Graham Corporation (GHM): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le monde complexe de la fabrication aérospatiale et de défense, Graham Corporation apparaît comme un joueur dynamique naviguant dans un paysage complexe de défis mondiaux et d'innovations technologiques. Cette analyse complète du pilon dévoile les forces externes à multiples facettes qui façonnent la trajectoire stratégique de l'entreprise, révélant comment les réglementations politiques, les fluctuations économiques, les changements sociétaux, les progrès technologiques, les cadres juridiques et les considérations environnementales entrelacent pour définir l'écosystème des affaires de Graham Corporation. Plongez dans cette exploration pour découvrir les facteurs critiques stimulant la résilience et le potentiel de l'entreprise sur un marché industriel en constante évolution.

Graham Corporation (GHM) - Analyse du pilon: facteurs politiques

Règlements sur la fabrication de l'aérospatiale et de la défense

Graham Corporation opère sous ITAR (Règlement sur le trafic international dans les armes) et Ear (Règlement sur l'administration des exportations). En 2024, la conformité nécessite une documentation stricte et une licence pour la fabrication liée à la défense.

Catégorie de réglementation	Exigences de conformité	Coût de vérification annuel
Inscription ITAR	Obligatoire pour les fabricants de défense	2 250 $ par an
Classification de contrôle des exportations	Requis pour les expéditions internationales	5 600 $ par classification

Impact du budget fédéral de la défense

L'allocation budgétaire de la défense américaine 2024 est 886,4 milliards de dollars, avec des implications potentielles pour les contrats de fabrication de défense de Graham Corporation.

• Budget d'approvisionnement du ministère de la Défense: 317,3 milliards de dollars
• Dépenses de recherche et de développement militaires: 145,8 milliards de dollars
• Attribution potentielle des contrats de défense pour les fabricants d'équipements spécialisés: 12-15%

Tensions de commerce géopolitique

Les relations commerciales américaines-chinoises continuent d'avoir un impact sur les chaînes d'approvisionnement de la fabrication mondiale, avec Restrictions de contrôle des exportations affectant les transferts technologiques internationaux.

Catégorie de restriction commerciale	Secteurs affectés	Impact économique estimé
Contrôles d'exportation technologique	Fabrication avancée	42,6 milliards de dollars à l'impact des revenus potentiels
Restrictions de fabrication de semi-conducteurs	Défense et technologie	23,4 milliards de dollars de perturbation de la chaîne d'approvisionnement

Conformité au commerce international

Graham Corporation doit naviguer Règlements du Bureau de l'industrie et de la sécurité (BIS).

• Temps de traitement de la demande de licence d'exportation: 30 à 45 jours
• Prévue de pénalité de violation de la conformité: 10 000 $ - 1 000 000 $ par incident
• Exigence de l'audit de la conformité annuelle: obligatoire pour les fabricants de défense

Graham Corporation (GHM) - Analyse du pilon: facteurs économiques

Nature cyclique des marchés de l'industrie aérospatiale et de la défense

La taille du marché mondial de l'aérospatiale et de la défense était de 1,7 billion de dollars en 2023, avec une croissance prévue à 1,9 billion de dollars d'ici 2025. Le chiffre d'affaires de Graham Corporation au cours de l'exercice 2023 était de 78,4 millions de dollars, ce qui représente une augmentation de 6,2% par rapport à l'année précédente.

Segment de marché	2023 Valeur marchande	Croissance projetée
Aérospatial	872 milliards de dollars	4,5% CAGR
Défense	828 milliards de dollars	3,9% CAGR

Sensibilité aux ralentissements économiques et aux cycles d'approvisionnement du gouvernement

Le budget de la défense américaine pour 2024 est de 886,4 milliards de dollars, avec des allocations d'approvisionnement de 170,2 milliards de dollars. L'arriéré de Graham Corporation au 30 septembre 2023 était de 73,6 millions de dollars.

Exercice fiscal	Commander un arriéré	Dépenses d'approvisionnement
2022	62,3 millions de dollars	155,8 milliards de dollars
2023	73,6 millions de dollars	170,2 milliards de dollars

Défis continus avec la gestion des coûts de la chaîne d'approvisionnement et l'inflation

Le taux d'inflation américain en décembre 2023 était de 3,4%. Le coût des marchandises de Graham Corporation vendu a augmenté de 5,2% au cours de l'exercice 2023.

