Graham Corp (NYSE: GHM) reported a strong performance in Q2 of fiscal 2024, with net sales surging 18% to reach $45.1 million, largely propelled by a 69% increase in defense market sales. The company attributed this growth to enhanced execution and pricing strategies.
The company's gross profit saw a significant year-on-year rise of 36%, amounting to $7.2 million. Furthermore, Graham Corp reported a net income of $0.4 million or $0.04 per diluted share for the quarter. On a non-GAAP basis, the adjusted net income stood at $1.4 million or $0.13 per diluted share.
Despite a decrease in orders for Q2 of fiscal 2024 to $36.5 million from a record high of $91.5 million in fiscal 2023, the company's backlog remained steady at $313.3 million.
In terms of liquidity, Graham Corp showcased substantial operational cash generation at $3.3 million, marking an increase from last year's $0.3 million. Cash and cash equivalents also rose to $25.8 million, indicating improved liquidity for the company.
The company successfully reduced its debt by $0.9 million during the quarter, bringing it down to $10.9 million.
Looking ahead, Graham Corp maintains its fiscal 2024 outlook with projected net sales between $170-$180 million and a gross margin between 18%-19% of sales.
InvestingPro Insights
Graham Corp's robust performance and promising future outlook align with several key InvestingPro Tips and real-time data. Firstly, the company's management has been aggressively buying back shares, a clear sign of confidence in the firm's future prospects. Secondly, the company has maintained dividend payments for 20 consecutive years, further solidifying its financial stability.
In terms of InvestingPro Data, Graham Corp has a market cap of $279.41M and a P/E ratio of 17.78 as of Q2 2023. The company has experienced a significant price uptick over the last six months, with a 125.49% total return, and is currently trading near its 52-week high.
For readers interested in a more comprehensive analysis, InvestingPro offers a total of 12 tips related to Graham Corp. These tips provide valuable insights into the company's performance, trends, and future prospects.
Remember, the InvestingPro platform offers additional tips and real-time data metrics for a host of other companies, helping investors make informed decisions.
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