NYSE$GHM

Graham Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported first quarter fiscal 2022 results, which included one month of Barber-Nichols financials, and announced Daniel J. Thoren will be promoted to President and CEO.

Graham Corporation's first quarter fiscal 2022 sales increased by 21% to $20.2 million, driven by the acquisition of Barber-Nichols and higher sales to the refining industry. However, profits and margins were heavily impacted by a poor product mix.

  • Revenue increased by 21% to $20.2 million, driven by defense and refining industry sales.
  • Orders increased to $20.9 million, including $11.4 million from the refining industry.
  • Backlog at quarter-end was $235.9 million, with 80% for the defense industry; the space industry was added to backlog with the acquisition of Barber Nichols.
  • Profits and margins were heavily impacted by product mix.

Headline financials

Total Revenue

$20.2M

Previous: $16.7M+20.6%
EPS (adj)

-$0.28

Previous: -$0.18-55.6%
Orders

$20.9M

No prior period
Backlog

$236M

Previous: $107M+120.1%
Capital Expenditures

-$446K

Previous: -$338K-32.0%
Free Cash Flow

-$7.52M

Previous: -$4.71M-59.7%
Net Income

-$3.13M

Previous: -$1.82M-71.9%
Operating Income

-$4.14M

Previous: -$2.86M-44.7%
Gross Profit

$914K

Previous: $1.57M-41.7%
Cash & Equivalents

$19.1M

Previous: $41.1M-53.4%
Total Assets

$185M

Previous: $146M+26.9%
Stock-Based Comp

$353K

Previous: $164K+115.2%

Revenue & EPS history

Graham · Revenue · Quarterly

$20.2M

Q1 2022+20.6%vs Q1 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

The company expects that revenue and profits will ramp through the second half of the fiscal year and sees fiscal 2022 as a transition year as it relates to earnings, given the timing of conversion of first order projects for the U.S. Navy.

Tailwinds

  • Improvement in orders in the quarter, specifically from the refining market.
  • Quoting activity is picking up and customers are more optimistic.
  • Second quarter will benefit from having BN for a full three months.
  • Optimistic about the future and believes they have the right strategy, the best talent and the ideal technologies to capitalize on the growing requirements of our customers in the defense industry.
  • Encouraged with the improvements they are seeing in our core energy markets.

Headwinds

  • Based on the timing of customers’ projects, expect that revenue and profits will ramp through the second half of the fiscal year.
  • See fiscal 2022 as a transition year as it relates to earnings, given the timing of conversion of first order projects for the U.S. Navy.
  • Revenue in fiscal 2022 is expected to be $130 million to $140 million with 45% to 50% associated with the defense industry.
  • Revenue expectations are inclusive of BN’s 10-month revenue contribution for the fiscal year which is expected to be between $45 million to $48 million.
  • Adjusted EBITDA is expected to be approximately $7.0 million to $9.0 million in fiscal 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.1%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.7%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+22.9%

Q2 2025

Best reaction

-25.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-10.3%-2.7%
Q3 2026+12.9%+19.7%+10.7%
Q2 2026+0.5%-2.0%-6.8%
Q1 2026-18.3%-15.9%-14.4%
Q4 2025+6.3%+10.1%+25.7%
Q3 2025-17.4%-20.4%-31.9%
Q2 2025+22.9%+24.6%+29.6%
Q4 2024+12.6%+17.7%+7.7%
Q3 2024+11.7%+15.9%+20.8%
Q2 2024-4.4%+1.4%+6.2%
Q1 2024+15.7%+20.3%+17.3%
Q1 2025+15.7%+20.3%+17.3%
Q4 2023+11.1%+11.1%+11.3%
Q3 2023+11.6%+16.4%+32.7%
Q2 2023+18.1%+16.6%+13.5%
Q1 2023+12.3%+17.7%+44.7%
Q4 2022+16.4%+20.6%-9.0%
Q3 2022-25.5%-23.0%-34.1%
Q2 2022-3.2%-1.5%-1.8%
Q1 2022-4.8%-9.7%-9.3%
Q4 2021+2.3%-0.1%-6.7%
Q3 2021-5.3%-2.7%-1.5%
Q2 2021-0.3%+1.5%+21.6%
Q1 2021+6.1%+5.8%+8.6%
Q4 2020-10.1%-10.1%-13.7%
Q3 2020-7.8%-10.8%-17.2%
Q2 2020+10.4%-2.0%-7.0%
Q1 2020+1.2%+1.8%-11.7%
Q4 2019+0.0%+1.4%-0.9%
Q3 2019-1.5%-1.1%-0.8%
Q2 2019+1.0%+1.2%-10.4%
Q1 2019+3.5%+10.0%+9.4%
Q4 2018+1.2%-1.3%-1.5%
Q3 2018+5.9%+0.5%-6.9%
Q2 2018-10.4%-11.1%-10.0%
Q1 2018-3.1%-3.0%-0.9%
Q4 2017-0.7%-3.5%-6.1%
Q3 2017+3.4%-0.3%+3.5%
Q2 2017-0.1%-3.6%+24.4%
Q1 2017-4.3%-4.2%+3.0%
Q4 2016-4.8%-1.1%+1.2%
Q3 2016+0.2%
Q2 2016-3.4%
Q1 2016+8.8%
Q4 2015-5.9%
Q3 2015-8.9%
Q2 2015+0.1%
Q1 2015-3.4%
Q4 2014+6.5%
Q3 2014-4.6%
Q2 2014-2.8%
Q1 2014+5.2%
Q4 2013+13.6%
Q3 2013+1.8%
Q2 2013+0.9%
Q1 2013+1.2%
Q4 2010-0.6%
Q4 2012-6.5%
Q3 2011+0.5%
Q3 2012+0.5%
Q2 2012+6.3%
Q4 2011-17.6%
Q2 2011-17.6%
Q1 2011-17.6%
Q1 2012-17.6%

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