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1 © 2025 GRAHAM CORPORATION, ALL RIGHTS RESERVED GRAHAM CORPORATION November 7, 2025 Second Quarter Fiscal 2026 Financial Results
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2 Safe Harbor Regarding Forward Looking Statements This presentation 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,” “future,” “outlook,” “anticipates,” “believes,” “could,” “guidance,” “should,” “target,” ”may”, “will,” “plan” 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 continue to strengthen relationships with customers in the defense industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit margins, tax rates, tariffs, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy, 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 presentation. Use of Key Performance Indicators This presentation includes key performance indicators, such as orders, backlog, and book-to-bill ratio. See the slide entitled "Disclaimer Regarding Key Performance Metrics" in this presentation for information regarding these key performance indicators. Use of Non-GAAP Measures This presentation includes non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income (loss) and Adjusted Net income (loss) per diluted share. See the Appendix for information regarding these non-GAAP measures, including reconciliations to the most directly comparable U.S. GAAP financial measures. Use of Forward-Looking Non-GAAP Financial Measures Forward-looking ROIC, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s fiscal 2025 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material. Forward-looking ROIC is defined as a return on invested capital and is calculated by dividing net operating profit after taxes by the total invested capital. Forward-looking ROIC is not a measure determined in accordance with GAAP. Nevertheless, Graham believes that providing forward-looking ROIC is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand profitability and efficiency of use of capital for certain projects. Because forward-looking ROIC is a non-GAAP measure and is thus susceptible to varying calculations, forward-looking ROIC, as presented, may not be directly comparable to other similarly titled measures used by other companies. Safe Harbor Statement
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3 Graham is a GLOBAL LEADER in the design and manufacture of mission- critical fluid, power, vacuum, and heat transfer solutions Strong Second Quarter Performance Driven by Robust Demand and Execution Across Product Portfolio Record Backlog(2) of $500.1 million Q2 FY26 Orders(2) of $83.2 million Book-to-Bill ratio(2) of 1.3x Financial Highlights $6.3M $3.1M 21.7% Revenue Gross Margin GAAP Net Income Adj. EBITDA(1) $66.0M Q2 FY26 Highlights (1) See appendix for additional important disclosures regarding Graham’s use of the non-GAAP measure of Adjusted EBITDA and the reconciliation of Net Income to Adjusted EBITDA. (2) See appendix for additional information regarding Graham’s use of key performance metrics. +23% -220 bps -6% +12%
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4 Strategic >20% ROIC(1) projects nearing completion will drive sustainable growth DEFENSE SPACE GRAHAM CORPORATEENERGY & PROCESS ✓ Cryogenic Test Facility in Jupiter, FL completed in 3QFY26 o Commissioning through end of calendar year ✓ Liquid Nitrogen Testing in Arvada, CO completed in 2QFY26 o First 4 units successfully tested & delivered ✓ IT infrastructure upgrade in Arvada, CO completed in 1QFY26 • Batavia ERP upgrade scheduled for “go-live” in 1QFY27 o Streamline workstreams, improve transactional efficiency, and standardize cross-functional comms Organic Investments Fueling Future Growth ✓ Renovated Assembly & Test Facility in Arvada, CO completed 1QFY26 o Fully operational with product & people ✓ Kicked off aftermarket acceleration initiative utilizing AI ✓ Grew India team and consolidated in Pune ✓ New Navy Facility in Batavia, NY completed in 2QFY26 o $17.6 million expansion backed by $13.5 million customer grant ✓ Automated welding machines installed & commissioned • Batavia, NY X-Ray Facility scheduled for completion in FY26 (1) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC
