Gorman-Rupp Company (GRC) 17th Annual Midwest IDEAS Conference summary

Leadership and organizational updates

• CFO transition set for October 1, with Ron Stoops taking over and the current CFO retiring.

• Emphasis on a strong company culture focused on customer service and employee profit-sharing.

• Heritage of disciplined capital allocation and 53 consecutive years of dividend increases.

• Operating model prioritizes nimble, customer-focused divisions and centralized support for non-customer functions.

Business performance and growth drivers

• Achieved 14.4% compound annual growth over five years, with both organic growth and the Fill-Rite acquisition contributing.

• Margins expanded by over 500 basis points, reaching record levels in 2026, with sustainability expected.

• Data center applications now account for about 10% of revenues, with further growth anticipated.

• Sales and EPS reached record highs in 2025, with continued growth in 2026 year-to-date.

• Backlog remains strong at $240 million, positioning the company well for the remainder of 2026.

Market positioning and industry trends

• Operates in a fragmented $80 billion global pump industry, holding less than 1% market share but ranking among the top 20 globally.

• Diverse product and market mix reduces cyclicality, with no single market exceeding 20% of sales.

• U.S.-centric supply chain provides resilience against global disruptions.

• Aging water infrastructure and increased data center construction serve as key tailwinds.

• Agriculture and construction markets, previously headwinds, are showing signs of recovery.