Graham awarded $20 million in orders in second quarter

Batavia’s Graham Corp. has been awarded more than $20 million in orders during its fiscal 2022 second quarter, the manufacturer said this week.

The orders spanned the company’s key defense/space, energy and chemical/petrochemical markets, as well as included advanced energy applications and HVAC.

“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,” said Daniel Thoren, President and COO. “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.”

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. Graham also received $5.2 million in awards to support submarine ejection systems.

Roughly 40 percent of the revenue related to the $20 million in awards is expected to be recognized in fiscal 2022, which ends March 31, 2022. Roughly half of the revenue is expected to be recognized in fiscal 2023 with the remainder expected in fiscal 2024.

“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,” Thoren said. “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 orders support the company’s revenue guidance for fiscal 2022, with revenue expected to be in the range of $130 million to $140 million. Roughly 45 to 50 percent of fiscal 2022 revenue is expected to be from the defense industry.

“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,” Thoren said.

Shares of company stock (NYSE: GHM) have been on the upswing this week, closing Wednesday at $12.25.

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