Indicateur économique	Valeur 2023	Impact sur Graham Corporation
Taux d'inflation	3.4%	Augmentation des coûts opérationnels
Prix ​​des matières premières	En hausse de 4,7%	Dépenses de production plus élevées

Potentiel de croissance des secteurs de la technologie aérospatiale et de défense

Le marché mondial de la technologie de l'aérospatiale et de la défense devrait atteindre 2,2 billions de dollars d'ici 2026. Les investissements en R&D de Graham Corporation ont été de 3,2 millions de dollars au cours de l'exercice 2023.

Segment technologique	2023 Valeur marchande	Croissance projetée
Fabrication avancée	412 milliards de dollars	5,6% CAGR
Ingénierie de précision	287 milliards de dollars	4,9% CAGR

Graham Corporation (GHM) - Analyse du pilon: facteurs sociaux

Pénurie de main-d'œuvre qualifiée en fabrication et ingénierie avancées

Selon le Manufacturing Institute, le GAP des compétences de fabrication américaine pourrait entraîner 2,1 millions d'emplois non remplis d'ici 2030. Pour Graham Corporation, cela se traduit par des défis de recrutement importants.

Catégorie	2024 Point de données	Impact sur Graham Corporation
Écart des compétences de fabrication	2,1 millions d'emplois non remplis projetés	Difficulté de recrutement élevé
Pénurie de talents d'ingénierie	89% des fabricants signalent la difficulté à trouver des travailleurs qualifiés	Augmentation potentielle de salaire de 15 à 20%

Demande croissante de diversité et d'inclusion de la main-d'œuvre

En 2024, 67% des demandeurs d'emploi considèrent la diversité du lieu de travail comme un facteur critique dans les décisions d'emploi.

Métrique de la diversité	Statut actuel de Graham Corporation	Benchmark de l'industrie
Femmes dans des rôles techniques	24%	Moyenne de l'industrie de 28%
Représentation minoritaire	19%	22% de référence de l'industrie

L'accent mis sur la sécurité au travail et le bien-être des employés

L'Administration de la sécurité et de la santé sur le travail (OSHA) signale des taux de blessures à la fabrication de 3,3 pour 100 travailleurs en 2024.

Métrique de sécurité	Graham Corporation	Moyenne nationale
Taux de blessures au travail	2,7 pour 100 travailleurs	3,3 pour 100 travailleurs
Investissement annuel sur la sécurité	1,2 million de dollars	N / A

Écart de compétences technologiques dans les disciplines de fabrication et d'ingénierie

Le Forum économique mondial indique que 50% de tous les employés auront besoin de reskilling d'ici 2025 en raison de l'avancement technologique.

Catégorie de compétences technologiques	Pourcentage de la main-d'œuvre nécessitant une augmentation	Investissement de formation annuelle
Technologies de fabrication avancées	42%	$850,000
Compétences en ingénierie numérique	38%	$650,000

Graham Corporation (GHM) - Analyse du pilon: facteurs technologiques

Investissement continu dans les technologies de fabrication avancées

Graham Corporation a investi 3,2 millions de dollars dans les dépenses de R&D pour l'exercice 2023, ce qui représente 4,7% des revenus totaux. Répartition des investissements technologiques:

Catégorie de technologie	Montant d'investissement	Pourcentage du budget de la R&D
Équipement de fabrication avancée	1,45 million de dollars	45.3%
Systèmes de fabrication numérique	$890,000	27.8%
Intégration logicielle	$650,000	20.3%
Infrastructure de cybersécurité	$210,000	6.6%

Concentrez-vous sur l'ingénierie de précision et le développement de composants hautes performances

Métriques d'ingénierie de précision:

• Précision de la tolérance de fabrication: ± 0,0005 pouces
• Taux de rejet de la qualité des composants: 0,02%
• Production annuelle des composants de précision: 127 500 unités

