Gorman-Rupp 第二季創紀錄業績 淨利潤增23% 每股盈利0.74美元

10-Q
 
 
 
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

 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549
FORM 10-Q
 

 
 
 
 
 

 
 ☒

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

  
For the Quarterly Period Ended June 30, 2026 
or
 

 
 
 
 
 

 
 ☐

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 

 

  
For the transition period from to 
Commission File Number 1-6747 
The Gorman-Rupp Company
(Exact name of registrant as specified in its charter)
 

 
 
 
 
 
 

 
 Ohio

  

 34-0253990

 

 
 (State or other jurisdiction of
incorporation or organization)

  

 (I.R.S. Employer
Identification No.)

 

 
  

  

  

 

 
 600 South Airport Road, Mansfield, Ohio

  

 44903

 

 
 (Address of principal executive offices)

  

 (Zip Code)

 

  
Registrant’s telephone number, including area code (419) 755-1011 
 
Securities registered pursuant to Section 12(b) of the Act:
 

 
 
 
 
 
 

 
 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 

 
 Common Shares, without par value

 GRC

 New York Stock Exchange

 

  
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): 

 
 
 
 
 
 
 
 

 
 Large accelerated filer 

 Accelerated filer ☐

 Non-accelerated filer ☐

 Smaller reporting company ☐

 Emerging growth company ☐

 

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No 
On July 27, 2026 there were 26,410,243 common shares, without par value, of The Gorman-Rupp Company outstanding. 

  

 
  

 The Gorman-Rupp Company 
Three and Six Months Ended June 30, 2026 and 2025
 

 
 
 
 
 
 

 
 PART I. FINANCIAL INFORMATION 

  

 

 
  

  

 

 
 Item 1.

 Financial Statements (Unaudited)

 2

 

 
  

  

  

 

 
  

 Consolidated Statements of Income

 2

 

 
  

 - Three months ended June 30, 2026 and 2025

  

 

 
  

 - Six months ended June 30, 2026 and 2025
 

  

 

 
  

 Consolidated Statements of Comprehensive Income

 2

 

 
  

 - Three months ended June 30, 2026 and 2025

  

 

 
  

 - Six months ended June 30, 2026 and 2025
 

  

 

 
  

 Consolidated Balance Sheets

 3

 

 
  

 - June 30, 2026 and December 31, 2025
 

  

 

 
  

 Consolidated Statements of Cash Flows

 4

 

 
  

 - Six months ended June 30, 2026 and 2025
 

  

 

 
  

 Consolidated Statements of Equity

 5

 

 
  

 - Six months ended June 30, 2026 and 2025
 

  

 

 
  

 Notes to Consolidated Financial Statements (Unaudited)

 6

 

 
  

  

  

 

 
 Item 2.

 Management’s Discussion and Analysis of Financial Condition and Results of Operations

 13

 

 
  

  

  

 

 
 Item 3.

 Quantitative and Qualitative Disclosures about Market Risk

 20

 

 
  

  

  

 

 
 Item 4.

 Controls and Procedures

 20

 

 
  

  

 

 
 PART II. OTHER INFORMATION

  

 

 
  

  

 

 
 Item 1.

 Legal Proceedings

 21

 

 
  

  

  

 

 
 Item 1A.

 Risk Factors

 21

 

 
  

  

  

 

 
 Item 2.

 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

 21

 

 
  

  

  

 

 
 Item 3.

 Defaults Upon Senior Securities 

 21

 

 
  

  

  

 

 
 Item 4.

 Mine Safety Information

 21

 

 
  

  

  

 

 
 Item 5.

 Other Information

 21

 

 
  

  

  

 

 
 Item 6.

