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Graham (GHM) is:

• A smaller, specialized Honeywell, focused on industrial process equipment.
• An industrial equipment provider akin to a specialized division of Ingersoll Rand, particularly in vacuum systems and air purification.

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• Vacuum Systems: Graham designs and manufactures engineered vacuum solutions, including steam jet ejectors and hybrid systems, critical for process industries to create and maintain vacuum conditions.
• Heat Transfer Equipment: The company provides custom-engineered heat transfer solutions, such as surface condensers and Heliflow heat exchangers, used to efficiently transfer thermal energy in various industrial processes.

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Graham Holdings Company (GHM)

• Students and Lifelong Learners: Through its Kaplan segment, Graham serves individuals worldwide pursuing various educational and career goals. This includes K-12 students, college and graduate school applicants preparing for standardized tests (e.g., SAT, ACT, GRE, GMAT), individuals seeking professional licenses and certifications (e.g., in healthcare, legal, finance), and professionals engaged in continuing education and skill development.
• Consumers of Dining and Entertainment: Graham serves individuals through its Clyde's Restaurant Group, which operates a collection of popular restaurants and entertainment venues. These customers are individuals seeking dining experiences, social gatherings, and entertainment.
• Individuals Requiring Home Healthcare Services: Through Graham Healthcare Group, the company serves patients and their families by providing in-home healthcare, hospice, and other related services. These customers are individuals who need medical care and support in the comfort of their homes.

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Matthew Malone, President and Chief Executive Officer

Matthew Malone became President and CEO of Graham Corporation in June 2025. He joined Barber-Nichols, which was later acquired by Graham, in 2015 as a Project Engineer. He advanced to Navy Program Manager in 2018 and was appointed Vice President of Operations of Barber-Nichols in 2020. Mr. Malone started his career at GE Transportation, holding various engineering and management positions. He was previously President and Chief Operating Officer of Graham. He played a key role in the "stabilized phase" after Graham acquired Barber Nichols, which involved developing a new five-year plan, growing the business, tripling the backlog, and diversifying the company's portfolio. Mr. Malone holds a B.S. in Mechanical Engineering from Pennsylvania State University and an M.S.

Christopher J. Thome, Vice President - Finance and Chief Financial Officer

Christopher J. Thome became Graham Corporation's Vice President - Finance and Chief Financial Officer in April 2022. He brings nearly 30 years of experience in finance and accounting leadership, audit, public company financial reporting, treasury, operational accounting, and shared services implementation. Before joining Graham, Mr. Thome served as Corporate Controller for Allied Motion Technologies Inc. From 2006 to 2020, he held increasing roles at Integer Holdings, including Senior Director – Treasurer and Senior Director – Financial Reporting, Treasury Operations and Shared Services. He was also previously Vice President – Reporting and Investor Relations Manager with First Niagara Financial Group and began his career as a Senior Accountant with PricewaterhouseCoopers LLP. Mr. Thome is a Certified Public Accountant and earned his B.S. in accounting from Canisius College and his Executive M.B.A. from the University at Buffalo SUNY.

Daniel J. Thoren, Executive Chairman of the Board and Strategic Advisor

Daniel J. Thoren was appointed Executive Chairman of the Board and Strategic Advisor in June 2025. Prior to this, he served as President and CEO of Graham Corporation from August 2021, and before that, as Chief Operating Officer starting in June 2021. Mr. Thoren was President and CEO of Barber-Nichols Inc. since 1997, where he more than quadrupled the business size before its acquisition by Graham in June 2021. His earlier roles at Barber-Nichols from 1991 to 1997 included Senior Engineer and Engineering management positions. He holds a B.S. degree in Mechanical Engineering from the University of Wyoming and an M.S. degree in Organizational Management from the University of Colorado, Denver.

