Graham Corp (GHM) 2025 Q3 法說會逐字稿

Greetings, and welcome to the Graham Corporation fiscal third-quarter 2025 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加 Graham Corporation 2025 財年第三季財務業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce Tom Cook, Managing Director at ICR. Please go ahead.

現在我很高興介紹 ICR 董事總經理湯姆庫克 (Tom Cook)。請繼續。

Thank you, Paul, and good morning everyone. Welcome to Graham's fiscal third-quarter 2025 earnings call. With me on the call today are Dan Thoren, CEO; Chris Thome, Chief Financial Officer; and Matt Malone, President and Chief Operating Officer.

謝謝你，保羅，大家早安。歡迎參加 Graham 2025 財年第三季財報電話會議。今天與我一起參加電話會議的還有執行長 Dan Thoren； Chris Thome，財務長；以及總裁兼營運長馬特馬龍 (Matt Malone)。

This morning, we released our financial results. Our earnings release and accompanying presentation to today's call are available on our website at ir.grahamcorp.com.

今天早上，我們發布了財務業績。我們的收益報告和今天電話會議的隨附演示文稿可在我們的網站 ir.grahamcorp.com 上找到。

You should be aware that we may make forward-looking statements during the formal discussion, as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties and other factors provided in the earnings release, as well as with other documents, are filed by the company with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov.

您應該知道，我們可能會在正式討論以及問答環節中做出前瞻性陳述。這些聲明適用於受風險和不確定性影響的未來事件，以及可能導致實際結果與今天所述結果有重大差異的其他因素。收益報告中以及其他文件中提供的這些風險和不確定性和其他因素均由公司向美國證券交易委員會提交。您可以在我們的網站或 sec.gov 上找到這些文件。

During today's call, we will also discuss non-GAAP financial measures. We believe these will be useful in evaluating our performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides.

在今天的電話會議上，我們還將討論非公認會計準則財務指標。我們相信這些將有助於評估我們的表現。然而，您不應孤立地看待這些附加資訊的呈現，也不應將其視為根據 GAAP 編制的結果的替代品。我們在今天的發布和幻燈片附帶的表格中提供了非 GAAP 指標與可比較 GAAP 指標的對帳表。

We also use key performance indicators to help gauge the progress and performance of the company. These key performance metrics are orders, backlog, and book-to-bill ratio. These are operational measures, and a quantitative reconciliation of each of this is not required or provided. You can find a disclaimer regarding our use of KPIs at the back of today's presentation.

我們也使用關鍵績效指標來幫助衡量公司的進展和績效。這些關鍵績效指標是訂單、積壓訂單和訂單出貨比。這些都是操作措施，不需要或提供每項措施的定量協調。您可以在今天的簡報的背面找到有關我們使用 KPI 的免責聲明。

So with that, if you'll please advance to slide 3, I'll turn it over to Dan to begin. Dan?

因此，請您翻到投影片 3，我將把它交給 Dan 開始。擔？

Thanks, Tom, and good morning, everyone. Many of you likely saw the press release we issued yesterday morning regarding our leadership succession plan. I'm excited to share additional details, but first, I will spend a minute on our third-quarter results before Matt covers our operations and Chris walks you through our financials.

謝謝，湯姆，大家早安。你們中的許多人可能看到了我們昨天早上發布的有關領導繼任計劃的新聞稿。我很高興與大家分享更多細節，但首先，我將花一點時間介紹我們的第三季業績，然後 Matt 會介紹我們的營運情況，Chris 會向您介紹我們的財務狀況。

So we're on slide 3. We continue to deliver steady growth across the business. Revenue for the quarter was $47 million, marking a 7.3% increase over the prior year period. We saw strength across our key end markets, with defense notably up 11%. Our gross margin improved by 260 basis points, reaching 24.8% of sales, driven by leverage on higher volume, favorable mix, and improving execution.

現在我們來看投影片 3。我們的業務持續實現穩步成長。本季營收為 4,700 萬美元，較去年同期成長 7.3%。我們的主要終端市場表現強勁，其中國防業務成長尤其顯著，達到 11%。由於銷售增加、產品組合有利以及執行力提升，我們的毛利率提高了 260 個基點，達到銷售額的 24.8%。

And finally, our adjusted EBITDA margin expanded by 180 basis points to 8.6% of sales. This margin expansion translated into meaningful bottom-line growth, reinforcing our focus on high margin opportunities and solid execution throughout the business. Overall, I am very pleased with our performance in the fiscal third quarter, which reflects the hard work of our entire Graham team has undertaken over the last several years.

最後，我們的調整後 EBITDA 利潤率擴大了 180 個基點，達到銷售額的 8.6%。利潤率的提高轉化為有意義的底線成長，強化了我們對高利潤機會的關注以及整個業務的穩健執行。總體而言，我對我們第三財季的表現非常滿意，這反映了我們整個 Graham 團隊在過去幾年中的辛勤工作。

Looking ahead, I could not be more excited about the future. The long-term demand environment is extremely favorable, with our proprietary and highly engineered product portfolio enabling us to capture additional opportunities while furthering Graham's global reach. We continue to focus internally on improving our operations, engaging with key stakeholders, and implementing best practices across the organization.

展望未來，我感到無比興奮。長期需求環境極為有利，我們專有且高度工程化的產品組合使我們能夠抓住更多機會，同時進一步擴大 Graham 的全球影響力。我們將繼續致力於內部改善營運、與關鍵利害關係人合作以及在整個組織內實施最佳實踐。

Turning to slide 4. As we announced yesterday, we are implementing a thoughtfully structured two-phase leadership transition that has been thoroughly evaluated and approved by our Board over the last 18 months. On February 5, Matt Malone was appointed President and Chief Operating Officer, while Mike Dixon has been promoted to General Manager of Barber-Nichols.

翻到幻燈片 4。正如我們昨天宣布的那樣，我們正在實施經過深思熟慮的兩階段領導層過渡，這一過渡在過去 18 個月中已經過董事會的全面評估和批准。2 月 5 日，Matt Malone 被任命為總裁兼營運官，而 Mike Dixon 則晉升為 Barber-Nichols 總經理。

In the second phase, effective June 10, I will transition to Executive Chairman, focusing on strategic advisory and business development initiatives, while Matt will assume the CEO role and is expected to join our Board. At that time, Mike Dixon will be promoted to Vice President of Graham Corporation while continuing his leadership of Barber-Nichols, and Jonathan Painter will transition to Lead Independent Director. These appointments reflect our ability to develop and promote internal talent, ensuring continuity in our strategic vision while positioning us for future growth opportunities.

