The beat reinforces the positive business momentum from prior quarters, but the lack of formal guidance limits the catalyst. Traders should watch for any analyst upgrades or management commentary on H2 trends. The stock may see modest upside but a larger move likely requires a guidance raise or a catalyst like M&A.
Price Chart
Executive Summary
Gorman-Rupp reported record Q2 2026 net sales of $186.1M (+3.9% YoY) and EPS of $0.74, a 19.4% beat vs consensus of $0.62. Gross margins expanded 130bps to 32.6%, operating cash flow rose to $62.5M (H1), and total debt fell $33M in H1. No formal guidance was provided, but backlog remains healthy at $239.7M. The beat is positive but modest in magnitude with no guidance raise, limiting the near-term upside surprise.
Key Financial Metrics
Key Facts
- Record Q2 net sales of $186.1M, +3.9% YoY
- GAAP EPS $0.74 vs $0.62 consensus (beat +19.4%)
- Gross margin 32.6% vs 31.3% a year ago (+130bps)
- Operating margin 16.3% vs 15.0% (+130bps)
- Operating cash flow H1 2026: $62.5M vs $48.9M in H1 2025
- Total debt decreased $33.0M in H1 2026
- Backlog $239.7M at June 30, down from $244.0M at Dec 31 but up from $224.4M a year ago
- Incoming orders H1 2026: $370.8M, +1.4% YoY
- Full-year 2026 capex plan raised to $22-24M from $20-22M previously
Financial Impact
EPS beat of 19.4% and revenue beat of 1.6% vs consensus, with margins expanding and strong cash flow. No guidance provided.
Risk Factors
- Uncertainty around U.S. trade policy and tariffs could impact costs
- Construction market slowdown may pressure demand
- Raw material cost inflation and LIFO adjustments
- No formal guidance provided, reducing visibility on H2
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-315278 |
| Document: grc-20260724.htm | 0001193125-26-315278 |
| Document: 0001193125-26-315278-index-headers.html | 0001193125-26-315278 |
| Document: 0001193125-26-315278-index.html | 0001193125-26-315278 |
| Document: 0001193125-26-315278.txt | 0001193125-26-315278 |
| 8-K Data (Synthetic) | 0001193125-26-315278 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $70.99 | awaiting T+60 | — | $75.04 (+5.71%) |
Oct 2, 2026 24d ago | 8-K | $77.26 | awaiting T+60 | — | $75.04 (−2.87%) |
Jul 24, 2026 13w ago | 8-K | $81.73 $72.42 | ▼ −11.39% | ▼ −14.68% | $75.04 (−8.19%) |
Jul 24, 2026 13w ago | 8-K | $81.73 $72.42 | ▼ −11.39% | ▼ −14.68% | $75.04 (−8.19%) |
Jun 12, 2026 19w ago | Institutional Cluster | $84.59 $75.49 | ▼ −10.76% | ▼ −14.02% | $75.04 (−11.29%) |
Apr 27, 2026 25w ago | 8-K | $75.96 $80.09 | ▲ +5.44% | ▲ +0.66% | $75.04 (−1.21%) |
US Market Status
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