Revenue growth reached 13.0% in 2025Q4, yet operating margins compressed significantly to 2.6% from a 9.3% peak in 2024Q4, indicating challenges in scaling administrative and engineering overhead.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Dec'96 |
|---|
| Sales/Revenue | 245.29M | 209.9M | 185.53M | 157.12M | 122.81M | 97.49M | 90.6M | 91.83M | 77.53M | 91.77M | 90.04M | 135.17M | 102.22M | 104.97M | 103.19M | 74.23M | 62.19M | 101.11M | 86.43M | 65.82M | 55.21M | 41.33M | 43.32M | 49.38M | 47.4M | 44.43M | 38.73M | 53M | 56.2M | 51.4M |
| Revenue Growth % | 16.86% | 13.13% | 18.09% | 27.93% | 25.98% | 7.6% | -1.34% | 18.44% | -15.51% | 1.92% | -33.39% | 32.24% | -2.62% | 1.73% | 39% | 19.37% | -38.49% | 16.99% | 31.31% | 19.23% | 33.57% | -4.59% | -12.27% | 4.18% | 6.67% | 14.73% | -26.93% | -5.69% | 9.34% | 3.84% |
| Cost of Goods Sold | 187.54M | 157.03M | 144.95M | 131.71M | 113.69M | 77.02M | 72.46M | 69.92M | 60.2M | 69.61M | 66.78M | 93.36M | 70.41M | 73.15M | 70.55M | 52.38M | 39.96M | 59.4M | 52.27M | 49M | 39.25M | 33.79M | 35.77M | 40.03M | 37.32M | 34.64M | 27.71M | 37.1M | 37.1M | 35.1M |
| COGS % of Revenue | 76.46% | 74.82% | 78.13% | 83.83% | 92.57% | 79% | 79.97% | 76.14% | 77.65% | 75.85% | 74.17% | 69.07% | 68.88% | 69.69% | 68.37% | 70.57% | 64.25% | 58.75% | 60.47% | 74.45% | 71.09% | 81.76% | 82.57% | 81.06% | 78.74% | 77.95% | 71.56% | 70% | 66.01% | 68.29% |
| Gross Profit | 57.75M | 52.86M | 40.59M | 25.41M | 9.13M | 20.47M | 18.15M | 21.91M | 17.33M | 22.16M | 23.25M | 41.8M | 31.81M | 31.82M | 32.63M | 21.85M | 22.23M | 41.71M | 34.16M | 16.82M | 15.96M | 7.54M | 7.55M | 9.35M | 10.08M | 9.8M | 11.01M | 15.9M | 19.1M | 16.3M |
| Gross Margin % | 23.54% | 25.18% | 21.87% | 16.17% | 7.43% | 21% | 20.03% | 23.86% | 22.35% | 24.15% | 25.83% | 30.93% | 31.12% | 30.31% | 31.63% | 29.43% | 35.75% | 41.25% | 39.53% | 25.55% | 28.91% | 18.24% | 17.43% | 18.94% | 21.26% | 22.05% | 28.44% | 30% | 33.99% | 31.71% |
| Gross Profit Growth % | 9.25% | 30.25% | 59.73% | 178.32% | -55.4% | 12.79% | -17.17% | 26.42% | -21.8% | -4.7% | -44.37% | 31.41% | -0.03% | -2.49% | 49.35% | -1.71% | -46.7% | 22.1% | 103.12% | 5.39% | 111.66% | -0.12% | -19.26% | -7.21% | 2.87% | -11.06% | -30.73% | -16.75% | 17.18% | 17.27% |
| Operating Expenses | 43.35M | 37.67M | 33.66M | 24.16M | 20.47M | 17.47M | 17.5M | 17.88M | 15.65M | 14.86M | 16.57M | 18.51M | 17.2M | 16.56M | 15.54M | 13.08M | 12.19M | 15.38M | 13.07M | 10.34M | 9.82M | 7.69M | 9.78M | 10.2M | 10.44M | 9.49M | 9.99M | 12.8M | 13.4M | 12M |
| OpEx % of Revenue | 17.67% | 17.95% | 18.14% | 15.38% | 16.67% | 17.92% | 19.31% | 19.47% | 20.18% | 16.19% | 18.4% | 13.7% | 16.82% | 15.78% | 15.06% | 17.61% | 19.6% | 15.21% | 15.13% | 15.71% | 17.78% | 18.61% | 22.58% | 20.66% | 22.03% | 21.37% | 25.8% | 24.15% | 23.84% | 23.35% |