在第二階段，從 6 月 10 日起，我將轉任執行董事長，專注於策略諮詢和業務發展計劃，而 Matt 將擔任執行長一職，並有望加入我們的董事會。屆時，Mike Dixon 將晉升為 Graham Corporation 的副總裁，同時繼續領導 Barber-Nichols，而 Jonathan Painter 將轉任首席獨立董事。這些任命反映了我們培養和提拔內部人才的能力，確保了我們策略願景的連續性，同時為我們未來的成長機會做好準備。

I am pleased that Matt will be stepping into the role of CEO. Matt has demonstrated exceptional leadership as General Manager of Barber-Nichols since 2021, delivering impressive results, including 9% compound annual revenue growth, and achieving double-digit revenue growth in each of the last two years.

我很高興馬特將擔任執行長一職。馬特自 2021 年擔任 Barber-Nichols 總經理以來，表現出卓越的領導能力，取得了令人矚目的成績，包括 9% 的複合年收入增長，並且在過去兩年中每年都實現了兩位數的收入增長。

Throughout his tenure, Matt has maintained full P&L responsibility while playing an integral role in our corporate strategic planning. I think it's important to highlight that we have done this transition before, when Matt took over Barber Nichols when I became CEO of Graham, and myself and the Board have full confidence in his abilities.

在任職期間，馬特一直承擔全部損益責任，同時在我們的企業策略規劃中扮演不可或缺的角色。我認為需要強調的是，我們以前就經歷過這樣的過渡，當我成為 Graham 的執行長時，馬特接管了 Barber Nichols，我和董事會對他的能力充滿信心。

Additionally, I'm happy to announce that Mike Dixon will be assuming leadership of Barber-Nichols. Mike brings deep industry experience, product expertise, and institutional knowledge that make him ideally suited for this role.

此外，我很高興地宣布，邁克·迪克森 (Mike Dixon) 將擔任 Barber-Nichols 的領導。Mike 擁有豐富的行業經驗、產品專業知識和機構知識，這些知識使他非常適合擔任這一職位。

From a personal standpoint, it's been a pleasure to lead Graham for nearly four years as CEO and Barber-Nichols for 24 years prior to that. I look forward to this next phase of my career, which will require less time away from my family and enable me to focus on what I enjoy, which is business development and strategy. Over the next several months, I will be focused on a seamless transition and will continue to be a resource for the company beyond that and actively engaged.

從個人角度而言，我很榮幸擔任 Graham 的執行長近四年，並在此之前擔任 Barber-Nichols 的執行長 24 年。我期待著職業生涯的下一個階段，這將減少我離開家人的時間，讓我能夠專注於我喜歡的事情，即業務發展和策略。在接下來的幾個月裡，我將專注於無縫過渡，並將繼續為公司提供資源並積極參與。

Now, I will turn it over to Matt who will provide more insight into our recent growth initiatives. Matt?

現在，我將把話題交給馬特，他將更深入地介紹我們最近的成長計畫。馬特？

Thank you, Dan, and good morning, everyone. I am truly grateful for the trust placed in me by Dan, the Board, and our entire organization. Having worked closely with the entire executive team and the Board on developing and executing our strategic plan over the last couple of years, I am energized to lead Graham into its next chapter of growth.

謝謝你，丹，大家早安。我由衷感謝丹、董事會以及整個組織對我的信任。在過去的幾年裡，我與整個執行團隊和董事會密切合作，制定並執行了我們的策略計劃，我充滿活力地帶領 Graham 進入新的發展篇章。

Our strategic plan remains firmly in place as the team and I continue tremendous potential to build on our strong foundation through a robust sales pipeline, operational improvement initiatives, and opportunities in adjacent markets. We continue to believe in this strategy and are fully committed to executing it while driving sustainable growth.

我們的策略計畫依然堅定不移，我和團隊繼續發揮巨大潛力，透過強大的銷售管道、營運改善舉措和鄰近市場的機會，鞏固我們的基礎。我們繼續相信這項策略，並全力致力於執行這項策略，同時推動永續成長。

Our success has always been rooted in our talented team, strong customer relationships, and commitment to technology and operational excellence. I look forward to working with our entire organization to capture the significant opportunities that lie ahead and, importantly, providing our customers with leading quality products and service.

我們的成功始終植根於我們優秀的團隊、強大的客戶關係以及對技術和卓越營運的承諾。我期待與我們整個組織合作，抓住未來的重大機遇，並且重要的是，為我們的客戶提供領先優質的產品和服務。

I'd like to spend a minute providing an operational update on a couple of key projects we recently announced. Starting with our new Batavia manufacturing facility, we are excited to announce that the construction of the Graham facility is progressing well and remains on schedule for completion in June of this year. This 29,000-square-foot expansion will significantly enhance our manufacturing capabilities and capacity for naval defense work. This expansion will support our planned growth and continue to strengthen our position as a key supplier to the US Navy.

我想花一點時間來介紹我們最近宣布的幾個關鍵項目的營運最新情況。從我們新的巴達維亞製造工廠開始，我們很高興地宣布，格雷厄姆工廠的建設進展順利，並按計劃於今年 6 月完工。這一29,000平方英尺的擴建將大大增強我們的製造能力和海軍防禦工作能力。此次擴張將支持我們的計劃成長，並繼續鞏固我們作為美國海軍主要供應商的地位。

Turning to our state-of-the-art cryogenic propellant test facility, this facility is continuing to progress towards construction and will provide a scalable, cost-effective alternative to existing centers. The facility will serve critical programs needing timely, specialized testing solutions for liquid hydrogen, liquid oxygen, and liquid methane across space, defense, new energy, and potentially even medical applications. We are expecting initial testing to begin by mid-calendar year 2025.

