Graham beats Q2 adjusted EBITDA estimates, helped by FlackTek acquisition
GHM•Graham’s second-quarter adjusted EBITDA rose 64% to $10.30 million, beating the $8.56 million estimate, while sales rose 6% to $69.76 million and missed expectations. The company reaffirmed fiscal 2027 sales and adjusted EBITDA guidance and raised its gross margin outlook to 25.0%-26.0%.
1. Quarterly results
Graham reported second-quarter sales of $69.76 million, up 6% year over year but below the $71.07 million estimate. Adjusted EBITDA rose 64% to $10.30 million, above the $8.56 million estimate. Adjusted EPS was $0.52 and net income was $4.64 million.
2. Growth and outlook
The company said Defense and Space growth, operational improvements and its FlackTek acquisition drove results. FlackTek contributed $9.5 million in second-quarter revenue. Graham reaffirmed fiscal 2027 net sales guidance of $285 million to $295 million and adjusted EBITDA guidance of $35 million to $40 million, while raising its gross margin outlook to 25.0%-26.0% from 24.5%-25.5%.
