Virginia and Columbia class subs. We continue to see healthy demand there. And while there's tailwinds, obviously, we're going to continue to step up. I think a few things of note that I'll go into more detail as it pertains specifically to aerospace and defense. The first is some of these solicitations are competitive and they allow for healthier margins. So we're winning not only the sole source opportunities, Chris, but we're also today winning opportunities where we did have competitive, we had competitors. With that more broadly, we continue to see programs like we mentioned at our investor day, specifically around radar and laser platforms where we're doing the thermal management or cooling solutions. We are seeing those programs move from into production. And so we're seeing some diversification there. What's nice about a program like that is we bring the intellectual property to the table. And that is a, I'll say, a commercially available product that we use in defense. So we're able to, I'll just say, charge market-bearing prices on those programs rather than go through certified costs and pricing. So the diversification is coming in a few areas. Another area where we're feeling growth and feeling potential is around the torpedo space. I can't get into much detail there, but obviously we provide the Mark 48 and we're seeing opportunity for continued growth and diversification. So the lion's share is in the submarine and aircraft carrier. That's sole sourced and under TINA cost and pricing. And then the other up and comings, we've seen the ability to differentiate and get higher margin.

Great. Thanks for that elaboration. And on the aftermarket, you know, nice growth there, healthy run rates, I think, above of what it's averaged recently. So, I'm curious if that's just kind of good concentration of activity in the period relative to the baseline, or if you're starting to see a little, you know, you know, bend upward in the traction of your strategic emphasis to build out the aftermarket.

You know, I would just really characterize it, Chris, as it continues to be strong. As you know, Graham has over a billion-dollar install base across the globe. And even though the refiners and the OEMs aren't investing in large capital projects, they are investing in the facilities and maintaining them and running them at peak capacity. So we continue to see aftermarket strong. We expect it to continue. Our book to bill for aftermarket was 1.1 during the quarter. and it was up, as you saw, 20% year over year. A lot of that growth, though, was driven by our defense aftermarket, so we do still have some opportunity there as well on the defense side.

Yeah, and I just want to add one thing. I think it's important. About 96% utilization in refineries in North America, so a typical what is 75% at 96%. And so, these refineries are operating at capacity. And what you see when that happens is two things. One is they're only doing maintenance when they must. And so, with Graham's install base, we're well positioned to serve that. The second is they're only willing to take any downtime when there's, you know, when there's pretty significant increases in either efficiency or utilization. And so, some of the programs that we're seeking there and have been winning and executing have been around on revamps, which is us providing improved performance within existing facilities. So, I would just characterize it as emergency aftermarket of our install base, as well as improved efficiency. But these facilities today are, they're full speed ahead.

Thanks for that description, Matt. And last one for me, I think, for Chris. You know, Chris, Anything, if we start with a baseline of guidance, curious if there's anything cadence-wise we should consider across 2Q to 4Q versus, say, you know, a pro rating sort of thought through the quarters?

Yeah. As you know, our business tends to be cyclical in our fiscal third quarter due to the two holidays in that quarter. We are a direct labor-driven business. So if our direct labor is off during the holidays, it does impact our revenue for the quarter. So between the three quarters, you know, we typically, or actually the four quarters of the year, you know, typically the third quarter is the lowest. But outside of that, there isn't much other cyclicality in our business.

Thanks. Appreciate the update, guys.

Thanks, Chris.

Our next question is from Robert Brooks with Northland Capital. Please go ahead.

Hey, just wanted to jump back on. On the awards yesterday, it kind of, reading through it, it seems like they are an expansion of wallet share on the MK48s and the MK19s. Am I reading that right? Could you just help clarify my understanding there? Because it seems like you're expanding the law chair. Is that more of a follow-on? Just trying to help me understand that better.

Yep. So, simply put, Mark 48 is a sole-sourced award, and that is a follow-on. So, it's another option year. So, that is not, you know, additional scope. It's actually just the incremental year. On the other program that we announced, that was a competitive solicitation, and it was a good win for the Barbara Nichols team. So, I'll keep it as sort of high level as that, but it is an expansion of scope to support fleet maintenance and fleet spares.

Got it. And maybe just sticking with the expansion of scope, are there any particular, like, technologies that you're bringing to the table that you think can be, that can drive expansion of scopes on projects that you're currently serving? Just wanted maybe a good place to end there. Thanks.

Yeah, so I'll start with the one that often gets overlooked. Just execution, period. Taking in work with the critical capabilities and, you know, welding that we have as well as rotating machines. And we take in orders and we deliver on time and on quality. And when you do that, you get more work because as you read, the Navy does not have that currently with its supply chain. The other areas I mentioned, I'll just reiterate, we are seeing additional opportunity on the torpedo side and on the cooling for the radar and laser platforms.

Thank you very much.

We have reached the end of our question and answer session. I would now like to turn the floor back over to Matt Malone, CEO, for closing comments.

Thank you, Dylan. Overall, we are pleased with our strong start to fiscal year 2027. With that said, we recognize there is still significant work ahead, and we will always focus on continued improvement. Our first quarter fiscal results represent another step forward for the objectives that we outlined at our investor day. We remain focused on disciplined execution, profitable growth, and getting better every day as we work towards becoming a top quartile performer and creating enduring value for our customers and shareholders. As always, please reach out with any questions.

Thank you, everyone, for joining and your interest in GRAM.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.