Graham Corporation · NYSE:GHM

Graham — Q2 FY2027 Earnings Presentation

20 slides from Graham's earnings presentation, Nov 5, 2026

  1. Slide 1: Second Quarter Fiscal 2027 Financial Results

    Second Quarter Fiscal 2027 Financial Results November 5, 2026 GRAHAM CORPORATION 1 © 2025 GRAHAM CORPORATION, ALL RIGHTS RESERVED

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Safe Harbor Regarding Forward Looking Statements This presentation 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

  3. Slide 3: Strong Second Quarter Performance Supported by Healthy End Market Demand

    Strong Second Quarter Performance Supported by Healthy End Market Financial Highlights Demand, Gross Profit Margin Expansion and Record Backlog Graham is a GLOBAL Q2 FY27 Highlights LEADER in the design and manufacture of mission-critical $69.8 +6% RevenueM fluid, power, vacuum, heat transfer, and a

  4. Slide 4: Market Outlook

    Market Outlook Revenue Market Vertical End Markets Exposure(1) Trend Defense Expansion of defense budgets; Accelerating shipbuilding schedules; Geopolitical tensions; GHM quality and 62% execution; Advances in technology and production volume; Bipartisan support Macro Environment Space Accelerating

  5. Slide 5: Organic Investments Delivering Returns on Investments

    Organic Investments Delivering Returns on Investments Strategic >20% ROIC(1) projects nearing completion will drive sustainable growth & margin improvement DEFENSE SPACE ENERGY & PROCESS GRAHAM CORPORATE ✓ New Navy Facility in ✓ Cryogenic Test Facility in ✓ Renovated Assembly & ✓ IT infrastructure u

  6. Slide 6: Revenue Performance

    Revenue Performance ($ in millions; narrative compared with prior-year period unless otherwise noted) Quarterly Q2 FY27 sales up $3.7 million or 6% + 59% Space $71.3 $69.8 + 12% Defense $66.0 $67.1 $56.7 + $9.5M Contributed by FlackTek - 3% Aftermarket - 17% Energy & Process Q2 FY26 Q3 FY26 Q4 FY26

  7. Slide 7: Strong Gross Profit & Margins

    QUARTERLY ANNUAL $25.0 28.2% 30.0% $70.0 25.0% 25.0% 25.2% 23.8% 25.0% $60.0 $20.0 22.7% 21.7% $50.0 20.0% $15.0 $40.0 15.0% $30.0 $10.0 10.0% 23.5% $20.0 $5.0 5.0% Strong Gross Profit & $14.3 $13.5 $15.3 $17.8 $19.7 $10.0 $52.9 $57.8 $66.2 Margins $- 0.0% $- Q2 FY 26 Q3 FY 26 Q4 FY 26 Q1 FY 27 Q2 F

  8. Slide 8: Adjusted EBITDA, Net Income and Adjusted Net Income Per Diluted Share

    Adjusted EBITDA & Adjusted EBITDA Net Income, Adj. Net Income Per Diluted Share & Margins(1) Margin(1) per Net Income per diluted share Adj. Net Income diluted share Percentages are net income margin and adj. net income margin $10.3 Q UA RT ERLY $0.52 Q UA RT ER LY $0.49 $8.8 $0.39 $6.8 $0.33 $0.33

  9. Slide 9: Long-Term Demand For Graham Diversified Portfolio

    Total Orders(1) Backlog(1) Chart Title $557.2 $561.3 Defense Chart Title $359.4 $515.6 $532.6 Commercial $500.1 $319.9 $86.7 $94.9 $76.9 $82.5 $75.8 $268.4 $107.2 $231.1 $118.1 $202.7 $91.0 $96.5 $86.0 $438.8 $450.1 $470.5 $466.4 $424.3 $252.2 $177.4 $201.8 $116.7 $134.6 Long-Term Demand FY23 FY24 F

  10. Slide 10: Balance Sheet & Liquidity

    Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE Q2 FY27 Overview Capital Allocation Framework STRONG BALANCE SHEET $46.7 (2) M Cash provided by operating activities • Strong cash generation and fiscal discipline • Completed $5

  11. Slide 11: Fiscal 2027 Outlook

    Fiscal 2027 Outlook (As of November 5, 2026) New Guidance Previous Guidance Net Sales $285 million to $295 million $285 million to $295 million • Net sales and Adj. EBITDA guidance reaffirmed Gross Margin 25.0% to 26.0% of sales 24.5% to 25.5% of sales • Gross margin guidance raised SG&A expense (in

  12. Slide 12: Driving the Next Phase of Growth: Three-Year Strategic Plan (FY2027 – FY2029)

    Driving the Next Phase of Growth: Three-Year Strategic Plan (FY2027 – FY2029) 8% to 10% 14% - 16% Capital and R&D to support growth initiatives; targeted Organic Revenue Growth(2) Adjusted EBITDA Margin(2) ROIC(2) >20% Revenue Gross Profit % Adjusted EBITDA % Approaching $400 Top Quartile Revenue Gr

  13. Slide 13: Q&A

    Q&A 13

  14. Slide 14: Appendix

    Appendix 14

  15. Slide 15: M&A Growth

    M&A Growth DISCIPLINED ACQUISITION STRATEGY TO SUPPLEMENT 8-10% ANNUAL ORGANIC GROWTH(1) EXPECTATIONS TARGET CATEGORY ATTRIBUTES COMPANY TYPE Privately held, independently operated INDUSTRY FOCUS Fluid/power sectors supporting aerospace, defense, cryogenic, and niche industrial markets MANAGEMENT Le

  16. Slide 16: Key Performance Metrics

    Key Performance Metrics Key Performance Indicators In addition to the non-GAAP measures used in this presentation, The book-to-bill ratio is an operational measure that management management uses the following key performance metrics to uses to track the growth prospects of the Company. The Company

  17. Slide 17: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Net income $ 3,090 $ 2,845 $ 1,970 $ 3,912 $ 4,637 Acquisition & integration (income) (87) 320 1,148 1,179 991 expense, net Equity-based compensation 553 642 404 645 782

  18. Slide 18: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) FY 2025 FY 2026 TTM Q2 FY 2027 Net income $ 12,230 $ 12,500 $ 13,364 Acquisition & integration (income) expense, net (1,170) 1,305 3,638 ERP Implementation costs 882 213 349 Net interest income (583) (257) (358

  19. Slide 19: Adjusted Net Income & Adjusted Diluted EPS Reconciliation

    Adjusted Net Income & Adjusted Diluted EPS Reconciliation Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Net income $ 3,090 $ 2,845 $ 1,970 $ 3,912 $ 4,637 Acquisition & integration (income) expense, (87) 320 1,148 1,179 991 net Amortization of intangible assets 498 510 999 1,050 955 ERP implementation cos

  20. Slide 20: Adjusted Net Income & Adjusted Diluted EPS Reconciliation

    Adjusted Net Income & Adjusted Diluted EPS Reconciliation FY 2025 FY 2026 TTM Q2 FY 2027 Net income $ 12,230 $ 12,500 $ 13,364 Acquisition & integration (income) expense, net (1,170) 1,305 3,638 Amortization of intangible assets 2,218 2,506 3,514 ERP Implementation costs 882 213 349 Tax impact of ad

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