Graham Corporation designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. The Company designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. It is a nuclear code accredited fabrication and specialty machining company. It supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. Its equipment is found in applications, such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. For the defense industry, its equipment is used in nuclear propulsion power systems for the United States Navy. The Company’s products are used in a range of industrial process applications in energy markets, including petroleum refining, defense, chemical and petrochemical processing, power generation/alternative energy and other.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
4Q25 Results. Revenue rose 21% to $59.3 million versus $49.1 million in 4Q24 and our $56 million estimate. Gross margin was up 110 basis points to 27%. We were at 25%. Graham reported adjusted EBITDA of $7.65 million, up 159% y-o-y, and above our $5.4 million projection. GAAP and adjusted EPS were $0.40 and $0.43, respectively, compared to $0.12 and $0.15, respectively, last year. We were at $0.26 and $0.26.
Business Environment. Graham’s business environment remains favorable, as evidenced by the recent follow on Navy award. Increased Defense budgets and being in the right space should lead to additional revenue from the Defense sector. Space and Energy continue to have positive futures also, in our opinion.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Lawton Sale. The GEO Group announced it has entered into a purchase agreement to sell its Company-owned Lawton, OK, facility to the Oklahoma Department of Corrections for $312 million. This is one of two facilities GEO management had indicated were up for sale. The sale is expected to close by the end of July 2025.
Value Affirming. The Lawton sale re-affirms our belief in the value of GEO’s real estate assets, a value that significantly exceeds the current stock price. Based on the reported 2,682 beds, the purchase price is equivalent to $116,000/bd. With some 43,000 owned beds in the Safety segment alone, the potential value of the segment real estate would be $5 billion. We do not expect the sale to have a significant impact on reported EBITDA.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Increased Demand. As regular readers know, CoreCivic has seen increased demand for its services from ICE. The Company already has received new awards for beds and expects to re-open currently idled facilities for ICE. Increased occupancy could drive significant earnings growth. Occupancy in 1Q25 was 77%, still below the low 80% range in 2018/19. The Company showed various illustrative potential for increased demand that could add $73-$131 million of additional NOI.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
BOCA RATON, Fla.–(BUSINESS WIRE)–Jun. 5, 2025– The GEO Group, Inc. (NYSE: GEO) (“GEO” or the “Company”) announced today that it has entered into a purchase agreement with the Oklahoma Department of Corrections for the sale of the GEO-owned Lawton Correctional Facility (the “Facility”) located in Lawton, Oklahoma for $312 million.
The sale of the Facility is expected to close on July 25, 2025, subject to the satisfaction of customary closing conditions, and GEO expects to transition Facility operations to the Oklahoma Department of Corrections simultaneously on July 25, 2025. GEO expects to use the net proceeds from the sale of the Facility to pay down debt and for general corporate purposes.
George C. Zoley, Executive Chairman of GEO, said, “The sale of our Company-owned Lawton Correctional Facility is expected to be a significant deleveraging event for our Company. We believe that this important transaction is representative of the intrinsic value of our Company-owned facilities, which total more than 52,000 beds. Our Management Team and Board of Directors remain focused on the disciplined allocation of capital to enhance long-term value for our shareholders.”
About The GEO Group The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 98 facilities totaling approximately 77,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
Use of forward-looking statements This news release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the cautionary statements and risk factors contained in GEO’s filings with the U.S. Securities and Exchange Commission including its Form 10-K, 10-Q and 8-K reports. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Readers are strongly encouraged to read the full cautionary statements and risk factors contained in GEO’s filings with the U.S. Securities and Exchange Commission, including those referenced above. GEO disclaims any obligation to update or revise any forward-looking statements, except as required by law.
SAN DIEGO, June 03, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a Technology Company in the Defense, National Security and Global Markets, and GE Aerospace (NYSE: GE) today announced a formal teaming agreement to advance propulsion technologies for the next generation of affordable unmanned aerial systems and Collaborative Combat Aircraft-type (CCA-type) aircraft.
Eric DeMarco, President and CEO of Kratos, said, “Kratos’ strategically important Teaming Agreement with GE Aerospace continues to rapidly advance and expand, with the GEK family of engines targeting certain of the most important, mission critical and highest priority needs and requirements of United States National Security. At Kratos, affordability is a technology and delivering more capability for less cost as quickly as possible are key contributions we are bringing for truly industry leading GEK offerings with our partner and global leader GE Aerospace.”
“The formalization of this teaming agreement and initiation of development of these new engines mark another step forward in our dedication to providing affordable, adaptable, high-performance propulsion systems for the future force,” said Amy Gowder, President and CEO of Defense & Systems at GE Aerospace. “We’re thrilled to continue our collaboration with Kratos and accelerate development across various classes of unmanned systems.”
