Gorman-Rupp Company

Gorman-Rupp outlined its growth strategy and capital allocation priorities at a company presentation, highlighting data centers and infrastructure as key drivers and signaling a renewed focus on acquisitions after reducing leverage below its 2-times threshold. President and CEO Scott King said data center-related applications now account for about 10% of revenue, with additional opportunities in aging water systems, flood protection, international markets, and new products. The company reported record 2025 EPS of $2.14, up 22%, and for 2026 year-to-date, sales rose nearly 6%, EPS increased 33%, and adjusted EBITDA exceeded 20% of sales, with backlog at $240 million. Debt reduction brought leverage to 1.9 times EBITDA, allowing management to resume evaluating complementary pump-industry acquisitions while maintaining dividends and business investment. King also announced that Ronald Stoops will become CFO on Oct. 1, succeeding Jim Kerr, who is retiring.

StockStory identified Gorman-Rupp as a top industrials stock to buy, while recommending investors sell Covenant Logistics and Whirlpool. Gorman-Rupp posted 14.9% annual revenue growth over five years and expanded its free cash flow margin by 6.2 percentage points, with earnings per share rising 30% annually over the past two years. Covenant Logistics saw earnings per share fall 15.7% annually despite revenue growth, and its returns on capital remain weak. Whirlpool’s sales declined 5.8% annually over five years, its free cash flow margin shrank by 5.4 percentage points, and it carries a high net-debt-to-EBITDA ratio of 7 times.

ITT reported first-quarter revenues of $1.21 billion, up 32.7% year on year and exceeding analyst estimates by 9.8%, making it the fastest-growing and biggest beat among the 12 gas and liquid handling stocks tracked. The group overall posted a satisfactory quarter, with revenues beating consensus by 1.3% and next-quarter guidance coming in 4.8% above expectations. Gorman-Rupp delivered the best performance with a 31% stock gain after reporting revenues of $176.6 million, while Graco was the weakest, missing estimates and seeing its shares fall 11.2%. Flowserve lagged with a 6.7% revenue decline, and Helios topped expectations with 16.8% growth and raised guidance.