 Exhibits

 22

 

 
  

  

  

 

 
 EX-31.1

 Section 302 Principal Executive Officer (PEO) Certification 

  

 

 
  

  

  

 

 
 EX-31.2

 Section 302 Principal Financial Officer (PFO) Certification 

  

 

 
  

  

  

 

 
 EX-32

 Section 1350 Certifications

  

 

  

 1

 
  

 PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) 
THE GORMAN-RUPP COMPANY 
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

 Three Months Ended
June 30,

  

  

 Six Months Ended
June 30,

  

 

 
 (Dollars in thousands, except per share amounts)

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Net sales

 $

 186,065

  

  

 $

 179,045

  

  

 $

 362,658

  

  

 $

 342,994

  

 

 
 Cost of products sold

  

 125,458

  

  

  

 122,992

  

  

  

 244,691

  

  

  

 236,609

  

 

 
 Gross profit

  

 60,607

  

  

  

 56,053

  

  

  

 117,967

  

  

  

 106,385

  

 

 
 Selling, general and administrative expenses

  

 27,117

  

  

  

 26,039

  

  

  

 53,920

  

  

  

 51,146

  

 

 
 Amortization expense

  

 3,080

  

  

  

 3,102

  

  

  

 6,159

  

  

  

 6,202

  

 

 
 Operating income

  

 30,410

  

  

  

 26,912

  

  

  

 57,888

  

  

  

 49,037

  

 

 
 Interest expense

  

 (4,659

 )

  

  

 (5,990

 )

  

  

 (9,626

 )

  

  

 (12,192

 )

 

 
 Other income (expense), net

  

 (367

 )

  

  

 (538

 )

  

  

 (626

 )

  

  

 (926

 )

 

 
 Income before income taxes

  

 25,384

  

  

  

 20,384

  

  

  

 47,636

  

  

  

 35,919

  

 

 
 Provision for income taxes

  

 5,952

  

  

  

 4,587

  

  

  

 10,364

  

  

  

 7,994

  

 

 
 Net income

 $

 19,432

  

  

 $

 15,797

  

  

 $

 37,272

  

  

 $

 27,925

  

 

 
 Earnings per share

 $

 0.74

  

  

 $

 0.60

  

  

 $

 1.41

  

  

 $

 1.06

  

 

 
 Average number of shares outstanding

  

 26,407,865

  

  

  

 26,307,998

  

  

  

 26,373,742

  

  

  

 26,277,592

  

 

  
See notes to consolidated financial statements (unaudited).
 
 
 
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

 Three Months Ended
June 30,

  

  

 Six Months Ended
June 30,

  

 

 
 (Dollars in thousands)

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Net income

 $

 19,432

  

  

 $

 15,797

  

  

 $

 37,272

  

  

 $

 27,925

  

 

 
 Other comprehensive income (loss), net of tax:

  

  

  

  

  

  

  

  

  

  

  

 

 
 Cumulative translation adjustments

  

 (451

 )

  

  

 3,785

  

  

  

 (1,633

 )

  

  

 5,333

  

 

 
 Cash flow hedging activity

  

 337

  

  

  

 (247

 )

  

  

 858

  

  

  

 (924

 )

 

 
 Pension and postretirement medical liability adjustments

  

 172

  

  

  

 225

  

  

  

 345

  

  

  

 442

  

 

 
 Other comprehensive income

  

 58

  

  

  

 3,763

  

  

  

 (430

 )

  

  

 4,851

  

 

 
 Comprehensive income

 $

 19,490

  

  

 $

 19,560

  

  

 $

 36,842

  

  

 $

 32,776

  

 

  
See notes to consolidated financial statements (unaudited).

 2

 
  

 THE GORMAN-RUPP COMPANY 
CONSOLIDATED BALANCE SHEETS
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 (unaudited)

  

  

  

  

 

 
 (Dollars in thousands)

  

 June 30,
2026

  

  

 December 31,
2025

  

 

 
 Assets

  

 

 
 Current assets:

  

  

  

  

  

  

 

 
 Cash and cash equivalents

  

 $

 43,595

  

  

 $

 35,083

  

 

 
 Accounts receivable, net

  

  

 107,775

  

  

  

 88,378

  

 

 
 Inventories, net

  

  

 87,130

  

  

  

 96,457

  

 

 
 Prepaid and other

  

  

 9,637

  

  

  

 13,776

  

 

 
 Total current assets

  

  

 248,137

  

  

  

 233,694

  

 

 
 Property, plant and equipment, net

  

  

 133,293

  

  

  

 134,131

  

 

 
 Other assets

  

  

 21,202

  

  

  

 22,192

  

 

 
 Other intangible assets, net

  

  

 205,907

  

  

  

 212,066

  

 

 
 Goodwill

  

