Quick Read Small caps outperformed the S&P 500 for eight consecutive days. iShares Russell 2000 ETF (IWM) gained 5.4% year-to-date. Wolverine World Wide (WWW) beat Q4 revenue estimates and EPS estimates, and management guided for revenue of up to nearly $2B. Gorman-Rupp’s backlog rose 18.4% to $244M. Evolv Technologies revenue grew 57% year-over-year. The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE. Small-cap stocks have quietly been building a case that ...

Industry Overview - Industrial stocks have had a strong start to 2026, with the State Street Industrial Select Sector SPDR ETF (XLI) up 12.8% year to date, driven by strength in aerospace, machinery, transportation, and construction sectors [1][9] - Resilience in U.S. manufacturing activity has been a primary driver, with leading indicators like new orders and capital spending stabilizing, encouraging investment in companies linked to economic expansion [2] - Easing input cost pressures and improved supply chain efficiency have enhanced margins for diversified industrial firms, while steady infrastructure spending continues to support demand, especially for engineering and construction companies [2] Sector Drivers - Defense and aerospace stocks have contributed to sector gains, supported by sustained government spending and a robust commercial aviation cycle [3] - Transportation companies have benefited from improving freight volumes and signs of normalization in global trade flows [3] - Expectations of moderating interest rates later in the year are boosting confidence in capital-intensive industries, potentially leading to increased equipment purchases and factory upgrades [3] Company Highlights - Kaiser Aluminum Corporation (KALU) is expected to see a 142.6% earnings growth rate for the current year, with earnings estimates increasing by 3.8% over the past 60 days; it holds a Zacks Rank 1 and a VGM Score of A [6][9] - The Gorman-Rupp Company (GRC) anticipates an 8.4% earnings growth rate for the current year, with a 3.1% increase in earnings estimates over the past 60 days; it has a Zacks Rank 2 and a VGM Score of B [7][9] - Century Aluminum Company (CENX) projects a remarkable 312.3% earnings growth rate for the next year, with estimates rising by 42.1% in the past 60 days; it also holds a Zacks Rank 1 and a VGM Score of A [8][9]

Ingersoll Rand (NYSE:IR) FY Conference Summary Company Overview - **Company**: Ingersoll Rand - **Date of Conference**: February 18, 2026 Key Industry Insights - **Demand Environment**: - Positive momentum observed in Q4 2025, with organic growth in orders across segments, particularly in North America and China, which accounts for about 10% of revenue [4][6] - Leading indicators like PMI are showing positive inflections, suggesting a potential recovery in the U.S. short-cycle industrial market [8][10] - The company is maintaining a prudent outlook for 2026, with expectations for organic growth to be modest [10][29] - **Headwinds**: - Previous headwinds from various global events (e.g., China EV build-outs, European market fluctuations post-Ukraine invasion) are no longer significant concerns as the company moves into 2026 [14][17] - The company does not foresee new comparable headwinds emerging in the near term [14][17] Financial Performance - **Recurring Revenue Growth**: - Recurring revenue exceeded $450 million in 2025, up from approximately $200 million in 2023, indicating more than a doubling of this revenue stream [24][25] - Growth in recurring revenue is broad-based across regions and product categories, with compressors in the U.S. being the largest contributor [25][27] - **Profitability**: - The recurring revenue model, particularly the Package Care segment, has gross margins between 60%-70%, contributing to overall profitability [41][46] - The company achieved a 29% EBITDA margin in ITS, with expectations for continued margin expansion despite tariff headwinds [46][61] Market Dynamics - **Tariff Impact**: - The company has experienced tariff exposure but has managed to offset these costs through pricing strategies, maintaining a dollar-neutral price-cost dynamic [54][55] - The market has responded rationally to tariff impacts, with pricing actions taken to mitigate margin dilution [54][58] - **Competitor Landscape**: - Competitors have varied responses to tariff impacts, with some implementing significant price increases while others balance pricing strategies [57][58] Strategic Focus - **Capital Allocation**: - The company plans to allocate 80%-85% of free cash flow towards M&A, with expectations for continued bolt-on acquisitions in the $1 billion range [95][99] - Share repurchase is targeted at $300-$350 million for the year, with no changes expected in the dividend policy [99][100] - **Growth Areas**: - Focus on under-penetrated markets such as Latin America, India, and Southeast Asia, with significant order growth observed in these regions [61][62] - Continued investment in innovation and recurring revenue initiatives is expected to drive future growth [61][64] Conclusion - Ingersoll Rand is positioned for a cautious yet optimistic outlook in 2026, with a focus on organic growth, recurring revenue expansion, and strategic capital allocation. The company is navigating past headwinds effectively and is set to capitalize on emerging opportunities in various global markets.

INVESTOR PRESENTATION February 2026 1 FEBRUARY 2026 PRESENTATION FEBRUARY 2026 PRESENTATION 2 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS Leading designer and manufacturer of pumps and pump systems with over 90 years of experience Reputation for quality products and outstanding customer first service is a competitive advantage Primarily U.S. based supply chain and manufacturing Highly diversified markets and products with significant presence in Fire Suppression, Industrial, Agriculture, Construction, Munic ...