Intégration de l'IA et de l'automatisation dans les processus de fabrication

Investissement en technologie d'automatisation pour 2024:

Technologie d'automatisation	Coût de la mise en œuvre	Gain d'efficacité attendu
Automatisation de processus robotique	$675,000	22% augmentation de la productivité
Algorithmes d'apprentissage automatique	$520,000	15% d'amélioration de la maintenance prédictive
Capteurs de fabrication IoT	$410,000	18% d'amélioration de la surveillance en temps réel

Tendances émergentes dans la fabrication additive et l'usinage de précision

Métriques de performance de fabrication additive:

• Investissement en équipement d'impression 3D: 1,1 million de dollars
• Volume annuel des composants imprimés en 3D: 42 300 unités
• Réduction des coûts des matériaux: 27% par rapport à la fabrication traditionnelle
• Réduction du temps de développement des prototypes: 40%

Graham Corporation (GHM) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations strictes de l'industrie aérospatiale et de la défense

Graham Corporation maintient Certification AS9100D, la norme de gestion de la qualité de l'industrie aérospatiale. La société adhère à des cadres réglementaires stricts, notamment:

Type de réglementation	Pourcentage de conformité	Fréquence d'audit
Règlements de la FAA	100%	Annuel
Normes du ministère de la Défense	98.7%	Semestriel
Règlement sur le trafic international dans les armes (ITAR)	100%	Trimestriel

Protection de la propriété intellectuelle pour les conceptions d'ingénierie propriétaire

Graham Corporation détient 17 brevets actifs En 2024, avec un portefeuille de brevets évalué à environ 4,2 millions de dollars.

Catégorie de brevet	Nombre de brevets	Durée de protection
Technologies de traitement thermique	8	20 ans
Systèmes de pompage à l'aspirateur	5	20 ans
Conceptions d'échangeur de chaleur	4	20 ans

Exigences réglementaires de l'environnement et de la sécurité dans la fabrication

Mesures de conformité pour les réglementations environnementales et de sécurité:

• Taux de conformité de l'OSHA: 99,6%
• Normes d'émissions de l'EPA: 100% adhésion
• Certification de manutention des matières dangereuses: courant

Norme environnementale	Niveau de conformité	Investissement annuel
Gestion de l'environnement ISO 14001	Pleinement conforme	$672,000
Programme de réduction des déchets	Réduction de 92%	$245,000
Initiatives d'efficacité énergétique	Amélioration de 37%	$512,000

Conteste juridique potentiel liée aux contrôles du commerce international et des exportations

Conformité à l'exportation et paramètres juridiques du commerce international:

Catégorie de contrôle d'exportation	Taux de conformité	Évaluation des risques juridiques
Règlement sur l'administration des exportations (oreille)	100%	Risque
Règlements sur le commerce international	99.5%	Risque modéré
Conformité des sanctions	100%	Risque

Graham Corporation (GHM) - Analyse du pilon: facteurs environnementaux

Engagement envers les pratiques de fabrication durables

Graham Corporation a signalé une réduction de 22% de la production totale de déchets en 2023, 65% des déchets industriels recyclés ou réutilisés. La société a investi 1,3 million de dollars dans des infrastructures de fabrication durables au cours de l'exercice.

Métrique de la durabilité	Performance de 2023	Changement d'une année à l'autre
Réduction totale des déchets	22%	+7.5%
Taux de recyclage des déchets	65%	+12%
Investissement en durabilité	1,3 million de dollars	+18%

Réduire l'empreinte carbone dans les processus de fabrication industrielle

Graham Corporation a obtenu un 17,3% de réduction des émissions de carbone par rapport à la ligne de base de 2020. Les émissions directes de gaz à effet de serre de la société ont été mesurées à 3 245 tonnes métriques CO2 équivalent en 2023.

Métrique d'émission de carbone	2023 données	Cible de réduction
Émissions totales de carbone	3 245 tonnes métriques CO2E	-17,3% à partir de 2020
Émissions de la portée 1	1 875 tonnes métriques CO2E	-15.6%
Émissions de la portée 2	1 370 tonnes métriques CO2E	-19.2%

Améliorations de l'efficacité énergétique dans les installations de production

Graham Corporation a mis en œuvre des mesures d'efficacité énergétique entraînant une réduction de 24,6% de la consommation d'énergie. La consommation d'énergie totale est passée de 8,2 millions de kWh en 2022 à 6,18 millions de kWh en 2023.

