Core Viewpoint - Gorman-Rupp (GRC) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Business Improvement Indicators - The increase in earnings estimates and the Zacks rating upgrade for Gorman-Rupp suggest an improvement in the company's underlying business, which could lead to higher stock prices [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions [5]. - The Zacks Rank system effectively leverages earnings estimate revisions to classify stocks into five groups, with a proven track record of performance [6]. Specifics on Gorman-Rupp's Earnings Estimates - Gorman-Rupp is projected to earn $2.04 per share for the fiscal year ending December 2025, with no year-over-year change expected [7]. - Over the past three months, the Zacks Consensus Estimate for Gorman-Rupp has increased by 2.5% [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings [8][9]. - Gorman-Rupp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for near-term price appreciation [9].

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector [1] - The service emphasizes cash flow and identifies companies that generate it, highlighting their value and growth prospects [1] - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

Company Performance - Fastenal has gained approximately 36.7% year-to-date, significantly outperforming the average gain of 5.7% in the Industrial Products group [4] - Fastenal currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for Fastenal's full-year earnings has increased by 2.4%, reflecting improved analyst sentiment [3] Industry Context - Fastenal is part of the Industrial Services industry, which consists of 18 stocks and is currently ranked 45 in the Zacks Industry Rank [5] - The Industrial Services industry has seen an average gain of 9.4% year-to-date, with Fastenal outperforming this group [5] - Another stock in the Industrial Products sector, Gorman-Rupp, has also shown strong performance with a year-to-date return of 8.7% and a Zacks Rank of 2 (Buy) [4][5]

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score simplifies the process of finding promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Gorman-Rupp (GRC) is currently highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Gorman-Rupp has a historical EPS growth rate of 11%, but projected EPS growth for this year is expected to be 16.6%, significantly higher than the industry average of 6.5% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - Gorman-Rupp's year-over-year cash flow growth is currently at 19.3%, well above the industry average of 2.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.6%, compared to the industry average of 9.9% [7] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are strongly correlated with near-term stock price movements, making them an important metric [8] - Gorman-Rupp's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month [9] Group 5: Overall Assessment - Gorman-Rupp has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [11]

Company Performance - Global Industrial (GIC) has shown a year-to-date return of approximately 39.3%, significantly outperforming the average return of 7.2% for the Industrial Products sector [4] - The Zacks Consensus Estimate for GIC's full-year earnings has increased by 16.3% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - Gorman-Rupp (GRC), another stock in the Industrial Products sector, has a year-to-date return of 10.4% and a Zacks Rank of 2 (Buy) [5] Industry Ranking - Global Industrial is part of the Industrial Services industry, which consists of 18 stocks and currently holds a Zacks Industry Rank of 16 [6] - The Industrial Services industry has gained an average of 1.8% year-to-date, indicating that GIC is performing better than its industry peers [6] - In contrast, Gorman-Rupp belongs to the Manufacturing - General Industrial industry, which has a Zacks Industry Rank of 39 and has moved up by 5% year-to-date [6] Sector Overview - The Industrial Products sector includes 189 individual stocks and currently holds a Zacks Sector Rank of 4 among 16 groups [2] - The Zacks Rank system emphasizes earnings estimates and revisions, with Global Industrial currently holding a Zacks Rank of 1 (Strong Buy) [3]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Gorman-Rupp (GRC) identified as a promising candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Gorman-Rupp has a historical EPS growth rate of 11%, but projected EPS growth for this year is expected to be 16.6%, significantly outperforming the industry average of 5.6% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 19.3%, which is substantially higher than the industry average of 2.1% [5]. - Over the past 3-5 years, Gorman-Rupp's annualized cash flow growth rate has been 10.6%, compared to the industry average of 9.4% [6]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Gorman-Rupp have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month, indicating a positive trend in earnings estimate revisions [7]. Group 4: Overall Positioning - Gorman-Rupp has achieved a Growth Score of B and holds a Zacks Rank 2, positioning it well for potential outperformance in the growth stock category [9].

