GRC

Gorman-Rupp (NYSE:GRC) manufactures and sells pumps globally. missed Wall Street’s revenue expectations in Q2 CY2026 as sales rose 3.9% year on year to $186.1 million. Its GAAP profit of $0.74 per share was 5% above analysts’ consensus estimates. Is now the time to buy Gorman-Rupp? Find out in our full research report. Revenue: $186.1 million vs analyst estimates of $188.9 million (3.9% year-on-year growth, 1.5% miss) EPS (GAAP): $0.74 vs analyst estimates of $0.71 (5% beat) Adjusted EBITDA: $38.2 million vs analyst estimates of $35.5 million (20.5% margin, 7.6% beat) Operating Margin: 16.3%, up from 14.8% in the same quarter last year Free Cash Flow Margin: 19.8%, up from 13.9% in the same quarter last year Backlog: $239.7 million at quarter end, up 6.8% year on year Market Capitalization: $2.10 billion Scott A. King, President and CEO, commented, “Our strong start to the year continued into the second quarter. We are pleased with our record second quarter results, which included record net sales and earnings per share. Sales growth was broad-based across many of our markets, led by increased demand in construction and agriculture, as well as increased demand related to data centers across multiple end markets. Our margins remained strong in the second quarter and our earnings performance through the first half of 2026 helped generate solid operating cash flows. The strong cash flows allowed us to reduce total debt by $33.0 million during the first six months of 2026 while continuing to invest in the business. Incoming orders and backlog remained healthy, positioning us well for the second half of the year.” Powering fluid dynamics since 1934, Gorman-Rupp (NYSE:GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems. A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Gorman-Rupp’s 14.7% annualized revenue growth over the last five years was exceptional. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Gorman-Rupp’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.4% over the last two years was well below its five-year trend. This quarter, Gorman-Rupp’s revenue grew by 3.9% year on year to $186.1 million, falling short of Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 6.8% over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector. At least the company is tracking well in other measures of financial health. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Gorman-Rupp has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.8%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low. Looking at the trend in its profitability, Gorman-Rupp’s operating margin rose by 5.8 percentage points over the last five years, as its sales growth gave it immense operating leverage. In Q2, Gorman-Rupp generated an operating margin profit margin of 16.3%, up 1.6 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Gorman-Rupp’s EPS grew at 16.8% compounded annual growth rate over the last five years, higher than its 14.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into Gorman-Rupp’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Gorman-Rupp’s operating margin expanded by 5.8 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Gorman-Rupp, its two-year annual EPS growth of 35% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q2, Gorman-Rupp reported EPS of $0.74, up from $0.60 in the same quarter last year. This print beat analysts’ estimates by 5%. Over the next 12 months, Wall Street expects Gorman-Rupp’s full-year EPS to grow 17.3% from $2.37 to $2.78. We were impressed by how significantly Gorman-Rupp blew past analysts’ EBITDA expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its revenue slightly missed. Overall, this print had some key positives. The stock remained flat at $79.67 immediately following the results. Is Gorman-Rupp an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

MANSFIELD, Ohio, July 24, 2026--(BUSINESS WIRE)--The Gorman-Rupp Company (NYSE: GRC) reports financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights Record net sales of $186.1 million increased 3.9%, or $7.1 million, compared to the second quarter of 2025 Record net income of $19.4 million, or $0.74 per share, compared to net income of $15.8 million, or $0.60 per share, for the second quarter of 2025 Adjusted EBITDA1 was $38.2 million and 20.5% of sales, an increase of $2.9 million, or 8.3%, over the second quarter of 2025 Net sales for the second quarter of 2026 were $186.1 million compared to net sales of $179.0 million for the second quarter of 2025, an increase of 3.9%, or $7.1 million. The increase was driven by volume growth as well as price increases taken in the first quarter of 2026. Sales increased $4.7 million in the construction market due to increased demand in mining and sales of rental equipment and $4.2 million in the agriculture market due to broad-based improvement across Fill-Rite's sales channels. In addition, sales increased $1.6 million in the industrial market and $0.9 million in the OEM market due to increased demand related to data centers. These increases were partially offset by sales decreases of $2.2 million in the fire suppression market primarily due to reduced international shipments, $1.1 million in the municipal market, $0.6 million in the repair market, and $0.4 million in the petroleum market. Gross profit was $60.6 million for the second quarter of 2026, resulting in gross margin of 32.6%, compared to gross profit of $56.1 million and gross margin of 31.3% for the same period in 2025. The 130 basis point increase in gross margin was driven by improved margin on material including an 80 basis point improvement due to the realization of price increases and favorable product mix, as well as a 50 basis point reduction in LIFO costs. Selling, general and administrative ("SG&A") expenses were $27.1 million and 14.6% of net sales for the second quarter of 2026 compared to $26.0 million and 14.5% of net sales for the same period in 2025. SG&A expenses increased due to higher advertising expenses as well as increased freight out costs driven by increased sales. Operating income was $30.4 million for the second quarter of 2026, resulting in an operating margin of 16.3%, compared to operating income of $26.9 million and an operating margin of 15.0% for the same period in 2025. The 130 basis point increase in operating margin was driven by price increase realization, favorable product mix, and a reduction in LIFO costs. Interest expense was $4.7 million for the second quarter of 2026 compared to $6.0 million for the same period in 2025. The decrease in interest expense was due primarily to a decrease in outstanding debt. Net income was $19.4 million, or $0.74 per share, for the second quarter of 2026 compared to net income of $15.8 million, or $0.60 per share, in the second quarter of 2025. Adjusted EBITDA1 was $38.2 million and 20.5% of sales for the second quarter of 2026 compared to $35.3 million and 19.7% of sales for the second quarter of 2025. Year to date 2026 Highlights Net sales of $362.7 million increased 5.7%, or $19.7 million, compared to the first six months of 2025 Net income of $37.3 million, or $1.41 per share, compared to net income of $27.9 million, or $1.06 per share, for the first six months of 2025 Adjusted EBITDA1 was $73.7 million and 20.3% of sales, an increase of $8.7 million, or 13.5%, over the first six months of 2025 Total debt decreased $33.0 million through the first six months of 2026 Net sales for the first six months of 2026 were $362.7 million compared to net sales of $343.0 million for the first six months of 2025, an increase of 5.7%, or $19.7 million. Sales increased in the majority of our markets including a sales increase of $11.2 million in the construction market due to increased demand in mining and sales of rental equipment, $8.6 million in the agriculture market due to broad based improvement across Fill-Rite's sales channels, $5.2 million in the industrial market due to increased domestic investment, $2.6 million in the OEM market and $1.9 million in the municipal market. Offsetting these increases was a decrease of $7.6 million in the fire suppression market primarily due to reduced international shipments. Sales also decreased $1.4 million in the repair market and $0.8 million in the petroleum market. Gross profit was $118.0 million for the first six months of 2026, resulting in gross margin of 32.5%, compared to gross profit of $106.4 million and gross margin of 31.0% for the same period in 2025. The 150 basis point increase in gross margin included a 110 basis point improvement in margin on material driven by a 90 basis point improvement due to price increase realization and favorable product mix and a 20 basis point decrease in LIFO expense, as well as a 40 basis point improvement in leverage on labor and overhead expense resulting from increased sales. SG&A expenses were $53.9 million and 14.9% of net sales for the first six months of 2026 compared to $51.1 million and 14.9% of net sales for the same period in 2025. SG&A expenses increased due to higher advertising expenses related to trade show activity, as well as increased freight out costs driven by increased sales. Operating income was $57.9 million for the first six months of 2026, resulting in an operating margin of 16.0%, compared to operating income of $49.0 million and an operating margin of 14.3% for the same period in 2025. Operating margin in the first six months of 2026 increased 170 basis points compared to the same period in 2025 primarily driven by price increase realization, favorable product mix, and a reduction in LIFO costs, as well as improved leverage on labor and overhead expense resulting from increased sales. Interest expense was $9.6 million for the first six months of 2026 compared to $12.2 million for the same period in 2025. The decrease in interest expense was primarily due to a decrease in outstanding debt. Net income was $37.3 million, or $1.41 per share, for the first six months of 2026 compared to net income of $27.9 million, or $1.06 per share, for the first six months of 2025. Adjusted EBITDA1 was $73.7 million and 20.3% of net sales for the first six months of 2026 compared to $65.0 million and 18.9% of net sales for the first six months of 2025. Incoming orders for the first six months of 2026 were $370.8 million, an increase of 1.4%, or $5.1 million, compared to the same period in 2025. The Company’s backlog of orders was $239.7 million at June 30, 2026 compared to $224.4 million at June 30, 2025 and $244.0 million at December 31, 2025. Net cash provided by operating activities for the first six months of 2026 was $62.5 million compared to $48.9 million for the same period in 2025. The increase in cash provided by operating activities in the first six months of 2026 compared to the same period last year was primarily due to increased net income. Capital expenditures for the first six months of 2026 were $7.9 million and consisted primarily of machinery and equipment. Capital expenditures for the full-year 2026 are presently planned to be approximately $22.0 - $24.0 million. Total debt decreased $33.0 million during the first six months of 2026. Scott A. King, President and CEO, commented, "Our strong start to the year continued into the second quarter. We are pleased with our record second quarter results, which included record net sales and earnings per share. Sales growth was broad-based across many of our markets, led by increased demand in construction and agriculture, as well as increased demand related to data centers across multiple end markets. Our margins