Press release:
Graham Corporation (NYSE: GHM), a global business that designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries, today reported financial results for its fourth quarter and full fiscal year ended March 31(“fiscal 2021”).
The Company separately announced that today it has completed the acquisition of Barber-Nichols Inc. (“BNI”), a specialty turbomachinery designer and manufacturer for total consideration of $70 million, subject to customary working capital adjustments.
James R. Lines, Graham’s president and chief executive officer, said, “Overall, we had a solid year, slightly exceeding our expectations as short cycle sales were stronger than expected in the quarter. As we look back at fiscal 2021, I believe that the results of our persistent efforts to diversify our business as we continue to focus on becoming a more significant defense industry supplier were apparent, with 25 percent of revenue generated by sales to the U.S. Navy.
"While orders still indicate a weak environment in our energy and petrochemical markets, our strong backlog reflects $69.2 million of U.S. Navy orders received in fiscal 2021. We now have $104 million of firm backlog related to the U.S. Navy. This strong backlog, combined with the acquisition of Barber-Nichols, significantly advances our diversification strategy into the defense industry.
"BNI will be immediately accretive to fiscal 2022 earnings and expand our top line by 50 percent. We are excited to welcome the BNI team to Graham and look forward to working together for continued growth.”
- Orders were for the year were $121.6 million including $69.2 million from the defense industry.
- Backlog at fiscal year-end was $137.6 million; 76 percent of backlog was for the defense industry.
- Graham furthers strategic diversification into defense industry with $70 million acquisition of Barber-Nichols Inc., a specialty turbomachinery company.
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To participate in today's Earnings teleconference call at 11 a.m. ET, dial (201) 689-8560.
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