談到我們最先進的低溫推進劑測試設施，該設施正在繼續建設中，並將為現有中心提供可擴展、經濟高效的替代方案。該設施將服務於太空、國防、新能源甚至醫療應用領域中需要及時、專業化測試液態氫、液態氧和液態甲烷的關鍵項目。我們預計初步測試將於 2025 年中期開始。

These initiatives, coupled with our investments in R&D and focus on operational excellence, will help drive our long-term growth forward.

這些舉措，加上我們在研發方面的投資和對卓越營運的關注，將有助於推動我們的長期成長。

With that, I will turn it over to Chris for third-quarter financial details. Chris?

說完這些，我將把第三季的財務細節轉交給克里斯。克里斯？

Thanks, Matt, and good morning, everyone.

謝謝，馬特，大家早安。

I will begin my review of results on slide 5. Sales for the quarter totaled $47 million, a 7.3% increase over last year. This was driven by growth across our key end markets, including chemical/petrochemical, space, defense, and the commercial aftermarket. These increases were partially offset by lower refining revenue due to the timing of projects. Our growth was supported by the expansion of new defense programs, improved pricing and execution, and the timing of projects.

我將從第 5 張投影片開始審查結果。本季銷售額總計 4,700 萬美元，比去年同期成長 7.3%。這是由我們主要終端市場的成長所推動的，包括化學/石化、航太、國防和商業售後市場。由於專案時間安排導致煉油收入下降，部分抵消了這些成長。我們的成長得益於新國防計劃的擴展、定價和執行的改善以及專案的時間表。

Further, we are observing continued strength in our aftermarket revenue, which was up 2.4% over the record levels of last year. As a reminder, the third quarter of our fiscal year is typically our lowest revenue quarter, reflecting the holiday season and increased levels of vacation.

此外，我們觀察到售後市場收入持續強勁成長，比去年的歷史最高水準成長了 2.4%。提醒一下，我們財政年度的第三季度通常是我們收入最低的季度，這反映了假期和休假水平的增加。

Turning to slide 6, our gross margin for the quarter expanded 260 basis points to 24.8%. This improvement was primarily driven by higher sales volume, a favorable project mix, enhanced pricing, and better execution. This was partially offset by higher incentive compensation.

轉到投影片 6，我們本季的毛利率擴大了 260 個基點，達到 24.8%。這項改善主要得益於銷售量的增加、有利的專案組合、定價的提高以及更好的執行力。這被更高的激勵薪酬部分抵消。

Our gross profit for the quarter also benefited $254,000, or roughly 50 basis points, from the BlueForge Alliance welder training grant we announced in July. As a reminder, The BlueForge Alliance is a nonprofit that supports the US Navy's submarine industrial base. This $2.1 million grant supports our defense welder training program in Batavia and funds related equipment. To date, we have received $1.5 million of funding under this grant and expect to recognize the balance in the next two quarters. We are grateful for this partnership as we expand our capabilities and talent pipeline.

我們本季的毛利也受惠於我們 7 月宣布的 BlueForge Alliance 焊工培訓補助金 254,000 美元，約 50 個基點。提醒一下，BlueForge Alliance 是一個支援美國海軍潛艇工業基地的非營利組織。這筆210萬美元的撥款支持我們在巴達維亞的國防焊工培訓計畫並資助相關設備。到目前為止，我們已收到該項撥款 150 萬美元，預計將在接下來的兩個季度內收到餘額。我們非常感謝這次合作，因為這將拓展我們的能力和人才管道。

Turning to slide 7, you can see the strength of our earnings from the quarter and on a more historical basis. GAAP net income for the third quarter reached $1.6 million, a $1.4 million increase from the same period of fiscal 2024, translating to $0.14 per diluted share. On an adjusted basis, our net income grew $515,000 to $0.18 per diluted share, a 38% increase on a per share basis over the prior year.

翻到第 7 張投影片，您可以看到我們本季的獲利強勁，並且更具歷史意義。第三季 GAAP 淨收入達 160 萬美元，較 2024 財年同期增加 140 萬美元，相當於每股攤薄收益 0.14 美元。經調整後，我們的淨收入成長 51.5 萬美元至每股攤薄收益 0.18 美元，比上年每股收益成長 38%。

Similarly, our adjusted EBITDA, which totaled $4 million for the third quarter, increased 36% over the prior year and was 8.6% of sales for the quarter. This adjusted EBITDA margin represented a 180-basis-point improvement over the prior year.

同樣，我們第三季的調整後 EBITDA 總計 400 萬美元，較上年同期成長 36%，佔本季銷售額的 8.6%。調整後的 EBITDA 利潤率較上年同期提高了 180 個基點。

While our SG&A expenses increased this quarter by $0.9 million, this rise was primarily due to our strategic investments in our people, our processes, and our technologies. This included costs associated with the implementation of a new ERP system at our Batavia facility, an increased level of R&D spend, as well as increased costs of having a full quarter of P3 Technologies in our results that was acquired in November of 2023.

雖然本季我們的銷售、一般及行政費用增加了 90 萬美元，但這一增長主要歸因於我們對人員、流程和技術的策略性投資。這包括在我們巴達維亞工廠實施新 ERP 系統相關的成本、增加的研發支出，以及在我們的業績中包含 2023 年 11 月收購的 P3 Technologies 整整四分之一的成本增加。

Overall, these investments position us well for future growth and support our long-term objectives. I should also point out that the supplemental performance bonus from the Barber-Nichols acquisition was $1.1 million during the quarter, or approximately 230 basis points of revenue, and will be completed at the end of fiscal 2026.

總體而言，這些投資為我們未來的成長做好了準備，並支持了我們的長期目標。我還要指出的是，收購 Barber-Nichols 帶來的補充績效獎金在本季為 110 萬美元，約佔營收的 230 個基點，並將於 2026 財年末完成。

Our effective tax rate for the quarter was 29% and 20% for the year-to-date period, and can vary from quarter to quarter depending on the level and the amount of projected income from our higher tax rate foreign subsidiaries, as well as the timing of discrete items. The decrease in our effective tax rate for the first nine months of fiscal 2025 versus the prior year was primarily due to a discrete tax benefit recognized in the first quarter of fiscal 2025 related to the vesting of restricted stock awards, partially offset by return to provision adjustments recognized in the third quarter of fiscal 2025 due to changes in estimates. For the full year, we continue to expect our effective tax rate to be between 20% and 22%.

