Graham Corporation reported record fiscal first-quarter 2027 results, with revenue climbing 29% year-over-year to $71.3 million, driven by growth across its defense, space, energy and process businesses supplemented by contributions from FlackTek. Organic revenue growth reached 17%, while first-quarter orders totaled $96 million and backlog reached a record $557 million. The company maintained its full-year outlook for revenue of $285 million to $295 million and adjusted EBITDA of $35 million to $40 million.
Defense revenue surged 40% from the prior-year period, reflecting the timing of project milestones and new program activity. The company secured approximately $61.8 million in defense orders supporting the U.S. Navy’s Columbia-class and Virginia-class submarine programs, as well as the MK48 Mod 7 heavyweight torpedo program. Additional contracts included MK19 Mod 2 air turbine pump assemblies for submarine fleet spares. Space revenue rose 86% year-over-year, producing $14.4 million in orders and a 2.3-times book-to-bill ratio, with development programs transitioning into production volumes.
FlackTek, acquired by Graham, contributed $6.6 million in first-quarter revenue and approximately $13.3 million in orders, establishing a third core technology platform. The acquisition has broadened opportunities in aerospace, defense and space applications. Gross profit increased 21% to $17.8 million, though gross margin declined to 25% from 26.5% a year earlier due to sales mix and acquisition-related investments. Adjusted EBITDA rose 28% to $8.8 million with a 12.3% adjusted EBITDA margin.
Net income was $3.9 million, or $0.33 per diluted share, compared with $4.6 million, or $0.42 per diluted share, in the prior-year quarter. Adjusted net income increased to $5.7 million, or $0.49 per diluted share, from $4.9 million, or $0.45 per diluted share. Aftermarket sales across energy and process and defense markets increased 20%. The company ended the quarter with $27 million in cash, no outstanding debt and approximately $75 million of available capacity under its revolving credit facility.
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