This collaboration strengthens Kratos’ ongoing partnership with GE Aerospace – building on last year’s Memorandum of Understanding (MOU) to advance the development and production of small, cost-effective engines for unmanned platforms. The new teaming agreement expands on that MOU and provides the framework for the two companies to develop, manufacture, test, and field the GEK800 Engine, as well as collaborate on other low-cost expendable turbofan engines.
In addition to the joint work on the GEK800, the companies have commenced work on another new engine, the GEK1500. The engines under development support unmanned aerial systems (UAS), collaborative combat aircraft, and similar applications, positioning Kratos and GE Aerospace to offer affordable mass propulsion solutions across a range of next-generation defense applications for the Department of Defense.
Kratos brings more than 20 years of experience developing and producing small, affordable engines for UAS, drones, and missile platforms. GE Aerospace adds a century of expertise in propulsion technology and the ability to scale advanced designs into high-rate production —helping bridge the gap from prototype to deployment.
About Kratos Defense & Security Solutions Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, advanced vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.
About GE Aerospace GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 45,000 commercial and 25,000 military aircraft engines. With a global team of approximately 53,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow, and the future at www.geaerospace.com.
Notice Regarding Forward-Looking Statements Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Enter Negotiations for Extension. On Friday, it was announced the government intends to enter into negotiations with GEO’s BI subsidiary for a one year extension of the ISAP program, which is currently effective through July 31, 2025. We would view an extension of this program as a significant positive for GEO in both the near-term and longer term.
A Positive Future? Acknowledging Friday’s release is limited to extending the current contract for a year, the verbiage used by the government contracting agency highlights the moat GEO has built around the business, suggesting the Company should be in the catbird’s seat for a longer term renewal. For example, the government states, “Market research conducted by the Office of Acquisition Management revealed that there is only one responsible source because the current contractor is uniquely positioned to maintain existing operations of the program without transitioning active program participants between contractor solutions.”
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Graham Corporation designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. The Company designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. It is a nuclear code accredited fabrication and specialty machining company. It supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. Its equipment is found in applications, such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. For the defense industry, its equipment is used in nuclear propulsion power systems for the United States Navy. The Company’s products are used in a range of industrial process applications in energy markets, including petroleum refining, defense, chemical and petrochemical processing, power generation/alternative energy and other.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New Award. Yesterday, Graham announced that its Barber-Nichols subsidiary was awarded a $136.5 million follow-on contract to support the U.S. Navy’s Virginia Class Submarine program. This new award strengthens Graham’s position as a critical supplier to the U.S. Navy’s undersea programs.
Details. The contract period of performance extends from April 2025 through February 2034. Graham recognized approximately $50 million in backlog from the contract during the fourth quarter of the fiscal year ended March 31, 2025 to procure long-lead-time materials. As a reminder, the backlog at the end of the fiscal third quarter totaled $384.7 million, just below a record high.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
U.S. oil production is approaching a turning point, according to Diamondback Energy CEO Travis Stice. In a letter to shareholders this week, Stice warned that domestic output has likely peaked and will begin to decline in the coming months, citing falling crude prices and slowing industry activity as key factors.
“U.S. onshore oil production has likely peaked and will begin to decline this quarter,” Stice wrote. “We are at a tipping point for U.S. oil production at current commodity prices.”
The warning comes as U.S. crude prices have dropped roughly 17% this year, weighed down by fears of a global economic slowdown tied to President Donald Trump’s renewed tariffs and an aggressive supply push from OPEC+ producers. Prices for West Texas Intermediate (WTI) crude briefly surged 4% on Tuesday to $59.56 per barrel amid expectations that U.S. supply will tighten.
Stice emphasized that adjusted for inflation, oil is now cheaper than it has been in nearly every quarter since 2004—excluding the pandemic collapse in 2020. That pricing reality, he said, is forcing producers to slash spending and slow operations, threatening broader economic impacts.
Diamondback, a major producer in the Permian Basin and one of the largest independent oil companies in the U.S., has already reduced its capital spending by $400 million for the year. The company now plans to drill between 385 to 435 wells and complete 475 to 550, while maintaining reduced rig and crew levels.
“We’ve dropped three rigs and one completion crew, and expect to stay at those levels for most of Q3,” Stice said.
The U.S. shale boom of the last 15 years helped make the country the world’s top fossil fuel producer, outpacing even Saudi Arabia and Russia. That shift reshaped the U.S. economy, reduced reliance on foreign energy, and strengthened national security. But Stice now warns that this progress is at risk.
“Today’s prices, volatility and macroeconomic uncertainty have put this progress in jeopardy,” he said.
