graham corporation

Press Release:

Graham Corporation ("Graham” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, announced today that it has acquired P3 Technologies, LLC (“P3”), a custom turbomachinery engineering, product development and manufacturing business for the space, new energy and medical markets.

Based in Jupiter, Florida, P3 has established a strong reputation in the development of state-of-the-art rotating machinery including pumps, compressors, and turbines and are specialists in high-speed rotors and cryogenic pumps. With an experienced team of highly skilled gas-turbine engineers, P3’s development process results in innovative solutions to complex technical challenges.

Daniel J. Thoren, President and CEO, commented, “This is an excellent demonstration of the acquisition element of our growth strategy. P3 is an ideal bolt on business and brings highly complementary technology that enhances and expands our turbomachinery solutions. Our Barber Nichols’ team will provide the experience and know-how for addressing the anticipated rapid growth to support P3’s growing backlog and its funnel of opportunities. Importantly, P3 also is bringing unique intellectual property that we believe we can leverage to expand the market potential of the business. We are excited about our future opportunities and welcome P3 to the Graham team.”

High Value Add Technology

P3 has a strong intellectual property portfolio including the patented Multi-Channel Diffuser (“MCD”) and Self-Contained Actuating Magnetic Pump (“SCAMP”). These products provide a product family platform that can be leveraged across many applications and industries.

The MCD is revolutionary diffuser technology that improves the efficiency of pumps and compressors by increasing pressure recovery up to 20% and measurably increasing operating range. The MCD can be used in new designs or retrofit applications and can work with any pump or compressor that utilizes a centrifugal impeller.

SCAMP is a family of positive displacement pumps for low flow, high pressure cryogenic applications compatible with oxygen, hydrogen, methane and nitrogen.

P3 also has developed a family of turbopumps ranging in thrust from 5 thousand to 200 thousand pounds. The turbopumps are designed using state-of-the-art flow path design enabled by additive manufacturing to provide higher performance at competitive prices.

In addition, P3 has created robust turbomachinery development tools which enable efficient design iteration cycles reducing lead times to product launches for customers.

Solid Financial Performance; Transaction Terms 

P3’s annual revenue is expected to be approximately $6.0 million in fiscal 2023 with gross and adjusted EBITDA margins that are consistent with Graham’s fiscal 2027 goal of low- to mid-teen adjusted EBITDA margins. Backlog at October 31, 2023 was approximately $8 million. We believe P3 has a pipeline with significant upside potential.

A stock and cash transaction, P3 was acquired from its sole owner who, along with P3’s leadership team, will remain with the Company. The acquisition price has not been disclosed at this time. However, the stock element of the purchase price is valued at $2 million and the number of shares of Company’s common stock issued as part thereof was determined using a stock price of $15.92, which represents the average closing price for the Company’s common stock for the 10 trading days ending on November 3, 2023.

Accompanying Slides

Graham has posted slides that accompany this release on its investor relations website.

Press Release:

Graham Corporation (NYSE: GHM ) (“Graham” or the “Company”), is a global leader in the design and manufacture of mission-critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, announced a record level of monthly orders in October 2023. 

The Company received approximately $110 million in total orders in October 2023, primarily related to follow-on orders for critical U.S. Navy programs. These defense orders are expected to be recognized in revenue beginning in the fourth quarter of fiscal 2025 through early fiscal 2030. 

Daniel J. Thoren, President and CEO, commented, “We are proud to be a strategic supplier for the U.S. Navy providing highly valued vacuum, heat transfer, turbomachinery, and other critical equipment to support the U.S. Navy’s Naval Nuclear Propulsion Program. The follow-on orders received this month continue to validate our key role in the Columbia Class submarine and Ford Class carrier programs. These programs are essential for the future safety and security of our country and the team at Graham recognizes the vital role our equipment plays and the necessity to deliver essential components to our customers.”

Press release:

Graham Corporation (NYSE: GHM) ("GHM" or the "Company"), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, today announced that it shipped the last of the first article units related to the Columbia Class submarine and Ford Class carrier programs. While the Company expects to continue to have first article programs in its backlog as it wins new programs and applications, the amount as a percentage of total backlog should be reduced moving forward.

Daniel J. Thoren, President and CEO commented, "Completing the first article U.S. Navy projects and delivering the final units this month on schedule was a great testament to the team we built at our Batavia facility. Without their dedication and commitment to our customers, we would not have been able to achieve this milestone. I would like to thank each and every one of them for their hard work. We built this team by committing to training welders in house, partnering with academic resources, and improving our operating processes in support of our strategic U.S. Navy programs. These investments in our people and operations have paid off given our recently announced strategic investment from a major defense customer to expand our capacity for future projects and we believe demonstrates our customers confidence in GHM as being a critical supplier to the U.S. Naval Nuclear Propulsion Program."

During fiscal 2022, the Company chose to make significant investments to ensure it could deliver these and previous units on schedule and were the main source of the losses incurred that year.