| Selling, General & Admin | 41.56M | 37.14M | 32.22M | 23.06M | 20.39M | 17.47M | 16.88M | 17.64M | 15.41M | 14.62M | 16.33M | 18.28M | 16.97M | 16.33M | 15.54M | 13.01M | 12.09M | 14.82M | 13.07M | 10.34M | 9.82M | 7.69M | 9.78M | 10.2M | 10.44M | 9.49M | 8.94M | 11.8M | 12.4M | 11.1M |
| SG&A % of Revenue | 16.94% | 17.7% | 17.36% | 14.68% | 16.6% | 17.92% | 18.63% | 19.21% | 19.88% | 15.94% | 18.14% | 13.53% | 16.6% | 15.56% | 15.06% | 17.52% | 19.45% | 14.66% | 15.13% | 15.71% | 17.78% | 18.61% | 22.58% | 20.66% | 22.03% | 21.37% | 23.09% | 22.26% | 22.06% | 21.6% |
| Research & Development | 0 | 0 | 0 | 4.14M | 0 | 0 | 0 | 3.54M | 3.21M | 3.86M | 3.75M | 3.58M | 3.44M | 3.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 2.64% | - | - | - | 3.85% | 4.14% | 4.21% | 4.16% | 2.65% | 3.36% | 3.41% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.79M | 530K | 1.45M | -3.05M | 86K | 0 | 617K | 823K | 236K | 234K | 1.79M | 229K | 222K | 228K | 0 | 67K | 0 | 559K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.05M | 1M | 1M | 900K |
| Operating Income | 14.4M | 15.19M | 6.92M | 1.25M | -11.34M | 3M | 652K | -2.42M | -13.45M | 6.67M | 8.48M | 21.57M | 14.62M | 15.26M | 17.09M | 8.78M | 10.04M | 26.74M | 21.09M | 6.48M | 6.14M | -151K | -2.23M | -852K | -362K | 302K | 1.02M | 3.1M | 5.7M | 4.3M |
| Operating Margin % | 5.87% | 7.24% | 3.73% | 0.8% | -9.24% | 3.08% | 0.72% | -2.63% | -17.34% | 7.27% | 9.42% | 15.96% | 14.3% | 14.54% | 16.57% | 11.82% | 16.15% | 26.45% | 24.4% | 9.85% | 11.12% | -0.37% | -5.16% | -1.73% | -0.76% | 0.68% | 2.64% | 5.85% | 10.14% | 8.37% |
| Operating Income Growth % | -5.21% | 119.42% | 453.76% | 111.02% | -478.35% | 359.82% | 126.96% | 82.02% | -301.53% | -21.3% | -60.7% | 47.6% | -4.23% | -10.72% | 94.81% | -12.62% | -62.44% | 26.8% | 225.38% | 5.54% | 4166.89% | 93.24% | -162.21% | -135.36% | -219.87% | -70.42% | -67.06% | -45.61% | 32.56% | 43.33% |
| EBITDA | 14.76M | 21.12M | 12.35M | 7.24M | -5.74M | 4.94M | 2.62M | -213K | -11.23M | 9M | 10.91M | 23.88M | 16.82M | 17.34M | 19.12M | 10.42M | 11.84M | 27.85M | 22.08M | 7.37M | 6.93M | 629K | -1.2M | 59K | 594K | 1.25M | 2.07M | 4.1M | 6.7M | 5.2M |
| EBITDA Margin % | 6.02% | 10.06% | 6.66% | 4.61% | -4.68% | 5.07% | 2.89% | -0.23% | -14.48% | 9.81% | 12.12% | 17.67% | 16.45% | 16.52% | 18.53% | 14.04% | 19.04% | 27.54% | 25.54% | 11.19% | 12.56% | 1.52% | -2.77% | 0.12% | 1.25% | 2.81% | 5.35% | 7.74% | 11.92% | 10.12% |
| EBITDA Growth % | -30.13% | 70.99% | 70.71% | 225.99% | -216.2% | 88.66% | 1330.05% | 98.1% | -224.75% | -17.55% | -54.3% | 42.02% | -3.03% | -9.3% | 83.43% | -11.96% | -57.49% | 26.15% | 199.63% | 6.26% | 1002.38% | 152.46% | -2132.2% | -90.07% | -52.48% | -39.64% | -49.49% | -38.81% | 28.85% | 33.33% |
