Graham Corporation (GHM): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the company behind the mission-critical fluid, power, and heat transfer technologies in defense, space, energy, and process industries? Graham Corporation (NYSE: GHM), a global leader in these specialized engineering solutions, has a rich history dating back to its founding in 1941. With institutional investors owning a significant 77%, and a record revenue of $185.5 million in fiscal year 2024, what makes this company tick and how does it generate revenue? Keep reading to discover the history, ownership structure, mission, and operational strategies that define Graham Corporation.

Graham Corporation (GHM) History

Graham Corporation Founding Timeline

Year established

The company was established in 1917.

Original location

The company was originally located in Batavia, New York.

Founding team members

The founder of the Graham Manufacturing Company was Walter V. Graham.

Initial capital/funding

Details regarding the initial capital or funding for Graham Corporation's founding are not readily available in the provided search results.

Graham Corporation Evolution Milestones

Graham Corporation Transformative Moments

Graham Corporation has undergone several transformative moments that have shaped its trajectory:

• Expansion into New Markets: Graham Corporation strategically expanded its reach into new geographic markets, particularly in regions experiencing growth in the energy, defense, and chemical industries. This expansion diversified its revenue streams and reduced reliance on any single market.
• Technological Innovation: The company consistently invested in research and development to enhance its product offerings and incorporate advanced technologies. This commitment to innovation allowed Graham Corporation to maintain a competitive edge and meet the evolving needs of its customers.
• Strategic Acquisitions: Graham Corporation has made key acquisitions to broaden its product portfolio and enhance its capabilities. For example, the acquisition of Barber-Nichols in 2018 significantly expanded its expertise in rotating equipment and turbomachinery. Similarly, the acquisition of VRV S.p.A. in 2021 bolstered its global presence and offerings in engineered-to-order equipment.
• Operational Efficiencies: Implementation of lean manufacturing principles and other operational improvements enhanced efficiency, reduced costs, and improved profitability. These efforts optimized production processes and streamlined supply chain management.

Learn more about the company through this link: Exploring Graham Corporation (GHM) Investor Profile: Who’s Buying and Why?

Graham Corporation (GHM) Ownership Structure

Graham Corporation operates as a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. The company's ownership is distributed among various shareholders, including institutional investors, individual investors, and company insiders.

Graham Corporation's Current Status

Graham Corporation is a public company, trading on the NYSE American under the ticker symbol GHM. This means that a portion of the company is owned by public investors.

Graham Corporation's Ownership Breakdown

As a publicly traded company, Graham Corporation's shares are held by a mix of institutional investors, individual shareholders, and company insiders. The following table provides an overview of the company's ownership structure:

Understanding Graham Corporation's financial health is crucial for investors. For a detailed analysis, read Breaking Down Graham Corporation (GHM) Financial Health: Key Insights for Investors.

Graham Corporation's Leadership

The leadership team guides Graham Corporation's strategic direction and operational execution. Key members of the leadership team include:

• Daniel J. Thoren: President and Chief Executive Officer
• Jeffrey F. Glajch: Vice President - Finance and Chief Financial Officer
• Christopher J. Pagano: Vice President, General Counsel and Secretary

Graham Corporation (GHM) Mission and Values

Graham Corporation aims to design, manufacture, and sell critical equipment for energy, defense, and chemical industries, guided by its core values of integrity, customer focus, and commitment to excellence.

Graham Corporation's Core Purpose

Official mission statement

To be a world leader in the design and manufacture of custom-engineered ejectors, vacuum pumping systems, surface condensers and heat transfer equipment.

Vision statement

While there is no single, official vision statement publicly available, insights into Graham Corporation's long-term aspirations can be gathered from their strategic goals and company statements:

• Continued Innovation: Graham aims to maintain its position as a leader through continuous innovation in its product offerings.
• Market Leadership: The company strives to strengthen its market leadership by expanding its global presence and enhancing its capabilities.
• Customer Satisfaction: A key focus is on ensuring customer satisfaction by providing reliable, high-quality products and services tailored to meet specific client needs.
• Operational Excellence: Graham is dedicated to improving operational efficiency and effectiveness across all its business segments.

Company slogan/tagline

Graham Corporation does not have a widely publicized official slogan or tagline. However, their commitment to engineered solutions and customer-specific designs could be seen as reflecting an unofficial motto of 'Engineering Excellence, Tailored Solutions.' For more insights into Graham Corporation's financial standing, explore Breaking Down Graham Corporation (GHM) Financial Health: Key Insights for Investors.