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5 A specialized consulting, design and engineering firm focused on foil bearing technology Acquisition strengthens BN’s position in advanced, energy-efficient rotating machinery markets Financial Overview & Terms • Annual revenue of ~$1M • Slightly accretive to FY26 GAAP net income • Cash Purchase price: $1.5M (incl. earn-outs) About Xdot • Specialized in foil bearing design and engineering for last 20 years • Holds patented technology improving performance and lowering cost • Served automotive, aerospace, defense, medical, and industrial high speed turbomachinery markets Strategic Rationale • Enhances BN’s turbomachinery capabilities and fills key technology gap • Expands high-speed pump and compressor offerings • Supports growth in A&D, energy transition, and industrial markets Xdot Bearing Technologies Acquisition
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6 $185.5 $209.9 $227.9 FY 2024 FY 2025 TTM Q2 FY26 ANNUAL Revenue Performance Q2 FY26 sales up $12.5 million or 23% Revenue Impacts + 32% Defense + 17% Space + 11% Energy & Process + 0.3% Aftermarket (+15% YTD) + Timing of project milestones (material receipts) + New programs + Growth in existing programs + Stronger sales in China + Mix - Weaker sales in India due to project timing ($ in millions; narrative compared with prior-year period unless otherwise noted) $53.6 $47.0 $59.3 $55.5 $66.0 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 QUARTERLY
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7 Strong Gross Profit & Margin Expansion Q2 FY26 Gross Profit Increased $1.5 Million or 12% $40.6 $52.9 $56.7 21.9% 25.2% 24.9% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 26.0% $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 FY 2024 FY 2025 TTM Q2 FY26 ANNUAL $12.8 $11.7 $16.0 $14.7 14.3 23.9% 24.8% 27.0% 26.5% 21.7% -2.0% 3.0% 8.0% 13.0% 18.0% 23.0% 28.0% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 QUARTERLY • Gross margin decreased 220 bps to 21.7% • Q2 FY26 gross margin impacted by: - Higher mix of lower margin sales including extraordinary level of material receipts - YTD impact of tariffs ~$1 million - Q2 FY25 includes $435 thousand benefit of Blue Forge Alliance grant ($ in millions; narrative compared with prior-year period unless otherwise noted)
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8 Adjusted EBITDA & Adjusted EBITDA Margins(1) $5.6 $4.0 $7.7 $6.8 6.3 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 QUARTERLY 12.9% 12.3% 9.5%10.5% 8.6% $13.3 $22.4 $24.8 FY 2024 FY 2025 TTM Q2 FY26 ANNUAL 7.2% 10.7% 10.9% (1) See appendix for additional important disclosures regarding Graham’s use of the non-GAAP measures of Adjusted EBITDA, Adjusted EBITDA Margins, Adjusted Net income and Adjusted Net Income per diluted share. Net Income, Adj. Net Income Per Diluted Share & Margin(1) $0.30 $0.14 $0.40 $0.42 $0.28 $0.31 $0.18 $0.43 $0.45 $0.31 Q2 FY25 Q3 2025 Q4 FY25 Q1 FY26 Q2 FY26 QUARTERLY Percentages are net income margin and adj. net income margin Net Income per diluted share Adj. Net Income per diluted share $0.42 $1.11 $1.24 $0.63 $1.24 $1.36 FY 2024 FY 2025 TTM Q2 FY26 ANNUAL 6.0% 6.1% 6.4% 3.4% 4.2% 7.4% 8.0% 4.7% 5.2% 6.6% 3.7%2.5% ($ in millions except per share data) ($ in millions except per share data) 8.3% 8.9% 5.8% 6.5%
