Summary
- Graham Corporation's performance has weakened during the past decade, and supply chain issues and increased production and freight costs have recently impacted profit margins.
- The acquisition of Barber-Nichols is a major one, and the future of the company depends on the profits that its operations bring.
- Both gross profit and EBITDA margins showed big improvements during the last quarter as the Barber-Nichols acquisition is taking effect.
- Despite the interest expenses from the debt taken for the new acquisition, the company will save over $3.5 million per year thanks to the dividend suspension.
- For long-term investors, it's time to add a new position in Graham Corporation.
For further details see:
Graham Corporation: The Barber-Nichols Acquisition Changes It All