Graham Corporation (GHM) AI Stock Analysis

Founded in 1936 and based in Batavia, New York, Graham Corporation designs and manufactures fluid, power, heat transfer, and vacuum systems. Its products serve industries such as defense, space exploration, chemical and petrochemical processing, and energy production. Key offerings include ejectors, surface condensers, torpedo ejection and power systems, turbopumps, rocket propulsion systems, and life support systems for space missions. Graham also provides heat transfer and vacuum systems such as heat exchangers, process condensers, liquid ring pumps, and nozzles, alongside servicing and spare parts across global sales channels.

Revenue increased from $122.8M in FY2022 to $245.3M in FY2026, marking 16.9% growth in FY2026 following 13.1% in FY2025. Gross margin expanded from 7.4% in FY2022 to 23.5% in FY2026, while operating margin improved from -9.2% to 5.9%. Net income shifted from -$8.8M in FY2022 to $12.5M in FY2026, with diluted EPS reaching $1.40. Trailing twelve month revenue stood at $261.1M with an operating margin of 6.6% and a net profit margin of 4.5%. In the latest quarter ended June 30, 2026, quarterly revenue grew 28.6% year-over-year, while quarterly earnings declined 21.4%.

As of June 30, 2026, Graham Corporation held $27.0M in cash and short-term investments against $6.8M in total debt, resulting in net cash of $20.2M. The company reported a current ratio of 1.23 and a debt-to-equity ratio of 0.04 on $192.2M of shareholders' equity. In FY2026, operating cash flow was $15.9M. Capital expenditures used $16.1M, leading to free cash flow of -$121,000, while share buybacks totaled $1.5M. The share count increased 10.1% over five years.

With a market cap of $803.8M and an enterprise value of $1.00B, Graham Corporation trades at a trailing P/E of 66.5x and a forward P/E of 45.0x, above the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its price-to-sales multiple of 3.1x and EV/EBITDA of 43.0x also compare to peer group medians of 1.5x and 13.9x. The stock returned 12.1% over the past year, trailing the S&P 500 (SPY) return of 16.8%, but gained 430.6% over five years versus 83.0% for the index.

Wall Street analysts hold 3 Strong Buy, 2 Buy, and 1 Hold ratings on GHM, with zero Sell or Strong Sell ratings. The mean price target of $125.60 sits 83.4% above the last close of $68.48. For the fiscal year ending March 31, 2027, consensus estimates project revenue of $291.0M and EPS of $1.81, representing 29.0% EPS growth. Over the last four quarters, the company topped EPS expectations 3 times. The next earnings date is November 6, 2026.

This page is an AI-written research summary of Graham Corporation (GHM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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