Mike Dixon, Vice President of Graham Corporation and General Manager of Barber-Nichols

Mike Dixon became Vice President of Graham Corporation and General Manager of Barber-Nichols in June 2025. Before this, he was the Director of Sales and Marketing from August 2021. During his tenure, he was instrumental in expanding the company's technical capabilities and securing significant contracts in the space, aerospace, and defense sectors. Prior to joining Graham, Mr. Dixon held various positions of increasing responsibility at Sundyne and began his career at ESS Metron. He holds a B.S. in Mechanical Engineering from Northern Illinois University.

Alan E. Smith, Vice President of Operations

Alan E. Smith has served as Graham Corporation's Vice President of Operations since July 2007. From 2005 to July 2007, he was the Director of Operations for Lydell, Inc., a designer and manufacturer of specialty engineering products. Prior to that, Mr. Smith spent fourteen years at Graham, progressing from Project Engineer to Engineering Manager. He is a licensed Professional Engineer and holds a Master of Science in Mechanical Engineering from the Rochester Institute of Technology, a Bachelor of Science in Mechanical Engineering from Clarkson University, a Bachelor of Arts in Physics from the State University of New York at Geneseo, and an MBA from Medaille College.

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Graham Corporation (GHM) faces several significant risks to its business operations and financial performance. The most prominent risks include its substantial dependence on defense contracts, ongoing supply chain disruptions coupled with inflationary pressures, and the inherent cyclicality of its energy and process markets leading to potential project delays.

1. High Concentration in Defense Backlog: A primary risk for Graham Corporation is its significant reliance on the defense sector, with approximately 85% of its backlog tied to defense markets, predominantly with one main customer, the U.S. Navy. This concentration exposes the company to substantial vulnerability from potential changes in defense budgets, government policies, or any issues related to this key customer.
2. Supply Chain Disruptions, Inflation, and Cost Pressures: Graham Corporation is susceptible to persistent global supply chain challenges, rising inflation, and tariff issues. These factors directly lead to higher operating costs, can reduce profit margins, and impact the company's ability to fulfill customer requirements, even with a strong backlog. For instance, recent quarters have seen gross margin dips partly attributed to a "worse mix of lower-margin jobs" and "tariff issues impacting margins".
3. Cyclicality of Energy & Process Markets and Project Delays: A considerable portion of Graham's revenue outside of defense originates from the energy and process segments, which are highly cyclical. The company's business in these areas depends significantly on customers' willingness to invest in major capital projects. Delays or cancellations of large customer projects due to global economic uncertainty or other adverse conditions can severely affect Graham's operating results and revenue recognition.

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The accelerating global shift towards renewable energy and decarbonization presents a significant emerging threat to Graham (GHM). A substantial portion of Graham's revenue is derived from serving industries such as refining, petrochemicals, and traditional power generation, which are heavily reliant on fossil fuels. As global economies transition away from these energy sources, there is a clear risk of long-term contraction in demand for Graham's specialized vacuum and heat transfer equipment within these core markets.

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Graham Corporation (symbol: GHM) primarily designs and manufactures custom-engineered vacuum and heat transfer equipment.

The addressable markets for Graham's main products and services are global:

• Heat Exchanger Market: The global heat exchanger market size was valued at USD 18.73 billion in 2024 and is projected to grow to USD 30.73 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 6.32% during the forecast period. Other sources estimate the global market size at USD 23.2 billion in 2024, expanding at a CAGR of 6.9% from 2024 to 2031. Another report values the market at USD 19.18 billion in 2024, expected to exceed USD 32.27 billion by 2034 with a CAGR of 6.28% from 2025 to 2034.
• Vacuum Equipment Market: The global vacuum equipment market size was valued at approximately USD 6.9 billion in 2023 and is projected to reach USD 12.7 billion by 2032, exhibiting a CAGR of 7.1%. The global vacuum pumps market, a component of vacuum equipment, was valued at USD 6.87 billion in 2025 and is predicted to increase to approximately USD 11.41 billion by 2034, expanding at a CAGR of 5.80% from 2025 to 2034. The global vacuum systems market is estimated at USD 2.4 billion in 2025 and is expected to reach USD 4.0 billion by 2033.

