Graham Backs FY22 Outlook; Appoints Daniel Thoren President And CEO, Effective Sept. 1

(RTTNews) - While announcing wider net loss and higher net sales in its first quarter, Graham Corp. (GHM), a manufacturer of critical equipment for the defense, energy, and chemical/petrochemical industries, maintained its fiscal 2022 outlook.

Separately, the company announced that Daniel Thoren will be promoted to President and Chief Executive Officer effective September 1, immediately following the retirement of James Lines who served with the Company for 37 years.

For fiscal 2022, the company continues to expect adjusted EBITDA to be approximately $7.0 million to $9.0 million and revenue to be $130 million to $140 million with 45 percent to 50 percent associated with the defense industry.

Revenue expectations are inclusive of BN's 10-month revenue contribution for the fiscal year which is expected to be between $45 million to $48 million.

The company expects approximately 35 percent to 40 percent of backlog will convert to revenue in the last nine months of fiscal 2022. Approximately $25 million to $27 million of backlog related to the defense industry is expected to convert to sales in fiscal 2022.

Based on the timing of customers' projects, Graham expects that revenue and profits will ramp through the second half of the fiscal year. The company said it sees fiscal 2022 as a transition year as it relates to earnings, given the timing of conversion of first order projects for the U.S. Navy.

Regarding the CEO appointment, Graham announced that Thoren, currently serves as its President and Chief Operating Officer, will also join the Board of Directors upon assuming the new role of CEO.

Thoren became Graham's President and Chief Operating Officer in June 2021. Prior to that, he served as Barber Nichols' President and CEO since 1997.