Graham (GHM) investor relations material

Strategic transformation and growth

• Over the past five years, there has been a significant turnaround in profitability, backlog growth, and operational agility, driven by executive transitions and a renewed focus on growth and reinvestment in high-ROIC opportunities.

• Acquisition of Barber-Nichols in 2021 brought defense expertise, innovation, and leadership, leading to a three-year strategic plan that has been executed with high consistency.

• Operational excellence and continuous improvement have been prioritized, resulting in 8%-10% organic growth and positioning for further expansion.

Defense sector revitalization and facility expansion

• Revitalized relationship with the U.S. Navy through investments in talent, technology, and apprenticeship programs, leading to improved performance and government grants totaling nearly $20 million.

• Expansion includes a new 30,000 sq ft Navy facility with plans for two more bays, and a 40,000 sq ft build in Arvada, Colorado, with facilities designed for dual commercial and defense use.

• Facility build cycles are demand-driven, with the Arvada project expected to complete in about 18 months.

Integration and innovation post-acquisition

• Integration of Barber-Nichols has doubled its backlog and enabled significant capital reinvestment, with both entities benefiting from shared leadership and innovation cycles.

• Innovation at Barber-Nichols is analytically driven, while Graham’s approach is empirical; synergies are being leveraged to accelerate R&D and product development.

• Maintaining competitive differentiation between business units is emphasized to maximize strengths.