Gorman-Rupp Q4 revenue rises 2.4% on data center demand

Overview

• Pump manufacturer's Q4 revenue rose 2.4%, slightly missing analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Gross margin improved due to better labor and overhead leverage

Outlook

• Company plans capital expenditures of $20-22 mln for 2026

• Company expects strong demand in municipal market from infrastructure spending

• Gorman-Rupp aims to further reduce debt and interest expenses in 2026

Result Drivers

• MARKET DEMAND - Sales increased in fire suppression, industrial, and OEM markets due to data center demand

• GROSS MARGIN IMPROVEMENT - Gross margin rose due to improved labor and overhead leverage and reduced healthcare costs

• INTEREST EXPENSE REDUCTION - Interest expense decreased due to lower outstanding debt

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Gorman-Rupp Co is $59.00, about 0.9% above its February 5 closing price of $59.55

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw7jPMgSa

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