Gorman-Rupp Company (GRC) Investor presentation summary

Business positioning and markets

• Pumps serve essential, mission-critical applications across diversified end markets; industry sources estimate a ~$87B annual market.

• Market exposure includes industrial/chemicals and HVAC (19%–21%), fire suppression (19%–22%), agriculture and irrigation (14%–16%), municipal water and wastewater (12%–15%), and construction and dewatering (11%–13%).

• Competitive strengths include application engineering, high-quality products, customer service, established distributors, and primarily U.S.-centric manufacturing and sourcing.

• Aging water infrastructure, severe weather, data center construction, and supply-chain uncertainty create opportunities supported by pump capabilities and U.S.-centric sourcing.

Growth strategy and execution

• Sales CAGR was (3.0%) in 2016–2020 and 14.4% in 2021–2025, comprising 8.6% organic growth and 5.7% from acquisitions; gross margin averaged 25.8% and 28.4%, respectively.

• EBITDA as a percent of sales averaged 15.4% in 2016–2020 and 17.7% in 2021–2025, reaching 18.9% in 2025; operating working capital to sales improved from 53.7% in 2020 to 38.6% in 2025.

• Growth priorities include new products and markets, distribution expansion, customer-facing technology, international sales, automation, pricing, cost control, and working-capital management.

• International sales represent ~25% of annual sales; 2025 sales included $85M from international locations and $79M exported from U.S. locations.

• Acquisition criteria favor complementary pump-related products, niche-market brands, U.S. opportunities, $25M–$150M revenue, attractive profitability, and near-term accretion.

Third-quarter and year-to-date 2026 results

• Q3 net sales reached a record $193.3M, up 11.8% YoY; gross margin was 33.4%, up 420 bps, and operating income rose 57.8% to $33.9M.

• Q3 net income was a record $22.7M, or $0.86/share, versus $11.3M, or $0.43/share; adjusted EPS was $0.86 versus $0.52.

• Q3 adjusted EBITDA reached a record $41.8M, 21.6% of sales, up 29.4% YoY; incoming orders were $191.3M and backlog was $236.8M.

• 9M net sales were $555.9M, up 7.8% YoY; gross margin was 32.8%, up 240 bps, and operating income increased 30.2% to $91.8M.

• 9M net income was $60.0M, or $2.27/share, versus $39.3M, or $1.49/share; adjusted EPS was $2.27 versus $1.58, and adjusted EBITDA rose 18.8% to $115.5M.