Financial Performance - Record net sales for Q2 2025 reached $179.0 million, a 5.6% increase or $9.5 million compared to Q2 2024[101] - Record incoming orders for Q2 2025 were $188.0 million, up 15.7% or $25.5 million from Q2 2024[101] - Net sales for the six months ended June 30, 2025, were $343.0 million, a 4.3% increase or $14.2 million compared to the same period in 2024[104] - Adjusted EBITDA for Q2 2025 was $35.3 million, representing 19.7% of net sales[100] - Adjusted earnings per share for Q2 2025 were $0.60[100] - Adjusted EBITDA for the first six months of 2025 increased to $65.0 million, a 2.2% increase or $1.4 million from $63.6 million in 2024[104] Capital Structure and Dividends - Total debt decreased by $30 million in the first six months of 2025[109] - The company has a strong dividend track record with over 75 years of cash dividends and 52 consecutive years of increases[7, 117] - The current annualized dividend rate is $0.74 per share, yielding 2.0% as of June 30, 2025[118] International Sales - International sales represent approximately 25% of total company sales annually[75] - In 2024, international sales totaled $168 million, with $90 million exported from the USA and $78 million direct from international locations[76]

Company Overview - Gorman-Rupp (GRC) is located in Mansfield and operates within the Industrial Products sector, experiencing a price change of -2.35% since the beginning of the year [3] - The company currently pays a dividend of $0.19 per share, resulting in a dividend yield of 2%, which is significantly higher than the Manufacturing - General Industrial industry's yield of 0.21% and the S&P 500's yield of 1.54% [3] Dividend Performance - Gorman-Rupp's annualized dividend of $0.74 has increased by 2.1% from the previous year, with a total of five dividend increases over the last five years, averaging an annual increase of 4.62% [4] - The current payout ratio stands at 39%, indicating that the company distributes 39% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $1.99 per share, reflecting a 13.71% increase compared to the previous year [5] - The company is viewed as a strong dividend investment opportunity, particularly in the context of rising interest rates, where high-yielding stocks may face challenges [6]

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Gorman-Rupp Company (GRC) Conference Summary Company Overview - Gorman-Rupp Company is a manufacturer of pumps and pump-related systems, serving a wide range of end markets [2][4] - The company has a strong brand reputation and focuses on customer service [5][6] Industry Insights - The global pump industry is valued at approximately $80 billion annually [9] - The industry is highly fragmented, presenting numerous acquisition opportunities [9] Financial Performance - Significant growth in net sales and adjusted EPS over the last four years, driven by both organic growth and the Fill Rite acquisition [19][20] - Organic growth rates were 15% in 2022 and 16% in 2023 [20] - 2024 adjusted EPS reached a record of $1.75, with adjusted EBITDA nearly $125 million [23] - Incoming orders in 2024 increased by 6.8% compared to 2023, with a strong backlog of $218 million at the end of Q1 2025 [25][26] Capital Allocation and Debt Management - Historical capital expenditure of about $20 million annually, primarily for machinery and equipment [30] - The company has a long history of dividend payments, with 52 consecutive years of increases [33] - Debt has decreased by $43 million in 2024, with expectations for similar reductions in 2025 [28] Growth Strategy - Focus on customer service and maintaining a high-performing culture as key growth pillars [35][36] - Plans for strategic acquisitions once leverage is reduced to below two times EBITDA [58][63] - Continued emphasis on new product development, particularly in self-priming pump technology [65][66] Market Dynamics - The company benefits from a U.S.-centric supply chain, which has provided advantages during macroeconomic challenges [6][43] - Strong relationships with distributors and a diverse product offering help mitigate risks during economic cycles [16][17] Customer Relationships and Pricing Strategy - Customers prioritize reliability and value over price sensitivity, particularly for repair parts [54][55] - The company maintains a stable pricing model, mindful of inflationary pressures [56][57] Conclusion - Gorman-Rupp Company is well-positioned for continued growth through a combination of organic initiatives and strategic acquisitions, supported by a strong financial foundation and commitment to customer service [41][42]

Core Viewpoint - Gorman-Rupp (GRC) is identified as a promising growth stock due to its strong earnings and cash flow growth, along with positive earnings estimate revisions, making it a solid choice for growth investors [2][10]. Earnings Growth - Gorman-Rupp has a historical EPS growth rate of 8.7%, but projected EPS growth for this year is expected to be 13.7%, significantly higher than the industry average of 6.3% [4]. Cash Flow Growth - The company is experiencing a year-over-year cash flow growth of 19.3%, which surpasses the industry average of 1.6% [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 8.4% [6]. Earnings Estimate Revisions - The current-year earnings estimates for Gorman-Rupp have been revised upward, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8].

