Graham Corp (GHM) Reports 18% Sales Growth in Q2 Fiscal 2024
Graham Corp (NYSE:GHM) reported an 18% increase in sales for Q2 Fiscal 2024, reaching $45.1 million.
Gross profit rose to $7.2 million, reflecting a 36% increase from the prior year period.
Net income was $0.4 million, with adjusted net income at $1.4 million.
Backlog for the quarter remained steady at $313.3 million.
On November 6, 2023, Graham Corp (NYSE:GHM), a global leader in the design and manufacture of mission-critical fluid, power, heat transfer, and vacuum technologies, announced its financial results for the second quarter ended September 30, 2023.
Financial Performance
Net sales for Q2 Fiscal 2024 increased by 18.2% to $45.1 million, up from $38.1 million in Q2 Fiscal 2023. The increase in sales was largely attributed to a 69% increase in sales to the defense market, reflecting better execution, improved pricing, and the timing of material receipts. Gross profit for the quarter rose to $7.2 million, a 36% increase from the prior year period, reflecting higher volume and improved absorption.
Income and Earnings
Net income for the quarter was $0.4 million, or $0.04 per diluted share. On a non-GAAP basis, adjusted net income was $1.4 million, or $0.13 per diluted share, compared with adjusted net income of $0.3 million, or $0.03 per diluted share, during the same period a year ago.
Cash Management and Balance Sheet
Cash generated from operations for the three months ended September 30, 2023, was $3.3 million, up from $0.3 million for the same period last year. Cash and cash equivalents on September 30, 2023, were $25.8 million, up from $18.3 million on March 31, 2023. Debt at quarter end was down $0.9 million to $10.9 million compared with March 31, 2023.
Orders and Backlog
Orders for the three-month period ended September 30, 2023, were $36.5 million compared with a record $91.5 million for the same period of fiscal 2023. Backlog for the quarter was $313.3 million, which was unchanged compared with the prior-year period.
Fiscal 2024 Outlook
The company's guidance for fiscal 2024 remains unchanged from previous guidance, with net sales expected to be between $170 million to $180 million, and gross margin expected to be between 18% to 19% of sales.
Explore the complete 8-K earnings release (here) from Graham Corp for further details.
This article first appeared on GuruFocus.
