Graham (GHM) Noble Capital Markets Emerging Growth Equity Conference presentation summary

Business overview and market positioning

• Supplies critical equipment for defense, space, energy, and process industries, with a focus on condensers, ejectors, heat exchangers, pumps, and regulators.

• Market capitalization of $470 million, with 77% institutional and 6% insider ownership.

• Operations span the U.S., India, and China, with 620 employees as of September 2024.

• Revenue mix has shifted toward defense (57%) and space (6%) as of Q2 FY25, up from 25% and 0% in FY21.

Financial performance and growth

• TTM Q2 FY25 revenue reached $196.4 million, doubling from FY21.

• Q2 FY25 sales rose 19% year-over-year, with strong growth in defense, chemical/petrochemical, and space segments.

• Gross profit margin expanded to 23.9% in Q2 FY25, up 790 bps year-over-year.

• Adjusted EBITDA margin reached 10.5% in Q2 FY25, with adjusted EBITDA up 150% year-over-year.

• Net income for Q2 FY25 was $3.3 million, up from $0.4 million in Q2 FY24; adjusted net income up 353%.

Strategic initiatives and investments

• Engaged in operational excellence, expanded R&D, and targeted ROIC above 20%.

• Raised FY25 guidance: revenue $200–210M, gross margin 23–24%, adjusted EBITDA $18–21M.

• No debt, strong free cash flow, and $43M available on revolving credit facility.

• CapEx focus on capacity expansion, productivity, and new facilities, with spend expected at 7–10% of sales.

• Acquired land for future growth and planning a cryogenic propellant testing facility in Florida.