Core Insights - The article compares Gorman-Rupp (GRC) and Nordson (NDSN) to determine which stock is more attractive to value investors [1] Valuation Metrics - GRC has a forward P/E ratio of 20.26, while NDSN has a forward P/E of 22.02 [5] - GRC's PEG ratio is 1.56, compared to NDSN's PEG ratio of 1.69, indicating GRC's expected earnings growth is more favorable [5] - GRC's P/B ratio is 2.73, while NDSN's P/B ratio is 4.2, suggesting GRC is more undervalued relative to its book value [6] Analyst Outlook - GRC currently holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to NDSN's Zacks Rank of 3 (Hold) [3] - GRC's solid earnings outlook and favorable valuation metrics position it as the superior value option compared to NDSN [7]

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The company reported significant growth in net income and EPS for Q2 and H1 2025, driven by increased sales and reduced interest expenses Consolidated Statements of Income Highlights (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $179,045 | $169,513 | +5.6% | $342,994 | $328,781 | +4.3% | | **Gross Profit** | $56,053 | $54,079 | +3.6% | $106,385 | $102,473 | +3.8% | | **Operating Income** | $26,912 | $26,049 | +3.3% | $49,037 | $46,477 | +5.5% | | **Net Income** | $15,797 | $8,335 | +89.5% | $27,925 | $16,219 | +72.2% | | **Earnings Per Share** | $0.60 | $0.32 | +87.5% | $1.06 | $0.62 | +71.0% | Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $231,290 | $220,827 | | **Total Assets** | $861,796 | $858,469 | | **Total Current Liabilities** | $96,669 | $87,527 | | **Total Liabilities** | $464,028 | $484,669 | | **Total Equity** | $397,768 | $373,800 | Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity (Six Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $48,888 | $33,397 | | **Net cash used for investing activities** | ($5,918) | ($4,962) | | **Net cash used for financing activities** | ($40,931) | ($24,230) | | **Net increase in cash and cash equivalents** | $2,772 | $3,727 | [Notes to Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Notes detail revenue by market, debt structure, and single-segment operations, highlighting strong municipal and fire market growth Net Sales by End Market (Six Months Ended June 30, in thousands) | End Market | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Industrial | $68,747 | $68,130 | +0.9% | | Fire | $64,730 | $61,249 | +5.7% | | Agriculture | $39,621 | $41,787 | -5.2% | | Construction | $40,748 | $43,389 | -6.1% | | Municipal | $51,845 | $46,419 | +11.7% | | Petroleum | $13,900 | $11,353 | +22.4% | | OEM | $22,019 | $19,842 | +11.0% | | Repair parts | $41,384 | $36,612 | +13.0% | - As of June 30, 2025, the company had a backlog of **$224.4 million** in remaining performance obligations, substantially all of which is expected to be recognized as revenue within one year[24](index=24&type=chunk) - On May 31, 2024, the Company amended and restated its Senior Secured Credit Agreement, providing a **$370 million** term loan facility and a **$100 million** revolving credit facility, maturing in May 2029 The company also issued **$30.0 million** of 6.40% senior secured notes due in 2031[38](index=38&type=chunk)[45](index=45&type=chunk) - The company operates in a single business segment: the design, manufacture, and sale of pumps and pump systems The Chief Operating Decision Maker (CODM) assesses performance on a consolidated basis[53](index=53&type=chunk)[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 sales growth, substantial net income increase due to debt refinancing, and strong liquidity [Executive Overview and Outlook](index=19&type=section&id=Executive%20Overview%20and%20Outlook) The company's order backlog increased to **$224.4 million**, with incoming orders up **7.1%**, driven by infrastructure and data center demand - The company's order backlog was **$224.4 million** at June 30, 2025, compared to **$206.0 million** at December 31, 2024[61](index=61&type=chunk) - Incoming orders for the first six months of 2025 increased by **7.1%** to **$365.7 million** compared to the same period in 2024[61](index=61&type=chunk) - The Board of Directors authorized a quarterly dividend of **$0.185 per share**, marking the **302nd** consecutive quarterly dividend[62](index=62&type=chunk) - The company expects continued strong demand from the municipal market due to infrastructure spending and from data center construction[64](index=64&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 vs. 2024](index=20&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202025%20vs.