我們本季的有效稅率為 29%，年初至今的有效稅率為 20%，且每季可能會有所不同，具體取決於我們高稅率外國子公司的預計收入水準和金額，以及單一項目的時間。2025 財年前九個月的有效稅率較上年同期下降，主要由於 2025 財年第一季度確認的與限制性股票獎勵歸屬相關的單獨稅收優惠，但因估計變動導致 2025 財年第三季度確認的撥備調整回報部分抵消了這一影響。就全年而言，我們繼續預期有效稅率在 20% 至 22% 之間。

Turning to slide 8, you can see that our balance sheet remains strong with $30 million in cash and no outstanding debt at the end of the quarter. Additionally, we have $43 million available on our revolving credit facility, which provides us with significant financial flexibility to pursue our strategic growth initiatives.

翻到第 8 頁，您可以看到我們的資產負債表依然強勁，本季末擁有 3,000 萬美元現金，沒有未償還債務。此外，我們擁有 4,300 萬美元的循環信貸額度，這為我們實施策略成長計畫提供了極大的財務靈活性。

For the quarter, our capital expenditures totaled $7.3 million and are focused on capacity expansion, increasing our capabilities, and productivity enhancements, including investments in automated welding equipment and new machining centers. For fiscal 2025, we now expect capital expenditures to be in the range of $15 million to $19 million from the previous $13 million to $18 million that we guided to last quarter.

本季度，我們的資本支出總計 730 萬美元，主要用於擴大產能、提高能力和提高生產力，包括對自動焊接設備和新加工中心的投資。對於 2025 財年，我們預計資本支出將在 1500 萬美元至 1900 萬美元之間，高於上個季度預測的 1300 萬美元至 1800 萬美元。

This includes several major projects that are all on time and on budget and included our opportunistic land purchase in Arvada, Colorado, where we plan to expand Barber-Nichols operations in fiscal 2026. It also includes our cryogenic propellant testing facility, which remains on track to open in mid-2025, and our customer-supported defense expansion in Batavia, New York, which will support accelerated US Navy shipbuilding schedules and is also slated to open in mid-2025.

其中包括幾個按時、按預算完成的重大項目，還包括我們在科羅拉多州阿瓦達的機會性土地購買，我們計劃在 2026 財年在那裡擴大 Barber-Nichols 的業務。它還包括我們的低溫推進劑測試設施，該設施仍有望於 2025 年中期開放，以及我們位於紐約巴達維亞的客戶支持的國防擴建項目，該擴建項目將支持加速美國海軍造船進度，也計劃於 2025 年中期開放。

In pursuing these strategic growth initiatives, on a go-forward basis, we expect CapEx spend to be between 7% to 10% of revenue for the next several years, which includes maintenance CapEx of approximately $2 million per year. I would also like to remind everyone that all of the major capital investments we are pursuing have a return on investment that is greater than 20%.

在推行這些策略性成長計畫時，我們預計未來幾年的資本支出將佔收入的 7% 至 10%，其中包括每年約 200 萬美元的維護資本支出。我還想提醒大家，我們正在進行的所有重大資本投資的投資報酬率都超過20%。

Turning to slide 9, as expected, given the level of orders earlier in the fiscal year and the lumpiness of our business orders, orders declined to $24.8 million for the quarter. However, orders for the nine-month period ended December 31, 2024, were $144.2 million and equated to a book-to-bill ratio of 1 times revenue.

轉到投影片 9，正如預期的那樣，考慮到本財年早些時候的訂單水準以及我們業務訂單的不穩定性，本季的訂單下降至 2,480 萬美元。然而，截至 2024 年 12 月 31 日的九個月期間的訂單為 1.442 億美元，相當於訂單出貨比為收入的 1 倍。

Aftermarket orders for the refining, petrochemical, and defense markets remained robust and totaled $13 million for the third quarter of fiscal 2025, an increase of 51% over the prior year. I am also pleased to report that the response to our next-gen nozzle launched in October has been very positive, and we have just received our second order. We are actively pursuing multiple additional opportunities, both domestically and internationally, based upon our customers' shutdown schedules and the attractiveness of our customers of this product, given the significant energy and cost savings it delivers.

煉油、石化和國防市場的售後訂單保持強勁，2025 財年第三季總額達 1,300 萬美元，較上年增長 51%。我還很高興地報告，我們十月推出的下一代噴嘴的反應非常積極，我們剛剛收到了第二份訂單。根據客戶的停工計劃以及該產品對客戶的吸引力（因為該產品可以顯著節省能源和成本），我們正在國內和國際上積極尋求多種額外機會。

Orders for the first nine months of fiscal 2025 benefited from the large orders announced earlier in this year that included a contract to provide cryogenic pumps for a space launch vehicle and a contract to provide the MK19 Air Turbine Pump for the US Navy Columbia-class submarine, which is a new program for us. It also included a follow-on order for the second option year of alternators and regulators for the US Navy MK48 torpedo program, as well as an order for a three-surface condenser system for the world's first net-zero carbon emissions integrated ethylene cracker located in North America.

2025財年前九個月的訂單受益於今年稍早宣布的大額訂單，其中包括為航太運載火箭提供低溫泵的合同和為美國海軍哥倫比亞級潛艇提供MK19空氣渦輪泵的合同，這對我們來說是一個新項目。它還包括為美國海軍MK48魚雷計畫提供交流發電機和調節器的第二個選擇年的後續訂單，以及為位於北美的世界上第一個淨零碳排放綜合乙烯裂解裝置提供三表面冷凝器系統的訂單。

Slide 9 also highlights our significant backlog, which totaled $385 million as of December 31, due to our strong market position. This backlog continues to provide us with excellent visibility into the future and ensures a high degree of operational stability. This backlog is being anchored by our defense business, which represented 80% of our backlog at December 31.

第 9 頁也重點介紹了我們大量的積壓訂單，由於我們強大的市場地位，截至 12 月 31 日，積壓訂單總額達到 3.85 億美元。這些積壓訂單繼續為我們提供了極佳的未來可視性，並確保了高度的營運穩定性。這項積壓訂單主要由我們的國防業務支撐，截至 12 月 31 日，國防業務占我們積壓訂單的 80%。

Also noteworthy is that our space backlog increased 59% over last year, or nearly $7 million. We expect approximately 45% to 50% of our backlog to convert to sales within the next 12 months, with an additional 35% to 40% projected for conversion over the following 12 months. The majority of the backlog anticipated to convert beyond 12 months are from the defense sector, which are longer term in nature.

