Gorman-rupp Company (the) · NYSE:GRC

Gorman-rupp Company (the) — The Gorman-Rupp Company — Q4 2025 Earnings Presentation

53 slides from Gorman-rupp Company (the)'s earnings presentation, February 2026

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION February 2026 FEBRUARY FEBRUARY2026 2026PRESENTATION PRESENTATION 1

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, The Gorman-Rupp Company provides the following cautionary statement: This presentation contains various forward-looking statements based on assumptions concerning The G

  3. Slide 3: Investment Highlights

    INVESTMENT HIGHLIGHTS Leading designer and manufacturer of pumps and pump systems with over 90 years of experience Reputation for quality products and outstanding customer first service is a competitive advantage Primarily U.S. based supply chain and manufacturing Highly diversified markets and prod

  4. Slide 4: Company History

    COMPANY HISTORY 1933 - Company founded with $1,500 initial – and only – capital investment 1956 - First international expansion – established Canadian manufacturing facility 1968 - Publicly listed (American Stock Exchange  NYSE MKT  NYSE in 2017) 1988 - Acquired Patterson Pump Company, manufacture

  5. Slide 5: Industry Overview

    INDUSTRY OVERVIEW  Pumps are Widely Used in Our Daily Lives – drinking water, wastewater, stormwater, irrigation, appliance cooling, transportation, fuel, industrial products, chemicals, fire suppression, construction, mining, HVAC, food and beverage, marine, medical applications, computer cooling

  6. Slide 6: Favorable External Trends

    FAVORABLE EXTERNAL TRENDS TREND IMPACT GRC CAPABILITIES Poor infrastructure conditions Aging Water and combined with available federal Broad selection of pumps and systems for Wastewater funding and utility rate increases potable water and wastewater applications Infrastructure leading to increased

  7. Slide 7: Delivering Profitable Growth

    DELIVERING PROFITABLE GROWTH What Where we were: What we have done: 2016-2020 2021-2025 Initiatives/Drivers: Sales CAGR (3.0%) 14.4% • Fill-Rite acquisition Organic – (3.0%) Organic – 8.6% • Post-COVID preparedness Acquisition – 5.7% • Enhanced strategic planning process • New Product Development •

  8. Slide 8: Global Operations

    GLOBAL OPERATIONS Mission Statement “To provide a quality product, competitively priced, delivered on time, backed by reliable service, at a profit that provides an equitable return to our shareholders, as well as providing our employees with competitive wages and benefits.” - J.C. Gorman and Herb R

  9. Slide 9: Operating Model

    OPERATING MODEL  Treasury  Quality products and  Acquisitions Corporate strong reputations  Legal  Capital Allocation  Insurance / Risk Management  Customer focus –  Information Technology  External Reporting & taking care of  Employee Benefits Compliance customers  Investor Relations Phi

  10. Slide 10: Product Diversity

    PRODUCT DIVERSITY FEBRUARY 2026 PRESENTATION 10

  11. Slide 11: Market Diversity – By Design

    MARKET DIVERSITY – BY DESIGN Gorman-Rupp Company Markets MARKETS • Industrial/Chemicals & HVAC Supply (19% - 21%) • Fire Suppression (19% - 22%) Refined Repair Parts Industrial / • Agriculture & Irrigation Supply (14% - 16%) Petroleum Chemicals & HVAC Supply • Municipal Water / Wastewater (12% - 15%

  12. Slide 12: Industrial / Chemicals & HVAC Supply

    INDUSTRIAL / CHEMICALS & HVAC SUPPLY (19% - 21%)  Dependable pumps for manufacturing applications  Pumps for moving waste streams, chemicals, viscous materials, and heating/cooling fluids  HVAC pump market share expanding MARKET DRIVERS: Industrial construction, expansion and remodeling FEBRUARY

  13. Slide 13: Fire Suppression

    FIRE SUPPRESSION (19% - 22%)  Booster pumps for sprinkler systems in large commercial structures  Fire pumps are UL/FM Global approved and an industry standard  Domestic and international market leader  Manufacturing facility in Ireland to serve Europe and Middle East  Added additional capacity

  14. Slide 14: Agriculture & Irrigation

    AGRICULTURE & IRRIGATION (14% - 16%)  Irrigation pumps - strategically located branch locations across the U.S.  Pumps for fuel transfer, animal waste, pit agitation, and liquid fertilizer MARKET DRIVERS: Grower cash flows from farm commodity prices and weather conditions FEBRUARY 2026 PRESENTATIO

