Graham Corporation
Graham Corp designs and manufactures custom-engineered fluid, heat transfer, vacuum, cryogenic pump, and turbomachinery systems used in mission-critical applications. Its core end markets are Defense, Energy & Process, and Space, with production centered in Batavia, New York and specialized turbomachinery operations through Barber-Nichols in Colorado.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueCustom equipment for naval propulsion, power, fluid transfer, and thermal management programs.
Vacuum, heat transfer, and fluid transfer systems for refining, chemicals, and industrial processing.
Rocket engine turbopumps, cryogenic systems, and thermal/fluid management products for space applications.
Spare parts, service, and support tied to installed equipment and long-cycle industrial customers.
Products
Reported · share of revenue- Defense60.1 %
- Energy and Process34.0 %
- Space5.9 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Graham sells mainly to industrial and government-linked customers that need highly engineered, low-volume, high-specification equipment. The largest demand comes from U.S. Navy and defense contractors, while Energy & Process customers include refiners, chemical producers, and industrial processors; Space customers are launch providers and aerospace system developers.
Buys propulsion, power, fluid transfer, and thermal management equipment for naval platforms and related programs.
Buys vacuum, heat transfer, and fluid transfer systems for refining, chemicals, fertilizers, and alternative energy projects.
Buys rocket engine turbopumps, cryogenic products, and thermal management systems for launch and space applications.
Buys engineered equipment as part of larger project delivery, often with long qualification and bidding cycles.
Buys replacement parts, service, and support for existing Graham-installed equipment.
Strategy
Management is focused on targeted markets with high barriers to entry, operational excellence, and disciplined capital deployment. Recent investments in a new Batavia manufacturing facility, automated welding equipment, and a cryogenic testing facility show a push to expand capacity, improve execution, and support organic growth.
Defense programs provide scale, backlog visibility, and higher strategic importance.
Additional capacity and qualification infrastructure support growth and improve delivery performance.
More self-funded development can broaden the product base and support organic growth.
Better process control and execution help protect margins in project-based businesses.
Geography
The company is primarily U.S.-based, with 81% of fiscal 2025 sales in the United States and 19% internationally. Manufacturing and engineering are centered in Batavia, NY and Arvada, CO, while foreign subsidiaries in China and India provide sales and engineering support across Asia and the Middle East.
Risks
The business is exposed to customer concentration, especially in defense where U.S. Navy-related work is a large share of sales and backlog. It also faces execution, pricing, cybersecurity, and project-timing risk because revenue depends on complex engineered contracts, long qualification cycles, and customer funding decisions.
- Customer concentration in Defense / U.S. Navy programsImpact: HighLikelihood: Medium
Defense sales rose to 58% of business, and many programs ultimately depend on the same end customer.
Exposure: U.S. Navy-related projects
- Delay or reduction in purchases by largest customersImpact: HighLikelihood: Medium
A small number of large, long-cycle contracts can drive a disproportionate share of revenue.
- Competitive pricing pressureImpact: MediumLikelihood: Medium
Competitors may have greater resources or lower-cost geographies and can compete on price.
- Cybersecurity breach or ransomwareImpact: MediumLikelihood: Medium
The company relies on engineering data, customer information, and connected systems that could be disrupted.
- Project timing and milestone slippageImpact: MediumLikelihood: Medium
Revenue on large contracts is recognized over time and depends on labor, cost, and milestone estimates.
Accounting
Judgemental itemsMost large contracts are recognized as work progresses, so estimate changes affect revenue and gross margin.
Impact: Labor hours, total cost, and milestone judgments can move earnings between periods.
Acquisitions require fair value allocation and subsequent impairment testing.
Impact: Goodwill or intangibles could be written down if performance weakens.
Defense projects can involve claims, liabilities, or insurance coverage limits.
Impact: Accruals can materially affect operating results if claims arise.
Similar listed companies
Publicly listed companies with a comparable business focus.
Northrop Grumman Corporation
NOC · Search, Detection, Navigation, Guidance, Aeronautical Sys
Northrop Grumman is a U.S.-based aerospace and defense company organized around four operating sectors: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems.
Graham Holdings Co
GHC · Services-Educational Services
Crane Co
CR · Miscellaneous Fabricated Metal Products
The Gorman-Rupp Company
GRC · Pumps & Pumping Equipment
Gorman-Rupp designs, manufactures, and sells pumps and pump systems for moving water and other liquids across municipal, industrial, agricultural, fire…
Karman Holdings Inc.
KRMN · Aircraft Parts & Auxiliary Equipment, NEC
Powell Industries, Inc
POWL · Switchgear & Switchboard Apparatus
Powell Industries is a U.S.-based manufacturer of custom-engineered electrical equipment and systems used to distribute, control, and monitor electric power.
Last updated: 24/09/2026