Graham Corp Q4 Records Revenue Growth, Gross Margin Falls to 22.7%
GHM•Graham Corp achieved record Q4 2026 revenue led by defense and space markets as orders exceeded $70 million for five straight quarters. Gross margin declined to 22.7% from 27% year-over-year, and integration of FlacTech remains ongoing with milestones pending.
1. Q4 2026 Financial Results
Graham Corp reported record Q4 2026 revenue driven by sustained defense and space orders topping $70 million for a fifth consecutive quarter. Despite the revenue surge, gross margin fell to 22.7% from 27% in the prior year due to a larger mix of lower-margin defense contracts.
2. Acquisition Integration Status
Integration of FlacTech is progressing with key milestones still to be completed, which may delay additional acquisition activity. The prior integration of XDOT has been finalized, and both acquisitions are expected to drive future growth and shareholder value.
3. Market Trends and Order Flows
Demand in the space sector expanded significantly, supported by enhanced testing and manufacturing capabilities, boosting backlog levels. Conversely, the energy and process markets remain soft with uncertainty in large capital projects, prompting Graham to balance its revenue mix between defense, space, and energy segments.
