Gorman-Rupp Company (GRC) Q2 2026 earnings summary

Executive summary

• Achieved record net sales of $186.1 million in Q2 2026, up 3.9% year-over-year, and $362.7 million for the first six months, up 5.7% year-over-year.

• Net income reached $19.4 million ($0.74/share) in Q2 and $37.3 million ($1.41/share) for the first half, both record highs.

• Broad-based sales growth led by construction, agriculture, and data center-related demand.

Financial highlights

• Gross margin improved to 32.6% in Q2 2026 (up 130 bps) and 32.5% for the first half (up 150 bps) year-over-year.

• Adjusted EBITDA was $38.2 million (20.5% of sales) in Q2 and $73.7 million (20.3% of sales) for the first half, up 8.3% and 13.5% respectively.

• Operating income rose to $30.4 million in Q2 (16.3% margin) and $57.9 million for the first half (16.0% margin), both up over prior year.

• Interest expense decreased to $4.7 million in Q2 and $9.6 million for the first half due to lower outstanding debt.

Outlook and guidance

• Incoming orders for the first half were $370.8 million, up 1.4% year-over-year; backlog at June 30, 2026 was $239.7 million, up from $224.4 million a year ago.

• Capital expenditures for full-year 2026 are planned at $22.0–$24.0 million.

• Management expects healthy order and backlog levels to position the company well for the second half of the year.