Graham (NYSE:GHM) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

06 Feb 2026, 19:52 by Michael Walen · The Markets Daily

Graham (NYSE:GHM – Get Free Report) posted its quarterly earnings results on Friday. The industrial products company reported $0.31 EPS for the quarter, topping the consensus estimate of $0.17 by $0.14, FiscalAI reports. Graham had a return on equity of 12.44% and a net margin of 6.00%.The business had revenue of $56.70 million for the quarter, compared to analyst estimates of $52.36 million.

Here are the key takeaways from Graham’s conference call:

Revenue rose 21% to $56.7 million and adjusted EBITDA increased 50% to $6.0 million, with an adjusted EBITDA margin of 10.7%, reflecting improved operating leverage and productivity initiatives.
Record backlog of $515.6 million (up 34% YoY) and a Q3 book‑to‑bill of 1.3x (year‑to‑date 1.6x), with management expecting ~35–40% of backlog to convert to revenue in the next 12 months, providing strong near‑term visibility.
Completed strategic deals—XDot technology purchase and the $35 million FlackTek acquisition (85% cash/15% equity plus up to $25M earn‑out)—which management says expands engineered‑products capability, adds recurring consumables revenue, and brings the Mega large‑scale mixer to Graham’s addressable market.
Raised fiscal 2026 guidance to $233–239 million in revenue and $24–28 million in adjusted EBITDA, and reaffirmed longer‑term targets of 8–10% organic growth and low‑to‑mid‑teen adjusted EBITDA margins by fiscal 2027.
Near‑term risks include estimated tariff impacts of approximately $1.0–1.5 million for the year, lumpy material receipts that pressured gross margin this quarter, and slowing large CapEx demand in the energy/process market driven by lower oil prices and macro uncertainty.

Graham Trading Up 13.2%

GHM traded up $9.71 during trading hours on Friday, hitting $83.46. 150,129 shares of the company’s stock were exchanged, compared to its average volume of 107,537. The firm has a market cap of $917.27 million, a P/E ratio of 67.30 and a beta of 0.92. Graham has a 12-month low of $24.78 and a 12-month high of $84.58. The firm has a 50 day moving average of $67.60 and a 200 day moving average of $59.15.

Analysts Set New Price Targets

GHM has been the topic of several recent analyst reports. Wall Street Zen upgraded shares of Graham from a “sell” rating to a “hold” rating in a report on Sunday, November 16th. Weiss Ratings lowered shares of Graham from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, January 12th. Northland Securities lowered Graham from an “outperform” rating to a “market perform” rating and set a $80.00 price objective for the company. in a research report on Tuesday, January 27th. Finally, Noble Financial cut Graham from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 21st. One research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $72.50.

Get Our Latest Stock Report on GHM

Key Graham News

Here are the key news stories impacting Graham this week:

Positive Sentiment: Q3 results beat expectations (EPS $0.31 vs. $0.17 est.; revenue $56.7M vs. $52.35M) and management commentary highlighted strength across end markets — the core driver for the stock rally. Graham Corporation Reports Third Quarter Fiscal 2026 Results
Positive Sentiment: Market writeups and snapshots emphasizing the beat and guidance lift (Yahoo/MarketBeat-style coverage) are amplifying investor interest. Graham: Fiscal Q3 Earnings Snapshot
Positive Sentiment: Analyst and news coverage highlighting the strong quarter (Zacks summary) reinforces the narrative of improving fundamentals. Graham (GHM) Q3 Earnings and Revenues Beat Estimates
Positive Sentiment: Broker/market commentary raised Graham’s price target (reported increases reflect growing analyst confidence). Graham (GHM) price target increased by 11.11% to 85.00
Neutral Sentiment: Fiscal 2026 revenue guidance ($233M–$239M) sits roughly around street estimates — supportive but not a large upside surprise; investors will watch quarterly cadence and margin outlook. (Guidance summary from company update.)
Neutral Sentiment: Inclusion in sector lists and dividend-safety roundups (Seeking Alpha / industry roundups) may attract income/quality-focused investors but has limited immediate impact versus the earnings/guidance news. 14 Ideal ‘Safer’ Dividend Buys…

Institutional Trading of Graham

Hedge funds have recently modified their holdings of the stock. Alyeska Investment Group L.P. purchased a new position in Graham in the third quarter valued at $10,356,000. Invesco Ltd. raised its position in Graham by 1,396.0% in the 2nd quarter. Invesco Ltd. now owns 115,893 shares of the industrial products company’s stock valued at $5,738,000 after purchasing an additional 108,146 shares in the last quarter. Russell Investments Group Ltd. boosted its stake in shares of Graham by 24.6% in the 3rd quarter. Russell Investments Group Ltd. now owns 107,592 shares of the industrial products company’s stock valued at $5,907,000 after buying an additional 21,234 shares during the period. JPMorgan Chase & Co. grew its position in shares of Graham by 383.1% during the third quarter. JPMorgan Chase & Co. now owns 24,289 shares of the industrial products company’s stock worth $1,333,000 after buying an additional 19,261 shares in the last quarter. Finally, Wasatch Advisors LP increased its stake in shares of Graham by 6.1% during the second quarter. Wasatch Advisors LP now owns 316,203 shares of the industrial products company’s stock worth $15,655,000 after buying an additional 18,084 shares during the period. 69.46% of the stock is currently owned by institutional investors and hedge funds.

Graham Company Profile

(Get Free Report)

Graham Corporation (NYSE: GHM) is a U.S.-based industrial engineering company that designs, manufactures and services vacuum and heat transfer equipment. Its core offerings include liquid ring vacuum pumps, surface condensers, heat exchangers and custom-engineered vacuum systems. These products play a critical role in energy-intensive industries, where reliable removal of non-condensable gases and efficient heat exchange are vital to process performance.