%202024) Q2 2025 net sales rose **5.6%**, with net income surging **89.5%** due to lower interest expense and favorable other income Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $179,045 | $169,513 | $9,532 | 5.6% | | **Gross Profit** | $56,053 | $54,079 | $1,974 | 3.6% | | **Operating Income** | $26,912 | $26,049 | $863 | 3.3% | | **Net Income** | $15,797 | $8,335 | $7,462 | 89.5% | - The **60 basis point** decrease in gross margin was primarily driven by a **120 basis point** increase in cost of material, which included higher LIFO expense and unfavorable product mix, partially offset by leverage from increased sales[68](index=68&type=chunk) - Interest expense decreased by **33.8%** to **$6.0 million** due to 2024 refinancing transactions and lower outstanding debt[71](index=71&type=chunk) - Other expense in Q2 2024 included a **$4.4 million** write-off of deferred debt financing fees and a **$1.8 million** prepayment fee, which did not recur in Q2 2025[72](index=72&type=chunk) [Results of Operations - Six Months Ended June 30, 2025 vs. 2024](index=23&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202025%20vs.%202024) H1 2025 net sales grew **4.3%**, with net income rising **72.2%** due to reduced interest expense and improved operating margin H1 2025 vs H1 2024 Performance (in thousands) | Metric | H1 2025 | H1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $342,994 | $328,781 | $14,213 | 4.3% | | **Gross Profit** | $106,385 | $102,473 | $3,912 | 3.8% | | **Operating Income** | $49,037 | $46,477 | $2,560 | 5.5% | | **Net Income** | $27,925 | $16,219 | $11,706 | 72.2% | - Sales growth was led by the municipal, repair parts, fire suppression, petroleum, and OEM markets, while construction and agriculture markets saw declines[77](index=77&type=chunk) - Interest expense decreased by **36.2%** to **$12.2 million** due to debt refinancing in May 2024 and lower debt levels[81](index=81&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$27.0 million** cash and **$99.1 million** available credit, planning **$20.0 million** in 2025 capex - Primary liquidity sources are cash from operations and the Credit Facility, with **$99.1 million** available under the revolver as of June 30, 2025[89](index=89&type=chunk) - Net cash from operating activities increased to **$48.9 million** in H1 2025 from **$33.4 million** in H1 2024, primarily due to higher net income[94](index=94&type=chunk) - Capital expenditures for H1 2025 were **$6.0 million**, with a full-year plan of approximately **$20.0 million**[91](index=91&type=chunk) - The company has a share repurchase program with **$48.1 million** available as of June 30, 2025[93](index=93&type=chunk) [Non-GAAP Financial Information](index=25&type=section&id=Non-GAAP%20Financial%20Information) Non-GAAP Adjusted EBITDA for H1 2025 was **$65.0 million**, providing a clearer operational comparison by excluding specific items Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income – GAAP basis** | $15,797 | $8,335 | $27,925 | $16,219 | | Interest expense | $5,990 | $9,048 | $12,192 | $19,120 | | Provision for income taxes | $4,587 | $2,335 | $7,994 | $4,535 | | Depreciation and amortization | $6,974 | $7,024 | $13,937 | $14,089 | | Write-off/Refinancing costs | — | $7,493 | — | $7,493 | | Non-cash LIFO expense | $1,928 | $1,134 | $2,923 | $2,127 | | **Adjusted EBITDA** | **$35,276** | **$35,369** | **$64,971** | **$63,583** | [Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on its variable-rate debt, partially hedged, with limited foreign currency exposure - The company is exposed to interest rate risk on its **$310.8 million** Senior Term Loan Facility, which bears interest at a variable rate (Adjusted Term SOFR plus 2.0% at June 30, 2025)[102](index=102&type=chunk) - To mitigate interest rate risk, the company uses interest rate swap agreements, designated as cash flow hedges[103](index=103&type=chunk) - A hypothetical **100 basis point** increase in interest rates is estimated to increase annual interest expense by approximately **$1.7 million**[104](index=104&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[107](index=107&type=chunk) - There were no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[108](index=108&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, new risk factors on trade policy, share repurchase status, and filed exhibits [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported from the prior Annual Report on Form 10-K - There are no material changes from the legal proceedings previously reported in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024[109](index=109&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) A supplemental risk factor addresses potential adverse effects of U.S. trade policy, including tariffs on materials and sales - A supplemental risk factor was added concerning U.S. trade policy, noting that tariffs could increase the cost of imported materials and that retaliatory tariffs from other countries could apply to the company's products sold internationally[110](index=110&type=chunk) [Issuer Purchases of Equity Securities](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No common shares were repurchased in Q2 2025 under the public program, with **$48.1 million** remaining for future purchases Issuer Purchases of Common Shares (Q2 2025) | Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced program | | :--- | :--- | :--- | :--- | | April 1 to April 30, 2025 | — | — | — | | May 1 to May 31, 2025 | — | — | — | | June 1 to June 30, 2025 | — | — | — | | **Total** | **—** | **—** | **—** | [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) The report includes key exhibits such as CEO and CFO certifications and financial statements in Inline XBRL format - Key exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[116](index=116&type=chunk) - Financial statements and the cover page interactive data file are provided in Inline eXtensible Business Reporting Language (XBRL) format[116](index=116&type=chunk)

