What Happened?
Shares of industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) jumped 8.8% in the afternoon session after the company reported strong first-quarter 2025 (fiscal Q4) results, which blew past analysts' revenue, EPS, and EBITDA expectations.
The outperformance was driven by broad-based sales growth, particularly in the Defense segment, which jumped 28% due to new and existing programs advancing on schedule and at better pricing.
Looking ahead, the company's full-year adjusted EBITDA guidance for fiscal 2026 was comfortably ahead of Wall Street's targets. Momentum also appeared intact with a book-to-bill ratio above one and record backlog levels, which reflected sustained demand in core government and industrial markets. Zooming out, we think this was a solid print.
Is now the time to buy Graham Corporation? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Graham Corporation’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 7.3% after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Graham Corporation is up 3.8% since the beginning of the year, and at $45.82 per share, it is trading close to its 52-week high of $49.72 from February 2025. Investors who bought $1,000 worth of Graham Corporation’s shares 5 years ago would now be looking at an investment worth $3,247.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