On Monday morning, Graham Corp. President and CEO Dan Thoren, accompanied by executive team members, rang the opening bell on the New York Stock Exchange to commemorate the company's 55th anniversary as a publicly traded company.

In a statement, Thoren said, “We are proud to commemorate fifty-five years as a public company by participating in the opening bell ceremony at the New York Stock Exchange.  This is a tribute to every associate at Graham who worked hard this past year to bring us to record sales and orders.  Their dedication to Graham and their deep engagement with their work for our valued customers and the security of our nation makes me excited for our future.”

Graham Corporation (NYSE: GHM), a Batavia-based global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical and defense industries, on Thursday announced that it secured $11 million in orders for three oil-refining projects in Asia.

Two projects are in Southeast Asia while the largest project is the first large order received in India by the Company and is with a new customer.

James R. Lines, Graham’s president and chief executive officer, said, “We believe our effective execution on strategy and our consultative selling platform enabled us to capture these awards during a period of intense competition and focus on price.

"We believe that our decision to localize in India provided us the opportunity to successfully compete on that project and is also keeping the bid pipeline in that country quite active. We continued to leverage our global fabrication supply chain where appropriate in order to compete effectively, and we stayed engaged throughout the nearly two year pipeline cycle with both buyers and end users to ensure we addressed their requirements.”

Press release:

The Genesee County Economic Development Center (GCEDC) will consider accepting applications for incentives from Graham Manufacturing and Gateway GS, LLC at the agency’s Feb. 7 board meeting. 

Graham Manufacturing is seeking incentives for a $1.075 million capital investment for various properties at its campus in the City of Batavia. The investment would renovate 8,000 square feet of existing space for expanded workforce training and add 5,000 square feet of new space for the construction of a warehouse. The project would help retain 291 jobs.

Gateway GS, LLC is proposing to invest $450,000 to build out the interior of a spec building the company constructed in 2018 at the Gateway II Corporate Park in Batavia. The project would create five new jobs.

Since each project would receive benefits of more than $100,000 public hearings would be scheduled if the applications for incentives are accepted by the GCEDC Board.

All GCEDC Board meetings are open to the public. Meetings are at 4 p.m. unless noted otherwise and take place at 99 MedTech Drive in Batavia across from Genesee Community College.

Press release:

Graham Corporation (NYSE: GHM), a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defense industries, today announced that it has established Graham India Private Limited (“GIPL”) as a wholly owned subsidiary. GIPL, based in the northwest region of India, in Ahmedabad, has been initiated as a sales and market development office with an Indian national as sales director and business development leader.

Graham’s establishment of this new entity was driven by several strategic and macroeconomic factors. Asia is a key region for investment in new crude oil refining and petrochemical capacity, with India being an important market for such investments. The Company anticipates that stronger and more consistent consultative customer support will lead to expanded bidding participation in the region. Further, having a local presence is expected to enhance Graham’s development of India fabrication partners who can assist the Company in addressing government policy and preference for fabrication in India. Finally, Graham believes that having a local entity demonstrates its enduring commitment to the Indian refining, petrochemical and fertilizer markets.

James R. Lines, Graham’s president and chief executive officer, commented, “India continues to experience strong economic growth, projecting ongoing GDP growth surpassing 6 percent annually. We expect this growth will drive capital investment in new refining, petrochemical and fertilizer capacity, all of which are important end markets for Graham. Over time, we plan to build out GIPL’s organization structure with additional sales and engineering support staff, along with fabrication and quality control specialists. We believe that our local presence will increase bidding participation and, ultimately, increase market share within our targeted end markets.”

Graham Corporation employees took on a special cause this past week -- donating backpacks and other school supplies to be distributed to local schoolchildren through the Salvation Army.

Student Transportation of America agreed to park a school bus on the Graham property so the 250 local employees could have a convenient place to drop off their donations.

Julie Roloson, human resources director, said the Graham community wanted to take on a new challenge to support the local community.

"Graham takes great pride in how many events and donations we can make locally and this happened to be one that we tried for the first time and we hope it will be very successful year after year," Roloson said. "We’re extremely proud to participate."

Lower oil prices could hurt Batavia-based Graham Corp. in the coming fiscal year, company officials say, so they're looking to trim the company workforce by 10 percent through a retirement incentive program.

The workforce reduction announcement was coupled with news that the publicly traded company posted $4.2 million in profits, up 80 percent from a year ago.

For the fiscal year, company revenue was up 45 percent to $14.7 million.

For more on this story, visit the Buffalo News.

Batavia-based Graham Corporation is bouncing back from the economic downturn, CEO James R. Lines told the Buffalo News.

The company has recently booked $37 million in orders and that revenue should start hitting the books by the fall.

“We believe that sales over the next few quarters will continue to reflect the sporadic nature of order receipt that began over a year ago,” Lines said. “We also believe this should be the bottom of the cycle for us.”

Graham still expects its sales during the fiscal year that ends in March to be between $60 million and $65 million, down from its record sales of $101 million the year before.