Russell Stanley's questions to GRAHAM (GHM) leadership • Q1 2026
Question
Russell Stanley from Beacon Securities inquired about the sustainability of the high Q1 EBITDA margins, potential future headwinds, the growth opportunity in defense aftermarket sales, and the timing of a recent torpedo program order.
Answer
CFO Chris Thome attributed the strong EBITDA margin to a favorable sales mix with a high percentage of aftermarket work (20% of sales), noting he expects a return to a more normalized level, thus reiterating full-year guidance. CEO Matthew Malone highlighted the defense aftermarket opportunity in fleet maintenance for existing submarines and spare parts for torpedo programs. Thome clarified the new torpedo order would be booked in Q2.