Gorman-Rupp Declares $0.19 Quarterly Dividend; Reports Record Q2 Sales and EPS

Dividend Declaration

The Board of Directors of The Gorman-Rupp Company (NYSE: GRC) has declared a quarterly cash dividend of $0.19 per share on its common stock. The dividend is payable on September 10, 2026, to shareholders of record as of August 14, 2026. This marks the 306th consecutive quarterly dividend paid by the company.

Record Second Quarter Results

Gorman-Rupp reported record net sales of $186.1 million for the second quarter of 2026, a 3.9% increase from $179.0 million in the same period of 2025. Net income rose to $19.4 million, or $0.74 per diluted share, compared to $15.8 million, or $0.60 per share, a year earlier. Adjusted EBITDA reached $38.2 million, or 20.5% of sales, up from $35.3 million, or 19.7% of sales, in Q2 2025.

Sales growth was broad-based, led by increases in construction ($4.7 million), agriculture ($4.2 million), industrial ($1.6 million), and OEM ($0.9 million) markets. These gains were partially offset by declines in fire suppression ($2.2 million), municipal ($1.1 million), repair ($0.6 million), and petroleum ($0.4 million) markets.

Gross profit improved to $60.6 million (32.6% margin) from $56.1 million (31.3% margin) in Q2 2025, driven by price increases, favorable product mix, and lower LIFO costs. Operating income was $30.4 million (16.3% margin), up from $26.9 million (15.0% margin). Interest expense decreased to $4.7 million from $6.0 million due to lower outstanding debt.

First Half 2026 Performance

For the first six months of 2026, net sales totaled $362.7 million, a 5.7% increase from $343.0 million in the prior-year period. Net income was $37.5 million, or $1.43 per share, compared to $30.1 million, or $1.14 per share, in H1 2025. The company reduced total debt by $33.0 million during the first half of 2026 while continuing to invest in the business.

Gross margin for H1 2026 was 32.5%, up from 31.0% in H1 2025, reflecting improved material margins and leverage on labor and overhead. Operating margin rose to 16.0% from 14.3%. Incoming orders and backlog remained healthy, positioning the company for the second half of the year.

What it means for income investors

Gorman-Rupp's 306th consecutive quarterly dividend underscores its long-standing commitment to returning capital to shareholders. The company's record sales and earnings, coupled with strong cash flows and debt reduction, provide a solid foundation for sustaining the current dividend payout.

Reporting based on: Richland Source. Figures verified against market data where available.