The following is a summary of the Graham Corporation (GHM) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Graham Corporation reported a record Q1 revenue of $50 million, a 5% increase year-over-year.

• Gross margin expanded to 24.8%, an increase of 170 basis points over the prior year's quarter, partially due to the BlueForge Alliance Grant.

• Net income for Q1 was $3 million, a 12% increase from $2.6 million in the same quarter last year, and adjusted net income was $3.6 million, up 20%.

Business Progress:

• Graham has broken ground on a new 29,000 square foot facility in Batavia, NY to enhance capacity, targeting the U.S. Navy's needs.

• Secured three significant project awards valued at over $65 million, strengthening its position in defense and space sectors.

• Continues to integrate and leverage the capabilities of P3 Technologies, enhancing engineering analysis and contributing to revenue.

• Expects capital expenditures to be between $10 million to $15 million for FY 2025, aimed at expansion and productivity improvements.

Opportunities:

• Expansion in defense sector projects and backlog, reducing economic sensitivity and promising stable future revenue streams.

• Participation in the development of a net-zero carbon emissions ethylene cracker project, aligning with emerging environmental sustainability trends.

Risks:

• Seasonal fluctuations affecting Q2 and Q3 performance due to holidays and labor vacations.

• Challenges in labor market conditions could potentially affect the company's growth and operational efficiency.

More details: Graham IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.