On this page of StockholderLetter.com we present the latest annual shareholder letter from GORMAN RUPP CO — ticker symbol GRC. Reading current and past GRC letters to shareholders can bring important insights into the investment thesis.

 •  3/23/2026 Letter Continued (Full PDF)
 •  3/27/2023 GRC Stockholder Letter
 •  3/25/2024 GRC Stockholder Letter
 •  3/24/2025 GRC Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  GRC Benford's Law Stock Score = 88

GRC Shareholder/Stockholder Letter Transcript:

A N N U A L
REPORT

Financial Highlights
CASH DIVIDENDS
53
304
Years of Increases
Consecutive Quarters
YEAR ENDED DECEMBER 31,
2025
2024
% CHANGE
(Thousands of dollars, except per share amounts)
OPERATING RESULTS
Net Sales
Net Income
Adjusted EBITDA
$682,389
53,017
128,791
$659,667
40,1 15
124,646
3.4%
32.2%
3.3%
FINANCIAL POSITION
Total Assets
Total Debt
Equity
Working Capital
Leverage Ratio
$860,055
310,750
414,723
135,082
2.3
$858,469
370,750
373,800
133,300
2.9
0.2%
(16.2%)
10.9%
1.3%
(21.9%)
$2.14
0.75
$ 1.75
0.73
22.3%
2.7%
SHARE INFORMATION
Earnings per share, as adjusted*
Regular Dividends paid per share
5-YEAR PERFORMANCE
660
660
2.14*
682
4.4
2.02
1.75*
521
378
1.37*
1.21*
1.14
0.94*
2024
2025
2.9
2.3
1.34

0.43
2021 2022 2023
3.3
1.53
2021 2022 2023 2024 2025
2021 2022 2023 2024
2025
Net Sales
Adjusted Earnings Per Share
Leverage Ratio
(Millions of Dollars)
(Dollars)
(Debt/Adjusted EBITDA)
*2025 - Excludes $2.3 million of facility optimization costs, net of income taxes, or $0.09 per share, and pension settlement loss of $0.9 million, net of income taxes, or $0.03 per share.
*2024 - Excludes write-off of unamortized previously deferred debt    nancing fees of $3.5 million, net of income taxes, or $0.13 per share, and re   nancing costs of $2.4 million, net of income taxes, or $0.09 per share.
*2023 - Excludes amortization of acquired customer backlog of $0.9 million, net of income taxes, or $0.03 per share.
*2022 - Excludes pension settlement loss of $5.2 million, net of income taxes, or $0.20 per share, one-time acquisition costs of $5.8 million, net of income taxes, or $0.22 per share, amortization of step up in value of
acquired inventories of $1.1 million, net of income taxes, or $0.04 per share, and amortization of acquired customer backlog of $1.2 million, net of income taxes, or $0.05 per share.
*2021 - Excludes pension settlement loss of $1.8 million, net of income taxes, or $0.07 per share.

Letter to Shareholders
Fellow shareholders,
2025 was another strong year for Gorman-Rupp. We introduced new products, simpli   ed our
business, expanded our distribution network and performed well    nancially:
    Full year net sales reached a record of $682.4 million
    Gross margin rates continued at record levels, despite in   ation and cost pressures
related to geopolitical uncertainty
    Operating income increased by 4.3%, to a record $95.4 million
    Adjusted earnings per share reached a record $2.14, growing by 22%
    Incoming orders reached a record, growing by 10.5% over 2024
    Interest expense reduced by over $10 million vs. 2024, aided by a $60 million
reduction in debt
We continue to maintain discipline around clear capital allocation priorities. We reinvested in our
business through additions of machinery, equipment and new product tooling. We were proud
to increase our dividend payments to shareholders for the 53rd consecutive year, and in January
of 2026 we declared our 304th consecutive quarterly dividend. We improved our leverage by
reducing debt and related interest expense. As we continue to reduce leverage, the opportunity
to consider and evaluate potential acquisition targets becomes more likely.
We enter 2026 optimistic about our prospects.
Our backlogs are strong and healthy and our
incoming levels remain robust     especially
in the municipal market and those markets
related to the construction and maintenance
of data centers.
Thank you to all of the members of the
Gorman-Rupp team, as well as our customers,
suppliers, and shareholders for your continued
support of The Gorman-Rupp Company.
President and
Chief Executive Officer

Board of Directors
Jeffrey S. Gorman
M. Ann Harlan, Esq.
Donald H. Bullock, Jr.
Chairman
Elected to Board 1989
Lead Director
Elected to Board 2009
Elected to Board 2020
Pamela A. Heminger
Scott A. King
Christopher H. Lake
Elected to Board 2025
Elected to Board 2021
Elected to Board 2000
Sonja K. McClelland
Vincent K. Petrella
Kenneth R. Reynolds
Elected to Board 2019
Elected to Board 2020
Elected to Board 2014

Officers
EXECUTIVE OFFICERS
Scott A. King
James C. Kerr
Brigette A. Burnell, Esq.
President &
Chief Executive Officer
Joined the Company 2004
Executive Vice President
& Chief Financial Officer
Joined the Company 2016
Executive Vice President,
General Counsel &
Corporate Secretary
Joined the Company 2014
CORPORATE OFFICERS
Angela M. Morehead
Ronald F. Stoops
Barbara A. Woodman
D. Patrick Wischmeier
Treasurer & Assistant
Secretary
Joined the Company 1994
Vice President,
Finance
Joined the Company 2020
Vice President,
Human Resources
Joined the Company 2013
Vice President,
Information Technology
Joined the Company 2010

3/23/2026 Letter Continued (Full PDF)

 

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