Thomas Møller, EVP Energy Division Energy Division Energy transition Fossil fuels Clean fuels & molecules Electrification Today 2050 Net-zero +50% demand growth Solution 1 Energy efficiency Solution 2 Electrification Solution 3 Clean fuels & molecules 3 2 1 Energy transition Applications that drive electricity demand until 2030 Heating & cooling 22% Others 15% Industry 38% EV´s 15% Data centers 10% | Two thirds of the | China | European Union | Other AE | | --- | --- | --- | --- | | global investments | USD ...

Core Insights - The Gorman-Rupp Company reported a net sales increase of 2.8% to $172.8 million for Q3 2025 compared to Q3 2024, driven by growth in various markets, particularly industrial and municipal [2][6][12] - The company undertook facility optimization, reducing the number of National Pump Company operating facilities from six to three, which is expected to yield annualized savings of $2.0 to $2.5 million [1][21] - Net income for Q3 2025 was $11.3 million, or $0.43 per share, down from $12.9 million, or $0.49 per share in Q3 2024, with adjusted earnings per share increasing to $0.52 [6][10][18] Financial Performance - Gross profit for Q3 2025 was $50.4 million, resulting in a gross margin of 29.2%, down from 31.3% in Q3 2024, impacted by facility optimization costs and increased material costs [4][7] - Selling, general and administrative expenses were $25.9 million, representing 15.0% of net sales, slightly improved from 15.3% in Q3 2024 [5][14] - Operating income for Q3 2025 was $21.5 million, with an operating margin of 12.4%, compared to $23.9 million and 14.2% in Q3 2024 [5][7] Market Dynamics - Sales growth was noted across most markets, with significant increases in the industrial market ($5.3 million) and municipal market ($2.1 million), while the construction market saw a decline of $4.6 million [3][12] - Incoming orders for Q3 2025 reached $184.5 million, a 19.2% increase compared to the same quarter last year, indicating strong demand across various sectors [6][19] Year-to-Date Highlights - For the first nine months of 2025, net sales were $515.8 million, up 3.8% from $497.0 million in the same period of 2024 [11] - Year-to-date net income was $39.3 million, or $1.49 per share, compared to $29.1 million, or $1.11 per share in the first nine months of 2024 [18] - The company's backlog of orders increased to $234.2 million as of September 30, 2025, compared to $206.0 million at the end of 2024 [19]

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]

Core Viewpoint - Dover Corporation has acquired ipp Pump Products GmbH, enhancing its Pump Solutions Group's capabilities in sanitary pump technologies for various industries [1][2][3] Company Overview - Dover Corporation is a diversified global manufacturer with annual revenue exceeding $7 billion, operating through five segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies [4] Acquisition Details - ipp, headquartered in Bersenbrück, Germany, specializes in sanitary pump technologies, including hygienic lobe and progressive pumps, which are critical for food and beverage, cosmetics, and pharmaceuticals [2][3] - The acquisition is expected to add complementary technologies to Dover's existing pump portfolio, allowing for broader service to diverse customer bases across strategic end markets [3]

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]

Company Overview - Walrus Pump Co., Ltd. is showcasing its advanced smart pump technology at the 2025 Computex Taipei, expanding its market presence in various sectors including data centers and EV charging [1] - The company operates two major production bases in Taiwan and is set to begin small-scale production at its new Global Plant in Kaohsiung, which will enhance production capacity and inventory management [3] Financial Performance - In Q1 2025, Walrus reported consolidated revenue of NT$429 million, a year-over-year increase of 17.84%, with a gross profit of NT$121 million, up 15.24% YoY, and a net profit after tax of NT$32 million, up 38.45% YoY [2] Product Innovation - At Computex Taipei, Walrus unveiled two new pump series: the TPMS Slim Motor Multistage Centrifugal Pump series and the CMP Glandless Variable-Speed Pump series, both designed to enhance cooling efficiency in data centers [4] - The TPMS series features intelligent control capabilities for energy efficiency, while the CMP series reduces leakage risks and maintenance costs, aligning with ESG goals [4] Research and Development - Walrus operates a dual-power Pump Dynamic Laboratory certified by TAF and TÜV, providing tailored validation and testing technologies for customer-specific needs [5] - The company is investing in the development of Brushless DC (BLDC) motors to strengthen its position in the high-end server cooling market [7] Digital Strategy - Walrus integrates IoT technology into its products for automation and smart monitoring, enhancing reliability and safety through remote control and predictive maintenance [6] - The company also offers AI-powered customer support to ensure timely responses to maintenance needs [6] Market Expansion - With the increasing global demand for server cooling, Walrus aims to become a key partner for domestic thermal module manufacturers and strengthen its overseas presence through brand-driven market expansion [7]