Graham Corporation Wins Follow-On Contract Award to Support U.S. Navy’s Virginia Class Submarine Program

• Secures $136.5 million contract to support the Virginia class submarine program
• Strengthens Graham's position as a critical supplier to U.S. Navy's submarine programs

BATAVIA, N.Y.--(BUSINESS WIRE)-- Graham Corporation (NYSE: GHM) (“Graham” or “the Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, today announced that its wholly-owned subsidiary Barber-Nichols, LLC (“Barber-Nichols”) has been awarded a $136.5 million follow-on contract to support the U.S. Navy's Virginia Class Submarine program.

The period of performance extends from April 2025 through February 2034. The Company recognized approximately $50 million in backlog¹ from this contract award during the fourth quarter of its fiscal year ending March 31, 2025 to procure long-lead time materials.

Michael E. Dixon, General Manager of Barber-Nichols, commented, "This substantial contract award reinforces our position as a trusted supplier of critical naval components and builds upon our successful execution of previous contracts for Virginia Class Submarines."

This contract provides an opportunity to showcase the Company’s advanced engineering and manufacturing capabilities. Graham’s long-standing partnership with HII’s Newport News Shipbuilding division (NNS) has led to significant investments in machinery and facilities, ensuring optimal performance in delivering mission-critical systems for the U.S. Navy.

About Graham Corporation

Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses 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,” “opportunity” 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, profitability of future projects and the business, its ability to deliver to plan, its ability to meet customers’ shipment and delivery expectations, its ability to continue to strengthen relationships with customers in the defense industry, and the timing of conversion of backlog to sales, 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 (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.

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.

Key Performance Indicator

Management uses the backlog to analyze and measure the Company’s financial performance and results of operations. Management uses backlog as measure of current and future business and financial performance, and it may not be comparable with measures provided by other companies. Backlog is defined as the total dollar value of net orders received for which revenue has not yet been recognized. Management believes tracking backlog is useful as it often times is a leading indicator of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

Given that backlog is an operational measure and that the Company’s methodology for calculating backlog does not meet the definition of a non-GAAP measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation for it is not required or provided.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250527540167/en/

For more information, contact:
Christopher J. Thome
Vice President - Finance and CFO
Phone: (585) 343-2216

Tom Cook
Investor Relations
Phone: (203) 682-8250
tom.cook@icrinc.com

Source: Graham Corporation

Released May 27, 2025