Graham Corporation (GHM) SEC Filings & Earnings Calls

Space market uncertainty

“Sales and orders to the Space industry are variable in nature and many of our customers, who are key players in the industry, have yet to achieve profitability and may be unable to continue operations without additional funding.” · word for word

Traditional energy market weakness

“Accordingly, as of late we are seeing the timing of large capital project orders in our traditional Energy & Process markets being pushed out due to volatility in gas prices, tariffs, and geopolitical uncertainty, which has caused customers to delay capital investment.” · word for word

Gross margin compression from defense mix; may persist.

“Gross margin 25.0% vs 26.5% YoY due to higher defense sales.”

Integration risk from FlackTek acquisition.

“Acquisition and integration expenses contributed $0.6M; incremental SG&A $1.8M.”

Customer concentration

“No explicit customer concentration risk disclosed in proxy.”

Leadership transition risk

“CEO and other key executives transitioned to advisory roles; new CEO in place.”

Gross margin compression due to mix shift toward lower-margin defense and acquired revenue

“Gross margin reflected a less favorable mix, including an increased level of lower-margin Defense sales and FlackTek revenue due to purchase accounting” · word for word

Customer Concentration

“Sales to our top ten customers accounted for 60% of consolidated net sales in fiscal 2026.”

Fixed-Price Contract Risk

“A substantial portion of our sales is derived from fixed-price contracts, which may involve long-term fixed-price commitments.” · word for word

Government Funding Dependency

“Annual government funding is required to continue the production of this equipment.” · word for word

Dilution of existing shareholders by 5%

“599,808 shares (5%) of Graham common stock” · word for word

Transition risk during leadership change, though mitigated by advisory role and experienced successor.

“Alan Smith...will serve in an advisory role moving forward”

Tariff impact on costs

“For the first nine months of fiscal 2026, we estimate the impact of tariffs on our consolidated financial statements to be approximately $1,000 compared to the prior year. We estimate the range of potential impact of increased tariffs for the full year will be between an incremental $1,000 to $1,500 compared to the prior year.” · word for word

Energy market project delays

“Additionally, as of late we are seeing the timing of large capital project orders in our traditional Energy & Process markets being pushed out due to lower gas prices, tariffs, and geopolitical uncertainty, which has cause them to delay capital investment.” · word for word

Space market customer dependency

“Sales and orders to the Space industry are variable in nature and many of our customers, who are key players in the industry, have yet to achieve profitability and may be unable to continue operations without additional funding.” · word for word

Tariff impact estimated at $1.0-1.5M incremental for fiscal 2026; gross margin declined 100 bps due to mix and material receipts.

“Estimated impact of tariffs $1.0 to $1.5 million compared to prior year; gross margin decreased 100 bps”

Integration risk of FlackTek; earnout targets may not be achieved.

“potential to earn an additional $25 million in future performance-based cash earnouts over four years based upon achieving progressively increasing adjusted EBITDA performance targets” · word for word

Tariff cost pressure

“We estimate the range of potential impact of increased tariffs for the full year will be between $2,000 and $4,000.” · word for word

Energy & Process market cyclicality

“we believe that in the near term the quantity of projects available for us to compete for will remain low and that new project pricing will remain challenging.” · word for word

Space market customer concentration risk

“many of our customers, who are key players in the industry, have yet to achieve profitability and may be unable to continue operations without additional funding.” · word for word

Tariff impact estimated at $1.0M for first six months; potential for further cost pressure.

“For the first six months of fiscal 2026, we estimate the impact of tariffs on our consolidated financial statements to be approximately $1.0 million.” · word for word

Gross margin pressure from sales mix and non-recurring grant expiration.

“Gross profit margin decreased 220 basis points to 21.7%... reflects the mix of sales... grant received in the prior year... did not repeat.” · word for word