How does the reported operating margin and cash flow compare to previous quarters and to peers in the defense/energy space?

Short answer: The excerpt you provided does not contain the actual operating‑margin or cash‑flow numbers for Graham Corporation’s Q1 FY 2026 results, nor does it give any comparable figures for prior quarters or for peer companies in the defense/energy space. Therefore, based on the information supplied, we can’t quantify how the current operating margin or cash‑flow performance stacks up against earlier periods or against peers.

What we would need to answer the question definitively

Without those numbers we can’t:

• Quantify the quarter‑over‑quarter or year‑over‑year change in operating margin (e.g., “margin expanded 30 bps versus Q4 2025”).
• Determine whether operating cash flow is higher or lower than the previous quarter or the same quarter last year.
• Position Graham’s margin or cash generation relative to peers (e.g., “Graham’s 9.5 % operating margin is roughly 1 percentage point above the sector average of 8.4 %” or “its operating cash flow of $200 M is roughly 20 % below L3Harris’s $250 M for the same quarter”).

How you can find the missing data

1. Read the full press release – The Business Wire release (or the company’s investor‑relations website) will contain a “Financial Highlights” table. Typical line‑items:

   • Revenue (total and by segment)
     
   • Operating income and operating margin (%)
   • Cash flow from operations (in $M or $B)
   • Year‑over‑year (YoY) and quarter‑over‑quarter (QoQ) percentage changes

2. Check the Form 10‑Q filing – The quarterly Form 10‑Q, typically filed with the SEC a few weeks after the press release, includes:

   • Detailed operating‑margin calculations
   • Cash‑flow statements (including free‑cash‑flow reconciliation)
   • Management discussion that may compare to peers and prior periods

3. Look at analyst coverage – Sell‑side analysts (e.g., Goldman Sachs, Morgan Stanley) often publish “earnings preview” or “earnings review” notes that include:

   • Peer‑group benchmarks for operating margins and cash‑flow conversion
   • Commentary on whether Graham’s performance is “in line,” “above,” or “below” the sector

4. Benchmark against peers – For a quick peer comparison you can pull the latest quarterly data for the key competitors:

   • L3Harris Technologies (LHX) – defense electronics, similar margin profile
     
   • Huntington Ingalls (HII) – shipbuilding & defense; often reports a 6‑8 % margin and cash‑flow in the low‑hundreds‑million range.
     
   • RTX (RTX) – broader aerospace & defense, often runs a 9‑10 % margin.
     
   • General Electric (GE) – Power & Renewable – energy‑focused segment; margin typically 8‑12 % with cash‑flow volatility.

Once you have Graham’s numbers, you can place them side‑by‑side in a table for a clear visual comparison.

What you can do next

1. Locate the full earnings release (usually a PDF or HTML page). Look for a table titled “Financial Highlights” or “Key Operating Metrics.”
2. Pull the prior‑quarter data (Q4 FY 2025) from the previous press release (or the Form 10‑Q for Q4 2025) to compute the QoQ change.
3. Gather comparable figures from the most recent earnings releases of the peer companies listed above, or use an industry database (e.g., Bloomberg, S&P Capital IQ) for quick peer‑group metrics.
4. Create a comparison chart (e.g., a simple table) showing:

| Company | FY 2025 Q4 | FY 2026 Q1 | Δ% QoQ | FY 2025 Q4 (peer) | FY 2026 Q1 (peer) | Δ% vs. Peer |
|--------|------------|-----------|--------|------------------|-----------------|------------|
| Graham (GHM) – Operating margin | ?% | ?% | ? | 9.0% (average) | 9.5% (average) | +0.5pp vs. average |
| Graham (GHM) – Operating cash flow (M) | ? | ? | ? | $200 M (average) | $210 M (average) | +5% vs. average |

1. Interpret the numbers:
   • Positive: If the margin is higher than the prior quarter and above the peer average, you can conclude that Graham is improving operational efficiency relative to its peers.
   • Negative: If the cash‑flow conversion is lower or trending downward, you might highlight the need to improve working‑capital or inventory management.

Bottom line (based on the data we have)

• We cannot provide a specific comparison because the required operating‑margin and cash‑flow figures are missing from the excerpt you gave.
• To answer your question, locate the complete earnings release (or the accompanying Form 10‑Q) which will give you the exact percentages and cash‑flow amounts. Then compare those figures to the prior quarter’s data and to the most recent numbers from comparable defense/energy companies to see how Graham is performing relative to both its own history and its industry peers.