NYSE$GHM

Graham Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Graham's Q4 2023 results reflected revenue growth, driven by aftermarket and space industry strength, but were impacted by reserves for bad debt and inventory.

Graham Corporation reported an 8% increase in fourth-quarter revenue, reaching $43.0 million, fueled by aftermarket and space industry growth. However, the company experienced a net loss of $481 thousand due to reserves for bad debt and inventory related to a large space customer. Full fiscal year revenue grew by 28% to a record $157.1 million.

  • Fourth-quarter revenue increased by 8% to $43.0 million.
  • Net loss for the fourth quarter was $481 thousand.
  • Orders for the fourth quarter totaled $50.8 million.
  • Aftermarket sales to refining and petrochemical markets increased 45% to $7.1 million.

Headline financials

Total Revenue

$43M

Previous: $39.7M+8.3%
EPS (adj)

-$0.05

Previous: -$0.02-150.0%
Adjusted Ebitda Margin

2.9%

No prior period
Orders

$50.8M

No prior period
Backlog

$302M

No prior period
Adjusted EBITDA

$1.2M

No prior period
Capital Expenditures

$1.36M

Previous: $415K+226.5%
Free Cash Flow

$3.61M

Previous: $11.9M-69.7%
Net Income

-$481K

Previous: -$1.4M+65.6%
Operating Income

-$352K

Previous: -$2.1M+83.2%
Gross Profit

$7.16M

Previous: $4.21M+70.0%
Cash & Equivalents

$18.3M

Previous: $14.7M+23.9%
Total Assets

$204M

Previous: $184M+11.0%
Stock-Based Comp

$224K

Previous: $210K+6.7%

Revenue & EPS history

Graham · Revenue · Quarterly

$43M

Q4 2023+8.3%vs Q4 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

Graham Corporation expects fiscal 2024 revenue to grow to approximately $165 million to $175 million, with adjusted EBITDA in the range of $10.5 million to $12.5 million.

Tailwinds

  • Revenue growth expected to approximately $165 million to $175 million.
  • Adjusted EBITDA expected in the range of $10.5 million to $12.5 million.
  • Focusing efforts to pursue clearly defined markets.
  • Driving operational excellence while investing in process optimization.
  • Building an elite team of people passionate about their work.

Headwinds

  • SG&A expense as a % of sales includes approximately $2 million to $3 million of BN performance bonus.
  • SG&A expense as a % of sales includes approximately $0.5 million to $1.0 million of enterprise resource planning system (“ERP”) conversion costs.
  • Adjusted EBITDA excludes approximately $2 million to $3 million of BN performance bonus.
  • Adjusted EBITDA excludes approximately $0.5 million to $1.0 million of ERP conversion costs.
  • Potential additional exposure related to the space customer depending on the outcome of their proceedings and asset sale.

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 2023

Historical avgQ4 2023

+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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