Fracking activity is already falling sharply. The number of completion crews is down 15% nationwide and 20% in the Permian Basin since January, Stice said. Oil-directed drilling rigs are expected to drop nearly 10% by the end of Q2, with further declines projected in the third quarter.
Adding to the pressure are rising costs tied to tariffs. Stice said Trump’s steel tariffs have added around $40 million annually to Diamondback’s expenses, raising well costs by about 1%. While some of this impact may be offset by operational efficiencies, the CEO warned that sustaining current output levels at lower prices may no longer be financially viable.
Stice likened the situation to approaching a red light while driving: “We are taking our foot off the accelerator. If the light turns green, we’ll hit the gas again—but we’re prepared to brake if needed.”
As the U.S. energy sector confronts an increasingly uncertain landscape, the prospect of declining domestic production is no longer just a possibility—it’s becoming a reality.
BATAVIA, N.Y.–(BUSINESS WIRE)– Graham Corporation (NYSE: GHM) (“GHM” or “the Company”), 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, today announced a strategic investment to support the implementation of new Radiographic Testing (“RT”) equipment at Graham’s Batavia, New York facility.
The investment of $2.2 million, from one of GHM’s customers, will enhance the Company’s capabilities in evaluating critical welds in support of the Columbia and Virginia class submarine programs. As part of the investment, Graham will also contribute $1.4 million for a total project cost of $3.6 million.
Daniel J. Thoren, CEO commented, “This strategic investment in RT equipment represents our commitment to delivering the highest quality components for critical naval defense programs. The upgraded RT capabilities at our Batavia facility is expected to significantly enhance our production efficiency while ensuring superior quality control for the vital welds that support the Columbia and Virginia class submarine programs. We’re grateful for our customer’s commitment to drive enhanced manufacturing infrastructure and are excited to continue our partnership.”
The strategic investment creates opportunities to support future, multi-year orders with potential enhanced revenue expected to begin in calendar year 2026.
This agreement builds upon previously announced investments by partners, including $13.5 million to expand defense production capabilities in Batavia in August 2023 and $2.1 million by the BlueForge Alliance in July 2024 to expand Graham’s welder training program in support of the U.S. Navy’s Submarine Industrial Base initiatives.
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 “continue,” “expects,” “future,” “will,” 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, expected expansion and growth opportunities, and expected benefits from the implementation of new RT equipment, are forward-looking statements. 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 (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.
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.
Company plans to host a virtual investor day for analysts, current and prospective investors in August 2025
CHARLOTTE, N.C., April 30, 2025 (GLOBE NEWSWIRE) — NN (NASDAQ: NNBR) a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced its plans to host a 2025 virtual investor day in August 2025.
NN has been performing to its short-term and long-term goals. During its coming Investor Day, NN’s executive management plans to provide updates and discuss multiple important shareholder value-creating topics including:
A holistic update to NN’s five-year targets for sales growth, increased profitability, and shareholder value
Update on 2025 Outlook
The Company’s capital allocation strategy
The Company’s M&A acquisition strategy and objectives
The Company’s capital markets strategy and the next phase of its capital structure optimization roadmap
An overview and discussion of market trends and NN’s participation in specific markets including;
US electrical grid market
US industrial market
Global passenger vehicle market
Global commercial vehicle market
Global medical market
NN management will also host discussions and overviews on important topics including;
NN’s $700+ million new business program and pipeline specifics
NN’s cost-out program and major ongoing and upcoming projects
NN’s free cash flow generation program and major associated projects
There will be more to come regarding this investor event. NN management plans to spend the day together with analysts, current and prospective investors, lenders, and the broader investment community.
About NN
NN is a global industrial company that combines advanced engineering and production capabilities to deliver solutions for high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Asia, Europe, and South America. For more information, visit www.nninc.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the “Company”) based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “growth,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project,” “trajectory” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.
Investor Relations: Joseph Caminiti or Stephen Poe, Investors NNBR@alpha-ir.com 312-445-2870
ATLANTA, April 28, 2025 (GLOBE NEWSWIRE) — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of science research and development, systems engineering and integration, and digital transformation and cyber security solutions to federal agencies, will release financial results for the fiscal second quarter ended March 31, 2025 on May 7, 2025 after the market closes. DLH will then host a conference call for the investment community at 10:00 a.m. Eastern Time the following day, May 8, 2025, during which members of senior management will make a brief presentation focused on the financial results and operating trends. A question-and-answer session will follow.
Interested parties may listen to the conference call by dialing 888-347-5290 or 412-317-5256. Presentation materials will also be posted on the Investor Relations section of the DLH website prior to the commencement of the conference call. A digital recording of the conference call will be available for replay two hours after the completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering the conference ID 3751581.
