Graham Corporation Secures \$50 Million Strategic Investment from T. Rowe Price-Advised Accounts

Key Highlights

• Major Investment: T. Rowe Price Investment Management, Inc.-advised accounts will invest \$50 million in Graham Corporation (NYSE: GHM).
• Share Acquisition: The investment involves the purchase of 599,808 shares of Graham common stock, representing 5% ownership, at a price of \$83.36 per share. This price is based on the 20-day average closing price as of April 13, 2026.
• Use of Proceeds: Graham intends to use the proceeds to:
  • Strengthen its balance sheet via debt repayment
  • Fund future investments in both organic and inorganic (M&A) growth opportunities
• Transaction Timing: The transaction is expected to close on April 16, 2026, subject to customary closing conditions.
• Registration of Shares: The acquired shares will be registered for resale on a registration statement to be filed with the Securities and Exchange Commission (SEC) within 30 days of the agreement.

Detailed Analysis

Graham Corporation, a global leader in mission-critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the Defense, Energy & Process, and Space industries, has announced a significant strategic investment from a renowned institutional investor. Accounts managed by T. Rowe Price Investment Management, Inc. have agreed to purchase \$50 million in Graham common stock, equating to approximately 5% of the company’s outstanding shares. The shares are being acquired at \$83.36 per share, reflecting a premium based on the company’s recent 20-day average price.

This capital injection will provide Graham with enhanced financial flexibility, allowing the company to pursue its disciplined capital allocation strategy. Specifically, the company intends to use the funds to pay down existing debt and invest in both organic growth (expansion of current business operations) and inorganic opportunities (such as mergers and acquisitions).

President and CEO Matthew J. Malone emphasized that the investment “underscores the strength of the Graham platform and our positioning across attractive, growing end markets.” He reinforced the company’s commitment to driving long-term shareholder value through prudent balance sheet management and strategic investments.

The transaction is structured through a stock purchase agreement, with the shares to be registered for resale via a registration statement with the SEC within 30 days. This move ensures transparency and liquidity for both current and prospective shareholders.

What Shareholders Should Know

• Price-Sensitive Event: This sizable investment and the entry of a respected institutional investor could be perceived very positively by the market, potentially supporting or boosting the stock price.
• Dilution: The issuance of new shares representing 5% of Graham’s outstanding stock will result in some dilution for existing shareholders. However, the capital raised is earmarked for strengthening the balance sheet and funding growth, which could offset dilution by enhancing future earnings potential.
• Strategic Implications: The company’s intent to use proceeds for debt repayment and growth investments signals confidence in its future opportunities and suggests a focus on financial health and expansion.
• Registration for Resale: The registration of the shares for resale within 30 days could add some short-term technical pressure to the stock, depending on market conditions and T. Rowe Price’s intentions.

Forward-Looking Statements & Risks

The company has provided standard forward-looking statements, cautioning that actual results may differ due to risks, uncertainties, and assumptions. Investors are advised to review risk factors detailed in Graham’s most recent SEC filings.

For further information, investors may contact Christopher J. Thome (VP – Finance and CFO) at (585) 343-2216 or Tom Cook (Investor Relations) at (203) 682-8250 or [email protected].

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consider consulting a qualified financial advisor before making investment decisions. All forward-looking statements are subject to risks and uncertainties as detailed in Graham Corporation’s filings with the SEC.

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