GRC earnings analysis
What we found in GRC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.74
- Gross margin
- 32.6%
- Operating margin
- 16.3%
- Segment
- Industrial: $32.965 million, +5.2% year over year
- Segment
- Fire: $29.638 million, -7.0% year over year
- Segment
- Agriculture: $27.594 million, +17.8% year over year
- Segment
- Construction: $28.859 million, +19.6% year over year
- Segment
- Municipal: $28.782 million, -3.5% year over year
- Segment
- Petroleum: $5.084 million, -8.4% year over year
- Segment
- OEM: $13.206 million, +7.4% year over year
- Segment
- Repair parts: $19.937 million, -3.3% year over year
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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