25				FY25				Q1 26				Q2 26				Q3 26				FY26
Orders		$	55.8			$	63.7			$	24.8			$	86.9			$	231.1			$	125.9			$	83.2			$	71.7			$	280.8
Backlog		$	396.8			$	407.0			$	384.7			$	412.3			$	412.3			$	482.9			$	500.1			$	515.6			$	515.6

Orders for the third quarter of fiscal 2026 were $71.7 million. This increase was primarily in the Defense and Space markets, which continue to exhibit strong tail-winds. Energy & Process orders were consistent with prior year levels, as strong demand in New Energy offset weaker Aftermarket orders. Total Aftermarket orders for the third quarter of fiscal 2026 decreased $5.2 million to $8.0 million from the record levels of the prior year.

Note that our orders tend to be lumpy given the nature of our business (i.e. large capital projects) and in particular, orders to the Defense industry, which span multiple years and can be significantly larger in size.

Backlog at quarter end was a record $515.6 million, a 34% increase over the prior-year period, driven by strong bookings including contributions from Xdot of $0.5 million, primarily in the Defense and Space markets. For the quarter, the Company achieved a book-to bill ratio of 1.3x. Approximately 35% to 40% of orders currently in backlog are expected to be converted to sales in the next twelve months, another 25% to 30% are expected to convert to sales within one to two years, and the remaining beyond two years. Approximately 85% of our backlog as of December 31, 2025, was to the Defense industry, which provides stability and visibility to our business.

FlackTek Acquisition

On January 23, 2026, subsequent to the end of the third quarter, Graham acquired FlackTek Manufacturing, LLC and FlackTek Sales, LLC (collectively, “FlackTek”). The acquisition establishes advanced mixing and materials processing as a third core technology platform for Graham, complementing its existing vacuum, heat transfer, and turbomachinery capabilities and further aligning with the Company’s Defense, Energy & Process, and Space end markets.

Under the terms of the transaction, Graham acquired 100% of the equity of FlackTek for a purchase price of $35.0 million, comprised of 85% cash and 15% using 75,818 shares of Graham’s common stock, along with the potential to earn an additional $25 million in future performance-based cash earnouts over four years beginning in fiscal year 2027, based upon achieving progressively increasing adjusted EBITDA performance targets. The base purchase price represents approximately 12x FlackTek’s projected adjusted EBITDA for 2026. The transaction was funded through a combination of cash on-hand and borrowings under the Company’s revolving credit facility.

In connection with the acquisition, Graham amended its revolving credit agreement with Wells Fargo Bank, National Association, increasing the borrowing limit from $50 million to $80 million. Following the closing of the transaction, the Company’s pro forma leverage ratio is approximately 1.2x.

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 4 of 11

Fiscal 2026 Outlook

Based upon the results for the first nine months of fiscal 2026, our expectations for the remainder of the fiscal year, and inclusive of the acquisition of FlackTek and Xdot, Graham is updating its full year fiscal 2026 guidance as follows:

(as of February 6, 2026)		Fiscal 2026 Guidance (New)		Fiscal 2026 Guidance (Old)
Net Sales		$233 million to $239 million		$225 million to $235 million
Gross Margin(1)		24.0% to 25.0% of sales		24.5% to 25.5% of sales
SG&A expense (including amortization)(2)		17.5% to 18.5% of sales		17.5% to 18.5% of sales
Adjusted EBITDA(1)(3)		$24 million to $28 million		$22 million to $28 million
Effective Tax Rate		16% to 18%		20% to 22%
Capital Expenditures		$15.0 million to $18.0 million		$15.0 million to $18.0 million

(1) Includes the estimated impact of increased tariffs over the prior year of approximately $1.0 million to $1.5 million.

(2) Includes approximately $7.0 million to $8.0 million of Barber-Nichols supplemental performance bonus, equity-based compensation, acquisition & integration, and enterprise resource planning (“ERP”) conversion costs included in SG&A expense.

(3) Excludes net interest expense (income), income taxes, depreciation, and amortization from net income, as well as approximately $3.0 million to $4.0 million of equity-based compensation, net acquisition & integration, and ERP conversion costs included in SG&A expense, net.