Métrique de l'efficacité énergétique	2022 données	2023 données	Pourcentage de réduction
Consommation d'énergie totale	8,2 millions de kWh	6,18 millions de kWh	24.6%
Consommation d'énergie renouvelable	12%	28%	+133%

Mise en œuvre de la technologie verte et des stratégies de réduction des déchets

Graham Corporation a alloué 2,7 millions de dollars aux stratégies de mise en œuvre des technologies vertes et de réduction des déchets en 2023. Les initiatives clés comprenaient:

• Technologies de recyclage avancées: 850 000 $ Investissement
• Mises à niveau des machines économes en énergie: 1,2 million de dollars
• Systèmes d'optimisation des flux de déchets: 650 000 $

Green Technology Initiative	Investissement	Impact attendu
Technologies de recyclage	$850,000	40% de réduction des flux de déchets
Machines économes en énergie	1,2 million de dollars	25% de réduction de la consommation d'énergie
Systèmes d'optimisation des déchets	$650,000	35% de minimisation des déchets

Graham Corporation (GHM) - PESTLE Analysis: Social factors

The US manufacturing skills gap creates a constant challenge for recruiting specialized labor.

The persistent skills gap in US manufacturing presents a significant operational headwind for Graham Corporation, which relies on highly specialized labor for its mission-critical defense and energy products. This is a sector-wide issue, not a company-specific failure. Nationally, the US manufacturing sector is projected to face a shortfall of 1.9 million workers by 2033 if current trends hold, a critical issue for the Submarine Industrial Base. For companies like Graham Corporation, the challenge is immediate: a recent survey indicated that 45% of US hiring managers expect difficulty finding qualified candidates in 2025. This shortage of experienced welders, machinists, and engineers directly impacts the company's ability to scale production to meet its growing backlog, which stood at $385 million as of the third quarter of fiscal year 2025.

You can't just hire bodies; you need specific, certified skills.

A grant from the BlueForge Alliance is funding defense welder training programs to address the labor shortage.

To combat the specialized labor shortage, Graham Corporation secured a substantial, targeted grant from the BlueForge Alliance, a key non-profit supporting the U.S. Navy's Submarine Industrial Base. This is a direct, actionable solution to a macro social problem. The company was awarded $2.1 million to expand its welder training programs and purchase related equipment for its Batavia, New York operation.

The immediate goal is a major workforce expansion. Graham Corporation expects to increase its skilled labor workforce by more than 20 percent by early 2025 to support the U.S. Navy's submarine construction cadence plans. The financial execution of this initiative is already underway, with the company reporting that it had received $1.5 million of the grant funding as of December 31, 2024 (Q3 Fiscal 2025), which helped the gross profit by $0.3 million in that quarter.

Metric (FY 2025 Data)	Value/Amount	Significance to Social Factor
BlueForge Alliance Grant Award	$2.1 million	Direct capital investment to address the specialized labor skills gap.
Grant Funding Received (as of Q3 FY2025)	$1.5 million	Shows tangible progress and execution of the training program.
Targeted Workforce Expansion	>20 percent	Clear, measurable goal to increase skilled labor for defense contracts by early 2025.
US Manufacturing Worker Shortfall (by 2033)	1.9 million jobs	The macro-environmental risk the company is mitigating with its training programs.

Increased stakeholder focus on ESG (Environmental, Social, and Governance) demands transparent reporting.

Investors and customers are defintely demanding more than just financial performance; they want to see a clear commitment to social responsibility. Graham Corporation has responded by enhancing its Environmental, Social, and Governance (ESG) strategy, which is overseen by an executive management team and dedicated working groups at each company. This is an important shift from a purely financial focus to a holistic value creation model.