  

 257,912

  

  

  

 257,972

  

 

 
 Total assets

  

 $

 866,451

  

  

 $

 860,055

  

 

 
 Liabilities and equity

  

 

 
 Current liabilities:

  

  

  

  

  

  

 

 
 Accounts payable

  

 $

 29,927

  

  

 $

 25,885

  

 

 
 Payroll and employee related liabilities

  

  

 29,334

  

  

  

 22,612

  

 

 
 Commissions payable

  

  

 6,538

  

  

  

 7,048

  

 

 
 Deferred revenue and customer deposits

  

  

 10,161

  

  

  

 7,658

  

 

 
 Current portion of long-term debt

  

  

 —

  

  

  

 23,125

  

 

 
 Accrued expenses

  

  

 12,446

  

  

  

 12,284

  

 

 
 Total current liabilities

  

  

 88,406

  

  

  

 98,612

  

 

 
 Pension benefits

  

  

 4,529

  

  

  

 5,149

  

 

 
 Postretirement benefits

  

  

 25,403

  

  

  

 24,803

  

 

 
 Long-term debt, net of current portion

  

  

 274,998

  

  

  

 284,406

  

 

 
 Other long-term liabilities

  

  

 31,681

  

  

  

 32,362

  

 

 
 Total liabilities

  

  

 425,017

  

  

  

 445,332

  

 

 
 Equity:

  

  

  

  

  

  

 

 
 Common shares, without par value:

  

  

  

  

  

  

 

 
 Authorized - 35,000,000 shares;

  

  

  

  

  

  

 

 
 Outstanding - 26,410,243 shares at June 30, 2026 and 26,312,842 shares at December 31, 2025 (after deducting treasury shares of 638,553 and 735,954, respectively), at stated capital amounts

  

  

 5,165

  

  

  

 5,144

  

 

 
 Additional paid-in capital

  

  

 10,964

  

  

  

 11,456

  

 

 
 Retained earnings

  

  

 446,111

  

  

  

 418,499

  

 

 
 Accumulated other comprehensive income (loss)

  

  

 (20,806

 )

  

  

 (20,376

 )

 

 
 Total equity

  

  

 441,434

  

  

  

 414,723

  

 

 
 Total liabilities and equity

  

 $

 866,451

  

  

 $

 860,055

  

 

  
See notes to consolidated financial statements (unaudited).

 3

 
  

 THE GORMAN-RUPP COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 

 
 
 
 
 
 
 
 
 
 
 

 
  

 Six Months Ended
June 30,

  

 

 
 (Dollars in thousands)

 2026

  

  

 2025

  

 

 
 Cash flows from operating activities:

  

  

  

  

  

 

 
 Net income

 $

 37,272

  

  

 $

 27,925

  

 

 
 Adjustments to reconcile net income to net cash provided by operating activities:

  

  

  

  

  

 

 
 Depreciation and amortization

  

 14,073

  

  

  

 13,937

  

 

 
 LIFO expense

  

 2,394

  

  

  

 2,923

  

 

 
 Pension expense

  

 1,045

  

  

  

 1,392

  

 

 
 Stock based compensation

  

 2,535

  

  

  

 2,064

  

 

 
 Contributions to pension plans

  

 (1,239

 )

  

  

 (1,224

 )

 

 
 Amortization of debt issuance fees

  

 591

  

  

  

 591

  

 

 
 Other

  

 206

  

  

  

 161

  

 

 
 Changes in operating assets and liabilities:

  

  

  

  

  

 

 
 Accounts receivable, net

  

 (19,855

 )

  

  

 (9,496

 )

 

 
 Inventories, net

  

 6,097

  

  

  

 1,572

  

 

 
 Accounts payable

  

 4,265

  

  

  

 2,559

  

 

 
 Commissions payable

  

 (431

 )

  

  

 1,066

  

 

 
 Deferred revenue and customer deposits

  

 2,531

  

  

  

 (485

 )

 

 
 Income taxes

  

 8,879

  

  

  

 664

  

 

 
 Accrued expenses and other

  

 (3,207

 )

  

  

 2,504

  

 

 
 Benefit obligations

  

 7,306

  

  

  

 2,735

  

 