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Graham Corporation (GHM) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Strong Defense Sector Demand and Backlog Conversion: Graham has a substantial and growing backlog, predominantly in the defense sector, which provides significant revenue visibility. As of Q2 fiscal year 2026, the company reported a record backlog of $500.1 million, with approximately 85% attributed to the defense industry. Management expects 35% to 40% of this backlog to convert to revenue within the next 12 months. The company continues to see strong demand from U.S. Navy contracts, including a $25.5 million follow-on order for the MK48 Mod 7 Heavyweight Torpedo program. Strategic investments and customer commitments are also enhancing production capabilities for critical naval defense programs, with increased revenue anticipated to begin in calendar year 2026.
2. Growth in the Space Sector: Graham's subsidiary, Barber-Nichols, is expanding its footprint in the commercial space launch market. The company secured $22 million in new orders from leading customers in this sector and reported $14.8 million in new space orders in Q2 fiscal year 2026. Investments in cryogenic test facilities and expanded testing infrastructure are aimed at meeting the rising demand for precision-engineered turbomachinery for space applications.
3. Resilience and Expansion in the Energy & Process Market: Graham is experiencing continued growth in its Energy & Process segment, which saw a 33% increase in Q1 fiscal year 2026 and an 11% increase in Q2 fiscal year 2026. This growth is driven by commercial projects in chemical and petrochemical industries, as well as momentum in new energy markets, including hydrogen and Small Modular Reactors (SMRs).
4. Strategic Acquisitions and Investments in Advanced Manufacturing: The company is bolstering its capabilities through strategic acquisitions and investments in advanced technologies and manufacturing capacity. The acquisition of Xdot Bearing Technologies is expected to strengthen Graham's competitive position in high-speed rotating systems and be slightly accretive to fiscal 2026 results. Additionally, the opening of new advanced manufacturing facilities, such as the one in Batavia, New York, and investments in automation, enhanced X-ray testing, and automated welding systems, are projected to increase throughput, improve quality, and support the execution of current and future orders, yielding returns above 20%.
5. Robust Aftermarket Sales Growth: Aftermarket sales have been a consistent contributor to revenue growth. The company reported a 33% increase in aftermarket sales in Q1 fiscal year 2026 and a 22% increase in Q4 fiscal year 2024. Robust aftermarket orders for the refining, petrochemical, and defense markets totaled $13 million in Q3 fiscal year 2025, representing a 51% year-over-year increase.

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Share Issuance

• Graham Corporation had 11,162 thousand shares issued as of September 30, 2025, compared to 11,077 thousand shares issued as of March 31, 2025.
• The company has only common shares issued and outstanding, with no preferred shares or multiple classes of common stock.

Inbound Investments

• In August 2023, Graham received a $13.5 million strategic investment from a customer to expand its Batavia production capabilities for complex components, primarily for the U.S. Navy.
• In May 2025, a customer provided a $2.2 million strategic investment for new Radiographic Testing (RT) equipment at Graham's Batavia facility, with Graham contributing an additional $1.4 million, totaling $3.6 million for enhancements supporting Columbia and Virginia class submarine programs.
• BlueForge Alliance invested $2.1 million in July 2024 to expand Graham's welder training program, supporting the U.S. Navy's Submarine Industrial Base initiatives.

Outbound Investments

• In October 2025, Graham Corporation acquired Xdot Bearing Technologies, aiming to expand its high-speed bearing technology capabilities.

Capital Expenditures

• Capital expenditures for the second quarter of fiscal 2025 (ending September 30, 2025) were $4.1 million, focusing on capacity expansion, increasing capabilities, and productivity improvements.
• For fiscal year 2026, projected capital expenditures are between $15.0 million and $18.0 million, targeting growth and productivity enhancements.
• These capital expenditure plans include investments in new CNC machining centers, a liquid nitrogen test stand at the Barber-Nichols facility in Colorado, and a cryogenic propellant testing facility in Florida.