Graham’s Chief Financial Officer, Christopher J. Thome, said, “We are pleased with our performance through the first nine months of fiscal 2026 and continue to see strong demand across most of the markets we serve. Reflecting this momentum, including the contribution from the FlackTek acquisition, we are increasing our full-year fiscal 2026 guidance.

Mr. Thome continued, “After the acquisition of FlackTek, our balance sheet remains strong with low leverage, a modest amount of debt of $20 million, and increased capacity under our line of credit. We believe this increased capacity, along with our strong operating cash flow, provides us ample liquidity to continue to execute our capital allocation strategy and future growth.”

Webcast and Conference Call

GHM’s management will host a conference call and live webcast on February 6, 2026, at 11:00 a.m. Eastern Time (“ET”) to review its financial results as well as its strategy and outlook. The review will be accompanied by a slide presentation, which will be made available immediately prior to the conference call on GHM’s investor relations website.

A question-and-answer session will follow the formal presentation. GHM’s conference call can be accessed by calling (201)-689-8560. Alternatively, the webcast can be monitored from the events section of GHM’s investor relations website.

A telephonic replay will be available from 3:00 p.m. ET today through Friday, February 13, 2026. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13757532 or access the webcast replay via the Company’s website at ir.grahamcorp.com, where a transcript will also be posted once available.

About Graham Corporation

Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense, Energy & Process, and Space industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise, proprietary technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 5 of 11

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “continue,” “estimate,” “expects,” “future,” “outlook,” “believes,” “could,” “guidance,” “may”, “will,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the Defense industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit margins, tax rates, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, its acquisition and growth strategy, realization of benefits from the acquisition of FlackTek, and the integration and operation of FlackTek are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.

Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

Non-GAAP Financial Measures

Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, equity-based compensation, ERP implementation costs, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Graham believes that providing non-GAAP information, such as Adjusted EBITDA and Adjusted EBITDA margin, is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand operating performance. Moreover, Graham’s credit facility also contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted EBITDA, and Adjusted EBITDA margin, as presented, may not be directly comparable to other similarly titled measures used by other companies.

Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year’s net income and net income per diluted share to the historical periods’ net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions, provides a better representation of the cash earnings of the Company.

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 6 of 11

Forward-Looking Non-GAAP Measures

Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s fiscal 2026 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material.

Key Performance Indicators

In addition to the foregoing non-GAAP measures, management uses the following key performance metrics to analyze and measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent definitive agreements with customers to provide products and/or services. Backlog is defined as the total dollar value of net orders received for which revenue has not yet been recognized. Total backlog can include both funded and unfunded orders under government contracts. Management believes tracking orders and backlog are useful as they often times are leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

The book-to-bill ratio is an operational measure that management uses to track the growth prospects of the Company. The Company calculates the book-to-bill ratio for a given period as net orders divided by net sales.

Given that each of orders, backlog, and book-to-bill ratio are operational measures and that the Company’s methodology for calculating orders, backlog and book-to-bill ratio does not meet the definition of a non-GAAP measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation for each is not required or provided.

For more information, contact:
Christopher J. Thome		Tom Cook
Vice President - Finance and CFO		Investor Relations
Phone: (585) 343-2216		(203) 682-8250
		Tom.Cook@icrinc.com
Source: Graham Corporation

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 7 of 11

Consolidated Statements of Operations - Unaudited

($ in thousands, except per share data)

		Three Months Ended December 31,												Nine Months Ended December 31,
		2025				2024				% Change				2025				2024				% Change
Net sales		$	56,701			$	47,037				21	%		$	178,215			$	150,551				18	%
Cost of products sold			43,232				35,351				22	%			135,719				113,698				19	%
Gross profit			13,469				11,686				15	%			42,496				36,853				15	%
Gross margin			23.8	%			24.8	%							23.8	%			24.5	%
Operating expenses and income:
Selling, general and administrative			10,129				9,260				9	%			29,315				26,821				9	%
Selling, general and administrative – amortization			435				436				(0	%)			1,308				1,309				(0	%)
Other operating income			(219	)			(220	)			(0	%)			(486	)			(946	)			(49	%)
Operating income			3,124				2,210				41	%			12,359				9,669				28	%
Operating margin			5.5	%			4.7	%							6.9	%			6.4	%
Other expense, net			90				91				(1	%)			334				273				22	%
Interest income, net			(169	)			(128	)			32	%			(414	)			(442	)			(6	%)
Income before provision for income taxes			3,203				2,247				43	%			12,439				9,838				26	%
Provision for income taxes			358				659				(46	%)			1,909				2,003				(5	%)
Net income		$	2,845			$	1,588				79	%		$	10,530			$	7,835				34	%
Per share data:
Basic:
Net income		$	0.26			$	0.15				73	%		$	0.96			$	0.72				33	%
Diluted:
Net income		$	0.25			$	0.14				79	%		$	0.95			$	0.71				34	%
Weighted average common shares outstanding:
Basic			10,988				10,890								10,967				10,880
Diluted			11,157				11,057								11,108				11,016

