U.S. pump maker's Q2 revenue rose 3.9% year-over-year to record levels.
EPS for Q2 increased to $0.74 from $0.60 a year ago.
Growth was driven by higher demand in construction, agriculture, and data center markets.
Outlook and capital spending
Company plans 2026 capital expenditures of $22 mln to $24 mln.
Company says incoming orders and backlog remain healthy for the second half of 2026.
Key details and analyst coverage
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$186.10 mln
$189 mln (2 Analysts)
Q2 EPS
$0.74
Q2 Net Income
$19.40 mln
Q2 Adjusted EBITDA
Beat
$38.20 mln
$35.50 mln (1 Analyst)
Q2 Gross Margin
32.60%
Q2 Gross Profit
$60.60 mln
Q2 Operating Income
$30.40 mln
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the industrial machinery & equipment peer group is "buy".
Wall Street's median 12-month price target for Gorman-Rupp Co is $75.00, about 5.8% below its July 23 closing price of $79.62.
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 24 three months ago.
Result drivers and margin trends
Volume and price increases - Q2 sales growth was driven by higher volumes and price increases taken in Q1 2026.
Market demand - Higher demand in construction (mining, rental equipment), agriculture, and data center-related OEM and industrial markets supported sales.
Gross margin improvement - Gross margin rose due to price realization, favorable product mix, and lower LIFO costs.
GRC•