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9 Long-Term Demand For Graham Diversified Portfolio Highlights • Orders increased 31%; on track to achieve 1.1x FY26 book-to-bill target • Record backlog of $500.1 million • Q2 FY26 orders included a $25.5 million follow-on order for the MK48 Mod 7 Heavyweight Torpedo and $14.8 million of space orders to industry leaders • Expect approximately 35% to 40% of backlog to convert to sales in the next 12 months; another 25% to 30% the following year Defense 85% Energy & Process 10% Space 5% $63.2 $116.7 $177.4 $134.6 $229.4 $80.7 $86.0 $91.0 $96.5 $91.4 $143.9 $202.7 $268.4 $231.1 $320.8 FY22 FY23 FY24 FY25 TTM Q2 FY26 Q2 Backlog by Industry(2) Total Orders(1) Backlog(1) Q2 FY26 Book-to-Bill(1) of 1.3x Defense Commercial (1) See appendix for additional information regarding Graham’s use of key performance metrics. (2) Due to rounding, percentages may not sum up to 100% ($ in millions; narrative compared with prior-year period unless otherwise noted) $327.4 $307.1 $340.6 $417.8 $424.3 $79.6 $77.6 $71.7 $65.1 $75.8 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 $407.0 $384.7 $412.3 $482.9 $500.1
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10 Balance Sheet & Liquidity CAPITAL DEPLOYED BASED ON HIGHEST RISK-ADJUSTED RETURNS TO MAXIMIZE LONG-TERM SHAREHOLDER VALUE $44.7M $20.6M Cash provided by operating activities Cash and cash equivalents Remaining on revolving credit facility $13.6M $0.0M Debt outstanding $4.1M Capital Expenditures Q2 FY26 Overview ORGANIC GROWTH • Capex of 7-10% of sales | R&D of 1-2% of sales • Greater than >20% ROIC1 investments Capital Allocation Framework STRONG BALANCE SHEET • Strong cash generation and fiscal discipline M&A • Leverage <3.0x • See appendix 01 02 03 (1) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC.
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11 FY26 Financial Outlook Fiscal 2026 Guidance Net Sales $225 million to $235 million Gross Margin(1) 24.5% to 25.5% of sales SG&A Expense (including amortization)(2) 17.5% to 18.5% of sales Adjusted EBITDA(1)(3) $22 million to $28 million Effective Tax Rate 20% to 22% Capital Expenditures $15 million to $18 million (1) Includes the estimated impact of increased tariffs over the prior year of approximately $2.0 million to $4.0 million. (2) Includes approximately $6.0 million to $7.0 million of Barber-Nichols supplemental performance bonus, equity-based compensation, and enterprise resource planning (“ERP”) conversion costs included in SG&A expense. (3) Excludes net interest expense (income), income taxes, depreciation, and amortization from net income, as well as approximately $2.0 million to $3.0 million of equity-based compensation and ERP conversion costs included in SG&A expense, net. Our expectations for sales and profitability assumes that we will be able to operate our production facilities at planned capacity, have access to our global supply chain including our subcontractors, do not experience any global disruptions, and experience no impact from any other unforeseen events. Highlights • Implies 10% revenue growth at midpoint of range • Implies 12% Adjusted EBITDA growth at midpoint of range • Implies 11% Adjusted EBITDA margin at midpoint of range • Includes impact of Xdot acquisition which was not material
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12 Advancing Toward Long-Term Goals with Strategic Actions Engaging with customers to develop full life-cycle mission critical product opportunities 21.0% 21.9% 25.2% 25.0% 6.1% 7.2% 10.7% ~11.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% FY21 FY24 FY25 FY26 Guidance (1) FY27 Goal Revenue Gross Profit % Adjusted EBITDA % $97.5M $185.5M $209.9M $245M - $255M(2) BN earnout bonus expense completes at end of FY26, expected to contribute ~200 bps to Adj EBITDA margin in FY27 Mid-to- High 20’s 13%-15% Operational Excellence to drive competitive positioning Expanded capital and R&D programs to support growth initiatives; targeted ROIC(3) >20% Engaging with key stakeholders to empower, expand and broaden the global reach of Graham (1) Mid-point of FY26 guidance as of June 9, 2025 (2) Goal is ~8% to 10% annualized organic revenue growth per year which implies approximately $245M to $255M in revenue based off FY26 guidance (3) See the Safe Harbor Statement for additional important disclosures regarding Graham’s use of the non-GAAP measure of forward-looking ROIC $230M .
