Gorman-Rupp (NYSE:GRC) outlined its growth strategy, capital allocation priorities and exposure to infrastructure and data center demand at a company presentation, with management emphasizing continued organic expansion, potential acquisitions and ongoing debt reduction.
President and CEO Scott King said the pump manufacturer serves mission-critical, non-discretionary applications across a broad range of end markets, including water and wastewater, agriculture, construction, fuel transfer, HVAC, fire protection and industrial uses. The company believes its product and market diversity helps reduce cyclicality, as no individual market accounts for half of sales.
Data centers, infrastructure cited as growth drivers
Management identified aging water and wastewater infrastructure, data center construction, international growth, new product development and market-share gains as major growth opportunities. King said Gorman-Rupp estimates that data center-related applications currently represent approximately 10% of revenue.
The company’s pumps can be used at several stages of the data center lifecycle, including municipal water and wastewater systems, construction-equipment fueling, HVAC and chiller-water systems, fire protection, coolant distribution units and backup-generator fueling. King said that share of revenue has been growing and is expected to continue increasing gradually over time.
King said the company is also positioned to supply large stormwater pumps for flood protection projects, including units capable of moving 1 million gallons of water per minute. Meanwhile, management said agricultural irrigation and construction rental activity, which had been headwinds, appear to be improving.
The company highlighted its U.S.-centric supply chain as a competitive advantage during periods of supply-chain disruption, inflation and tariffs. King also pointed to Gorman-Rupp’s distributor network, engineering capabilities and portfolio of brands with leading niche positions in the pump market.
Five-year growth and margin expansion
King said the company generated an average compound annual growth rate of 14.4% over the past five years. He said 5.7 percentage points of that growth came from the May 2022 acquisition of Fill-Rite from Tuthill Corp., while legacy Gorman-Rupp generated average organic growth of 8.6%.
Stoops said sales rose approximately 95% over the five-year period, with about half of that increase attributable to Fill-Rite and half to organic growth. Fill-Rite manufactures fuel-transfer pumps and has strengthened the company’s portfolio through its brand position, margins and growth history, according to management.
Gorman-Rupp reported that sales increased 3.4% in 2025, excluding weaker construction activity. The company maintained its record gross margin from 2024 despite inflation and tariffs, Stoops said. Earnings per share reached a record $2.14 in 2025, up 22% from the prior year, while adjusted EBITDA totaled nearly $129 million, or about 19% of sales.
For 2026 year to date, Stoops said sales were up almost 6%, led by mining-related construction, rental-equipment demand and Fill-Rite sales channels. Year-to-date earnings per share rose 33% from the prior-year period, and adjusted EBITDA exceeded 20% of sales. Incoming orders increased 1.4% year to date, following a 10% increase in 2025, and backlog stood at $240 million.
Debt reduction supports renewed acquisition focus
Management said it has continued to use cash flow to reduce debt incurred for the Fill-Rite acquisition. The company paid down $45 million of debt in 2024, $60 million in 2025 and $33 million through the second quarter of 2026. Leverage stood at 1.9 times EBITDA, below the company’s previously discussed 2 times threshold for returning its focus to acquisitions.
Stoops said capital allocation priorities remain reinvestment in the business, dividends, debt repayment and acquisitions. The company has historically spent roughly $20 million annually on capital expenditures, primarily for machinery and equipment, and does not currently plan major facility expansion.
Gorman-Rupp has increased its dividend for 53 consecutive years, a record that management said places it among the top 50 U.S. publicly traded companies for consecutive dividend increases.
King said the company is again evaluating acquisition opportunities in the fragmented pump industry, although it has no transaction to announce. Management will seek complementary pump and pumping-equipment businesses with attractive margins, strong niche positions, compatible cultures and management teams interested in remaining with the business. King said U.S. acquisition targets would generally be preferred over European targets when other factors are equal.
While the company does not have a specific timetable to fully eliminate its Fill-Rite-related debt, King said future acquisitions could lead Gorman-Rupp to refinance or maintain leverage rather than return to a zero-debt balance sheet.
About Gorman-Rupp (NYSE:GRC)
Gorman-Rupp Company is a U.S.-based manufacturer specializing in the design, production and distribution of pumps and pumping systems. Its product lineup includes centrifugal self-priming pumps, submersible pumps, vacuum priming pumps and engineered pumps for applications such as water and wastewater management, sewage handling, dewatering, industrial processing and agricultural irrigation. The company supports both standard pump requirements and custom engineered solutions for original equipment manufacturers (OEMs) and municipal clients.
Headquartered in Mansfield, Ohio, Gorman-Rupp has built a reputation for rugged, reliable equipment and aftermarket support services.
