Graham Corporation (NYSE: GHM), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies, saw its stock plummet over 17% in pre-market trading on Friday despite reporting robust financial results for the third quarter of fiscal 2025.

For the quarter ended December 31, 2024, the company's net sales increased 7.3% year-over-year to $47.0 million, driven by strength in key end-markets like defense and chemical/petrochemical. Net income surged to $1.6 million, or $0.14 per diluted share, compared to $0.2 million, or $0.02 per diluted share in the prior-year period.

On an adjusted basis, Graham reported earnings per diluted share of $0.18, representing a 38% increase from the year-ago quarter. Adjusted EBITDA margin expanded by 180 basis points to 8.6%.

The company reiterated its full-year revenue guidance in the range of $200 million to $210 million for fiscal 2025. It also raised its gross margin outlook to 24-25% from the previous range of 23-24%. Orders for the quarter stood at $24.8 million, resulting in a book-to-bill ratio of 1.0x for the first nine months. Graham's backlog as of December 31, 2024, was $384.7 million.

Despite the strong performance across key metrics, Graham's stock plunged sharply in pre-market trading, with investors seemingly unimpressed by the results. The reasons for the sell-off are unclear, as the company's outlook suggests continued business momentum.