Quarterly report

Summary

• Net sales for the first quarter of fiscal 2027 were $71,342 thousand, up $15,855, or 29%, over the prior year first quarter, with the FlackTek acquisition adding $6,551 to revenue.
• Sales to the Space market increased $2,909, or 86%, to $6,287 thousand, and Defense sales rose $11,848, or 40%, to $41,383 thousand.
• Net income was $3,912 thousand ($0.33 per diluted share), down from $4,595 thousand ($0.42 per diluted share) in the prior year first quarter, as gross margin declined 150 basis points to 25.0%.
• Orders in the first quarter were $95,850 thousand, or 1.3x net sales, including $61,828 thousand of Defense orders for the U.S. Navy's Columbia and Virginia Class Submarine programs and the MK48 Mod 7 Heavyweight Torpedo, driving backlog to a record $557,217 thousand.
• On April 14, 2026, the company sold 600 thousand shares of common stock at $83.36 per share to accounts advised by T. Rowe Price for gross proceeds of $50,000 thousand, using $13,000 thousand to repay debt.
• The company reiterated full-year fiscal 2027 guidance of net sales of $285,000 to $295,000 thousand and adjusted EBITDA of $35,000 to $40,000 thousand.

Why it mattersGraham raised record backlog and grew Space and Defense revenue, with Space orders at 2.3x net Space sales and Defense orders tied to U.S. Navy submarine programs. The FlackTek acquisition and $50 million equity raise expand its advanced mixing product line and fund further growth.