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Graham (GHM) is like:

• A very specialized division of General Electric (GE), focusing entirely on the vacuum and heat transfer systems essential for industrial plants and power generation.
• An industrial-grade Trane Technologies, but providing critical heat transfer and vacuum equipment specifically for chemical, refining, and power generation facilities.

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• Heat Transfer Equipment: This includes surface condensers, heliflows, water heaters, various types of heat exchangers, and custom-engineered ejectors for industrial applications.
• Vacuum Equipment: Graham offers steam jet ejector vacuum systems and liquid ring vacuum pumps designed for creating and maintaining vacuum.
• Turbomachinery Products: Specialized rotating machinery is provided for the aerospace, cryogenic, defense, and energy markets.
• Aftermarket Services and Spare Parts: The company services its manufactured equipment and sells replacement parts.

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Graham Corporation (GHM) primarily sells its products and services to other companies (B2B).

Graham Corporation does not publicly disclose the names of its specific major customers, which is common for companies operating in the industrial supply sector. Public filings indicate that no single customer accounted for 10% or more of net sales in recent fiscal years, meaning there isn't a single dominant customer to be named.

Based on the company's descriptions, its major customers are companies operating within the following industries:

• Chemical Industry
• Petrochemical Industry
• Petroleum Refining Industry
• Power Generation / Alternative Energy Industry
• Defense Industry
• Aerospace Industry
• Cryogenic Industry
• Other industrial sectors requiring vacuum and heat transfer equipment and turbomachinery products.

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Matthew J. Malone, President and Chief Executive Officer

Matthew J. Malone became President and Chief Executive Officer of Graham Corporation in June 2025. He joined Barber-Nichols, a Graham subsidiary, in 2015 as a Project Engineer focusing on rocket engine turbopump design and development. He was promoted to Navy Program Manager in 2018 and became Vice President of Operations for Barber-Nichols in 2020. Mr. Malone began his career at GE Transportation, holding various engineering and management positions.

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

Christopher J. Thome was appointed Vice President - Finance and Chief Financial Officer of Graham Corporation in April 2022. Prior to joining Graham, Mr. Thome served as Corporate Controller for Allied Motion Technologies Inc. (Nasdaq: AMOT). He brings nearly 30 years of experience in finance and accounting leadership, audit, public company financial reporting, treasury, operational accounting, and shared services implementation. From 2006 to 2020, he held progressively advancing roles at Integer Holdings (NYSE: ITGR), including Senior Director – Treasurer and Senior Director – Financial Reporting, Treasury Operations and Shared Services. Mr. Thome also served as Vice President – Reporting and Investor Relations Manager with First Niagara Financial Group and began his career as a Senior Accountant with PricewaterhouseCoopers LLP.

Mike Dixon, Vice President 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 role, he served as Director of Sales and Marketing at Graham since August 2021, where he played a key role in expanding technical capabilities and securing major contracts in the space, aerospace, and defense sectors. His career also includes roles of increasing responsibility at Sundyne, and he began his career at ESS Metron.

Matthew Gross, Vice President and General Manager, FlackTek™

Matthew Gross joined Graham Corporation’s leadership team as Vice President and General Manager, where he leads the FlackTek™ business. He is the former CEO and Co-Founder of FlackTek™, an entrepreneur and materials engineer with over a decade of technical and executive leadership experience, and a track record of translating engineering innovation into scalable commercial success. Prior to co-founding FlackTek™, Mr. Gross served as a Materials Engineer at Ball Aerospace.

William Zmyndak, Deputy General Manager of Graham Manufacturing (to be Vice President and General Manager)

William Zmyndak was appointed Deputy General Manager of Graham Manufacturing in February 2026 and is expected to assume the role of Vice President and General Manager of Graham Manufacturing in April 2026, succeeding Alan Smith. Mr. Zmyndak brings more than three decades of manufacturing and operational leadership experience, including senior leadership and P&L responsibility across complex, multi-site aerospace and industrial businesses. Before joining Graham, he served as Vice President and General Manager at ITT Control Technologies. Earlier in his career, he held senior leadership roles at Kaman Aerosystems, Chromalloy, Barnes Aerospace, and Pratt & Whitney.