Core Insights - Gorman-Rupp (GRC) is currently viewed as a more attractive investment option compared to Trimble Navigation (TRMB) for value investors due to its stronger earnings outlook and better valuation metrics [3][7]. Valuation Metrics - GRC has a forward P/E ratio of 19.61, while TRMB has a higher forward P/E of 24.68 [5]. - The PEG ratio for GRC is 1.51, indicating a more favorable growth outlook compared to TRMB's PEG ratio of 2.47 [5]. - GRC's P/B ratio stands at 2.69, which is lower than TRMB's P/B ratio of 3.14, suggesting GRC is undervalued relative to its book value [6]. Earnings Estimate Revisions - GRC has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook compared to TRMB [7].

Company Overview - Fanuc Corp. (FANUY) is a notable stock within the Industrial Products sector, which comprises 190 individual stocks and holds a Zacks Sector Rank of 9 [2] - The Zacks Rank system focuses on earnings estimates and revisions, indicating that Fanuc Corp. currently has a Zacks Rank of 2 (Buy) [3] Performance Analysis - The Zacks Consensus Estimate for Fanuc Corp.'s full-year earnings has increased by 1.4% over the past quarter, reflecting improved analyst sentiment [4] - Year-to-date, Fanuc Corp. has gained approximately 0.9%, outperforming the average return of -1.7% for the Industrial Products sector [4] - In the Industrial Automation and Robotics industry, which includes only 2 stocks, Fanuc Corp. ranks 2 in the Zacks Industry Rank, while the industry has experienced an average loss of 63.9% this year [6] Comparison with Peers - Gorman-Rupp (GRC) is another stock in the Industrial Products sector that has outperformed, with a year-to-date return of 2.1% and a Zacks Rank of 2 (Buy) [5] - Gorman-Rupp belongs to the Manufacturing - General Industrial industry, which has a lower Zacks Industry Rank of 138 and has seen a decline of -0.3% this year [6] Investment Outlook - Investors interested in Industrial Products stocks should monitor both Fanuc Corp. and Gorman-Rupp for their strong performance trends [7]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Q1 2025 and 2024, covering income, balance sheet, cash flow, and equity, with notes on accounting policies, revenue, debt, and the company's single business segment in pumps and pump systems Consolidated Statements of Income (Q1 2025 vs Q1 2024) | (Dollars in thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net sales** | $163,948 | $159,268 | | **Gross profit** | $50,332 | $48,394 | | **Operating income** | $22,125 | $20,429 | | **Net income** | $12,128 | $7,884 | | **Earnings per share** | $0.46 | $0.30 | Consolidated Balance Sheet Highlights | (Dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $224,270 | $220,827 | | **Total assets** | $857,847 | $858,469 | | **Total current liabilities** | $92,684 | $87,527 | | **Total liabilities** | $475,776 | $484,669 | | **Total equity** | $382,071 | $373,800 | Consolidated Statements of Cash Flows (Q1 2025 vs Q1 2024) | (Dollars in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $21,100 | $10,742 | | **Net cash used for investing activities** | ($3,001) | ($3,854) | | **Net cash used for financing activities** | ($20,648) | ($9,374) | | **Net (decrease) in cash and cash equivalents** | ($2,373) | ($2,746) | Net Sales by End Market (Q1 2025 vs Q1 2024) | End Market | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Industrial | $32,617 | $33,560 | | Fire | $32,977 | $32,289 | | Agriculture | $19,463 | $20,406 | | Construction | $18,781 | $21,482 | | Municipal | $22,049 | $20,215 | | Petroleum | $6,927 | $5,902 | | OEM | $10,633 | $8,158 | | Repair parts | $20,501 | $17,256 | | **Total net sales** | **$163,948** | **$159,268** | - International sales represented approximately **26% of total net sales** for Q1 2025, up from 24% in Q1 2024[22](index=22&type=chunk) - The company's backlog (remaining performance obligations) was **$217.8 million** as of March 31, 2025, with substantially all expected to be recognized as revenue within one year[23](index=23&type=chunk) - The company operates in a single business segment: the design, manufacture, and sale of pumps and pump systems[49](index=49&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **2.9% increase in net sales** to **$163.9 million**, improved gross margin, and a **53.8% rise in net income** to **$12.1 million** due to debt refinancing, supported by a strong backlog and consistent dividends - The company's order backlog was **$217.8 million** at March 31, 2025, compared to $234.2 million a year prior. Incoming orders for Q1 2025 decreased by **0.7%** compared to Q1 2024[56](index=56&type=chunk) Q1 2025 vs Q1 2024 Performance Summary | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $163.9M | $159.3M | +2.9% | | **Gross Profit** | $50.3M | $48.4M | +3.9% | | **Operating Income** | $22.1M | $20.4M | +8.3% | | **Net Income** | $12.1M | $7.9M | +53.8% | | **EPS** | $0.46 | $0.30 | +53.3% | - Net sales growth was primarily driven by the municipal (**+9.1%**), petroleum (**+17.4%**), OEM (**+30.3%**), and repair parts (**+18.8%**) markets, offsetting declines in construction (**-12.6%**) and agriculture (**-4.6%**)[60](index=60&type=chunk)[61](index=61&type=chunk) - Interest expense decreased by **38.4%** to **$6.2 million** from $10.1 million in Q1 2024, primarily due to debt refinancing