BATAVIA, N.Y. - Graham Corporation (NYSE: GHM), a designer and manufacturer of critical technologies for various industries, has announced receiving orders worth around $17 million for two significant expansion projects in the energy and petrochemical sectors.
Daniel J. Thoren, President and CEO of Graham Corporation, expressed enthusiasm about partnering with a North American client on a pioneering project to develop the world's first net-zero carbon emissions integrated ethylene cracker and derivatives site. The company's surface condensers, known for their peak efficiency, are integral to the project.
Additionally, Graham Corporation has secured an order for a vacuum system to be used in a Middle East expansion project, which is expected to enhance the production of high-grade base oils.
The North American order, received in April 2024, comprises three surface condenser systems for a main process unit and a utility unit, aiming to reduce carbon emissions in natural gas refining. The company anticipates recognizing about half of the revenue from this order in fiscal 2025, with the remainder in fiscal 2026.
The Middle East contract involves supplying a new vacuum system for a vacuum distillation tower, integral to converting crude into chemicals. This order, which came in March 2024, is also slated for revenue recognition in fiscal 2025.
Graham Corporation, recognized for its engineering expertise in vacuum and heat transfer technologies, serves the defense, space, energy, and process industries under the Graham Manufacturing and Barber-Nichols brands.
The announcement is based on a press release statement.
InvestingPro Insights
Graham Corporation (NYSE: GHM) has demonstrated a strong presence in the energy and petrochemical sectors with its recent orders worth $17 million. Reflecting on the company's financial health and market performance, InvestingPro data highlights a robust revenue growth over the last twelve months as of Q3 2024, with a significant increase of 16.68%. This growth momentum is further underscored by the company's impressive year-to-date price total return of 42.59%, and even more striking, a 138.12% one-year price total return.
From an investment standpoint, two InvestingPro Tips for Graham Corporation are particularly noteworthy. Firstly, the company holds more cash than debt on its balance sheet, providing a solid foundation for financial stability and potential future investments. Secondly, analysts predict the company will be profitable this year, which aligns with the company's expected net income growth and recent lucrative contracts.
In terms of valuation, Graham Corporation trades at a P/E ratio of 104.57, signaling investor confidence in its earnings potential. It is also trading at a high earnings multiple, which may reflect the market's optimism about the company's growth prospects, especially in light of its strategic involvement in pioneering projects aimed at reducing carbon emissions.
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