同樣值得注意的是，我們的空間積壓訂單比去年增加了 59％，即近 700 萬美元。我們預計，約 45% 至 50% 的積壓訂單將在未來 12 個月內轉化為銷售，另外預計 35% 至 40% 的訂單也將在未來 12 個月內轉化為銷售。預計轉換期限超過 12 個月的積壓訂單大部分來自國防部門，這些訂單的期限較長。

On slide 9 (sic - slide 10), we are refining our guidance for fiscal 2025 from what we provided last quarter. We continue to anticipate revenue to be between $200 million and $210 million, which reflects projected top-line growth of 11% over fiscal 2024 at the midpoint of this range. Additionally, we continue to expect our adjusted EBITDA to be between $18 million and $21 million, implying 47% growth over the prior year and a 9.5% margin at the midpoint of the range.

在第 9 張投影片（原文如此 - 第 10 張）上，我們正​​在根據上個季度提供的內容完善 2025 財年的指引。我們繼續預期營收將在 2 億美元至 2.1 億美元之間，這反映了預計 2024 財年營收成長率為 11% 的中位數。此外，我們繼續預期調整後的 EBITDA 在 1,800 萬美元至 2,100 萬美元之間，這意味著比上年增長 47%，中間值利潤率為 9.5%。

Based upon the results to date and our better-than-expected gross margins, we are increasing our gross margin guidance to a range of 24% to 25%, which is up from the previously expected 23% to 24%. Other adjustments to our guidance include SG&A expense, which we now expect to be in the range of 18% to 19%, up from 17% to 18% of sales guided to last quarter. This reflects continued investments in our people, our processes, and our technology.

根據迄今為止的業績以及我們好於預期的毛利率，我們將毛利率預期上調至 24% 至 25% 之間，高於先前預期的 23% 至 24%。我們指引的其他調整包括銷售、一般及行政開支，我們目前預計該費用佔銷售額的比例將在 18% 至 19% 之間，高於上一季指引的 17% 至 18%。這反映了我們對員工、流程和技術的持續投資。

With that, I will now turn the call back over to Dan for closing remarks.

說完這些，我現在將電話轉回給丹，請他作最後發言。

Thanks, Chris. On slide 11, we would like to remind everyone of our strategic and operational priorities that will drive our long-term success.

謝謝，克里斯。在第 11 張投影片上，我們想提醒大家，我們的策略和營運重點將推動我們的長期成功。

Our expanded R&D investments and capital programs are powering key growth initiatives with a target return on invested capital exceeding 20% for all of our major investments. These opportunities, coupled with our strong balance sheet, provides us with the flexibility to pursue growth both organically and inorganically as we remain opportunistic for any potential strategic acquisitions.

我們擴大的研發投資和資本計劃正在推動關鍵成長計劃，我們所有重大投資的目標投資報酬率都超過 20%。這些機會加上我們強勁的資產負債表，為我們提供了追求有機和無機成長的靈活性，因為我們對任何潛在的策略性收購都保持著機會。

We are proud of what we have accomplished to date, but we still have a lot of work ahead of us to achieve our fiscal 2027 financial goals of 8% to 10% organic revenue growth per year and low to mid-teen adjusted EBITDA margins. The long-term strategic plan we have in place, coupled with our culture of continuous improvement and our newly expanded executive team led by Matt, gives me great confidence that we will hit those marks.

我們為迄今為止所取得的成就感到自豪，但我們還有很多工作要做，才能實現 2027 財年的財務目標，即每年 8% 至 10% 的有機收入增長和低至中等水平的調整後 EBITDA 利潤率。我們所製定的長期策略計劃，加上我們持續改善的文化和由馬特領導的新擴大的執行團隊，讓我非常有信心我們一定能夠實現這些目標。

With that, we can now open the call for questions.

現在我們就可以開始提問了。

(Operator Instructions) Dick Ryan, Oak Ridge Financial.

（操作員指示）迪克·瑞安（Dick Ryan），橡樹嶺金融（Oak Ridge Financial）。

Thank you. So I'd like to offer my congratulations, Dan, to both you and Matt on the next chapters that you're moving on to within Graham. That sounds like exciting opportunities for both you -- both you guys and the company. So congratulations on that front.

謝謝。因此，丹，我想向你和馬特表示祝賀，祝賀你們在格雷厄姆公司開啟新的篇章。這對你們雙方——無論是你們還是公司——來說都是令人興奮的機會。因此，在這方面我要向你表示祝賀。

Yeah. Thanks, Dick.

是的。謝謝，迪克。

Thank you, Dick.

謝謝你，迪克。

Say, Dan, we continue to hear challenges in the shipbuilding side of the market. I think maybe last call, you indicated that you could see some potential opportunities as some other suppliers run into issues. And then in your news release, you're talking about advanced discussions on new programs or expansions with existing customers. Can you kind of just square the circle on how that dynamic is playing out to you guys?

丹，我們不斷聽到造船業市場的挑戰。我想也許最後一次，你表示你可以看到一些潛在的機會，因為其他一些供應商遇到了問題。然後在您的新聞稿中，您正在與現有客戶就新計劃或擴展進行深入討論。您能否簡單解釋一下這種動態對你們的影響如何？

Yeah. From a Navy discussion point, we have regular program reviews with our customers all the time. And the message that we're getting from our customers is don't get sidetracked by the noise. We have ships to build and we'll take your equipment as soon as you can get it to us. We're not talking about any slowdowns. Just keep it coming.

是的。從海軍討論的角度來看，我們一直與客戶進行定期專案審查。我們從客戶那裡得到的訊息是不要被噪音分散注意力。我們要建造船舶，只要您能將設備交給我們，我們就會立即接收。我們並沒有談論任何減速現象。繼續吧。

And then as we're able to show that we're hitting our delivery schedules and showing that we're able to increase our capacity via additional people, additional floor space, we're in discussions with our customers about what more we can do. Too early to say exactly what those opportunities are and what they'll result in in the future, but it's very positive conversation, very productive conversation. And so we're feeling very good about it.

