- September 1, 2021
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BATAVIA, N.Y.–(BUSINESS WIRE)– Graham Corporation (NYSE: GHM), a global business that designs, manufactures and sells critical equipment for the defense/space, energy and chemical/petrochemical industries, today announced that it has been awarded over $20 million in orders to date in its second quarter of fiscal 2022, which ends September 30, 2021. The orders spanned the Company’s key defense/space, energy and chemical/petrochemical markets, as well as included advanced energy applications and HVAC.
Daniel J. Thoren, President and COO, commented, “We are seeing building demand for our technological expertise in specialty turbomachinery in the defense/space industry which we believe is key to our growth strategy. While several of the wins are for new product design and development, we also have received orders for replacement parts and overhauls demonstrating we are now supporting the full lifecycle of our products. We believe this is confirmation of our strategy to leverage our strong engineering expertise for critical applications and grow our market presence in industries with solid secular growth trends.”
He added, “It is encouraging to see order volume in our traditional refining and chemical/petrochemical markets improve even modestly after several quarters of weakness throughout last year. Meanwhile, we are playing an important part in our customer’s advanced energy technology development for hydrogen applications with our heat exchange and turbomachinery products.”
The defense industry awards were $2.6 million in orders for both replacement parts of existing programs and new product development for advancing programs serving unmanned undersea vehicles. The Company also received $5.2 million in awards to support submarine ejection systems.
Approximately 40% of the revenue related to the approximately $20 million in awards is expected to be recognized in fiscal 2022, which ends March 31, 2022. Approximately 50% of the revenue is expected to be recognized in fiscal 2023 with the remainder expected in fiscal 2024.
These orders support the Company’s revenue guidance for fiscal 2022, with revenue expected to be in the range of $130 million to $140 million. Approximately 45% to 50% of fiscal 2022 revenue is expected to be from the defense industry.
Mr. Thoren concluded, “While order flow for our business can be variable given the relative size of orders we receive, we are encouraged with the momentum that appears to be building and are excited about the pipeline of opportunities that we have to pursue.”
ABOUT GRAHAM CORPORATION
Graham is a global business that designs, manufactures and sells critical equipment for the defense/space, energy and advanced energy and chemical/petrochemical industries. The Graham and Barber-Nichols’ global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenics, and turbomachinery technologies, as well as the Company’s responsive and flexible service and unsurpassed quality.
Graham routinely posts news and other important information on its website, www.graham-mfg.com, where additional comprehensive information on Graham Corporation and its subsidiaries can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “confidence,” “projects,” “typically,” “outlook,” “anticipates,” “indicates”, “believes,” “appears,” “could,” “opportunities,” “seeking,” “plans,” “aim,” “pursuit,” “look towards” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, expected expansion and growth opportunities within its defense and energy markets, anticipated revenue, the timing of conversion of backlog to sales, order momentum and demand for our products, market presence, profit margins, tax rates, foreign sales operations, its ability to improve cost competitiveness and productivity, customer preferences, changes in market conditions in the industries in which it operates, the effect on its business of volatility in commodities prices, including, but not limited to changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, its acquisition and growth strategy are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors,” its quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210824005686/en/
Jeffrey F. Glajch
Vice President – Finance and CFO
Phone: (585) 343-2216
Deborah K. Pawlowski
Kei Advisors LLC
Phone: (716) 843-3908
Source: Graham Corporation
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