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 8 of 11

Consolidated Balance Sheets

(Amounts in thousands, except per share data)

		December 31, 2025				March 31, 2025
Assets
Current assets:
Cash and cash equivalents		$	22,254			$	21,577
Trade accounts receivable, net of allowances ($360 and $630 at December 31 and March 31, 2025, respectively)			31,704				35,507
Unbilled revenue			57,823				38,494
Inventories			48,523				40,025
Prepaid expenses and other current assets			3,491				4,249
Income taxes receivable			19				1,520
Total current assets			163,814				141,372
Property, plant and equipment, net			57,321				50,649
Prepaid pension asset			6,055				5,950
Operating lease assets			5,587				6,386
Goodwill			26,181				25,520
Customer relationships, net			12,304				13,159
Technology and technical know-how, net			10,383				10,310
Tradenames, net			6,783				6,858
Deferred income tax asset			1,531				1,502
Other assets			2,968				2,404
Total assets		$	292,927			$	264,110
Liabilities and stockholders’ equity
Current liabilities:
Current portion of finance lease obligations		$	23			$	21
Accounts payable			17,509				27,309
Accrued compensation			18,503				19,161
Accrued expenses and other current liabilities			4,530				4,322
Customer deposits			111,984				84,062
Operating lease liabilities			1,460				1,275
Income taxes payable			660				—
Total current liabilities			154,669				136,150
Finance lease obligations			27				44
Operating lease liabilities			4,544				5,514
Deferred income tax liability			74				—
Accrued pension and postretirement benefit liabilities			1,191				1,192
Other long-term liabilities			1,112				1,633
Total liabilities			161,617				144,533
Stockholders’ equity:
Preferred stock, $1.00 par value, 500 shares authorized			—				—
Common stock, $0.10 par value, 25,500 shares authorized, 11,162 and 11,077 shares issued and 10,988 and 10,903 shares outstanding at December 31 and March 31, 2025, respectively			1,116				1,107
Capital in excess of par value			35,260				34,616
Retained earnings			104,759				94,229
Accumulated other comprehensive loss			(6,437	)			(6,987	)
Treasury stock (174 shares at December 31, and March 31, 2025)			(3,388	)			(3,388	)
Total stockholders’ equity			131,310				119,577
Total liabilities and stockholders’ equity		$	292,927			$	264,110

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 9 of 11

Consolidated Statements of Cash Flows

(Amounts in thousands)