[Financial Results](index=1&type=section&id=Financial%20Results) The company reported strong Q2 and year-to-date 2025 financial performance, marked by record sales, substantial net income growth, and improved cash flow driven by strategic debt reduction [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Q2 2025 achieved record net sales of **$179.0 million** and **90.0%** net income growth, driven by strong market performance and reduced interest expense Q2 2025 vs Q2 2024 Financial Performance | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $179.0M | $169.5M | +5.6% | | Gross Profit | $56.1M | $54.1M | +3.7% | | Gross Margin | 31.3% | 31.9% | -60 bps | | Operating Income | $26.9M | $26.0M | +3.5% | | Net Income | $15.8M | $8.3M | +90.0% | | Diluted EPS | $0.60 | $0.32 | +87.5% | | Adjusted Diluted EPS | $0.60 | $0.54 | +11.1% | Q2 2025 Net Sales Change by Market (YoY) | Market | Sales Change (in millions) | | :--- | :--- | | Municipal | +$3.5 | | Fire Suppression | +$2.8 | | Industrial | +$1.6 | | Petroleum | +$1.5 | | Repair | +$1.5 | | Construction | +$0.1 | | OEM | -$0.3 | | Agriculture | -$1.2 | - Gross margin **decreased by 60 basis points** to **31.3%**, **primarily due to** a **120 basis point** increase in material costs (including LIFO expense), which was **partially offset by** a **60 basis point** improvement from labor and overhead leverage[4](index=4&type=chunk) - Interest expense **decreased significantly** to **$6.0 million** from **$9.0 million** in Q2 2024, **mainly due to** **debt refinancing transactions** completed in May 2024 and a **reduction in outstanding debt**[7](index=7&type=chunk) - The company reported **record incoming orders** of **$188.0 million**, a **15.7% increase** compared to the second quarter of the previous year[10](index=10&type=chunk) [Year to Date 2025 Highlights](index=2&type=section&id=Year%20to%20Date%202025%20Highlights) H1 2025 net sales **increased by 4.3%** to **$343.0 million**, with net income **up 72.2%** and **$30.0 million** debt reduction First Half 2025 vs First Half 2024 Financial Performance | Financial Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $343.0M | $328.8M | +4.3% | | Gross Profit | $106.4M | $102.5M | +3.8% | | Gross Margin | 31.0% | 31.2% | -20 bps | | Operating Income | $49.0M | $46.5M | +5.4% | | Net Income | $27.9M | $16.2M | +72.2% | | Diluted EPS | $1.06 | $0.62 | +71.0% | | Adjusted EBITDA | $65.0M | $63.6M | +2.2% | - **Sales growth** in the first half was **led by** the municipal (+$5.4M), repair (+$4.8M), and fire suppression (+$3.5M) markets. This was **partially offset by declines** in the construction (-$2.6M) and agriculture (-$2.2M) markets[13](index=13&type=chunk) - **Total debt was reduced by $30.0 million** during the first six months of 2025. **Net cash provided by operating activities increased to $48.9 million** from **$33.4 million** in the prior-year period[21](index=21&type=chunk)[22](index=22&type=chunk) - The **order backlog was $224.4 million** at June 30, 2025, **consistent with the prior year**, while **incoming orders for the first six months increased 7.1%** to **$365.7 million**[20](index=20&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) Management attributes strong financial performance to infrastructure spending and a robust U.S.-based supply chain, optimistic for H2 [CEO Commentary](index=3&type=section&id=CEO%20Commentary) CEO attributes **record sales** and **EPS** to **infrastructure spending** and a **U.S.-based supply chain**, optimistic for H2 - **Key growth drivers** include **infrastructure spending** in the municipal market and **increased demand** related to data center construction[23](index=23&type=chunk) - The company's **primarily U.S.