Graham Corporation: Good Near- And Long-Term Prospects And Reasonable Valuation
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Graham Corporation is focusing on high-growth defense and space segments, with recent revenue growth driven by the Barber Nichols acquisition and increased defense sales. The company has a robust backlog and benefits from US Navy spending. Gross margins have improved significantly, with further expansion expected.
January 13, 2025 | 1:00 pm
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Graham Corporation is experiencing strong growth in defense and space segments, supported by the Barber Nichols acquisition and US Navy spending. Improved gross margins and a robust backlog indicate positive future prospects.
Graham Corporation's focus on high-growth defense and space segments, along with the strategic acquisition of Barber Nichols, has driven recent revenue growth. The company's robust backlog and US Navy spending further support future growth. Improved gross margins from 7.4% in FY22 to 23.9% in 2QFY25, with expectations of further expansion, indicate strong operational performance. These factors suggest a positive short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100