 
 Net cash provided by operating activities

  

 62,462

  

  

  

 48,888

  

 

 
 Cash flows from investing activities:

  

  

  

  

  

 

 
 Capital additions

  

 (7,862

 )

  

  

 (5,977

 )

 

 
 Other

  

 177

  

  

  

 59

  

 

 
 Net cash used for investing activities

  

 (7,685

 )

  

  

 (5,918

 )

 

 
 Cash flows from financing activities:

  

  

  

  

  

 

 
 Cash dividends

  

 (10,017

 )

  

  

 (9,720

 )

 

 
 Treasury share repurchases

  

 (2,649

 )

  

  

 (1,152

 )

 

 
 Payments to banks for borrowings

  

 (33,000

 )

  

  

 (30,000

 )

 

 
 Other

  

 (61

 )

  

  

 (59

 )

 

 
 Net cash used for financing activities

  

 (45,727

 )

  

  

 (40,931

 )

 

 
 Effect of exchange rate changes on cash

  

 (538

 )

  

  

 733

  

 

 
 Net increase in cash and cash equivalents

  

 8,512

  

  

  

 2,772

  

 

 
 Cash and cash equivalents:

  

  

  

  

  

 

 
 Beginning of period

  

 35,083

  

  

  

 24,213

  

 

 
 End of period

 $

 43,595

  

  

 $

 26,985

  

 

  
See notes to consolidated financial statements (unaudited). 

 4

 
  

 THE GORMAN-RUPP COMPANY 
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six Months Ended June 30, 2026

  

 

 
 (Dollars in thousands, except

  

 Common Shares

  

  

 Additional
Paid-In

  

  

 Retained

  

  

 Accumulated
Other
Comprehensive

  

  

  

  

 

 
 share and per share amounts)

  

 Shares

  

  

 Dollars

  

  

 Capital

  

  

 Earnings

  

  

 (Loss) Income

  

  

 Total

  

 

 
 Balances December 31, 2025

  

  

 26,312,842

  

  

 $

 5,144

  

  

 $

 11,456

  

  

 $

 418,499

  

  

 $

 (20,376

 )

  

 $

 414,723

  

 

 
 Net income

  

  

  

  

  

  

  

  

  

  

  

 17,840

  

  

  

  

  

  

 17,840

  

 

 
 Other comprehensive loss

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 (488

 )

  

  

 (488

 )

 

 
 Stock based compensation, net

  

  

 128,551

  

  

  

 28

  

  

  

 677

  

  

  

 472

  

  

  

  

  

  

 1,177

  

 

 
 Treasury share repurchases

  

  

 (40,558

 )

  

  

 (9

 )

  

  

 (2,491

 )

  

  

 (149

 )

  

  

  

  

  

 (2,649

 )

 

 
 Cash dividends - $0.19 per share

  

  

  

  

  

  

  

  

  

  

  

 (4,999

 )

  

  

  

  

  

 (4,999

 )

 

 
 Balances March 31, 2026

  

  

 26,400,835

  

  

 $

 5,163

  

  

 $

 9,642

  

  

 $

 431,663

  

  

 $

 (20,864

 )

  

 $

 425,604

  

 

 
 Net income

  

  

  

  

  

  

  

  

  

  

  

 19,432

  

  

  

  

  

  

 19,432

  

 

 
 Other comprehensive income

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 58

  

  

  

 58

  

 

 
 Stock based compensation, net

  

  

 9,408

  

  

  

 2

  

  

  

 1,322

  

  

  

 34

  

  

  

  

  

  

 1,358

  

 

 
 Treasury share repurchases

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 -

  

 

 
 Cash dividends - $0.19 per share

  

  

  

  

  

  

  

  

  

  

  

 (5,018

 )

  

  

  

  

  

 (5,018

 )

 

 
 Balances June 30, 2026

  

  

 26,410,243

  

  

 $

 5,165

  

  

 $

 10,964

  

  

 $

 446,111

  

  

 $

 (20,806

 )

  

 $

 441,434

  

 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six Months Ended June 30, 2025

  

 

 
 (Dollars in thousands, except

  

 Common Shares

  

  

 Additional
Paid-In

  

  

 Retained

  

  

 Accumulated
Other
Comprehensive

  