transactions completed in May 2024[65](index=65&type=chunk) - The Board of Directors authorized a quarterly dividend of **$0.185 per share**, marking the 301st consecutive quarterly dividend[57](index=57&type=chunk)[75](index=75&type=chunk) - The company has **$48.1 million** available for repurchase under its **$50.0 million** share repurchase program as of March 31, 2025[76](index=76&type=chunk) Adjusted EBITDA Reconciliation (Non-GAAP) | (Dollars in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Reported net income –GAAP basis** | $12,128 | $7,884 | | Interest expense | $6,203 | $10,073 | | Provision for income taxes | $3,408 | $2,200 | | Depreciation and amortization expense | $6,963 | $7,065 | | Non-cash LIFO expense | $995 | $993 | | **Non-GAAP adjusted EBITDA** | **$29,697** | **$28,215** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company identifies primary market risks as interest rate fluctuations on its variable-rate Senior Term Loan Facility, partially mitigated by swaps, and limited foreign currency exchange rate exposure managed by local currency invoicing - The company is exposed to interest rate risk on its **$326.1 million** in borrowings under the Senior Term Loan Facility, which bears interest at a variable rate of Adjusted Term SOFR plus **2.0%** as of March 31, 2025[85](index=85&type=chunk) - To mitigate interest rate risk, the company uses interest rate swap agreements, which are designated as cash flow hedges[86](index=86&type=chunk) - A hypothetical **100 basis point increase** in interest rates is estimated to increase annual interest expense by approximately **$1.8 million**[87](index=87&type=chunk) - Foreign currency risk is primarily limited to the Euro, Canadian Dollar, South African Rand, and British Pound. Foreign currency transaction losses were minimal at **($0.1) million** for Q1 2025[88](index=88&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[90](index=90&type=chunk) - No changes occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[91](index=91&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material changes to legal proceedings from those previously disclosed in its 2024 Annual Report on Form 10-K - There are no material changes from the legal proceedings previously reported in the Company's 2024 Form 10-K[92](index=92&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section supplements previously disclosed risk factors, emphasizing the potential adverse effects of U.S. trade policy and tariffs on imported material costs and international sales, which could impact financial results - A supplemental risk factor was added concerning U.S. trade policy. Tariffs could increase the cost of imported materials and adversely affect the company's business and financial results if not properly mitigated[93](index=93&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company did not repurchase common shares during Q1 2025, with approximately **$48.1 million** remaining available under its authorized share repurchase program as of March 31, 2025 - No shares were purchased as part of the publicly announced repurchase program during the first quarter of 2025[94](index=94&type=chunk) - As of March 31, 2025, approximately **$48.1 million** remained available for repurchase under the authorized program[34](index=34&type=chunk)[76](index=76&type=chunk)[94](index=94&type=chunk) [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - None[96](index=96&type=chunk) [Item 4. Mine Safety Information](index=29&type=section&id=Item%204.%20Mine%20Safety%20Information) This item is not applicable to the company - Not applicable[97](index=97&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025 - During the quarter ended March 31, 2025, no director or officer of the Company adopted or terminated any Rule 10b5-1 trading arrangement[98](index=98&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications required by Sarbanes-Oxley Act and financial statements in Inline XBRL format - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[101](index=101&type=chunk) - Financial statements are provided in Inline eXtensible Business Reporting Language (XBRL) format[101](index=101&type=chunk)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Gorman-Rupp (GRC) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Earnings Growth - Gorman-Rupp has a historical EPS growth rate of 8.7%, but projected EPS growth for this year is expected to be 13.7%, significantly outperforming the industry average of 6.4% [5]. 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 1.3%. Over the past 3-5 years, Gorman-Rupp's annualized cash flow growth rate has been 10.6%, compared to the industry average of 8.5% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Gorman-Rupp, with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month, indicating strong near-term stock price movement potential [8]. Overall Assessment - Gorman-Rupp has achieved a Growth Score of B and holds a Zacks Rank 2, reflecting its strong growth prospects and positive earnings estimate revisions, making it a solid choice for growth investors [9][10].

Investors interested in stocks from the Manufacturing - General Industrial sector have probably already heard of Gorman-Rupp (GRC) and Trimble Navigation (TRMB) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and ...