  15. Slide 15: Construction & Dewatering

    CONSTRUCTION & DEWATERING (11% - 13%)  Self-priming and vacuum prime-assisted centrifugal pumps for dewatering foundations, quarries, ditches and streams  Diaphragm pumps to remove mud and sand-laden water at construction sites  Rotory vane fuel transfer pumps, meters, and accessories for contrac

  16. Slide 16: Municipal Water & Wastewater

    MUNICIPAL WATER & WASTEWATER (12% - 15%)  Pumps and wastewater stations  Pre-engineered turn-key systems  Custom design capabilities, above and below ground installation  Booster pumps and deep-well line shaft pumps provide clean drinking water  Municipal water and sewer funding is typically se

  17. Slide 17: Large Custom Municipal Pumps

    LARGE CUSTOM MUNICIPAL PUMPS  Flood control pumps capable of pumping up to one million gallons per minute  Numerous coastal flood protection installments  Storm water management  Wetland restoration MARKET DRIVERS: Infrastructure build and re-build; natural disasters FEBRUARY 2026 PRESENTATION 1

  18. Slide 18: OEM

    OEM (6% - 8%) OEM  Pump supplier to a variety of manufacturers  Range of applications from transportation, appliances, food processing, chemical processing and electronics  Military applications MARKET DRIVERS: Growth and new products in numerous commercial, medical and retail sectors; power gene

  19. Slide 19: Refined Petroleum

    REFINED PETROLEUM (2% - 4%)  Leader in aircraft refueler market  Refinery and pipeline applications  Vertical turbine pumps for barge loading and unloading  American Petroleum Institute certified pumps  Safe bulk handling of volatile fuels MARKET DRIVERS: Petroleum refinery production, storage

  20. Slide 20: Repair Parts

    REPAIR PARTS  Most parts ship within 24 hours  Consolidated 9% - 12%  Large range by market and application – from 30% for Construction/Industrial to minimal for Fire Suppression  Approximately 20% adjusted for markets with minimal repairs HOW LONG DO PUMPS LAST? Many Variables by Application Th

  21. Slide 21: Divisions / Markets

    DIVISIONS / MARKETS End Markets Industrial/Chemicals       & HVAC Supply Fire Suppression  Agriculture &     Irrigation Supply Construction &    Dewatering Municipal Water, Wastewater     & Flood Control Refined Petroleum    Original Equipment      Manufacturer (OEM) FEBRUA

  22. Slide 22: International Sales

    INTERNATIONAL SALES  International sales represent approximately 25% of total company sales annually 2025 Total International International Sales Sales Mix Mexico / South & Central America 20% Europe 26% $85 $79 million million Canada 23% Exported From USA Direct From Locations International Middle

  23. Slide 23: Sales Channels

    SALES CHANNELS Sales Channels  Most distribution is exclusive by geographic territory and market Other  No single distributor makes up > 5% of OEM sales Direct  Expectations of distribution: Retail & E-  Physical location Commerce  Stock inventory Distribution & Sales Reps  Service capabilitie

  24. Slide 24: Competition

    COMPETITION DECEMBER 2025 PRESENTATION

  25. Slide 25: Notable Pump Competitors

    NOTABLE PUMP COMPETITORS GORMAN-RUPP MARKETS Company Fire Suppression Municipal Flood Control Construction Agriculture Industrial Petroleum OEM XYLEM (XYL) – ($8.6B; Pumps/Services $5.7B, 67%)  Flygt        Goulds       AC Fire Pump    Bell & Gossettt     Godwin Pumps    Flow

  26. Slide 26: Notable Pump Competitors

    NOTABLE PUMP COMPETITORS GORMAN-RUPP MARKETS Company Fire Suppression Municipal Flood Control Construction Agriculture Industrial Petroleum OEM Pentair (PNR) – ($4.1B; 100% Flow/Pumps)  Hydromatic     Aurora      Fairbanks Nijhuis         Dover Corporation (DOV) – ($7.7B; Fluids $3

  27. Slide 27: Notable Pump Competitors

    NOTABLE PUMP COMPETITORS GORMAN-RUPP MARKETS Company Fire Suppression Municipal Flood Control Construction Agriculture Industrial Petroleum OEM Hundreds of private companies/divisions  Smith & Loveless   Industrial Flow Solutions      Thompson Pumps        Zoeller Pumps     Vaugha

