Graham Corp. (NYSE:GHM) shares rose Friday after the manufacturer of mission-critical fluid and power systems posted fiscal third-quarter results that handily beat Wall Street estimates, bolstered by a record-breaking backlog and strong defense sector momentum.
The Batavia, New York-based company reported adjusted earnings of $0.31 per share for the quarter ended Dec. 31, 2025, significantly outperforming the $0.17 consensus forecast.
Revenue grew 21% year-over-year to $56.7 million, driven primarily by project milestones in its defense business and steady aftermarket sales in the energy and process markets.
The company's operational health was highlighted by a record backlog of $515.6 million, a 34% increase from the prior year.
This surge in future work was supported by $71.7 million in new orders during the quarter, resulting in a book-to-bill ratio of 1.3x.
Bolstered by the quarterly beat and the recent acquisition of FlackTek—a specialist in advanced mixing technology—Graham Corp. raised its full-year fiscal 2026 revenue guidance.
The company now expects sales between $233 million and $239 million, up from its previous range of $225 million to $235 million.