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The key risks to Graham Corporation's business are:

1. Customer Concentration in the Defense Industry: Graham Corporation faces significant customer concentration risk due to its increasing reliance on the defense industry, particularly the U.S. Navy. Sales to the defense sector accounted for approximately 58% of total sales in fiscal 2025 and 54% in fiscal 2024. Furthermore, roughly 85% of the company's record backlog, which was $515.6 million as of February 2026 and $500.1 million as of the end of the third quarter of calendar year 2025 (Q2 Fiscal Year 2026), is tied to defense programs, primarily the U.S. Navy. This concentration exposes Graham to potential disruptions, short or long term, in funding for these projects or shifts in U.S. Navy priorities and budgets.

2. Cyclicality and Market Uncertainty in the Energy & Process Segment: Graham's energy business is highly cyclical, depending heavily on customers' willingness to invest in major capital projects. The Energy & Process segment is currently experiencing a mixed demand environment, characterized by slowing large capital expenditure decisions due to factors such as lower oil prices, tariffs, and broader macroeconomic uncertainty. While the company has diversified into defense to mitigate this, sales to the more cyclical refining industry still represented approximately 16% of revenue in fiscal 2024.

3. Project Delays and Conversion Risk of Backlog: Although Graham boasts a record backlog, a significant portion of this future revenue is subject to macro-level delays and the inherent complexities of large, custom projects. Delays in defense projects can impact revenue recognition, and any shifts in defense budgets or program timing could affect the conversion of this substantial backlog to actual revenue. Additionally, "lumpy material receipts and order timing" can introduce quarter-to-quarter volatility in margins and reported results, requiring efficient execution to convert the backlog into timely revenue without margin erosion.

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Graham Corporation (GHM) operates within several significant addressable markets for its vacuum and heat transfer equipment, and turbomachinery products globally.

Vacuum and Heat Transfer Equipment

• Heat Exchangers: The global heat exchangers market was valued at approximately USD 19.25 billion in 2024 and is projected to grow to about USD 36.60 billion by 2034. Other estimates place the global market size at USD 19.7 billion in 2023, projected to reach USD 33.2 billion by 2033, or USD 20.01 billion in 2025, growing to USD 33.60 billion by 2034. The market is driven by extensive usage in chemical plants, petrochemical plants, power stations, and petroleum refineries.
• Industrial Vacuum Pumps: The global industrial vacuum pump market size was estimated at USD 5.93 billion in 2025 and is expected to reach USD 8.04 billion by 2030. Another report estimated the global vacuum pumps market size at USD 6.87 billion in 2025, with a projection to increase to approximately USD 12.01 billion by 2035. The demand is fueled by semiconductor manufacturing, chemical processing, and energy industries.

Turbomachinery Products

• Overall Turbomachinery Market: The global turbomachinery market was valued at approximately USD 13.8 billion in 2024 and is expected to reach USD 21.4 billion by 2031. Another assessment indicates the market was valued at USD 27.91 billion in 2024 and is expected to reach USD 32.37 billion by 2032. This market is driven by demand from industries such as oil & gas, power generation, and aerospace.
• Aerospace Turbomachinery (Aircraft Turbine Engines): The global aircraft turbine engine market size was approximately USD 82.64 billion in 2024 and is predicted to grow to around USD 182.49 billion by 2034. The aviation gas turbine market specifically was valued at USD 12.14 billion in 2025 and is expected to grow to USD 16.21 billion by 2030.
• Cryogenic Equipment: The global cryogenic equipment market, which is relevant for turbomachinery in cryogenic applications, was estimated at USD 21.4 billion in 2025 and is expected to grow to USD 37 billion by 2035. Other estimates include a market size of USD 22.73 billion in 2024, expected to reach USD 34.40 billion by 2033, or USD 26.57 billion in 2025, expected to reach USD 45.39 billion by 2033.
• Defense Industry Equipment: The broader global defense equipment market, which Graham serves with certain products, was valued at USD 539.96 billion in 2024 and is projected to reach USD 795.54 billion by 2033. Specific segments include the air-based defense equipment market, which was USD 174.46 billion in 2025, and the military and defense ground support equipment market, valued at USD 829.4 million in 2025.