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13 13 Q&A
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14 14 Appendix
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15 TARGET CATEGORY ATTRIBUTES COMPANY TYPE U.S. based, privately held, independently operated INDUSTRY FOCUS Fluid/power sectors supporting aerospace, defense, cryogenic, and niche industrial markets MANAGEMENT & CULTURE Leadership with a commitment to long-term growth and a high-quality, continuous improvement culture PRODUCT ALIGNMENT Complementary to GHM turbomachinery, heat transfer, and vacuum businesses TECHNOLOGY MOAT Engineered-to-order or systems developer covering full lifecycle (design, manufacturing, aftermarket) FINANCIAL CRITERIA Purchase Price of $20M to $80M, with a target multiple of <10x EBITDA, Combination of cash, stock, and earnout consideration, keep leverage <3.0x OPPORTUNISTIC ACQUISITION STRATEGY TO SUPPLEMENT 8-10% ANNUAL ORGANIC GROWTH EXPECTATIONS M&A Growth VALUE PROPOSITION Provide capital to capture growth opportunities for the management team, and corporate-level shared services for operational efficiencies
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16 Key Performance Indicators In addition to the non-GAAP measures used in this presentation, management uses the following key performance metrics to analyze and measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent written communications received from customers requesting the Company to provide products and/or services. Backlog is defined as the total dollar value of net orders received for which revenue has not yet been recognized. Management believes tracking orders and backlog are 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. Key Performance Metrics The book-to-bill ratio is an operational measure that management uses to track the growth prospects of the Company. The Company calculates the book-to-bill ratio for a given period as net orders divided by net sales. Given that each of orders, backlog, and book-to-bill ratio are operational measures and that the Company's methodology for calculating orders, backlog, and book-to-bill ratio 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 each is not required or provided.
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17 Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation (Unaudited, $ in thousands) Non-GAAP Financial Measure: Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Graham believes that providing non-GAAP information, such as Adjusted EBITDA and Adjusted EBITDA margin, is important for investors and other readers of Graham's financial statements, as it is used as an analytical indicator by Graham's management to better understand operating performance. Moreover, Graham’s credit facility also contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted EBITDA, and Adjusted EBITDA margin, as presented, may not be directly comparable to other similarly titled measures used by other companies. 2025 2024 2025 2024 Net income 3,090$ 3,281$ 7,685$ 6,247$ Acquisition & integration income, net (87) (587) (163) (680) ERP Implementation costs 29 205 52 547 Net interest income (68) (153) (245) (314) Income tax expense 1,133 1,016 1,551 1,344 Equity-based compensation expense 553 434 1,085 778 Depreciation & amortization 1,645 1,419 3,168 2,830 Adjusted EBITDA 6,295$ 5,615$ 13,133$ 10,752$ Net sales 66,027$ 53,563$ 121,514$ 103,514$ Net income margin 4.7% 6.1% 6.3% 6.0% Adjusted EBITDA margin 9.5% 10.5% 10.8% 10.4% Three Months Ended September 30, Six Months Ended September 30,
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18 Adjusted Net Income & Adjusted Diluted EPS Reconciliation Non-GAAP Financial Measure: Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year's net income and net income per diluted share to the historical periods' net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions, provides a better representation of the cash earnings of the Company. (1) Applies a normalized tax rate to non-GAAP adjustments, which are pre-tax, based upon the statutory tax rate of 23%. 2025 2024 2025 2024 Net income 3,090$ 3,281$ 7,685$ 6,247$ Acquisition & integration income, net (87) (587) (163) (680) Amortization of intangible assets 498 555 997 1,109 ERP Implementation costs 29 205 52 547 Tax impact of adjustments (1) (101) (40) (204) (224) Adjusted net income 3,429$ 3,414$ 8,367$ 6,999$ GAAP net income per diluted share 0.28$ 0.30$ 0.69$ 0.57$ Adjusted net income per diluted share 0.31$ 0.31$ 0.75$ 0.64$ Diluted weighted average common shares outstanding 11,135 11,024 11,083 10,995 Three Months Ended Six Months Ended September 30, September 30,