		Nine Months Ended December 31,
		2025				2024
Operating activities:
Net income		$	10,530			$	7,835
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			3,670				2,712
Amortization			1,507				1,663
Bad debt reserves			(369	)			—
Amortization of actuarial losses			630				586
Equity-based compensation expense			1,727				1,204
Gain on disposal or sale of property, plant and equipment			(38	)			—
Change in fair value of contingent consideration			(486	)			(946	)
Deferred income taxes			(39	)			(91	)
(Increase) decrease in operating assets, net of acquisitions:
Accounts receivable			4,169				9,394
Unbilled revenue			(19,308	)			(9,879	)
Inventories			(8,474	)			(5,628	)
Prepaid expenses and other current and non-current assets			4				(1,665	)
Income taxes receivable			1,501				(46	)
Operating lease assets			1,011				965
Prepaid pension asset			(105	)			(175	)
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable			(6,690	)			3,914
Accrued compensation, accrued expenses and other current and non-current liabilities			(551	)			(1,380	)
Customer deposits			27,830				21,000
Operating lease liabilities			562				(646	)
Income taxes payable			(995	)			(948	)
Long-term portion of accrued compensation, accrued pension and postretirement benefit liabilities			(2	)			4
Net cash provided by operating activities			16,084				27,873
Investing activities:
Purchase of property, plant and equipment			(13,482	)			(13,800	)
Proceeds from disposal of property, plant and equipment			154				—
Acquisitions, net of cash acquired			(895	)			(170	)
Net cash used by investing activities			(14,223	)			(13,970	)
Financing activities:
Principal repayments on debt			(8,000	)			—
Proceeds from the issuance of debt			8,000				—
Repayments on finance lease obligations			(251	)			(237	)
Issuance of common stock			458				334
Tax withholdings related to net share settlements of restricted stock units and awards			(1,532	)			(854	)
Net cash used by financing activities			(1,325	)			(757	)
Effect of exchange rate changes on cash			141				(39	)
Net increase in cash and cash equivalents			677				13,107
Cash and cash equivalents at beginning of period			21,577				16,939
Cash and cash equivalents at end of period		$	22,254			$	30,046

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 10 of 11

Adjusted EBITDA Reconciliation

(Unaudited, $ in thousands)

		Three Months Ended December 31,								Nine Months Ended December 31,
		2025				2024				2025				2024
Net income		$	2,845			$	1,588			$	10,530			$	7,835
Acquisition & integration expense (income), net			320				(220	)			157				(900	)
ERP Implementation costs			39				157				91				704
Net interest income			(169	)			(128	)			(414	)			(442	)
Income tax expense			358				659				1,909				2,003
Equity-based compensation expense			642				426				1,727				1,204
Depreciation & amortization			2,009				1,545				5,177				4,375
Adjusted EBITDA		$	6,044			$	4,027			$	19,177			$	14,779
Net sales		$	56,701			$	47,037			$	178,215			$	150,551
Net income margin			5.0	%			3.4	%			5.9	%			5.2	%
Adjusted EBITDA margin			10.7	%			8.6	%			10.8	%			9.8	%

Adjusted Net Income and Adjusted Net Income per Diluted Share Reconciliation

(Unaudited, $ in thousands, except per share amounts)

		Three Months Ended December 31,								Nine Months Ended December 31,
		2025				2024				2025				2024
Net income		$	2,845			$	1,588			$	10,530			$	7,835
Acquisition & integration expense (income), net			320				(220	)			157				(900	)
Amortization of intangible assets			510				554				1,507				1,663
ERP Implementation costs			39				157				91				704
Tax impact of adjustments(1)			(200	)			(113	)			(404	)			(337	)
Adjusted net income		$	3,514			$	1,966			$	11,881			$	8,965
GAAP net income per diluted share		$	0.25			$	0.14			$	0.95			$	0.71
Adjusted net income per diluted share		$	0.31			$	0.18			$	1.07			$	0.81
Diluted weighted average common shares outstanding			11,157				11,057				11,108				11,016

⁽¹⁾  Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate of 23%.

Graham Corporation Reports Third Quarter Fiscal 2026 Results

February 6, 2026

Page 11 of 11

Acquisition and integration (income) costs, net are incremental costs that are directly related to and as a result of the P3, Xdot, and FlackTek acquisitions or the subsequent accounting for the related contingent earn-out liabilities. These costs (income) may include, among other things, professional, consulting and other fees, system integration costs, and contingent consideration fair value adjustments. ERP implementation costs primarily relate to consulting costs (training, data conversion, and project management) incurred in connection with the ERP system being implemented throughout our Batavia, New York facility in order to enhance efficiency and productivity and are not expected to recur once the project is completed.