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

1. Strong Demand and Conversion of Record Backlog in the Defense Sector: Graham's defense segment is a primary revenue source, particularly with critical U.S. Navy programs, including the Virginia- and Columbia-class nuclear submarine programs. The company has a record backlog, with a significant portion expected to convert to revenue within the next 12-24 months, providing strong revenue visibility and growth.
2. Growth in Space and New Energy Markets: The company is experiencing strong demand in the space market, which is considered a high-growth area. Additionally, the energy and process market is showing momentum, especially in new energy applications like small modular reactors (SMRs).
3. Strategic Acquisitions and Investments: Recent strategic acquisitions, such as FlackTek and Xdot Bearing Technologies, are expected to enhance Graham's competitive positioning, expand its technology platforms, and contribute to overall revenue growth. The company is also making strategic investments in organic growth opportunities, including modernizing designs, expanding offerings, and improving facilities and automated technologies.
4. Organic Growth Initiatives and Operational Execution: Graham is focused on organic revenue growth, targeting 8% to 10% annually, supported by new programs, better pricing strategies, and continuous improvements in operational efficiency. These initiatives are aimed at expanding core technology platforms and leveraging new capabilities to enhance market reach and profitability.

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Capital Allocation Decisions of Graham Corporation (GHM) over the Last 3-5 Years

Share Repurchases

• Graham Corporation made share repurchases totaling approximately $834.88 thousand in fiscal year 2025 (ended March 31, 2025).
• Share repurchases for fiscal year 2024 (ended March 31, 2024) were approximately $59.26 thousand.
• In fiscal year 2023 (ended March 31, 2023) and fiscal year 2022 (ended March 31, 2022), the company repurchased approximately $23.76 thousand and $43.87 thousand of its shares, respectively.

Share Issuance

• In January 2026, Graham Corporation issued 75,818 shares of its common stock as part of the consideration for the acquisition of FlackTek Manufacturing and FlackTek Sales.
• As of November 6, 2025, Graham Corporation had 10,987,954 shares of common stock outstanding.

Inbound Investments

• In fiscal year 2024, Graham Corporation received a $13.5 million strategic investment from a major defense customer to expand its Batavia, New York production capabilities, primarily for machinery and equipment, supporting the U.S. Navy's shipbuilding schedule.
• Fiscal year 2025 benefited from a $1.3 million grant received from the BlueForge Alliance to reimburse the company for costs associated with its Defense welder training programs in Batavia and related equipment.

Outbound Investments

• In January 2026, Graham Corporation acquired FlackTek Manufacturing and FlackTek Sales for a purchase price of $35 million. This was paid 85% in cash and 15% through the issuance of 75,818 shares of Graham common stock, with a potential for up to $25 million in performance-based cash earnouts over four years starting in fiscal year 2027.
• In November 2023 (fiscal year 2024), the company invested $6.8 million in the acquisition of P3 Technologies.
• Graham Corporation acquired Barber-Nichols, LLC in June 2021 (fiscal year 2022).

Capital Expenditures

• For the third quarter of fiscal year 2026 (ended December 31, 2025), capital expenditures were $2.2 million, primarily focused on capacity expansion, increasing capabilities, and productivity improvements.
• Capital expenditures for fiscal year 2025 (ended March 31, 2025) totaled $19.0 million, dedicated to capacity expansion, increasing capabilities, and productivity improvements, including projects such as automated welding, the expansion of its Batavia, NY facility, and a new cryogenic testing facility.
• In fiscal year 2024 (ended March 31, 2024), capital expenditures were $9.2 million, concentrated on capacity expansion, productivity improvements, and the initiation of ERP system implementation. Expected capital expenditures for the full fiscal year 2026 are projected to be between $15.0 million and $18.0 million, with an estimated 7% to 10% of sales allocated to capital expenditures annually for the next several years.