-based supply chain** is considered a **competitive advantage**, helping to **mitigate tariff impacts**[23](index=23&type=chunk) - **Strong cash flow** facilitated a **$30 million debt reduction** in the first half of 2025, **improving the company's financial position**[23](index=23&type=chunk) - Management is **optimistic about the second half of the year**, supported by **positive incoming order trends** and **current backlog levels**[23](index=23&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Detailed financial statements reveal significant year-over-year improvements in net income and operating cash flow, alongside a reduction in total liabilities [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Income statement shows year-over-year growth in net sales and operating income, with reduced interest expense boosting net income Income Statement Summary (in thousands) | Account | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $179,045 | $169,513 | $342,994 | $328,781 | | Gross Profit | $56,053 | $54,079 | $106,385 | $102,473 | | Operating Income | $26,912 | $26,049 | $49,037 | $46,477 | | Interest Expense | $(5,990) | $(9,048) | $(12,192) | $(19,120) | | Net Income | $15,797 | $8,335 | $27,925 | $16,219 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheet shows total assets of **$861.8 million**, with total liabilities decreased by **$20.7 million** due to debt reduction Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $231,290 | $220,827 | | Total Assets | $861,796 | $858,469 | | Long-term Debt, net | $318,564 | $348,097 | | Total Liabilities | $464,028 | $484,669 | | Shareholders' Equity | $397,768 | $373,800 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow **increased** to **$48.9 million** in H1 2025, with **$30.0 million** used for debt repayment Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $48,888 | $33,397 | | Net Cash used for Investing Activities | $(5,918) | $(4,962) | | Net Cash used for Financing Activities | $(40,931) | $(24,230) | | Net Increase in Cash | $2,772 | $3,727 | - **Key uses of cash** in H1 2025 included **$30.0 million** in **debt payments**, **$9.7 million** in **cash dividends**, and **$6.0 million** in **capital expenditures**[22](index=22&type=chunk)[35](index=35&type=chunk) [Non-GAAP Financial Information](index=3&type=section&id=Non-GAAP%20Financial%20Information) Non-GAAP financial measures are presented to provide a clearer view of operational performance by excluding non-comparable factors [Reconciliation of GAAP to Non-GAAP Measures](index=3&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP measures like **Adjusted EPS** and **EBITDA** provide clearer operational comparison by excluding non-comparable factors - Management uses **non-GAAP measures** like **adjusted earnings**, **adjusted EPS**, and **Adjusted EBITDA** to **assess comparative operations** against prior periods **without the distortion of non-comparable factors** like refinancing costs[25](index=25&type=chunk) Adjusted Earnings Per Share (EPS) Reconciliation | Description | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP EPS | $0.60 | $0.32 | $1.06 | $0.62 | | Adjustments (Refinancing, etc.) | $0.00 | $0.22 | $0.00 | $0.22 | | Non-GAAP Adjusted EPS | $0.60 | $0.54 | $1.06 | $0.84 | Adjusted EBITDA Reconciliation (in thousands) | Description | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (GAAP) | $15,797 | $8,335 | $27,925 | $16,219 | | Adjustments | $19,479 | $27,034 | $37,046 | $47,364 | | Non-GAAP Adjusted EBITDA | $35,276 | $35,369 | $64,971 | $63,583 | [Other Information](index=3&type=section&id=Other%20Information) This section provides an overview of The Gorman-Rupp Company's business and outlines key risks associated with forward-looking statements [About The Gorman-Rupp Company](index=3&type=section&id=About%20The%20Gorman-Rupp%20Company) Gorman-Rupp, founded 1933, is a **leading global manufacturer** of pumps for **diverse liquid-handling applications** - The company is a **leading designer, manufacturer, and international marketer** of pumps and pump systems for various liquid-handling applications[24](index=24&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Forward-looking statements are subject to risks including supply chain, competition, cybersecurity, and trade policy - The **news release contains forward-looking statements** based on assumptions that are **subject to risks and uncertainties** which **could cause actual results to differ materially**[27](index=27&type=chunk) - **Key risk factors** include **supply chain conditions**, **availability and costs of materials**, **competitive markets**, **cybersecurity threats**, **artificial intelligence challenges**, and the **impact of U.S. trade policy and tariffs**[27](index=27&type=chunk)[28](index=28&type=chunk)

Group 1 - Gorman-Rupp (GRC) reported quarterly earnings of $0.6 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and showing an increase from $0.54 per share a year ago, representing an earnings surprise of +9.09% [1] - The company posted revenues of $179.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.55%, compared to year-ago revenues of $169.51 million [2] - Gorman-Rupp shares have underperformed the market, losing about 0.1% since the beginning of the year, while the S&P 500 gained 8.2% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.55 on revenues of $173.23 million, and for the current fiscal year, it is $1.99 on revenues of $680.77 million [7] - The Manufacturing - General Industrial industry, to which Gorman-Rupp belongs, is currently in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]