Exhibit 99.2

Graham Corporation

Q3 FY 2026

Supplemental Information - Unaudited

($ in thousands)

SALES BY MARKET		FY 2025																																								FY 2026																																Q3 26 vs Q3 25								Q3 26 vs Q2 26								FYTD26 vs FYTD25
		Q1				% of				Q2				% of				Q3				% of				Q4				% of				YTD				% of				Q1				% of				Q2				% of				Q3				% of				YTD				% of
		2025				Total				2025				Total				2025				Total				2025				Total				2025				Total				2026				Total				2026				Total				2026				Total				2026				Total				Variance								Variance								Variance
Defense		$	29,094				58	%		$	30,897				58	%		$	27,023				57	%		$	34,911				59	%		$	121,925				58	%		$	29,535				53	%		$	40,750				62	%		$	35,283				62	%		$	105,568				59	%		$	8,260				31	%		$	(5,467	)			-13	%		$	18,554				21	%
Energy & Process			16,910				34	%			19,250				36	%			16,193				34	%			20,934				35	%			73,287				35	%			22,574				41	%			21,278				32	%			18,287				32	%			62,139				35	%			2,094				13	%			(2,991	)			-14	%			9,786				19	%
Space			3,947				8	%			3,416				6	%			3,821				8	%			3,500				6	%			14,684				7	%			3,378				6	%			3,999				6	%			3,131				6	%			10,508				6	%			(690	)			-18	%			(868	)			-22	%			(676	)			-6	%
		$	49,951				100	%		$	53,563				100	%		$	47,037				100	%		$	59,345				100	%		$	209,896				100	%		$	55,487				100	%		$	66,027				100	%		$	56,701				100	%		$	178,215				100	%		$	9,664				21	%		$	(9,326	)			-14	%		$	27,664				18	%
SALES BY REGION		FY 2025																																								FY 2026																																Q3 26 vs Q3 25								Q3 26 vs Q2 26								FYTD26 vs FYTD25
		Q1				% of				Q2				% of				Q3				% of				Q4				% of				YTD				% of				Q1				% of				Q2				% of				Q3				% of				YTD				% of
		2025				Total				2025				Total				2025				Total				2025				Total				2025				Total				2026				Total				2026				Total				2026				Total				2026				Total				Variance								Variance								Variance
United States		$	40,930				82	%		$	45,460				85	%		$	39,675				84	%		$	43,878				74	%		$	169,943				81	%		$	46,322				83	%		$	55,098				83	%		$	48,112				85	%		$	149,532				84	%		$	8,437				21	%		$	(6,986	)			-13	%		$	23,467				19	%
Middle East			983				2	%			794				1	%			1,551				3	%			3,760				6	%			7,088				3	%			1,346				2	%			1,770				3	%			1,402				2	%			4,518				3	%			(149	)			-10	%			(368	)			-21	%			1,190				36	%
Asia			5,304				11	%			4,274				8	%			2,273				5	%			5,033				8	%			16,884				8	%			3,283				6	%			4,452				7	%			3,425				6	%			11,160				6	%			1,152				51	%			(1,027	)			-23	%			(691	)			-6	%
Other			2,734				5	%			3,035				6	%			3,538				8	%			6,674				11	%			15,981				8	%			4,536				8	%			4,707				7	%			3,762				7	%			13,005				7	%			224				6	%			(945	)			-20	%			3,698				40	%
		$	49,951				100	%		$	53,563				100	%		$	47,037				100	%		$	59,345				100	%		$	209,896				100	%		$	55,487				100	%		$	66,027				100	%		$	56,701				100	%		$	178,215				100	%		$	9,664				21	%		$	(9,326	)			-14	%		$	27,664				18	%
ORDERS BY MARKET		FY 2025																																								FY 2026																																Q3 26 vs Q3 25								Q3 26 vs Q2 26								FYTD26 vs FYTD25
		Q1				% of				Q2				% of				Q3				% of				Q4				% of				YTD				% of				Q1				% of				Q2				% of				Q3				% of				YTD				% of
		2025				Total				2025				Total				2025				Total				2025				Total				2025				Total				2026				Total				2026				Total				2026				Total				2026				Total				Variance								Variance								Variance
Defense			28,617				51	%			30,507				48	%			6,723				27	%			68,724				79	%			134,571				58	%			106,690				85	%			47,305				57	%			49,570				69	%			203,565				73	%		$	42,847				637	%		$	2,265				5	%		$	137,718				209	%
Energy & Process			25,796				46	%			19,633				31	%			14,828				60	%			16,170				19	%			76,427				33	%			18,795				15	%			21,116				25	%			14,582				20	%			54,493				19	%			(246	)			-2	%			(6,534	)			-31	%			(5,764	)			-10	%
Space			1,354				2	%			13,538				21	%			3,235				13	%			1,988				2	%			20,114				9	%			413				0	%			14,779				18	%			7,519				10	%			22,711				8	%			4,284				132	%			(7,260	)			-49	%			4,584				25	%
		$	55,767				100	%		$	63,678				100	%		$	24,786				100	%		$	86,882				100	%		$	231,112				100	%		$	125,898				100	%		$	83,200				100	%		$	71,671				100	%		$	280,769				100	%		$	46,885				189	%		$	(11,529	)			-14	%		$	136,538				95	%
BACKLOG BY MARKET		FY 2025																																								FY 2026																																Q3 26 vs Q3 25								Q3 26 vs Q2 26
		Q1				% of				Q2				% of				Q3				% of				Q4				% of				YTD				% of				Q1				% of				Q2				% of				Q3				% of				YTD				% of
		2025				Total				2025				Total				2025				Total				2025				Total				2025				Total				2026				Total				2026				Total				2026				Total				2026				Total				Variance								Variance
Defense			327,827				83	%			327,438				80	%			307,138				80	%			340,613				83	%			340,613				83	%			417,768				87	%			424,323				85	%			438,762				85	%			438,762				85	%		$	131,624				43	%		$	14,439				3	%
Energy & Process			60,890				15	%			61,391				15	%			59,969				16	%			55,640				13	%			55,640				13	%			51,975				11	%			51,852				10	%			48,274				9	%			48,274				9	%			(11,695	)			-20	%			(3,578	)			-7	%
Space			8,058				2	%			18,180				4	%			17,594				5	%			16,082				4	%			16,082				4	%			13,117				3	%			23,897				5	%			28,597				6	%			28,597				6	%			11,003				63	%			4,700				20	%
		$	396,775				100	%		$	407,009				100	%		$	384,701				100	%		$	412,335				100	%		$	412,335				100	%		$	482,860				100	%		$	500,072				100	%		$	515,633				100	%		$	515,633				100	%		$	130,932				34	%		$	15,561				3	%
BOOK-TO-BILL RATIO			1.1								1.2								0.5								1.5								1.1								2.3								1.3								1.3								1.6