The company's social (S) commitment focuses on four core tenets: environment, people, communities, and corporate governance. To ensure transparency and comparability, Graham Corporation is actively working on the production of its 2025 Sustainability Accounting Standards Board (SASB) Factsheet. This move aligns its social disclosures with an industry-specific framework (Aerospace & Defense and Industrial Machinery & Goods), making its performance clear to sophisticated investors.

The company is actively working on diversity, including starting a Women in Manufacturing group in 2023.

Diversity, Equity, and Inclusion (DEI) is a key component of Graham Corporation's social strategy, especially as the broader manufacturing sector struggles with gender representation. The industry average for women in the manufacturing workforce is between 30-35%, but leadership roles are much lower, at less than 25% in top management.

Graham Corporation's efforts to address this include the formation of an internal Women in Manufacturing group, which started in 2023. This is a direct effort to build a more inclusive culture and a deeper talent pipeline. For context, as of March 31, 2022, women represented approximately 19% of Graham Corporation's total workforce, but a stronger 33% of its independent directors, showing some progress at the governance level. The new internal group and the focus on the 2025 SASB Factsheet are clear actions to improve these workforce numbers and demonstrate commitment to social capital.

• Attract Talent: Use the Women in Manufacturing group to create role models and a supportive culture.
• Measure Progress: The forthcoming 2025 SASB Factsheet will provide updated metrics on workforce diversity.
• Improve Retention: Focus on community and employee engagement to lower turnover costs in a tight labor market.

Graham Corporation (GHM) - PESTLE Analysis: Technological factors

You're looking at Graham Corporation's technology strategy, and the takeaway is clear: the company is making targeted, high-return investments in proprietary technology and capacity to capitalize on the accelerating commercial space and energy transition markets. They are not just waiting for orders; they are building the infrastructure and acquiring the intellectual property (IP) to be a critical, high-margin supplier.

Acquisition of Xdot Bearing Technologies expands proprietary high-speed bearing and turbomachinery capabilities.

Graham Corporation completed a highly strategic technology acquisition in October 2025, purchasing specific assets from Xdot Bearing Technologies. This move is all about securing proprietary foil bearing technology, which is defintely critical for the next generation of high-speed rotating machines.

The core value here is integrating Xdot's patented designs into Graham's subsidiary, Barber-Nichols LLC, immediately enhancing their turbomachinery expertise for aerospace, defense, and the energy transition. The acquired company had annual sales of approximately $1 million and is expected to be slightly accretive to Graham's fiscal year 2026 GAAP net income. Plus, Xdot's founder, Dr. Erik Swanson, a recognized expert in foil bearing analysis, joined the Barber-Nichols team, which is a major IP win.

New commercial space orders totaled approximately $22 million in late 2025, diversifying advanced technology application.

The technology investments are already paying off, especially in the Space market. During its fiscal second and third quarters of 2026 (late 2025), Graham's subsidiary, Barber-Nichols, booked approximately $22 million in new orders from six commercial space launch market customers. These orders are for advanced turbomachinery and precision-engineered components, underscoring Graham's role as a critical supplier for next-generation space systems.

Here's the quick math: these orders are expected to convert into revenue over the next 12 to 24 months, providing a strong near-term revenue foundation that diversifies risk away from traditional energy markets.

• Order Value: Approximately $22 million.
• Customer Count: Six industry-leading commercial space launch players.
• Product Focus: Advanced turbomachinery and precision-engineered components.

Significant capital investment is funding a new cryogenic test facility and advanced CNC machining centers.

To support the massive demand surge in Space and Defense, Graham is executing on a significant capital expenditure plan. This is a crucial action for converting a record backlog, which hit $500.1 million in November 2025, into revenue.

The investments are focused on two major areas:

• Cryogenic Test Facility: A new, state-of-the-art facility is under construction near the P3 Technologies subsidiary in Jupiter, Florida, expected to open later in 2025. This facility will enable cost-effective, timely testing of cryogenic propellants like liquid hydrogen (LH2), liquid oxygen (LOX), and liquid methane (LCH4), targeting a greater than 20% return on invested capital (ROIC).
• Advanced Manufacturing Expansion: The company is investing in new production capacity at the Barber-Nichols facility in Colorado, adding new CNC machining centers and a liquid nitrogen test stand to increase throughput. Also, a new 29,000-square-foot advanced manufacturing facility in Batavia, New York, is expected to be fully operational by the end of fiscal year 2026, representing a total investment of approximately $17.6 million.

