Graham Corporation Unveils Plans for Advanced Cryogenic Propellant Testing Facility to Drive Innovation and Meet Growing Customer Demand
Graham (NYSE: GHM) has announced plans to build a state-of-the-art cryogenic propellant testing facility in Florida, near its P3 Technologies subsidiary. The facility will enable testing of liquid hydrogen, liquid oxygen, and liquid methane for Space, Defense, New Energy, and medical applications. The project aims to provide a cost-effective alternative to existing testing centers and is expected to begin operations by mid-2025.
The investment is projected to achieve a cash payback period of 2-3 years with an internal rate of return exceeding 20%. The facility will support testing of pumps, components, fluid management systems, and combustion devices under various conditions.
Graham (NYSE: GHM) ha annunciato piani per costruire una struttura all'avanguardia per test di propellenti criogenici in Florida, vicino alla sua filiale P3 Technologies. La struttura consentirà il test di idrogeno liquido, ossigeno liquido e metano liquido per applicazioni spaziali, della difesa, nuove energie e mediche. Il progetto mira a fornire un'alternativa economica ai centri di test esistenti e si prevede di iniziare le operazioni entro la metà del 2025.
Si stima che l'investimento raggiunga un periodo di recupero del capitale di 2-3 anni con un tasso interno di rendimento superiore al 20%. La struttura supporterà il test di pompe, componenti, sistemi di gestione dei fluidi e dispositivi di combustione in varie condizioni.
Graham (NYSE: GHM) ha anunciado planes para construir una instalación de pruebas de propulsores criogénicos de última generación en Florida, cerca de su subsidiaria P3 Technologies. La instalación permitirá probar hidrógeno líquido, oxígeno líquido y metano líquido para aplicaciones en el espacio, defensa, nuevas energías y medicina. El proyecto tiene como objetivo proporcionar una alternativa económica a los centros de pruebas existentes y se espera que comience sus operaciones a mediados de 2025.
Se proyecta que la inversión logre un período de recuperación de capital de 2-3 años con una tasa interna de retorno que supere el 20%. La instalación apoyará pruebas de bombas, componentes, sistemas de gestión de fluidos y dispositivos de combustión bajo diversas condiciones.
Graham (NYSE: GHM)는 플로리다에 있는 P3 Technologies 자회사 근처에 최첨단 극저온 추진제 테스트 시설을 건설할 계획을 발표했습니다. 이 시설은 우주, 국방, 신재생 에너지 및 의료 응용 프로그램을 위한 액체 수소, 액체 산소 및 액체 메탄 테스트를 가능하게 합니다. 이 프로젝트는 기존 테스트 센터에 대한 비용 효과적인 대안을 제공하는 것을 목표로 하며, 2025년 중반까지 운영을 시작할 것으로 예상됩니다.
투자는 2-3년의 자본 회수 기간을 달성할 것으로 예상되며 20% 이상의 내부 수익률을 기록할 것으로 보입니다. 이 시설은 다양한 조건에서 펌프, 구성 요소, 유체 관리 시스템 및 연소 장치 테스트를 지원할 것입니다.
Graham (NYSE: GHM) a annoncé des plans pour construire une installation de tests de propulseurs cryogéniques de pointe en Floride, près de sa filiale P3 Technologies. L'installation permettra de tester de l'hydrogène liquide, de l'oxygène liquide et du méthane liquide pour des applications spatiales, de défense, d'énergie nouvelle et médicales. Le projet vise à fournir une alternative économique aux centres de test existants et devrait commencer ses opérations d'ici la mi-2025.
L'investissement devrait atteindre une période de retour sur investissement de 2 à 3 ans avec un taux de rendement interne supérieur à 20 %. L'installation soutiendra les tests de pompes, de composants, de systèmes de gestion des fluides et d'appareils de combustion dans diverses conditions.
