Tuesday, December 10, 2024
Graham Corporation designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. The Company designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. It is a nuclear code accredited fabrication and specialty machining company. It supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. Its equipment is found in applications, such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. For the defense industry, its equipment is used in nuclear propulsion power systems for the United States Navy. The Company’s products are used in a range of industrial process applications in energy markets, including petroleum refining, defense, chemical and petrochemical processing, power generation/alternative energy and other.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
NobleCon20. Graham CFO Chris Thome and Vice President Matt Malone presented at NobleCon20. Highlights included the growth potential in U.S. Navy contracts, revenue diversification in the Space Segment, and M&A strategy. A rebroadcast is available at https://www.channelchek.com/videos/graham-corporation-noblecon20-replay.
Potential in U.S. Navy. The Navy’s Ford Class Carrier and Virginia and Columbia Class Submarines represent $1.2 to $1.4 billion in revenue potential based on planned projects. These project build timelines are expected to be completed as early as 2035 to as late as 2058, providing visibility and recurring revenue. With investments from defense customers to expand capacity and 80% of its defense revenue sole sourced, we believe Graham is uniquely positioned to expand its relationship with the Navy and other defense customers.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