然後，當我們能夠證明我們正在按時交貨，並證明我們能夠透過增加人員和增加佔地面積來提高產能時，我們正在與客戶討論我們還能做些什麼。現在說這些機會到底是什麼以及它們將來會帶來什麼結果還為時過早，但這是一次非常積極、非常富有成效的對話。因此我們對此感覺非常好。

Okay, good. One other one. On the aftermarket, continue to show some very strong results there. And it wasn't all that long ago that aftermarket was just going after the refining and petrochem side. Now, you expanded it into defense. I mean, the strong growth we're seeing year over year, is that defense kicking in, or is that still too early, or where's the strength coming from in the aftermarket?

好的，很好。還有一個。在售後市場，持續展現出非常強勁的業績。不久前，售後市場還只是專注於煉油和石化領域。現在，你將其擴展至防禦領域。我的意思是，我們看到逐年強勁的成長，這是防禦措施開始發揮作用，還是還為時過早，或是售後市場的實力來自哪裡？

Yeah. I would say the aftermarket still is more on the energy and chemical side. Our customers had told us that domestically they were definitely transitioning over to the maintenance mode. There's still a lot of demand for fuel, refined fuels, and then feedstocks for petrochem. So everybody's trying to keep their plants up, running, and going strong.

是的。我想說售後市場仍然更集中在能源和化學品方面。我們的客戶告訴我們，他們國內肯定正在轉向維護模式。對燃料、精煉燃料以及石化原料的需求仍然很大。因此，每個人都在盡力確保自己的工廠正常運作並強勁發展。

We are seeing some additional inquiries from our installed base internationally. So this next-gen nozzle that we've recently announced and put into a plant here domestically, we've got our international customers now calling and saying, gosh, we're really interested in that. China has a big initiative to reduce their steam consumption, and India, as they continue to grow, they want to see more and more efficiency just because it allows them to grow smarter, faster, and more efficiently. So there's a lot of interest in this next-gen nozzle, and so we're expecting to see even our installed base internationally to really want to start to bring that type of new technology in.

我們看到來自國際安裝基地的一些額外詢問。因此，我們最近宣布並在國內一家工廠投入使用的下一代噴嘴，現在已經接到了國際客戶的電話，他們說，天哪，我們對此真的很感興趣。中國正在大力減少蒸汽消耗，而印度隨著其經濟的持續成長，也希望提高效率，因為這可以幫助他們發展得更聰明、更快、更有效率。因此，人們對這種下一代噴嘴非常感興趣，因此我們期望看到甚至國際上的安裝基地也真正希望開始引入這種新技術。

And then on the defense side, certainly we're seeing especially the US Navy wanting to make sure that they've got their submarines at sea. And so there's been a big push from the Navy to make sure that we're getting this equipment turned around and back to them quickly so that they can maintain availability as high as they can maintain it. So all really strong at this point for aftermarket, Dick, and we're very pleased.

在防禦方面，我們當然看到美國海軍希望確保他們的潛艇能夠在海上航行。因此海軍做出了巨大努力，確保我們能夠迅速將這些設備返還給他們，以便他們可以盡可能保持較高的可用性。所以，迪克，目前售後市場的情況真的很強勁，我們非常高興。

Okay. Just quickly, Chris mentioned a second order for the next-gen nozzle. Was that domestic or international?

好的。克里斯很快就提到了下一代噴嘴的第二個訂單。那是國內的還是國際的？

That one was domestic.

那是國內的。

Okay. Great. Okay, thanks again, guys. Congratulations.

好的。偉大的。好的，再次感謝大家。恭喜。

Russell Stanley, Beacon Securities.

貝肯證券 (Beacon Securities) 的羅素‧史丹利 (Russell Stanley)。

Good morning, and thanks for taking my question. Just given the orderness -- the lumpiness in order flow, which is obviously quite natural if you look historically, I'm wondering where you see your ideal book-to-bill ratio being? Where is the best balance between driving sales growth while ensuring reasonable lead times for customers?

早上好，感謝您回答我的問題。考慮到秩序——訂單流的不均勻性，如果你從歷史角度看，這顯然是很自然的，我想知道您認為理想的訂單出貨比是多少？在推動銷售成長與確保客戶合理交貨時間之間，最佳平衡點在哪裡？

Yeah. So our annual goal, Russell, is to -- as you know, our annual goal is to increase revenue 8% to 10% organically per year, so we always set a sales goal -- an order goal for ourselves of a book-to-bill of 1.1 times, which means that we're continually growing our backlog and our sales by that amount.

是的。因此，拉塞爾，我們年度的目標是——如你所知，我們年度目標是每年有機增加 8% 到 10% 的收入，所以我們總是設定一個銷售目標——訂單目標，即訂單出貨比為 1.1 倍，這意味著我們的積壓訂單和銷售額將持續增加。

As you pointed out, our orders tend to be lumpy and our book-to-bill ratio is 1 times for the year-to-date period. And I would also point out that our order pipeline is very robust at this point in time. It's just lumpy, as you pointed out.

正如您所指出的，我們的訂單往往是不穩定的，年初至今的訂單出貨比為 1 倍。我還要指出的是，目前我們的訂單管道非常強勁。正如您所指出的，它只是有些凹凸不平。

Yeah. And I think, Russ, maybe a little bit more color on that. We are planning on and aligning our future revenue to hit this 1.1, which basically means that we need to be able to recruit the people and to have the facilities ready to support that 1.1% growth. So we're very active in strategic planning and investments in our people, our processes, and our plants to continue to support that. In an ideal world, we're not pushing out deliveries at all, but actually improving deliveries. And so there's a lot of activity on the planning strategic side to be able to support that.

是的。我認為，拉斯，也許可以對此進行更詳細的闡述。我們正在計劃並調整未來的收入以達到 1.1% 的目標，這基本上意味著我們需要能夠招募人才並準備好設施來支持 1.1% 的成長。因此，我們非常積極地進行策略規劃，並對我們的員工、流程和工廠進行投資，以繼續支持這一點。在理想世界中，我們根本不會減少交付，而是實際上改善交付。因此，我們在規劃策略方面開展了大量活動來支持這一點。

And that dovetails, I think, in my next question. The two major shipbuilders just talked to ongoing supply chain challenges and labor challenges, and I'm wondering what you're seeing with -- given your plans, what you're seeing with respect to potential funding, additional funding from BlueForge, given the success you've had to date.