FAQ

How did Graham Corporation (GHM) perform in Q3 fiscal 2026?

Graham delivered strong Q3 fiscal 2026 results with double‑digit growth. Net sales were $56.7 million, up 21%, and net income rose 79% to $2.8 million. Adjusted EBITDA reached $6.0 million, a 50% increase, with the adjusted EBITDA margin improving to 10.7%.

What were Graham Corporation (GHM) orders and backlog in Q3 fiscal 2026?

Orders and backlog reached very strong levels in Q3 fiscal 2026. Orders were $71.7 million, producing a 1.3x book‑to‑bill ratio. Backlog ended the quarter at a record $515.6 million, up 34% year over year, with approximately 85% related to Defense contracts.

What guidance did Graham Corporation (GHM) provide for fiscal 2026?

Graham raised its full‑year fiscal 2026 outlook. The company now expects net sales of $233 million to $239 million and adjusted EBITDA of $24 million to $28 million. Gross margin guidance is 24.0%–25.0%, with an effective tax rate of 16%–18% and capital spending of $15–$18 million.

What is the significance of Graham Corporation’s (GHM) FlackTek acquisition?

The FlackTek deal adds a new core technology platform and growth avenue. On January 23, 2026, Graham acquired FlackTek for $35.0 million, plus up to $25 million in potential earnouts. The transaction broadens advanced mixing capabilities and results in an estimated pro forma leverage ratio of about 1.2x.

How strong is Graham Corporation’s (GHM) balance sheet after Q3 fiscal 2026?

Graham reported solid liquidity and low leverage at quarter end. As of December 31, 2025, the company held $22.3 million in cash and cash equivalents and had no debt outstanding, with $43.0 million available under its revolving credit facility before the FlackTek acquisition funding.

How did Graham Corporation’s (GHM) Defense and Energy & Process markets perform?

Defense and Energy & Process drove most of the Q3 growth. Defense sales contributed $8.3 million to net sales growth through milestones and program expansion. Energy & Process sales increased $2.1 million, or 13%, supported by Aftermarket strength and activity in New Energy, including small modular reactors.