THE GORMAN- RUPP COMPANY (GRC)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-09
$74.77-0.95%
Close 2026-09-09 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-09
Warn: Management is running behind on a stated commitment.
Gorman-Rupp grows revenue steadily, with quarterly sales rising from $166.6M to $176.6M. The company keeps capital spending stable between $22M and $24M in 2026. Profit per share is guided above $1.58 for the year. These factors support durable profit and cash flow generation.
Revenue growth could slow below analyst expectations near 6%. Profit margins may compress if costs rise or demand weakens. Capital spending above guidance could pressure cash flow. These risks could stall earnings gains.
The price sits about 9% above our fair value near $74. Analysts expect roughly 6% revenue growth. Our view aligns with these expectations but sees risk if growth or margins falter.
Breaks if: CAPEX exceeds $24M or falls below $22M
Continue disciplined capital expenditures planned at approximately $22 to $24 million for the full year 2026.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
GRC is positioned as a stable player in the industrials sector with a focus on sustaining revenue growth. The current thesis is intact, supported by strong recent financial performance and management's priorities.
The market currently reflects a neutral valuation for GRC, with expectations slightly below average compared to peers. There is a low fragility tier, indicating that the stock is not overly sensitive to negative news.
Management is focused on sustaining revenue growth, with recent sales showing a year-over-year increase. However, there are mixed results in capital expenditures and tax rate management, which could impact future performance.
The long-term thesis hinges on the performance of sector bellwethers like GEV, PH, and TT. If these companies continue to perform well, it could positively influence GRC. Conversely, any negative guidance from these peers could pose a risk.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the view of sustained revenue growth. Additionally, the company is pursuing acquisitions and data centers, which further enhances its growth strategy.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 2 of last 2 quarters. Capital expenditures for full-year 2026 are consistently planned between $22M and $24M. Actual capital additions were $4.3M in 2026-Q1 and $7.9M in 2026-Q2, indicating disciplined execution on the planned CAPEX range.
“Capital expenditures for the full-year 2026 are presently planned to be approximately $22.0 - $24.0 million.”
“Capital expenditures for the full-year 2026 are presently planned to be approximately $22.0 - $24.0 million.”
Breaks if: EPS falls below $1.58
Target an effective tax rate in the range of 22% to 23% for the full year 2026.
Stated as a priority in 2 of last 2 quarters. Management targets an effective tax rate between 22% and 23% for 2026. The actual effective tax rate was 19.8% in 2026-Q1 due to a favorable discrete adjustment, indicating some variance but overall aligned with the guidance range.
“The Company expects the effective tax rate for the full year 2026 to be between 22.0% and 23.0%.”
“The Company expects the effective tax rate for the full year 2026 to be between 22.0% and 23.0%.”
Breaks if: quarterly revenue falls below $166.6M
Continue to grow net sales across multiple markets including construction, agriculture, industrial, and OEM segments.
Stated as a priority in 2 of last 2 quarters. Net sales increased from $176.6M in 2026-Q1 to $186.1M in 2026-Q2, a 3.9% year-over-year increase in 2026-Q2. Management's focus on broad-based demand growth across multiple markets is delivering with sustained revenue growth.
“Sales growth was broad-based across many of our markets, led by increased demand in construction and agriculture.”
“Demand remained broad-based across most of our end markets with incoming order volumes supporting sales growth.”
Overall, GRC's fundamentals are strong, but the company must navigate sector challenges. Not investment advice.