Graham Corporation completed a $50 million sale of common stock, representing 5 % of its outstanding shares, to accounts advised by T. Rowe Price Investment Management. The shares were priced at $83.36 each, based on the 20‑day average closing price as of April 13, 2026, and the transaction is expected to close on April 16, 2026.
The proceeds will be used to strengthen the company’s balance sheet, fund ongoing expansion of its defense and energy product lines, and support future acquisitions and research and development efforts. The sale follows the January 2026 acquisition of FlackTek, which broadened Graham’s mission‑critical engineered products platform and positioned the company for additional inorganic growth.
Graham’s recent financial performance underscores the strategic timing of the raise. In Q3 of fiscal 2026 (ended December 31, 2025) the company reported revenue of $56.7 million and an adjusted EPS of $0.31, a beat of $0.14 over analyst expectations of $0.17. The company’s Q3 fiscal 2024 results—$49.1 million in revenue and $1.3 million in net income—show a continued upward trajectory, while Q3 fiscal 2023 revenue of $40 million and an EPS of $0.08 illustrate the growth path that the equity sale will help accelerate.
The equity sale comes at a time when Graham’s stock has surged 209 % over the past year and sits near its 52‑week high. With a market capitalization of roughly $1.03 billion and a price‑to‑earnings ratio in the high 60s, the company’s valuation reflects investor confidence in its record backlog, particularly from U.S. Navy defense contracts, and its expanding positions in small nuclear and cryogenics markets.
"We are pleased to welcome T. Rowe Price as a long‑term partner and shareholder. This investment underscores the strength of the Graham platform and our positioning across attractive, growing end markets. The proceeds from this stock sale enhance our financial flexibility and support our disciplined capital allocation strategy for us to continue to drive long‑term shareholder value," said Matthew J. Malone, President and CEO of Graham.
The equity raise provides Graham with the liquidity to pursue additional acquisitions, invest in R&D, and maintain a robust capital allocation strategy. By reducing leverage and increasing cash reserves, the company is better positioned to capitalize on opportunities in defense, energy, and space sectors, while also maintaining the flexibility to respond to market dynamics and pursue strategic growth initiatives.
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