Graham Corporation (NYSE: GHM) saw its stock price plummet 6.65% in pre-market trading on Friday, despite reporting better-than-expected second-quarter fiscal 2026 results and announcing significant new orders from space customers. The company's shares dropped sharply, indicating that investors may have concerns beyond the headline numbers.

For the quarter ended September 30, Graham reported adjusted earnings per share of $0.31, matching the same quarter last year and surpassing the average analyst estimate of $0.29. Revenue rose 23.3% year-over-year to $66.03 million, significantly beating the consensus expectation of $57.55 million. The company's Q2 adjusted EBITDA came in at $6.295 million, also exceeding analyst projections.

In a separate announcement, Graham revealed that it had secured multiple orders from leading space customers with a combined value of approximately $22 million. These orders, booked during fiscal Q2 and Q3, are for advanced turbomachinery and precision-engineered components from six industry-leading players in the commercial space launch market. The company expects these orders to contribute to revenue over the next 12 to 24 months.

Despite these seemingly positive developments, the stock's sharp decline suggests that investors may be focusing on other factors. Possible reasons for the sell-off could include concerns about the company's outlook, potential challenges in executing the new orders, or broader market conditions affecting the industrial machinery sector. The company maintained its full-year fiscal 2026 guidance, projecting net sales of $225 million to $235 million and adjusted EBITDA of $22 million to $28 million, which may have fallen short of some investors' expectations.

As the trading day progresses, investors and analysts will likely scrutinize Graham's results and guidance more closely to understand the factors driving the stock's unexpected decline in the face of what appears to be positive quarterly performance and new business wins.