Graham Corporation breaks ground on new Batavia facility

BATAVIA, N.Y. - Graham Corporation (NYSE: GHM), known for its specialized equipment for the defense and energy sectors, commenced the construction of a new manufacturing facility today in Batavia, NY. This development is part of the company's expansion strategy and is projected to add 24 full-time jobs once it becomes operational in the summer of 2025.

The 29,000-square-foot building represents a $17.6 million investment, with $13.5 million funded by a customer of Graham's and the remainder by the company itself. The facility is designed with advanced technology and sustainability in mind, reflecting Graham's environmental commitments.

Dan Thoren, President and CEO of Graham Corporation, stated that the new facility would enhance operational capabilities and meet increasing customer demands, notably from the U.S. Navy. The expansion is also anticipated to have a positive impact on the local community by creating new skilled positions.

U.S. Senator Charles Schumer and U.S. Representative Claudia Tenney expressed support for the project, highlighting its significance for national defense and the local economy. Schumer emphasized the role of Graham's workforce in the U.S. Navy's supply chain, while Tenney acknowledged the company's contribution to job creation and technological innovation.

Graham Corporation is collaborating with Ciurzynski Consulting, Montante Construction, and Wolfe Architecture for the design and construction of the new facility. The company has a history of producing fluid, power, heat transfer, and vacuum technologies for various industries, including defense and energy.

The information provided in this article is based on a press release statement from Graham Corporation. The forward-looking statements included in the press release are subject to risks, uncertainties, and assumptions, and actual results may differ materially from those anticipated.

In other recent news, Graham Corporation has reported a robust start to fiscal year 2025, with record sales of $50 million in the first quarter, a gross margin of 24.8%, and a net income of $3 million. The company's total backlog has reached nearly $400 million, and construction on a new facility in Batavia, New York is set to commence. Additionally, the acquisition of P3 Technologies is proceeding smoothly, contributing to three new project awards worth over $65 million.

Graham Corporation also secured a $2.1 million grant from the BlueForge Alliance to enhance its defense welder training programs and is actively engaged in the development of a net-zero carbon emissions ethylene site in North America. The company's backlog has increased by 23% year-over-year, with a significant rise in defense and chemical/petrochemical sectors.

The company anticipates fiscal year 2025 revenues to be in the range of $200 million to $210 million, with a gross margin of 22% to 23% and an adjusted EBITDA forecast of $16.5 million to $19.5 million. Graham Corporation is focused on developing full lifecycle product opportunities, expanding its defense aftermarket business, and investing in research and development for energy-efficient solutions. These are the recent developments in the company.

InvestingPro Insights

As Graham Corporation (NYSE: GHM) embarks on its latest expansion with the construction of a new manufacturing facility in Batavia, NY, investors and stakeholders may be keen to understand the company's financial health and market performance. The InvestingPro platform provides a detailed analysis of Graham Corporation's financial metrics and market data, offering insights that can help assess the company's investment potential.

One of the notable InvestingPro Tips for Graham Corporation is its ability to hold more cash than debt on its balance sheet, which suggests a strong financial position and may provide the company with flexibility to fund its growth initiatives, such as the new manufacturing facility. Additionally, analysts predict that the company will be profitable this year, which aligns with the positive outlook presented by the company's leadership regarding the expansion's impact on operational capabilities and customer demand.

InvestingPro Data highlights Graham Corporation's market capitalization at $319.44 million, which provides a sense of the company's size in the market. The P/E Ratio, a measure of a company's current share price relative to its per-share earnings, stands at 64.91, indicating investor expectations of future earnings growth. This is reinforced by the PEG Ratio of 0.64, which suggests that the stock may be undervalued relative to its earnings growth potential.

For those interested in further insights, the InvestingPro platform lists additional tips for Graham Corporation, which can be accessed at https://www.investing.com/pro/GHM. These tips and real-time metrics can offer valuable information to investors considering Graham Corporation as part of their investment portfolio.

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