NYSE$GHM

Graham Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported an 11% increase in fourth quarter revenue and strategic diversification into the defense industry with the acquisition of Barber-Nichols Inc.

Graham Corporation reported an 11% increase in revenue for the fourth quarter of fiscal year 2021, driven by strong demand in the short cycle business and increased sales to the refining and defense industries. The company's strategic diversification into the defense industry was furthered by the acquisition of Barber-Nichols Inc.

  • Fourth quarter revenue increased by 11% year-over-year, driven by refining and defense industry sales.
  • Full year orders were $121.6 million, including $69.2 million from the defense industry.
  • Backlog at fiscal year-end was $137.6 million, with 76% for the defense industry.
  • Graham acquired Barber-Nichols Inc. for $70 million to diversify into the defense industry.

Headline financials

Total Revenue

$25.7M

Previous: $23.1M+11.2%
EPS (adj)

$0.04

Previous: $0.06-33.3%
Capital Expenditures

$696K

Previous: $1.03M-32.3%
Free Cash Flow

-$3.09M

Previous: $4.33M-171.3%
Net Income

$400K

Previous: $600K-33.3%
Operating Income

$600K

Previous: $300K+100.0%
Gross Profit

$5M

Previous: $4.44M+12.6%
Cash & Equivalents

$59.5M

Previous: $33M+80.6%
Total Assets

$144M

Previous: $148M-2.6%
Stock-Based Comp

$43K

Previous: $244K-82.4%

Revenue & EPS history

Graham · Revenue · Quarterly

$25.7M

Q4 2021+11.2%vs Q4 2020
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

Fiscal 2022 revenue is expected to be $130 million to $140 million, inclusive of BNI’s revenue for the ten-month period, which is expected to be $45 million to $48 million. Adjusted EBITDA for the combined businesses is expected to be approximately $7.0 million to $9.0 million.

Tailwinds

  • Strategic and financial benefits from BNI acquisition are compelling.
  • Sales to the defense industry will drive results.
  • Efforts to diversify revenue base are amplified.
  • Revenue in fiscal 2022 is expected to be $130 million to $140 million.
  • BNI's revenue for the ten-month period is expected to be $45 million to $48 million.

Headwinds

  • Outlook for fiscal 2022 includes ten months of BNI.
  • Purchase accounting needs completion for clarity on gross margin and SG&A expenses.
  • Adjusted EBITDA is a non-GAAP measure.
  • Reconciliation of forward-looking non-GAAP measures to GAAP measures is not available.
  • Unavailable information could significantly impact 2021 financial results.

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 Q4 2021

Historical avgQ4 2021

+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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