The new NextGen Nozzle product is positioned to improve sustainability for refinery and process plant customers.

In the Energy & Process segment, Graham is using technology to address customer sustainability goals, which is a major market driver. The NextGen steam ejector nozzle is a key innovation here, designed to be a seamless retrofit for existing vacuum systems (ejectors).

The technology's value proposition is simple: reduce steam consumption to cut costs and emissions. A successful 2024 installation at a Gulf Coast refinery demonstrated a 5.6% reduction in overall steam consumption, which is projected to save the customer an estimated $270,000 annually in utility costs. This steam reduction also translates directly to an estimated cut of 1,970 tons of CO2 emissions per year for that single installation. The estimated total market opportunity for this NextGen nozzle technology is over $50 million across the next 5 to 10 years.

NextGen Nozzle Performance Metrics (Per Customer Installation)	Observed Improvement	Annual Financial/Environmental Impact
Steam Consumption Reduction	5.6%	Estimated $270,000 in utility savings
CO2 Emissions Reduction	N/A	Estimated 1,970 tons per year
System Capacity Increase	3.1%	Enhanced throughput for the process plant
Vacuum Level Improvement	10.4%	Improved process efficiency

Graham Corporation (GHM) - PESTLE Analysis: Legal factors

Strict compliance with ITAR (International Traffic in Arms Regulations) and EAR is mandatory for defense contracts.

For a company like Graham Corporation, which is deeply entrenched in the U.S. defense and space sectors, the legal landscape is dominated by strict export controls. The International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) are not just guidelines; they are the bedrock of your operating license for a significant portion of the business.

In fiscal year 2025 (FY2025), sales to the Defense industry surged to represent approximately 58% of total revenue, a material increase from the 54% reported in FY2024. This concentration means compliance risk is now a primary operational and legal concern. Here's the quick math: with full-year revenue reaching $210 million in FY2025, the defense-related revenue subject to these stringent regulations was roughly $121.8 million.

If you fail to comply with these rules-even inadvertently-the penalties are severe, including fines, criminal sanctions, and the suspension of export privileges. That's a catastrophic risk for a business with such a high dependency on defense sales.

The regulatory environment for export controls requires complex licensing and documentation.

The complexity of the export control environment, encompassing ITAR, EAR, and U.S. sanction regulations administered by the Office of Foreign Assets Control (OFAC), mandates a highly sophisticated internal compliance program. The simple truth is, exporting technical data or hardware-even to a subsidiary or partner-requires complex licensing and documentation, and the rules are always changing.

Graham Corporation has acknowledged this risk. In FY2025, the company self-reported a potential unauthorized export of technical data in violation of ITAR to the Directorate of Defense Trade Controls (DDTC). While management stated they do not believe the potential violations will be material, this incident underscores the constant threat of regulatory slip-ups. It forces a continuous investment in compliance policies and internal controls to manage the foreign government regulations that may conflict with U.S. law. You defintely need a dedicated, well-funded compliance team.

The following table illustrates the financial scale of the segments most impacted by these export control and government contract regulations in FY2025:

Market Segment	FY2025 Revenue Percentage	FY2025 Estimated Revenue (in millions)
Defense Industry Sales	58%	$121.8
Energy & Process Markets	Approximately 35%	$73.5
Total FY2025 Revenue	100%	$210.0

Corporate governance saw a planned leadership transition in June 2025, with Matthew J. Malone becoming CEO.

Corporate governance saw a major, planned change in the first half of calendar year 2025, which is a key legal and structural event for investors. This transition, effective June 10, 2025, saw Matthew J. Malone assume the role of President and Chief Executive Officer. This move was part of an established succession plan, ensuring a smooth handoff and demonstrating sound board oversight.

The transition also included a shift in the role of the former CEO, Daniel J. Thoren, who became Executive Chairman and Strategic Advisor on the same date. Furthermore, new appointments to the Board's committees reflect ongoing attention to governance structure, such as the appointment of Mauro Gregorio to the Compensation Committee and the Nominating and Corporate Governance Committee on November 4, 2025.

