10-Q · April 27, 2026
Gorman‑Rupp reported Q1 2026 net sales of $176.6 million, up 7.7% year‑over‑year, with gross margin expanding to 32.5% and operating margin to 15.6%. Net income was $17.84 million, or $0.68 per share (a 47.8% increase…
Earnings analysis · 10-Q
GRC earnings analysis
Filed July 27, 2026 · Our reading of the company's report
The latest report
Gorman-Rupp delivered record Q2 revenue of $186.1 million, up 3.9% year over year and 5.1% sequentially, with EPS rising 23.3% to $0.74. Gross margin reached 32.6% and operating margin 16.3%, benefiting from price…
Read full summary
Gorman-Rupp delivered record Q2 revenue of $186.1 million, up 3.9% year over year and 5.1% sequentially, with EPS rising 23.3% to $0.74. Gross margin reached 32.6% and operating margin 16.3%, benefiting from price realization, mix and lower LIFO costs. Cash generation was robust, supporting a $33.0 million first-half debt reduction, although fire-suppression demand and sequential backlog remain the principal operational watch items. Item 1A did not report new or revised risk factors relative to the 2025 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.74
What stood out
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Record sales and strong EPS growth
Q2 net sales reached a record $186.1 million, up $7.0 million or 3.9% year over year and up from $177 million in Q1 2026. Diluted EPS increased $0.14 to $0.74, a 23.3% year-over-year gain and $0.06 above Q1 2026.
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Margin expansion accelerated earnings
Gross margin expanded 130 basis points year over year to 32.6%, while operating margin expanded 130 basis points to 16.3%. Price realization and favorable mix contributed 80 basis points of gross-margin improvement, and lower LIFO cost added 50 basis points.
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Construction, agriculture and data centers lead
Construction sales rose $4.7 million, or 19.6%, to $28.9 million, and agriculture rose $4.2 million, or 17.8%, to $27.6 million. Industrial sales increased $1.6 million to $33.0 million and OEM sales rose 7.4% to $13.2 million, supported by data-center-related demand.
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Operating cash flow strengthened
Six-month operating cash flow increased $13.6 million to $62.5 million. After $7.7 million of investing cash use, calculated six-month free cash flow was $54.8 million; capex represented 2.2% of first-half sales.
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Cash generation reduced leverage
Cash and equivalents increased $8.5 million from year-end to $43.6 million, while total debt declined $33.0 million in the first half to $277.8 million. The company had $99.6 million of remaining revolver availability and no required term-loan quarterly installments in the next 12 months.
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First-half profit growth outpaced sales
First-half revenue grew 5.7% to $362.7 million and operating income grew 18.0% to $57.9 million. First-half EPS increased $0.35 to $1.41 and operating margin improved 170 basis points to 16.0%.
What to watch
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Fire-suppression shipments remain weak
Fire-suppression sales declined $2.2 million, or 7.0%, in Q2 to $29.6 million, primarily because of reduced international shipments. For the first half, fire sales fell $7.6 million, or 11.7%, to $57.1 million.
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Backlog declined versus year-end
Backlog of $239.7 million at June 30 was $4.3 million below the $244.0 million reported at December 31, 2025, despite being above the $224.4 million at June 30, 2025. This sequential decline bears watching entering the second half.
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Debt leaves ongoing rate sensitivity
Total debt remained $277.8 million, including $247.8 million of term-loan borrowings at an applicable rate of 5.5%. Management estimates a 100-basis-point interest-rate increase would raise annual interest expense by approximately $1.2 million.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management said backlog of $239.7 million and incoming orders of $370.8 million position the company well for the second half of 2026; full-year 2026 capex remains planned at $22.0 million-$24.0 million, funded from operating cash flow.
Earlier filings 4
10-K · March 2, 2026
Gorman‑Rupp is a single-segment designer and manufacturer of pumps and pump systems that shipped to approximately 140 countries in 2025. Net sales increased to $682,389,000 in 2025 (from $659,667,000 in 2024) and income…
10-Q · April 28, 2025
Gorman‑Rupp reported Q1 2025 revenue of $163.948 million (up from $159.268 million a year ago) and EPS of $0.46 versus $0.30 in Q1 2024. Gross profit rose to $50.332 million and operating income increased to $22.125…
10-K · March 3, 2025
Gorman‑Rupp reports essentially flat net sales of $659.667 million in 2024 (vs $659.511 million in 2023) while income before income taxes improved to $50.493 million in 2024 (vs $43.961 million in 2023). The company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.