Graham Raises FY2026 Sales Guidance from $225M-$233M to $233M-$239M Vs. $235.68M Est.
Fiscal 2026 Outlook
Based upon the results for the first nine months of fiscal 2026, our expectations for the remainder of the fiscal year, and inclusive of the acquisition of FlackTek and Xdot, Graham is updating its full year fiscal 2026 guidance as follows:
| (as of February 6, 2026) | Fiscal 2026 Guidance (New) | Fiscal 2026 Guidance (Old) |
| Net Sales | $233 million to $239 million | $225 million to $235 million |
| Gross Margin(1) | 24.0% to 25.0% of sales | 24.5% to 25.5% of sales |
| SG&A expense (including amortization)(2) | 17.5% to 18.5% of sales | 17.5% to 18.5% of sales |
| Adjusted EBITDA(1)(3) | $24 million to $28 million | $22 million to $28 million |
| Effective Tax Rate | 16% to 18% | 20% to 22% |
| Capital Expenditures | $15.0 million to $18.0 million | $15.0 million to $18.0 million |
| (1) | Includes the estimated impact of increased tariffs over the prior year of approximately $1.0 million to $1.5 million. |
| (2) | Includes approximately $7.0 million to $8.0 million of Barber-Nichols supplemental performance bonus, equity-based compensation, acquisition & integration, and enterprise resource planning ("ERP") conversion costs included in SG&A expense. |
| (3) | Excludes net interest expense (income), income taxes, depreciation, and amortization from net income, as well as approximately $3.0 million to $4.0 million of equity-based compensation, net acquisition & integration, and ERP conversion costs included in SG&A expense, net. |
Graham's Chief Financial Officer, Christopher J. Thome, said, "We are pleased with our performance through the first nine months of fiscal 2026 and continue to see strong demand across most of the markets we serve. Reflecting this momentum, including the contribution from the FlackTek acquisition, we are increasing our full-year fiscal 2026 guidance.
Mr. Thome continued, "After the acquisition of FlackTek, our balance sheet remains strong with low leverage, a modest amount of debt of $20 million, and increased capacity under our line of credit. We believe this increased capacity, along with our strong operating cash flow, provides us ample liquidity to continue to execute our capital allocation strategy and future growth."