  28. Slide 28: Financial Summary

    FINANCIAL SUMMARY DECEMBER 2025 PRESENTATION

  29. Slide 29: Net Sales & Adjusted EPS

    NET SALES & ADJUSTED EPS $800 $2.50 $700 $2.00 $600 $500 $1.50 Millions of Dollars (Adjusted EPS) $400 Dollars (Sales) $1.00 $300 $200 $0.50 $100 $0 $0.00 2021 2022* 2023 2024 2025 See appendix for non-GAAP reconciliations. Net Sales Adjusted EPS * Unusually high LIFO expense of $0.56 per share FEBR

  30. Slide 30: Strong Adjusted EBITDA

    STRONG ADJUSTED EBITDA $140 20% 18% $120 16% $100 14% Millions in Dollars 12% $80 % of Sales 10% $60 8% $40 6% 4% $20 2% $0 0% 2021 2022 2023 2024 2025 Adjusted EBITDA Adjusted EBITDA % of Sales See appendix for non-GAAP reconciliations. FEBRUARY 2026 PRESENTATION 30

  31. Slide 31: Q4 2025 P&L

    Q4 2025 P&L  Net sales of $166.6 million increased 2.4%, or $3.9 million, compared to the fourth quarter of 2024  Fourth quarter net income was $13.7 million, or $0.52 per share, compared to net income of $11.0 million, or $0.42 per share, for the fourth quarter of 2024 o Adjusted earnings per sha

  32. Slide 32: Year Ended December 31, 2025 P&L

    YEAR ENDED DECEMBER 31, 2025 P&L  Record net sales of $682.4 million increased 3.4%, or $22.7 million, compared to 2024  Record net income was $53.0 million, or $2.02 per share, compared to net income of $40.1 million, or $1.53 per share, in 2024 o Adjusted earnings per share1 for 2025 and 2024 we

  33. Slide 33: Incoming & Backlog Trend

    INCOMING & BACKLOG TREND Total Incoming Orders Backlog $300 $280 $260 $240 $220 Millions $200 $180 $160 $140 $120 $100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 FEBRUARY 2026 PRESENTATION 33

  34. Slide 34: Balance Sheet

    BALANCE SHEET  Total debt decreased $60.0 million during 2025 ($ in millions) December 31, December 31, December 31, December 31, 2025 2024 2025 2024 ASSETS LIABILITIES & SHAREHOLDERS’ EQUITY Cash and cash equivalents $35.1 $24.2 Current portion of long-term debt $23.1 $18.5 Accounts receivable, ne

  35. Slide 35: Leverage Ratio

    LEVERAGE RATIO Fill-Rite Acquisition 5.0 4.9 (Total debt net of excess cash / Adjusted EBITDA) 4.7 4.5 4.4 4.2 4.0 Total Leverage Ratio 3.8 3.5 3.5 3.3 3.3 3.0 3.1 2.9 2.9 2.8 2.7 2.5 2.4 2.3 2.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 2025 FEBRUARY 2026 PRESENTATION 35

  36. Slide 36: Debt Summary

    DEBT SUMMARY December 31, December 31, (in millions) 2025 2024 Terms Senior Term Loan $280.8 $340.8 Due May 2029, SOFR+2.00% $100 million Credit Facility - - Due May 2029 6.40% Notes 30.0 30.0 Due May 2031, 6.4% Total Debt $310.8 $370.8  $60 million reduction in debt in 2025  Debt refinancing May

  37. Slide 37: Capital Allocation

    CAPITAL ALLOCATION Historical Current Priorities  Capital Investment to Support Growth  Expected to be ~$20mm per year primarily in machinery & equipment  Maintain Dividend Track Record  53 consecutive years of dividend increases  Continue to Improve Leverage  2.3X EBITDA as of December 31, 20

  38. Slide 38: History of Increasing Dividends

    HISTORY OF INCREASING DIVIDENDS  304 Consecutive quarters of cash dividends  53 Consecutive years of increased cash dividends  Among Top 50 U.S. Public Companies $0.70 $20.0  Current annualized rate $0.76 per share $18.0 $0.60 $16.0 Annual Dividends Paid ($ Millions) $0.50 $14.0 Annual Dividend