我認為這與我的下一個問題相吻合。兩家大型造船商剛剛談到了正在發生的供應鏈挑戰和勞動力挑戰，我想知道考慮到你們的計劃，考慮到你們迄今為止的成功，你們對潛在資金、來自 BlueForge 的額外資金有何看法。

Yeah. So the government has said that they plan on continuing this supplier development funding for several years still in the future. And we are talking to our customers about where is the next need, where should we be planning to invest ourselves, as well as apply for funds to be able to expand capabilities and capacities.

是的。因此，政府表示，他們計劃在未來幾年繼續提供這項供應商發展資金。我們正在與客戶討論下一步的需求，我們應該計劃在哪裡進行投資，以及申請資金來擴大能力和產能。

So it's an active conversation. We have several proposals in front of our customers today, and we're just kind of waiting for them to sort it through. I mean, they've got a lot of requests and they're just looking at it from a priority and a return on investment kind of perspective. It really helps to have shovel-ready projects, and it really helps to have established training programs in place, which Graham does have. So we're cautiously optimistic that this funding will continue to flow to Graham Corp.

因此這是一場積極的對話。今天，我們向客戶提出了幾項提案，我們正在等待他們進行審查。我的意思是，他們收到了很多請求，他們只是從優先事項和投資回報的角度來看待它。擁有隨時可以開工的課程確實很有幫助，並且制定了培訓計劃也確實很有幫助，而 Graham 確實有這樣的計劃。因此，我們謹慎樂觀地認為這筆資金將繼續流向 Graham Corp。

That's great. That's all for me for now. Thanks again, and congrats on the quarter.

那太棒了。就目前而言，這就是全部了。再次感謝，並恭喜本季取得佳績。

Tony Bancroft, Gabelli Funds.

東尼班克羅夫特（Tony Bancroft），加貝利基金（Gabelli Funds）。

Yes, good morning, gentlemen. Nice job on your performance. I attended a sort of a Marine Corps lecture the other night, and the guest of honor was a senior general essentially discussing the budget and talked about the supplemental potential for the $200 billion supplemental that is being kicked around.

是的，先生們，早安。你的表現很好。前幾天晚上，我參加了一場海軍陸戰隊的講座，嘉賓是一位高級將領，他主要討論預算，並談到了目前正在討論的 2000 億美元補充預算的補充潛力。

Maybe question one is, would you have any exposure? And if so, what kind of exposure to that potential upside above the [$895 billion]? And then on the flip side, what are your thoughts of -- you also talked about the downside of we don't get an April 30 budget, then we go back to, as you know, the 2023 minus 1% and then an impact of the CR, which I've heard the other number being kicked around on the Navy side of like negative almost $4 billion if a CR gets implemented. I know you guys are long term -- you have long-term programs, which is a beautiful thing, but just the impacts, maybe puts and takes on those two dynamics.

也許第一個問題是，你會有任何接觸嗎？如果是這樣，那麼這種潛在上漲空間的曝險又是什麼呢？8950億美元？另一方面，您對此有何看法——您還談到瞭如果我們沒有獲得 4 月 30 日的預算，那麼我們將回到 2023 年減 1% 的水平，然後受到 CR 的影響，我聽說海軍方面正在討論的另一個數字是，如果實施 CR，則將產生負近 40 億美元的影響。我知道你們是著眼長遠的——你們有長期計劃，這是一件美好的事情，但其影響，也許會對這兩種動力產生影響。

Yeah. At that kind of top-line level, it's really kind of hard to understand how it might come down and affect other programs. You're right in that we feel very fortunate that we're involved in some of the most strategic programs that the US Navy has. And so given that we're often funded by advanced procurement types of funding that is spent several years in advance of the actual ship being approved, we feel very, very fortunate that we have some visibility of that.

是的。在這種頂線層面上，真的很難理解它會如何下降並影響其他項目。您說得對，我們非常幸運能夠參與美國海軍一些最具戰略意義的計畫。因此，考慮到我們通常採用高級採購類型的資金資助，這些資金在實際船舶獲得批准前幾年就已投入使用，我們感到非常非常幸運，我們對此有一定的了解。

So the supplemental, if they're going to bump up overall defense spending, that takes pressure off probably all programs. If we go into continuing resolution, it's probably going to put more pressure on those programs that aren't as strategic. Boy, being able to look into that crystal ball and seeing what effect it might have on our specific programs, I'm not good enough to tell you that one.

因此，如果他們要增加整體國防開支，那麼補充資金可能會減輕所有項目的壓力。如果我們繼續決議，可能會對那些不具戰略意義的計畫帶來更大壓力。小子，能夠透過水晶球看到它對我們的特定程序會產生什麼影響，我還不夠資格告訴你這件事。

Got it. That's very helpful. Thank you, and a great job, and congratulations. Dan, Matt, and Mike, looking forward to following with you guys.

知道了。這非常有幫助。謝謝你，幹得很棒，恭喜你。丹 (Dan)、馬特 (Matt) 和邁克 (Mike) 期待與你們一起前進。

Joe Gomes, Noble Capital Markets.

喬‧戈麥斯 (Joe Gomes)，Noble Capital Markets。

Hey, guys. This is Joshua Zoepfel, just filling in for Joe. I just wanted to congratulate you guys, Dan, Matt, and Mike, on the new goals and the transitions. I'm looking forward to seeing where you guys -- how the next story unfolds for you.

嘿，大家好。這是 Joshua Zoepfel，代替 Joe 工作。我只是想祝賀你們，丹、馬特和麥克，實現新的目標和轉變。我期待著看到你們接下來的故事將如何展開。

But I just kind of -- you guys mentioned in your prepared remarks, obviously, going back into the order lumpiness. And just kind of looking just at the defense orders, they kind of seem lower than usually their usual trend. Do you guys really have any kind of additional color, maybe, to why that is?