| D&A (Non-Cash Add-back) | 0 | 5.94M | 5.43M | 5.99M | 5.6M | 1.95M | 1.97M | 2.21M | 2.22M | 2.33M | 2.44M | 2.31M | 2.2M | 2.08M | 2.02M | 1.65M | 1.8M | 1.11M | 989K | 887K | 793K | 780K | 1.03M | 911K | 956K | 948K | 1.05M | 1M | 1M | 900K |
| EBIT | 14.76M | 15.19M | 6.92M | 1.25M | -10.82M | 3.28M | 2.32M | -133K | -12.84M | 7.06M | 8.74M | 21.76M | 14.71M | 15.26M | 17.09M | 8.85M | 10.1M | 26.74M | 21.09M | 6.48M | 6.14M | -151K | -1.92M | -881K | -362K | 302K | 1.02M | 3.08M | 5.71M | 4.4M |
| Net Interest Income | 257K | 583K | -248K | -939K | -400K | 156K | 1.31M | 1.45M | 594K | 376K | 251K | 178K | 93K | 315K | -418K | -15K | 19K | 411K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 257K | 0 | 0 | 129K | 50K | 167K | 1.32M | 1.46M | 606K | 386K | 261K | 189K | 94K | 315K | 58K | 77K | 55K | 416K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | -583K | 248K | 1.07M | 450K | 11K | 12K | 12K | 12K | 10K | 10K | 11K | 1K | 0 | 476K | 92K | 36K | 5K | 0 | 10K | 17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -300K | 219K | -1.35M | -689K | 127K | 269K | 1.66M | -4.41M | -14.06M | -244K | 2.04M | -1.54M | 93K | 87K | -418K | -15K | -77K | -148K | 1.02M | 38K | -388K | 510K | 476K | 1.1M | 3.84M | -328K | -2.13M | -278K | -206K | -400K |
| Pretax Income | 14.1M | 15.41M | 5.57M | 561K | -11.22M | 3.27M | 2.31M | -145K | -12.85M | 7.05M | 8.73M | 21.75M | 14.71M | 15.58M | 16.68M | 8.76M | 10.06M | 26.74M | 22.1M | 6.52M | 5.75M | 359K | 1.85M | 192K | 3.48M | -26K | -1.11M | 2.8M | 5.5M | 4M |
| Pretax Margin % | 5.75% | 7.34% | 3% | 0.36% | -9.13% | 3.35% | 2.55% | -0.16% | -16.58% | 7.68% | 9.7% | 16.09% | 14.39% | 14.84% | 16.16% | 11.8% | 16.18% | 26.45% | 25.57% | 9.9% | 10.42% | 0.87% | 4.26% | 0.39% | 7.34% | -0.06% | -2.87% | 5.28% | 9.79% | 7.78% |
| Income Tax | 1.6M | 3.18M | 1.02M | 194K | -2.44M | 893K | 440K | 163K | -3.01M | 2.03M | 2.6M | 7.02M | 4.57M | 4.43M | 6.12M | 2.89M | 3.7M | 9.27M | 7.07M | 758K | 2.17M | 63K | -777K | 59K | 1.17M | -221K | -280K | 400K | 1.7M | 900K |
| Effective Tax Rate % | 11.32% | 20.62% | 18.26% | 34.58% | 21.78% | 27.33% | 19.03% | -112.41% | 23.42% | 28.74% | 29.77% | 32.26% | 31.03% | 28.43% | 36.72% | 32.95% | 36.78% | 34.68% | 31.99% | 11.63% | 37.67% | 17.55% | -42.07% | 30.73% | 33.71% | 850% | 25.16% | 14.29% | 30.91% | 22.5% |
| Net Income | 12.5M | 12.23M | 4.56M | 367K | -8.77M | 2.37M | 1.87M | -308K | -9.84M | 5.02M | 6.13M | 14.73M | 10.14M | 11.15M | 10.55M | 5.87M | 6.36M | 17.47M | 15.03M | 5.76M | 3.59M | -2.91M | -1.07M | 133K | 2.31M | 195K | -833K | 2.4M | 3.8M | 3.1M |
| Net Margin % | 5.1% | 5.83% | 2.46% | 0.23% | -7.14% | 2.44% | 2.07% | -0.34% | -12.7% | 5.47% | 6.81% | 10.9% | 9.92% | 10.62% | 10.23% | 7.91% | 10.23% | 17.28% | 17.39% | 8.75% | 6.5% | -7.03% | -2.47% | 0.27% | 4.86% | 0.44% | -2.15% | 4.53% | 6.76% | 6.03% |
