Graham Corporation Awarded Over $20 Million in Orders Across Diverse Industries Quarter-to-Date
25 August 2021 - 6:23AM
Business Wire
- Order volume developing momentum in second quarter fiscal
2022
- Approximately $10.0 million in awards were related to the
Company’s defense/space industry platform
- Project wins included $1.2 million for the design and
development of specialized cooling pumps for Space
applications
- Approximately $6.9 million of orders were related to the
Company’s energy and chemical/petrochemical industry platform with
another $1.0 million in advanced energy
- Also received a $1.0 million order for surface condensers
for an HVAC application
Graham Corporation (NYSE: GHM), a global business that designs,
manufactures and sells critical equipment for the defense/space,
energy and chemical/petrochemical industries, today announced that
it has been awarded over $20 million in orders to date in its
second quarter of fiscal 2022, which ends September 30, 2021. The
orders spanned the Company’s key defense/space, energy and
chemical/petrochemical markets, as well as included advanced energy
applications and HVAC.
Daniel J. Thoren, President and COO, commented, “We are seeing
building demand for our technological expertise in specialty
turbomachinery in the defense/space industry which we believe is
key to our growth strategy. While several of the wins are for new
product design and development, we also have received orders for
replacement parts and overhauls demonstrating we are now supporting
the full lifecycle of our products. We believe this is confirmation
of our strategy to leverage our strong engineering expertise for
critical applications and grow our market presence in industries
with solid secular growth trends.”
He added, “It is encouraging to see order volume in our
traditional refining and chemical/petrochemical markets improve
even modestly after several quarters of weakness throughout last
year. Meanwhile, we are playing an important part in our customer’s
advanced energy technology development for hydrogen applications
with our heat exchange and turbomachinery products.”
The defense industry awards were $2.6 million in orders for both
replacement parts of existing programs and new product development
for advancing programs serving unmanned undersea vehicles. The
Company also received $5.2 million in awards to support submarine
ejection systems.
Approximately 40% of the revenue related to the approximately
$20 million in awards is expected to be recognized in fiscal 2022,
which ends March 31, 2022. Approximately 50% of the revenue is
expected to be recognized in fiscal 2023 with the remainder
expected in fiscal 2024.
These orders support the Company’s revenue guidance for fiscal
2022, with revenue expected to be in the range of $130 million to
$140 million. Approximately 45% to 50% of fiscal 2022 revenue is
expected to be from the defense industry.
Mr. Thoren concluded, “While order flow for our business can be
variable given the relative size of orders we receive, we are
encouraged with the momentum that appears to be building and are
excited about the pipeline of opportunities that we have to
pursue.”
ABOUT GRAHAM CORPORATION Graham is a global business that
designs, manufactures and sells critical equipment for the
defense/space, energy and advanced energy and
chemical/petrochemical industries. The Graham and Barber-Nichols’
global brands are built upon world-renowned engineering expertise
in vacuum and heat transfer, cryogenics, and turbomachinery
technologies, as well as the Company’s responsive and flexible
service and unsurpassed quality.
Graham routinely posts news and other important information on
its website, www.graham-mfg.com, where additional comprehensive
information on Graham Corporation and its subsidiaries can be
found.
Safe Harbor Regarding Forward Looking Statements This
news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are subject to risks, uncertainties and
assumptions and are identified by words such as “expects,”
“estimates,” “confidence,” “projects,” “typically,” “outlook,”
“anticipates,” “indicates”, “believes,” “appears,” “could,”
“opportunities,” “seeking,” “plans,” “aim,” “pursuit,” “look
towards” and other similar words. All statements addressing
operating performance, events, or developments that Graham
Corporation expects or anticipates will occur in the future,
including but not limited to, expected expansion and growth
opportunities within its defense and energy markets, anticipated
revenue, the timing of conversion of backlog to sales, order
momentum and demand for our products, market presence, profit
margins, tax rates, foreign sales operations, its ability to
improve cost competitiveness and productivity, customer
preferences, changes in market conditions in the industries in
which it operates, the effect on its business of volatility in
commodities prices, including, but not limited to changes in
general economic conditions and customer behavior, forecasts
regarding the timing and scope of the economic recovery in its
markets, its acquisition and growth strategy are forward-looking
statements. Because they are forward-looking, they should be
evaluated in light of important risk factors and uncertainties.
These risk factors and uncertainties are more fully described in
Graham Corporation’s most recent Annual Report filed with the
Securities and Exchange Commission, including under the heading
entitled “Risk Factors,” its quarterly reports on Form 10-Q, and
other filings it makes with the Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize or
should any of Graham Corporation’s underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on
Graham Corporation’s forward-looking statements. Except as required
by law, Graham Corporation disclaims any obligation to update or
publicly announce any revisions to any of the forward-looking
statements contained in this news release.
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version on businesswire.com: https://www.businesswire.com/news/home/20210824005686/en/
Jeffrey F. Glajch Vice President - Finance and CFO Phone: (585)
343-2216 jglajch@graham-mfg.com
Deborah K. Pawlowski Kei Advisors LLC Phone: (716) 843-3908
dpawlowski@keiadvisors.com
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