但我只是有點 — — 你們在準備好的發言中提到，顯然要回到秩序不均的問題上。僅從國防訂單來看，它們似乎比通常的趨勢要低。你們是否真的有任何額外的見解來解釋為什麼會這樣？

Well, certainly, versus the prior year, our orders are down because in the third quarter of last year, we had $100 million in orders related to some follow-on orders for some of our -- the programs we're on. And typically, we'll get some of those once a year. We announced last quarter that we won the Air Turbine Pump for the Columbia-class submarine, as well as the follow-on order for the MK48 torpedoes. So really, just given the long-term nature and the large size of these contracts, it just lends itself to be lumpy. But we're not concerned with the order flow right now in the defense programs.

嗯，當然，與去年相比，我們的訂單有所下降，因為去年第三季度，我們有 1 億美元的訂單與我們正在進行的一些項目的後續訂單有關。通常，我們每年都會得到一些這樣的資訊。我們上個季度宣布，我們贏得了哥倫比亞級潛艇的空氣渦輪泵，以及MK48魚雷的後續訂單。因此，事實上，考慮到這些合約的長期性和規模巨大性，它很容易變得不穩定。但我們目前並不關心國防計畫中的訂單流。

Okay. Yeah, that's helpful. And kind of just moving along, you guys usually mentioned before just current accord targets from M&A side of things. Can you guys tell me a little bit, maybe, progression on that front, how the kind of market's looking, obviously, with the new administration coming in, not even a month ago? So just a little bit of an update on that front.

好的。是的，這很有幫助。繼續說下去，你們通常會提到目前從併購方面達成的協議目標。你們能否告訴我這方面的一些進展，顯然，在新政府上台不到一個月的情況下，市場狀況如何？關於這方面我們只做一點點更新。

Yeah, maybe expand your question just a little bit more.

是的，也許可以稍微擴充一下你的問題。

Oh, I just wanted to see if you're seeing any potential targets, maybe, on the M&A side that you guys have maybe looked at.

哦，我只是想看看您是否看到任何潛在目標，也許，在您可能已經關注過的併購方面。

Okay. Yeah, so we have a pretty active M&A program going right now. We put out a target description of the types of companies that we're looking for, and we're actively on the road talking to different companies about what their plan is, their openness to acquisition, et cetera. So I would say that it's actually fairly active.

好的。是的，我們現在有一個非常活躍的併購計劃。我們對我們正在尋找的公司類型進行了目標描述，我們正在積極地與不同的公司交談，了解他們的計劃、他們對收購的開放程度等等。因此我想說它實際上是相當活躍的。

I can't really comment on the pipeline per se, but generally, we really like engineered product. We like companies that have engineered product that have some kind of an IP moat, some kind of a technology moat. And then what that allows you to do is really reinvent yourself. So if you're capable of upgrading product and improving its performance, that's -- long term, that's a great place to be.

我實際上無法對管道本身發表評論，但總的來說，我們真的很喜歡工程產品。我們喜歡那些設計出擁有某種智慧財產權護城河、某種技術護城河的產品的公司。然後這可以讓你真正重塑自我。因此，如果您有能力升級產品並提高其性能，那麼從長遠來看，這是一個很好的機會。

So that innovation, that ability to reinvent yourself through engineered product and then manufacturing that same product is also a nice place to be. Once you have it, installed base, then you've got the aftermarket that goes with that. So if you kind of painted the picture of the type of company we're looking for, it's a company that ultimately enables us to continue to look at the full life cycle of the product with our customers. It allows us to get in very early in the conceptual design phase and then support them all the way through with aftermarket.

所以，創新，透過工程產品重塑自我並製造相同產品的能力也是一件好事。一旦你擁有了安裝基礎，那麼你就擁有了一個與之相配的售後市場。因此，如果您能描述我們正在尋找的公司類型，那麼這家公司最終能夠讓我們繼續與客戶一起關注產品的整個生命週期。它使我們能夠在概念設計階段儘早介入，然後在整個售後市場為他們提供支援。

We had stated earlier that we were kind of looking for companies as small as maybe $10 million in revenue up to a size of like the Barber-Nichols type of an acquisition, so there's $70 million or $80 million. And as Chris talked about earlier, we've got a very strong balance sheet to be able to go after those types of acquisitions. So again, active there. We're on the road talking to companies that fit those attributes and in pipelines too early to really talk about what's there today.

我們之前曾說過，我們正在尋找收入規模小到 1,000 萬美元、大到 Barber-Nichols 那種規模的收購公司，所以收購金額為 7,000 萬美元或 8,000 萬美元。正如克里斯之前所說，我們擁有非常強大的資產負債表，能夠進行此類收購。因此再次，在那裡活躍。我們目前正在與符合這些屬性的公司進行洽談，但還為時過早，無法真正討論目前的情況。

Okay, perfect. Yeah, thank you so much.

好的，完美。是的，非常感謝。

Thank you. There are no further questions at this time. I'd like to end the call back over to Daniel Thoren for any closing comments.

謝謝。目前沒有其他問題。最後，我想請 Daniel Thoren 做最後的總結。

Hey. Thank you, Paul. Thank you, everyone, for joining us today and your interest in Graham.

嘿。謝謝你，保羅。感謝大家今天的參與以及對 Graham 的關注。

I'd like to remind you that we will be presenting at the TD Cowen Aerospace & Defense Conference next week on February 12 in Arlington, Virginia, as well as the Oppenheimer Emerging Growth Conference being held virtually on February 25 and 26, and then the Gabelli Funds 35th Annual Pump, Valve & Water Symposium in New York City on February 27. Interested investors should contact their sales representative to register and schedule one-on-one or group meetings.

我想提醒您，我們將於下週 2 月 12 日在弗吉尼亞州阿靈頓舉行的 TD Cowen 航空航天與國防會議上發表演講，還將於 2 月 25 日和 26 日參加以虛擬方式舉行的 Oppenheimer 新興增長會議，然後於 2 月 27 日參加在紐約市舉行的 Gabelli Funds 第 35 屆年度水泵。有興趣的投資者應聯繫其銷售代表進行註冊並安排一對一或小組會議。

As always, a live webcast of the presentation, along with presentation materials, will be available on our investors relations website. We hope to see you there, and as always, please reach out with any questions. Have a great rest of your day.

與往常一樣，演示的現場網路直播以及演示材料將在我們的投資者關係網站上提供。我們希望在那裡見到您，如有任何疑問，請一如既往地與我們聯繫。祝您今天剩餘的時間過得愉快。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。現在您可以斷開您的線路。感謝您的參與。