remained strong in the second quarter and our earnings performance through the first half of 2026 helped generate solid operating cash flows. The strong cash flows allowed us to reduce total debt by $33.0 million during the first six months of 2026 while continuing to invest in the business. Incoming orders and backlog remained healthy, positioning us well for the second half of the year." About The Gorman-Rupp CompanyFounded in 1933, The Gorman-Rupp Company is a leading designer, manufacturer and international marketer of pumps and pump systems for use in diverse water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning (HVAC), military and other liquid-handling applications. (1) Non-GAAP InformationThis release includes certain non-GAAP financial data and measures such as adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"). Adjusted EBITDA is net income (loss) excluding interest, taxes, depreciation and amortization, adjusted to exclude non-cash LIFO2 expense. Management utilizes these adjusted financial data and measures to assess comparative operations against those of prior periods without the distortion of non-comparable factors. The inclusion of these adjusted measures should not be construed as an indication that the Company’s future results will be unaffected by unusual or infrequent items or that the items for which the Company has made adjustments are unusual or infrequent or will not recur. Further, the impact of the LIFO inventory costing method can cause results to vary substantially from company to company depending upon whether they elect to utilize LIFO and depending upon which LIFO method they may elect. The Gorman-Rupp Company believes that these non-GAAP financial data and measures also will be useful to investors in assessing the strength of the Company’s underlying operations and liquidity from period to period. These non-GAAP financial measures are not intended to replace GAAP financial measures, and they are not necessarily standardized or comparable to similarly titled measures used by other companies. Provided below is a reconciliation of Adjusted EBITDA to its corresponding GAAP financial measures, which includes a description of actual adjustments made in the current period and the corresponding prior period. (2) LIFO Inventory MethodThe majority of the Company’s inventories are valued on the last-in, first-out (LIFO) method and stated at the lower of cost or market. Current cost approximates replacement cost, or market, and LIFO cost is determined at the end of each fiscal year based on inventory levels on-hand at current replacement cost and a LIFO reserve. The Company uses the simplified LIFO method, under which the LIFO reserve is determined utilizing the inflation factor specified in the Producer Price Index for Machinery and Equipment – Pumps, Compressors and Equipment, as published by the U.S. Bureau of Labor Statistics. Interim LIFO calculations are based on management’s estimate of the expected year-end inflation index and, as such, are subject to adjustment each quarter. When inflation increases, the LIFO reserve and non-cash expense increase. Forward-Looking StatementsIn connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, The Gorman-Rupp Company provides the following cautionary statement: This news release contains various forward-looking statements based on assumptions concerning The Gorman-Rupp Company’s operations, future results and prospects. These forward-looking statements are based on current expectations about important economic, political, and technological factors, among others, and are subject to risks and uncertainties, which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Such uncertainties include, but are not limited to, our estimates of future earnings and cash flows, general economic conditions and supply chain conditions and any related impact on costs and availability of materials, retention of supplier and customer relationships and key employees, and the ability to service and repay indebtedness. Other factors include, but are not limited to: company specific risk factors including (1) loss of key personnel; (2) intellectual property security; (3) growth through acquisitions; (4) the Company’s indebtedness and how it may impact the Company’s financial condition and the way it operates its business; (5) impairment in the value of intangible assets, including goodwill; (6) defined benefit pension plan settlement expense; (7) LIFO inventory method; and (8) family ownership of common equity; and general risk factors including (9) continuation of the current and projected future business environment; (10) highly competitive markets; (11) availability and costs of raw materials and labor; (12) cybersecurity threats; (13) artificial intelligence risk and challenges that can impact our business; (14) compliance with, and costs related to, a variety of import and export laws and regulations; (15) the impact of U.S. trade policy, including resulting tariffs; (16) environmental compliance costs and liabilities; (17) exposure to fluctuations in foreign currency exchange rates; (18) conditions in foreign countries in which The Gorman-Rupp Company conducts business; (19) changes in our tax rates and exposure to additional income tax liabilities; and (20) risks described from time to time in our reports filed with the Securities and Exchange Commission. Except to the extent required by law, we do not undertake and specifically decline any obligation to review or update any forward-looking statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723306126/en/ Contacts Brigette A. BurnellCorporate SecretaryThe Gorman-Rupp CompanyTelephone (419) 755-1246NYSE: GRC For additional information, contact James C. Kerr, Chief Financial Officer, Telephone (419) 755-1548.