The financial terms of the transition are clear and public:

• Matthew J. Malone's base salary as CEO increased to $480,000 annually.
• Daniel J. Thoren's base salary as Executive Chairman is $250,000.

This planned, transparent transition minimizes the legal and market risk often associated with leadership changes. It's a good sign for stability.

Graham Corporation (GHM) - PESTLE Analysis: Environmental factors

The business model is shifting to support customer clean energy initiatives like hydrogen and nuclear power.

You need to look at Graham Corporation's shift not just as a compliance measure, but as a core strategic pivot driving future revenue. The company is actively moving away from being a highly cyclical refinery and petrochemical equipment supplier toward a diversified, multi-market entity focused on sustainable energy supply.

This means their product portfolio is being engineered to meet the growing demand in advanced energy markets. For instance, their Heliflow® Heat Exchangers, known for high-pressure design, are finding new applications in the transition to hydrogen production. Also, their core heat transfer and vacuum systems are critical components in both nuclear power generation and various renewable fuel processes like converting plant-based feedstock into biodiesel and sustainable aviation fuel (SAF). This is a smart move, aligning their deep engineering expertise with a massive, long-term market trend.

The development of new, more efficient products is key here. The launch of the NextGen Steam Ejector Nozzle, for example, is designed to reduce steam use and CO2 emissions for customers by up to 10%, which directly translates to lower operating costs and a smaller carbon footprint for their clients.

Internal operations reduced hazardous waste generation by over 50% with a new Electro Chemical Machine (ECM).

A company's internal environmental performance is a strong indicator of management quality, and Graham Corporation has shown concrete results. The installation of a new Electro Chemical Machine (ECM) in their manufacturing process has yielded significant, quantifiable waste reduction.

Here's the quick math: the initial impact of the ECM was a reduction in hazardous waste generation by over 50% in the first year of operation. Plus, they achieved an additional 19% reduction in 2024. This isn't just a one-time win; it's a sustained improvement in operational efficiency and environmental stewardship. It defintely cuts down on disposal costs and regulatory risk.

Beyond waste, the company is focused on energy efficiency. They reduced their total energy use even while business revenue grew by 13% and employee count increased by 8%. This decoupling of energy use from business growth is a strong operational metric for sustainability. They also installed four additional Electric Vehicle (EV) charging stations and upgraded facilities with LED lighting and smart compressors to manage energy loads.

Environmental Performance Metric	Fiscal Year 2025 Data Point	Strategic Impact
Hazardous Waste Reduction (ECM)	Over 50% in first year, plus additional 19% in 2024	Reduces disposal costs and regulatory exposure.
Energy Use vs. Revenue Growth	Total energy use reduced while revenue grew by 13%	Demonstrates operational efficiency and decoupling of growth from consumption.
Customer CO2 Emissions Reduction (NextGen Nozzle)	Up to 10% reduction in steam use and CO2 emissions	Enhances product competitiveness in a carbon-constrained market.
Capital Expenditures (9M FY2025)	$13.8 million focused on capacity/capability improvements	Investment in modern, likely more energy-efficient, infrastructure.

The company is committed to the 2025 Sustainability Accounting Standards Board (SASB) Factsheet disclosure.

The commitment to the 2025 Sustainability Accounting Standards Board (SASB) Factsheet is a crucial signal to the market. SASB standards provide an investor-focused, industry-specific framework for disclosing financially material environmental, social, and governance (ESG) data.

By producing this disclosure, Graham Corporation is choosing transparency and accountability, which is what sophisticated investors-like you-demand. This move aligns their reporting with the expectations of institutional capital, making their ESG performance comparable to peers in the Industrial Machinery & Goods sector.

The ESG working groups, which include cross-functional subject matter experts, are responsible for overseeing this strategy and the subsequent disclosures, ensuring the effort is embedded across the firm, not just a marketing exercise.

• SASB reporting signals an investment-grade commitment to ESG transparency.
• The disclosure focuses on financially material issues specific to their industry.
• ESG working groups oversee the strategy, ensuring internal accountability.