Graham Corporation (GHM) How It Works

Graham Corporation specializes in designing and manufacturing custom-engineered ejectors, pumps, compressors, and heat transfer equipment and vacuum systems for diverse industries.

Graham Corporation's Product/Service Portfolio

Graham Corporation provides custom-engineered solutions for challenging applications across various industries. Their portfolio includes:

Graham Corporation's Operational Framework

Graham Corporation operates through the following key processes:

• Engineering and Design: Graham provides custom-engineered solutions that meet specific customer requirements.
• Manufacturing: The company manufactures equipment in its facilities, ensuring quality control and adherence to design specifications.
• Project Management: Graham manages projects from initial design to final installation and commissioning, coordinating with customers and other stakeholders.
• Aftermarket Services: They provide aftermarket services, including maintenance, repair, and spare parts, to support the long-term operation of their equipment.

Graham Corporation's Strategic Advantages

Graham Corporation's success is driven by several strategic advantages:

• Custom Engineering: Graham specializes in custom-engineered solutions tailored to specific customer needs, differentiating them from competitors offering standard products.
• Technical Expertise: The company has extensive technical expertise in designing and manufacturing complex equipment for challenging applications.
• Long-Standing Customer Relationships: Graham has long-standing relationships with key customers in its target markets, providing a stable base of business.
• Quality and Reliability: Graham is known for the quality and reliability of its products, which are critical in demanding industrial applications.
• Aftermarket Services: Focus on aftermarket services provides ongoing revenue and strengthens customer relationships.

For more insights into Graham Corporation's investor profile, explore: Exploring Graham Corporation (GHM) Investor Profile: Who’s Buying and Why?

Graham Corporation (GHM) How It Makes Money

Graham Corporation specializes in designing and manufacturing custom-engineered ejectors, vacuum systems, and heat transfer equipment. These products are primarily sold to the oil refining, petrochemical, power, and defense industries.

Graham Corporation's Revenue Breakdown

Graham Corporation generates revenue through the sale of its equipment and aftermarket services. The majority of their revenue comes from engineered-to-order equipment, with a significant portion also derived from the process of equipment lifecycle support.

Graham Corporation's Business Economics

Graham Corporation operates in a project-based business environment, where contracts are often large and can span several years from initial design to final delivery. Their profitability is influenced by:

• Pricing Strategies: Graham employs a cost-plus pricing model, factoring in engineering, materials, manufacturing, and a profit margin. The complexity and customization required for each project significantly impact the final price.
• Economic Factors: The demand for Graham's products is closely tied to capital spending in the oil refining, petrochemical, power, and defense industries. Economic cycles and energy prices play a crucial role in determining investment levels.
• Competitive Landscape: The industry is competitive, with a mix of large global players and smaller specialized firms. Graham differentiates itself through its engineering expertise and ability to deliver custom solutions.
• Learn more about the Mission Statement, Vision, & Core Values of Graham Corporation (GHM).

Graham Corporation's Financial Performance

Graham Corporation's financial performance can be evaluated through the following key metrics:

• Revenue: In fiscal year 2024, Graham Corporation reported total revenue of $142.3 million, an increase of 34.4% compared to $105.9 million in fiscal year 2023.
• Gross Margin: The gross margin for fiscal year 2024 was 24.4%, compared to 19.4% for fiscal year 2023.
• Net Income (Loss): For fiscal year 2024, Graham Corporation reported a net loss of $1.9 million, or $(0.19) per diluted share, compared to a net loss of $6.9 million, or $(0.70) per diluted share, for fiscal year 2023.
• Order Backlog: As of March 31, 2024, Graham's order backlog was approximately $326.1 million, compared to $246.9 million as of March 31, 2023. This provides visibility into future revenue streams.

Graham Corporation (GHM) Market Position & Future Outlook

Graham Corporation is strategically positioned to capitalize on growth opportunities within the energy, defense, and chemical industries, while also navigating significant market risks that could impact future performance. The company's success hinges on its ability to leverage its core competencies in designing and manufacturing custom equipment for critical applications.

Competitive Landscape

Opportunities & Challenges

Industry Position

Graham Corporation maintains a solid position as a specialized provider of custom-engineered equipment, particularly within niche segments of the energy, defense, and chemical markets.

• Focus on custom solutions provides a competitive edge against companies offering standardized products.
• Strong relationships with key customers in the refining and petrochemical industries.
• Growing presence in the defense sector through contracts for naval and military applications.

For insights into the company's financial stability, see: Breaking Down Graham Corporation (GHM) Financial Health: Key Insights for Investors