  39. Slide 39: Profitable Growth

    PROFITABLE GROWTH DECEMBER 2025 PRESENTATION

  40. Slide 40: Delivering Profitable Growth

    DELIVERING PROFITABLE GROWTH What Where we were: What we have done: Initiatives/Drivers: 2016-2020 2021-2025 Sales CAGR (3.0%) 14.4% • Fill-Rite acquisition Organic – (3.0%) Organic – 8.6% • Post-COVID preparedness Acquisition – 5.7% • Enhanced strategic planning process • New Product Development •

  41. Slide 41: Driving Profitable Growth

    DRIVING PROFITABLE GROWTH Where we are going Initiatives/Drivers: What 2026+ Sales Growth Organic CAGR = GDP+ • New Product development and Acquisitions • New markets • Increased distribution coverage • Customer facing technology enhancements • International sales – continue to increase as a percent

  42. Slide 42: History of Growth Through Acquisitions

    HISTORY OF GROWTH THROUGH ACQUISITIONS  Gorman-Rupp has successfully grown through acquisitions  Approach to acquisitions remains disciplined Acquisitions since 2010: Year Company Locations Key Markets 2010 National Pump Company AZ, CA, TX, MS, FL Agriculture, Municipal, Petroleum, Industrial 2012

  43. Slide 43: Disciplined Acquisition Criteria

    DISCIPLINED ACQUISITION CRITERIA Criteria Preferences  Pumps, pumping related equipment and systems that Products complement existing product lines  Chemical / Fuels  Marine  OEM Markets  Municipal  Food / BEV / Pharma  Industrial  Alternative Energy  HVAC  Dredging  Customer-Focused Cult

  44. Slide 44: International Growth

    INTERNATIONAL GROWTH  Well positioned international facilities provide for local customization  Capacity for growth leveraging existing GRC footprint and expanding distribution network Gorman-Rupp Canada Gorman-Rupp Africa Gorman-Rupp Europe Gorman-Rupp Belgium Patterson Pump Ireland  Capitalize

  45. Slide 45: High-Performing Culture

    HIGH-PERFORMING CULTURE  Employees empowered to take care of customers  Profit sharing at all levels of the organization drives owner like behavior  Employee development and training results in promote-from-within culture and leads to long tenure employees – average employee has over 10 years exp

  46. Slide 46: Operational Excellence

    OPERATIONAL EXCELLENCE  High quality products – designed, engineered, manufactured, and tested  We hold #1 market share positions in many of the markets where we operate  Well established and knowledgeable distribution network  Sales, customer service, and product development handled at the divi

  47. Slide 47: Pillars for Growth

    PILLARS FOR GROWTH “We take care of our customers or someone else will” High-Performing Operational Organic Growth Acquisitions Culture Excellence • Focus on customers • Expand market share • High quality products • Pumps, pumping related equipment • Profit sharing • Benefit from • Product availabil

  48. Slide 48: Investment Highlights

    INVESTMENT HIGHLIGHTS Leading designer and manufacturer of pumps and pump systems with over 90 years of experience Reputation for quality products and outstanding customer first service is a competitive advantage Primarily U.S. based supply chain and manufacturing Highly diversified markets and prod

  49. Slide 49: Bios

    BIOS Scott A. King, President and Chief Executive Officer Scott was promoted to Chief Executive Officer in January 2022 in addition to his role as President. He served as President and Chief Operating Officer from January 2021 to December 2021. Prior to that he was Vice President and Chief Operating

  50. Slide 50: Appendix: Non-GAAP Measures

    APPENDIX The Gorman-Rupp Company Non-GAAP Measures This presentation includes certain non-GAAP financial data and measures such as adjusted earnings, adjusted earnings per share, and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted earnings is ear

  51. Slide 51: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Three months ended Year ended December 31, December 31, 2025 2024 2025 2024 Net Income – GAAP basis $13.7 $11.0 $53.0 $40.1 Write-off of unamortized previously deferred debt financing fees - - - 3.5 Refinancing Costs - - - 2.4 Facility optimization costs - - 2.3 - Pension set

  52. Slide 52: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Three months Year ended ended December 31, December 31, 2025 2024 2025 2024 Adjusted earnings before interest, taxes, depreciation and amortization: Net income – GAAP basis $13.7 $11.0 $53.0 $40.1 Interest expense 5.4 6.7 23.4 33.6 Provision for income taxes 4.2 2.7 16.2 10.4

  53. Slide 53: DECEMBER 2025 PRESENTATION

    DECEMBER 2025 PRESENTATION 53

The Gorman-Rupp Company — Q4 2025 Earnings Presentation on 6ix