| Net Income Growth % | 2.21% | 168.44% | 1141.42% | 104.18% | -469.55% | 26.82% | 707.79% | 96.87% | -295.98% | -18.07% | -58.39% | 45.24% | -9% | 5.64% | 79.66% | -7.66% | -63.58% | 16.18% | 160.96% | 60.65% | 223.4% | -171.59% | -904.51% | -94.23% | 1082.05% | 123.41% | -134.71% | -36.84% | 22.58% | 181.82% |
| Net Income (Continuing) | 12.5M | 12.23M | 4.56M | 367K | -8.77M | 2.37M | 1.87M | -308K | -9.84M | 5.02M | 6.13M | 14.73M | 10.14M | 11.15M | 10.55M | 5.87M | 6.36M | 17.47M | 15.03M | 5.76M | 3.59M | 296K | -832K | 148K | 2.31M | 195K | -833K | 2.4M | 3.8M | 3.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.12 | 1.11 | 0.42 | 0.03 | -0.83 | 0.24 | 0.19 | -0.03 | -1.01 | 0.52 | 0.61 | 1.45 | 1.00 | 1.11 | 1.06 | 0.59 | 0.64 | 1.71 | 1.49 | 0.47 | 0.38 | -0.32 | -0.13 | 0.01 | 0.28 | 0.01 | -0.11 | 0.29 | 0.44 | 0.15 |
| EPS Growth % | 0.9% | 164.29% | 1120.93% | 104.14% | -445.83% | 26.32% | 705.1% | 96.89% | -294.23% | -14.75% | -57.93% | 45% | -9.91% | 4.72% | 79.66% | -7.81% | -62.57% | 14.77% | 217.02% | 23.68% | 218.75% | -146.15% | - | -97.14% | - | 107.27% | -137.93% | -34.09% | 193.33% | 7.14% |
| EPS (Basic) | 1.14 | 1.12 | 0.42 | 0.03 | -0.83 | 0.24 | 0.19 | -0.03 | -1.01 | 0.52 | 0.61 | 1.46 | 1.01 | 1.11 | 1.06 | 0.59 | 0.64 | 1.72 | 1.52 | 0.47 | 0.39 | -0.33 | -0.13 | 0.01 | 0.28 | 0.01 | -0.11 | 0.30 | 0.45 | 0.16 |
| Diluted Shares Outstanding | 11.14M | 11.07M | 10.84M | 10.65M | 10.54M | 9.96M | 9.88M | 9.82M | 9.76M | 9.73M | 9.98M | 10.14M | 10.1M | 10.05M | 10M | 9.96M | 9.94M | 10.2M | 10.08M | 12.31M | 9.34M | 8.97M | 8.19M | 8.36M | 8.35M | 8.18M | 7.57M | 8.22M | 8.6M | 7.93M |
| Basic Shares Outstanding | 10.99M | 10.88M | 10.74M | 10.61M | 10.54M | 9.96M | 9.88M | 9.82M | 9.75M | 9.72M | 9.98M | 10.12M | 10.07M | 10.03M | 9.96M | 9.92M | 9.9M | 10.13M | 9.91M | 12.17M | 9.13M | 8.8M | 8.19M | 8.36M | 8.23M | 7.8M | 7.57M | 8.11M | 8.37M | 7.93M |
| Dividend Payout Ratio | - | - | - | - | - | 184.96% | 227.03% | - | - | 69.52% | 53.76% | 13.75% | 12.89% | 8.06% | 7.51% | 13.45% | 12.39% | 4.32% | 3.28% | 6.72% | 12.6% | - | - | 129.32% | - | - | - | - | - | - |
Operational Execution and Margin Volatility
According to recent quarterly filings, GHM achieved a revenue growth rate of 13.0% in 2025Q4, reflecting a volatile trajectory that has fluctuated between 5.0% and 23.3% over the last ten quarters as the company pivots its focus toward defense and space-related industrial applications.
The inconsistent revenue growth suggests that the company is still navigating the integration of its strategic pivot, with project-based revenue recognition creating lumpy quarterly comparisons. Investors should monitor whether the current backlog can sustain double-digit growth without being offset by the cyclical decline of legacy refining and petrochemical segments.