The Gorman-Rupp Company (NYSE:GRC) reported stronger-than-expected second-quarter earnings on Friday, although revenue narrowly missed Wall Street forecasts, as higher sales volumes and improved margins supported profitability. Shares of the pump manufacturer rose 1.96% in premarket trading following the results, with investors focusing on the earnings beat and record quarterly performance. Gorman-Rupp posted adjusted earnings of $0.74 per share for the second quarter, surpassing analysts’ consensus estimate of $0.71 per share. Revenue increased 3.9% year-on-year to $186.1 million, up from $179.0 million in the corresponding period last year, but fell slightly short of the $188.1 million expected by analysts. Net income improved to $19.4 million, compared with $15.8 million in the second quarter of 2025. Revenue growth was supported by stronger demand across several end markets. The construction segment benefited from increased mining activity and higher rental equipment sales, contributing an additional $4.7 million in revenue. Agriculture sales rose by $4.2 million as Fill-Rite delivered broad-based growth across its distribution channels. These gains were partially offset by a $2.2 million decline in the fire suppression business, primarily due to lower international shipments. Gross margin expanded to 32.6%, up from 31.3% a year earlier. The improvement was driven by stronger material margins, including an 80-basis-point benefit from pricing actions and a favourable product mix, alongside a 50-basis-point reduction in LIFO-related costs. Operating margin also strengthened, increasing to 16.3% from 15.0% in the prior-year period. “We are pleased with our record second quarter results, which included record net sales and earnings per share,” said Scott A. King, President and CEO. “The strong cash flows allowed us to reduce total debt by $33.0 million during the first six months of 2026 while continuing to invest in the business.” For the first six months of 2026, Gorman-Rupp reported net sales of $362.7 million, representing a 5.7% increase from $343.0 million during the same period last year. Net income for the first half climbed to $37.3 million, or $1.41 per share, compared with $27.9 million, or $1.06 per share, a year earlier. The results highlight continued operational improvement as the company benefits from stronger demand across key industrial markets while generating sufficient cash flow to reduce debt and support ongoing investment. Gorman-Rupp Company stock price

Gorman-Rupp (GRC) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.25%. A quarter ago, it was expected that this pump maker would post earnings of $0.49 per share when it actually produced earnings of $0.68, delivering a surprise of +38.78%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Gorman-Rupp, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $186.07 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.03%. This compares to year-ago revenues of $179.04 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Gorman-Rupp shares have added about 66.7% since the beginning of the year versus the S&P 500's gain of 8.2%. While Gorman-Rupp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Gorman-Rupp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.66 on $181.47 million in revenues for the coming quarter and $2.60 on $726.43 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Tennant (TNC), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This maker of products for cleaning floors, parking lots and hospitals is expected to post quarterly earnings of $1.23 per share in its upcoming report, which represents a year-over-year change of -17.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Tennant's revenues are expected to be $321.15 million, up 0.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gorman-Rupp Company (The) (GRC) : Free Stock Analysis Report Tennant Company (TNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Allegion plc ALLE reported second-quarter 2026 adjusted earnings of $2.40 per share, up 17.6% year over year. The figure beat the Zacks Consensus Estimate of $2.23, supported by organic growth and margin expansion in the Americas segment. Allegion’s revenues were $1.15 billion, which increased 12.7% year over year. Organic revenues increased 6.9%, driven by volume growth and price realization. Revenues beat the Zacks Consensus Estimate of $1.11 billion. While acquisitions/divestitures boosted revenues by 5.1%, foreign currency had a positive impact of 0.7%.ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:Revenues from Allegion Americas increased 11.8% year over year to $918.6 million. The figure accounted for 79.8% of the quarter’s revenues. Organic revenues increased 8.9%, driven by high-single-digit growth in the non-residential and residential businesses. Operating income for the segment was $266.8 million, up 12.8% year over year.Revenues from Allegion International were $232.9 million, up 16.2% year over year. The metric accounted for 20.2% of the quarter’s revenues. Organic revenues decreased 1.2%. Segmental operating income was $14.8 million, down 5.7% year over year. Allegion PLC price-consensus-eps-surprise-chart | Allegion PLC Quote In the quarter, Allegion’s cost of revenues increased 14.1% year over year to $634 million. Gross profit was $517.5 million, up 10.9% year over