About DLH DLH (NASDAQ: DLHC), a Russell 2000 company, enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by customers today, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,800 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of technology, innovation, and world-class expertise, to improve lives across the globe. For more information, visit www.DLHcorp.com.
INVESTOR RELATIONS Contact: Chris Witty Phone: 646-438-9385 Email: cwitty@darrowir.com
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the bottom of the report for important disclosures
Emergency Funding. On Tuesday, the Department of Homeland Security submitted on SAM.gov for an emergency detention and related services strategic sourcing vehicle to bring an additional allotment of detention beds online nationwide, in compliance with the President’s Declaration of a National Emergency at the Southern Border of the United States and related Executive Orders. The maximum ceiling value of the vehicle is $45 billion.
Details. Under the RFP, the government anticipates making multiple indefinite delivery/indefinite quantity (IDIQ) contract awards. It appears the contract will have a two-year period of performance, from April 14, 2025, through April 13, 2027. Responses are due by April 4th. Under the scope of work, the vendor may be required to provide infrastructure, staffing, services, and/or supplies necessary to provide safe and secure confinement for aliens in the administrative custody of ICE. Ground transportation services may also be required.
Current ICE Population. ICE populations have increased significantly under the new Administration. ADP during the month of October was 38,714, which rose to 40,205 for the month of January. ADP for March 1 through March 22nd was 47,304, while the population on that date was 47,892, according to ICE. There has not yet been a significant change in ATD populations.
Implications. Given the timelines involved and the scope of work required, this ID/IQ would seem to favor the abilities of both CoreCivic and GEO, given their history in the sector and the number of idle facilities that can be brought back online. ICE’s budget in 2024 was $9.7 billion, with about $3.3 billion dedicated to Enforcement and Removal Operations, so a new max of $45 billion is a major jump. If these types of funds are put to use in a timely manner, the current financial projections for both CoreCivic and GEO would prove conservative, in our view.
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Key Points: – Scale AI secures multimillion-dollar contract with Department of Defense – “Thunderforge” program aims to integrate AI into military planning and operations – Tech industry continues shifting towards military AI partnerships
Scale AI has entered a pivotal moment in the evolving landscape of military artificial intelligence, securing a multimillion-dollar contract with the Department of Defense for the “Thunderforge” program. This landmark deal represents a significant step in the integration of AI technologies into military strategic planning and operational decision-making.
The Defense Innovation Unit’s flagship program will leverage AI agents to enhance military capabilities across multiple domains. Partnering with technology giants like Anduril and Microsoft, Scale AI will develop AI solutions designed to accelerate decision-making processes and provide advanced modeling and simulation capabilities.
CEO Alexandr Wang emphasized the transformative potential of the technology, stating that their AI solutions will “modernize American defense” and provide military leaders with a technological advantage. The program’s initial rollout will focus on U.S. Indo-Pacific and European Commands, with plans to expand to additional areas.
The contract highlights a broader trend in the tech industry’s approach to military partnerships. Companies that previously maintained strict policies against military applications are now actively engaging with defense initiatives. OpenAI, Google, and other major tech firms have quietly modified their stance on military technology use, reflecting a significant shift in the industry’s perspective.
This evolution hasn’t been without controversy. Tech employees have historically voiced concerns about their companies’ military contracts, most notably during Google’s Project Maven, which involved AI analysis of drone surveillance footage. Margaret Mitchell, an AI ethics researcher, points out the complex ethical considerations, noting that companies cannot fully control how their technologies might be ultimately utilized.
The Thunderforge program emphasizes “speed” as a critical advantage, with defense officials repeatedly highlighting the need for rapid decision-making in modern warfare. The AI agents will support various military functions, including modeling potential scenarios, suggesting courses of action, and creating automated workflows.
While Scale AI maintains that the program will operate under human oversight, the broader implications of AI in military applications remain a topic of intense debate. The potential for AI to transform military operations is significant, but so are the ethical concerns surrounding autonomous decision-making systems.
Other recent military AI partnerships underscore this trend. Anthropic has collaborated with Palantir and Amazon Web Services to provide AI models for intelligence agencies, while OpenAI has partnered with Anduril to develop advanced systems for national security missions.
The technology’s potential extends beyond traditional warfare, with applications in intelligence gathering, threat assessment, and strategic planning. However, experts like Mitchell caution that the line between defensive technology and potential harm can be increasingly blurry.
As military AI continues to evolve, the tech industry finds itself at a critical intersection of innovation, ethics, and national security. Scale AI’s Thunderforge program represents a significant milestone in this ongoing technological transformation.
