Gorman-Rupp Posts Record Q2: Sales $186.1M, EPS $0.74, Debt Down $33M
GRC has more than doubled off its 52-week low of $37.5.
Summary
Gorman-Rupp reported record Q2 2026 results with net sales of $186.1 million and EPS of $0.74, both all-time highs for a second quarter. Strong cash flow allowed the company to reduce debt by $33 million in the first half.
Key Events · Earnings and Guidance · GRC
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Record Q2 Sales and Earnings
Net sales reached $186.1 million, up 3.9% year-over-year, and net income hit $19.4 million ($0.74 per share), a 23% increase from $15.8 million ($0.60 per share) in Q2 2025.
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Margin Expansion Across the Board
Gross margin improved 130 bps to 32.6%, and operating margin rose 130 bps to 16.3%, driven by price realization, favorable product mix, and a $0.9 million reduction in LIFO expense.
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Debt Reduction of $33 Million
Strong operating cash flow of $62.5 million in H1 2026 enabled the company to pay down $33 million in total debt, lowering interest expense by $1.3 million versus Q2 2025.
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Healthy Backlog and Order Growth
Backlog stood at $239.7 million as of June 30, 2026, up from $224.4 million a year ago, and incoming orders increased 1.4% to $370.8 million in the first half.
Analysis · GRC · Technology
Gorman-Rupp delivered its strongest second quarter ever, with net sales rising 3.9% to $186.1 million and net income jumping 23% to $19.4 million. Margins expanded across the board — gross margin up 130 bps to 32.6%, operating margin up 130 bps to 16.3% — driven by price increases, favorable mix, and lower LIFO costs. The company generated $62.5 million in operating cash flow in the first half, enabling it to slash total debt by $33 million while still investing $7.9 million in capex. Backlog remains healthy at $239.7 million, and incoming orders grew 1.4%, suggesting demand momentum is intact. This is a clean beat with no one-time gimmicks — real operational leverage and balance sheet improvement.
At the time of this filing, GRC was trading at $79.84 on NYSE in the Technology sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $37.50 to $92.78. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.