Graham (NYSE: GHM) hat Pläne angekündigt, eine hochmoderne Testeinrichtung für kryogene Treibstoffe in Florida, in der Nähe ihrer Tochtergesellschaft P3 Technologies, zu bauen. Die Einrichtung ermöglicht die Erprobung von flüssigem Wasserstoff, flüssigem Sauerstoff und flüssigem Methan für Anwendungen im Raumfahrtbereich, in der Verteidigung, in der neuen Energie und in der Medizin. Das Projekt zielt darauf ab, eine kosteneffiziente Alternative zu bestehenden Testzentren zu bieten und soll voraussichtlich Mitte 2025 in Betrieb genommen werden.
Die Investition wird voraussichtlich eine Amortisationszeit von 2-3 Jahren erreichen und eine interne Rendite von mehr als 20% erzielen. Die Einrichtung wird Tests von Pumpen, Komponenten, Fluidmanagementsystemen und Verbrennungsgeräten unter verschiedenen Bedingungen unterstützen.
- Expected internal rate of return exceeding 20%
- Short payback period of 2-3 years
- Expansion into new testing capabilities addressing market demand
- Strategic positioning to capture additional market share in Space, Defense, and New Energy sectors
- None.
Insights
Graham 's strategic investment in a cryogenic testing facility represents a significant expansion of their service capabilities and market positioning. The projected
The investment aligns with growing demand in space, defense and new energy sectors. By positioning near their P3 Technologies subsidiary, they're creating operational synergies while expanding their addressable market. The ability to test LH2, LOX and LCH4 propellants positions GHM to capture increased market share in the rapidly growing commercial space and alternative energy sectors.
The timing of operations commencement in mid-2025 provides a clear timeline for revenue impact, with potential for accelerated growth in FY2025-2026. This strategic move strengthens GHM's competitive moat in high-barrier-to-entry markets.
The strategic placement of this testing facility addresses a important bottleneck in the space launch industry. With the proliferation of private space companies and increasing launch frequencies, access to cryogenic testing facilities has become a significant constraint. Current facilities primarily serve major programs, creating a substantial underserved market for smaller but critical missions.
The facility's capability to test multiple propellant types (LH2, LOX, LCH4) is particularly valuable as the industry shifts toward more sustainable and efficient propulsion systems. This positions Graham to support both traditional hydrolox engines and newer methalox systems being developed by various launch providers.
The Florida location is strategically advantageous, being close to major space industry clusters and launch sites. This proximity will reduce transportation costs and logistics complexity for customers, providing a compelling value proposition.
New facility will enable testing of liquid hydrogen (LH2), liquid oxygen (LOX) and liquid methane (LCH4)
The facility will offer a cost-effective, timely alternative to existing testing centers, which often prioritize flagship programs and leave other critical programs with limited options. This new facility will enable liquid hydrogen (LH2), liquid oxygen (LOX), and liquid methane (LCH4) testing at pressurized, sub-cooled, or saturated conditions, and is ideally suited for testing pumps, components, fluid management systems, and combustion devices. By expanding Graham’s capabilities in cryogenic propellant testing, the Company aims to better support both current and future customer programs, adding agility and depth to its testing services in response to diverse and evolving program requirements.
“We believe this new testing facility will strengthen our position as a trusted partner by directly addressing customer needs for timely and cost-effective cryogenic propellant testing, complementing our existing capabilities and advancing the support we can offer current programs,” said Dan Thoren, Graham Corporation President and Chief Executive Officer. “This investment underscores our commitment to supporting both current and future customer programs through innovative and accessible testing solutions, while enhancing Graham’s role across the Space, Defense, and New Energy sectors.”
The project will be executed over the next year, with initial tests anticipated to begin by mid-2025. The facility is projected to achieve a cash payback period of approximately two to three years and deliver an internal rate of return exceeding
About Graham Corporation
Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “can,” “expects,” “potential,” “will,” “plans,” “aims,” “believe,” “projected,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, the completion of the testing facility within the projected timeline, the Company’s ability to capitalize on the potential benefits of the new facility and timing to realize expected returns on investment, the estimated total market opportunity and the Company’s ability to capitalize on such market opportunity. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors,” its quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
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Christopher J. Thome
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Phone: (585) 343-2216
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Source: Graham Corporation
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