year, while the gross margin declined 70 basis points (bps) to 44.9%.Selling and administrative expenses increased 6.5% year over year to $262.8 million. Adjusted EBITDA was $296.7 million, reflecting a year-over-year increase of 15%. The margin was 25.8%, up 50 basis points on a year-over-year basis.Adjusted operating income increased 15.3% year over year to $278.8 million. The adjusted margin was 24.2%, up 50 basis points year over year. Interest expenses were $24.8 million, up 0.8% year over year. The effective tax rate (on an adjusted basis) was 19.7%, down from 20.7% in the year-ago quarter. While exiting second-quarter 2026, Allegion had cash and cash equivalents of $320.6 million compared with $356.2 million at the end of 2025. Long-term debt was $2.03 billion, higher than $1.98 billion at 2025-end.In the first six months of 2026, ALLE generated net cash of $299.7 million from operating activities, reflecting a decrease of 4.6% year over year. Capital expenditure was $38.9 million compared with $38.8 million in the year-ago period. For the first six months of 2026, the available cash flow was $260.8 million.Allegion repurchased shares for $160.6 million. Dividends paid out totaled $94 million, reflecting an increase of 7.1% year over year. The company has raised its 2026 revenue guidance. Allegion expects revenues to increase in the range of 7.5-8.5% year over year, higher than 6-8% projected earlier. ALLE now expects organic revenues to grow in the range of 3.5-4.5%, up from 2-4% expected earlier.Adjusted earnings are now projected to be in the range of $8.85-$9 per share, higher than $8.70-$8.90 projected earlier. The company estimates available cash flow to be 85-95% of adjusted net income. Adjusted effective tax rate is projected to be approximately 18-19%. The company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are discussed below.The Gorman-Rupp Company GRC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GRC delivered a trailing four-quarter average earnings surprise of 17.6%. In the past 60 days, the Zacks Consensus Estimate for The Gorman-Rupp’s 2026 earnings has remained steady.Applied Industrial Technologies AIT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 4.0%.The Zacks Consensus Estimate for AIT’s fiscal 2026 (ended June 2026) earnings has improved by a penny in the past 60 days.Crane Company CR presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.3%.In the past 60 days, the consensus estimate for CR’s 2026 earnings has increased by 0.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Allegion PLC (ALLE) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report Gorman-Rupp Company (The) (GRC) : Free Stock Analysis Report Crane Company (CR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Gorman-Rupp (NYSE:GRC) and its peers. Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 12 gas and liquid handling stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.8% below. In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results. Powering fluid dynamics since 1934, Gorman-Rupp (NYSE:GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems. Gorman-Rupp reported revenues of $176.6 million, up 7.7% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates. Scott A. King, President and CEO, commented, “We delivered a strong start to 2026, with solid sales growth, meaningful margin expansion, and record earnings. Our results reflect the impact of pricing actions, a favorable product mix, improved leverage across labor, overhead, and SG&A, and efficient execution across our operations. Demand remained broad‑based across most of our end markets with incoming order volumes supporting sales growth and increasing our backlog, which we believe positions us well for the remainder of the year. We also generated strong operating cash flow and reduced debt during the quarter. As we move forward, we remain focused on disciplined execution, investing appropriately in the business, and delivering long-term profitable growth. " Interestingly, the stock is up 28.3% since reporting and currently trades at $84.98. Read why we think that Gorman-Rupp is one of the best gas and liquid handling stocks, our full report is free. Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE:ITT) provides motion and fluid handling equipment for various industries ITT reported revenues of $1.21 billion, up 32.7% year on year, outperforming analysts’ expectations by 9.8%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income and revenue estimates. ITT pulled off the biggest analyst estimate beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.7% since reporting. It currently trades at $194.09. Is now the time to buy ITT? Access our full analysis of the earnings results here, it’s free. Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products. Graco reported revenues of $540.1 million, up 2.2% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates. As expected, the stock is down 10.9% since the results and currently trades at $76.27. Read our full analysis of Graco’s results here. Founded in 1917, Parker Hannifin (NYSE:PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets. Parker-Hannifin reported revenues of $5.49 billion, up 10.6% year on year. This result topped analysts’ expectations by 1.6%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates. The stock is flat since reporting and currently trades at $938.43. Read our full, actionable report on Parker-Hannifin here, it’s free. Spun out of Cummins in 2023 after 65 years as part of the engine maker, Atmus Filtration Technologies (NYSE:ATMU) manufactures filters for trucks, construction equipment, and agriculture machinery to reduce emissions and protect engines. Atmus Filtration Technologies reported revenues of $477.5 million, up 14.6% year on year. This print beat analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income and revenue estimates. The stock is down 18.5% since reporting and currently trades at $51.68. Read our full, actionable report on Atmus Filtration Technologies here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Recent research coverage on Gorman-Rupp (GRC) has focused on its earnings outlook, with current-year EPS estimates revised upward and projected growth running well ahead of industry averages. See our latest analysis for Gorman-Rupp. At a share price of $72.66, Gorman-Rupp has a 90-day share price return of 11.32% and a year-to-date share price return of 50.93%. The 1-year total shareholder return of 103.64% points to strong momentum relative to recent weeks, despite the 30-day share price return being down 5.37%. If you are reassessing industrial opportunities after Gorman-Rupp's strong total shareholder return, it could be worth scanning 35 power grid technology and infrastructure stocks for other companies linked to critical infrastructure themes. With current-year earnings estimates moving higher and the stock trading close to analyst targets yet still screening with an intrinsic discount, should you see Gorman-Rupp as undervalued today, or is the market already pricing in future growth? On a P/E of 32.7x, Gorman-Rupp trades at a richer earnings multiple than the broader US Machinery industry, even though the last close sits just below the analyst target. The P/E ratio compares the current share price to earnings per share and is a quick shorthand for how much investors are willing to pay for each dollar of profit. For an industrial pump manufacturer with established operations in the US and abroad, a higher P/E often implies investors are factoring in solid earnings quality and the potential for further profit growth. In this case, the stock is priced above the industry average P/E of 26.9x and also above an estimated fair P/E of 23.8x. This suggests the market is assigning a premium to Gorman-Rupp's earnings profile that is higher than both peers and the level indicated by the fair ratio model. Explore the SWS fair ratio for Gorman-Rupp Result: Price-to-Earnings of 32.7x (OVERVALUED) However, you also need to consider risks such as any slowdown in pump demand across key sectors, as well as the possibility that earnings estimates prove too optimistic. Find out about the key risks to this Gorman-Rupp narrative. While the P/E of 32.7x suggests Gorman-Rupp is expensive against the Machinery industry average of 26.9x and a fair ratio of 23.8x, the SWS DCF model paints a different picture. With the stock at $72.66 versus a DCF value of $102.60, it screens as undervalued. Which signal carries more weight for you right now? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Gorman-Rupp for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mixed signals on valuation, risks and rewards, it makes sense to move quickly, review the underlying data, and decide where you stand. To help frame both sides of the argument in one place, take a closer look at the 3 key rewards and 1 important warning sign If Gorman-Rupp has sharpened your interest, do not stop here. Broaden your watchlist now so potential opportunities do not pass you by. Start with stability and income by reviewing companies screened as potential 10 dividend fortresses that could suit a reliable cash flow focus. Seek quality at a sensible price by checking stocks highlighted in the 48 high quality undervalued stocks to spot businesses that may trade below their assessed value. Reduce portfolio stress by scanning companies in the 69 resilient stocks with low risk scores that show resilient fundamentals and more controlled risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GRC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Gorman-Rupp (GRC) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The upward trend in estimate revisions for this pump maker reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Gorman-Rupp, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.69 per share for the current quarter, which represents a year-over-year change of +15.0%. The Zacks Consensus Estimate for Gorman-Rupp has increased 7.81% over the last 30 days, as one estimate has gone higher compared to no negative revisions. The company is expected to earn $2.60 per share for the full year, which represents a change of +21.5% from the prior-year number. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for Gorman-Rupp versus no negative revisions. This has pushed the consensus estimate 12.07% higher. Thanks to promising estimate revisions, Gorman-Rupp currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Gorman-Rupp because of its solid estimate revisions, as evident from the stock's 25% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gorman-Rupp Company (The) (GRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research