As reported in financial statements, GHM's gross margin has struggled to maintain consistency, peaking at 27.0% in 2024Q4 before contracting to 23.4% by 2025Q4, indicating significant sensitivity to project mix and potential cost overruns in its specialized manufacturing operations.
The inability to sustain gross margins above the 25% threshold suggests that the company faces challenges in pricing power or is experiencing inflationary pressure on specialized raw materials. This margin volatility appears to be a structural hurdle that prevents the company from achieving the profitability levels seen in more established defense-industrial peers.
Based on GHM's reported figures, operating margins have compressed to 2.6% in 2025Q4 from a high of 9.3% in 2024Q4, demonstrating that the company has yet to achieve the necessary operating leverage to scale its administrative and engineering overhead effectively.
The sharp decline in operating income relative to gross profit suggests that SG&A expenses are not scaling efficiently with revenue growth. This trend warrants further investigation into whether the current overhead structure is bloated by the recent acquisition-led strategy or if it reflects temporary inefficiencies in project execution.
Data from the income statement indicates that despite a strategic shift toward defense, net margins remain thin at 2.9% in 2025Q4, raising concerns that the company's specialized manufacturing model may be inherently less profitable than the market currently anticipates for a defense-oriented supplier.
Short-sellers may focus on the recurring volatility in EPS and the reliance on percentage-of-completion accounting, which can mask underlying operational weaknesses. The lack of consistent bottom-line expansion suggests that the transition to higher-margin defense work is not yet translating into meaningful shareholder value or improved earnings quality.
Quick answers to the most common questions about buying GHM stock.
For fiscal year 2025, Graham Corporation (GHM) reported total revenue of $245.3M. This represents a 377.2% increase compared to $51.4M in 1996.
Graham Corporation (GHM) is profitable, generating $12.5M in net income for the fiscal year ending 2025 with a net profit margin of 5.1%.
Graham Corporation (GHM) reported an operating income of $14.4M, resulting in an operating profit margin of 5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Graham Corporation (GHM) generated $57.8M in gross profit for the year, representing a gross profit margin of 23.5%. This demonstrates the company's core pricing power and production efficiency.