Gorman-Rupp Company (GRC) 17th Annual Southwest IDEAS Conference summary

Business overview and market position

• Specializes exclusively in pumps and pump systems, serving diverse industries with a broad product line.

• Maintains a primarily U.S.-based supply chain, with about 25% of sales international and 90% of purchases from U.S. entities.

• Holds a strong reputation for quality, customer service, and niche leadership in a fragmented $80 billion global pump industry.

• Sells through a global, well-trained distribution network, minimizing internal sales force costs.

• Achieved 53 consecutive years of dividend increases, placing it among the top 50 U.S. companies for this record.

Growth strategy and recent performance

• Achieved approximately 90% top-line and earnings growth over four years, split between the Fill-Rite acquisition and organic growth.

• Organic growth reached about 15% in both 2022 and 2023, aided by post-COVID market share gains and stable supply chains.

• Year-to-date 2025 sales are up 3.8%, with strong performance in municipal and industrial markets.

• Backlog at Q3 2025 stands at $234 million, up $28 million from year-end 2024, positioning well for Q4 and 2026.

• Facility optimization in 2025 is expected to save $2.5 million annually, with EPS up 19% year-to-date excluding one-time charges.

Capital allocation and financial health

• Prioritizes reinvestment in the business, dividend payments, and deleveraging.

• Paid down $43 million in debt in 2024 and $45 million so far in 2025, reducing leverage from 4.9x to 2.4x post-Fill-Rite acquisition.

• Refinanced debt to lower interest expenses, with further reductions expected as debt is paid down.

• Maintains annual CapEx of about $20 million, focused on automation and capacity improvements.

• Plans to keep debt below 3.5x for future acquisitions, with continued focus on dividend growth.