Gorman-Rupp Company (GRC) Q1 2026 earnings summary

Executive summary

• Net sales increased 7.7% year-over-year to $176.6 million, driven by volume growth and pricing actions averaging 3%.

• Net income rose 47.1% to $17.8 million ($0.68 per share), with EPS up 47.8%.

• Operating income grew 24.2% to $27.5 million, with operating margin improving to 15.6% from 13.5%.

• Incoming orders rose 5.5% to $187.5 million, and backlog reached $247.9 million.

• Adjusted EBITDA was $35.5 million (20.1% of sales), up from $29.7 million (18.1%).

Financial highlights

• Gross profit increased to $57.4 million, with gross margin up 180 bps to 32.5% from 30.7%.

• SG&A expenses rose to $26.8 million (15.2% of sales), mainly due to higher advertising and freight costs.

• Interest expense decreased 19.9% to $5.0 million due to lower outstanding debt.

• Effective tax rate dropped to 19.8% from 21.9% due to a favorable discrete adjustment.

• Cash from operations was $22.0 million; cash and equivalents at quarter-end were $29.9 million.

Outlook and guidance

• Broad-based demand and increased backlog position the company well for the remainder of 2026.

• Full-year 2026 capital expenditures planned at $22–24 million, funded by operating cash.

• Effective tax rate for 2026 expected between 22.0% and 23.0%.

• Continued focus on disciplined execution, investment, and long-term profitable growth.