  

  

  

 

 
 share and per share amounts)

  

 Shares

  

  

 Dollars

  

  

 Capital

  

  

 Earnings

  

  

 (Loss) Income

  

  

 Total

  

 

 
 Balances December 31, 2024

  

  

 26,227,540

  

  

 $

 5,126

  

  

 $

 9,360

  

  

 $

 384,757

  

  

 $

 (25,443

 )

  

 $

 373,800

  

 

 
 Net income

  

  

  

  

  

  

  

  

  

  

  

 12,128

  

  

  

  

  

  

 12,128

  

 

 
 Other comprehensive income

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 1,088

  

  

  

 1,088

  

 

 
 Stock based compensation, net

  

  

 96,900

  

  

  

 21

  

  

  

 671

  

  

  

 356

  

  

  

  

  

  

 1,048

  

 

 
 Treasury share repurchases

  

  

 (30,063

 )

  

  

 (7

 )

  

  

 (1,024

 )

  

  

 (110

 )

  

  

  

  

  

 (1,141

 )

 

 
 Cash dividends - $0.185 per share

  

  

  

  

  

  

  

  

  

  

  

 (4,852

 )

  

  

  

  

  

 (4,852

 )

 

 
 Balances March 31, 2025

  

  

 26,294,377

  

  

 $

 5,140

  

  

 $

 9,007

  

  

 $

 392,279

  

  

 $

 (24,355

 )

  

 $

 382,071

  

 

 
 Net income

  

  

  

  

  

  

  

  

  

  

  

 15,797

  

  

  

  

  

  

 15,797

  

 

 
 Other comprehensive income

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 3,763

  

  

  

 3,763

  

 

 
 Stock based compensation, net

  

  

 18,773

  

  

  

 4

  

  

  

 943

  

  

  

 69

  

  

  

  

  

  

 1,016

  

 

 
 Treasury share repurchases

  

  

 (308

 )

  

  

  

  

  

 (9

 )

  

  

 (2

 )

  

  

  

  

  

 (11

 )

 

 
 Cash dividends - $0.185 per share

  

  

  

  

  

  

  

  

  

  

  

 (4,868

 )

  

  

  

  

  

 (4,868

 )

 

 
 Balances June 30, 2025

  

  

 26,312,842

  

  

 $

 5,144

  

  

 $

 9,941

  

  

 $

 403,275

  

  

 $

 (20,592

 )

  

 $

 397,768

  

 

  
See notes to consolidated financial statements (unaudited). 

 5

 
  

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 
(Amounts in tables in thousands of dollars, except for per share amounts)
NOTE 1 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS 
The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Consolidated Financial Statements include the accounts of The Gorman-Rupp Company (the “Company” or “Gorman-Rupp”) and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results. In the opinion of management of the Company, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of results that may be expected for the year ending December 31, 2026. For further information, refer to the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, from which related information herein has been derived. 
Accounting Standards Issued But Not Yet Adopted 
 
The FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40). The standard is intended to enhance the transparency of business expenses in commonly presented expense captions. This amendment requires the reporting entity to disclose the following amounts in each relevant income statement expense caption (1) purchases of inventory, (2) employee compensation, (3) depreciation, and (4) intangible asset amortization. The reporting entity also is required to disclose the total amount of selling expense and its definition of selling expenses. The standard is effective for annual periods beginning after December 15, 2026. The standard is required to be applied on a prospective basis, while retrospective application is permitted but not required. The Company is evaluating the impact of the standard on the Company's financial disclosures.

 
NOTE 2 – REVENUE
The following tables disaggregate total net sales by end market and geographic location:
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 End market

  

 

 
  

  

 Three Months Ended
June 30,

  

  

 Six Months Ended
June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Industrial

  

 $

 32,965

  

  

 $

 31,332

  

  

 $

 65,148

  

  

 $

 59,934

  

 

 
 Fire

  

  

 29,638

  

  

  

 31,864

  

  

  

 57,130

  

  

  

 64,730

  

 

 
 Agriculture

  

  

 27,594

  

  

  

 23,415

  

  

  

 54,448

  

  

  

 45,876

  

 

 
 Construction

  

  

 28,859

  

  

  

 24,129

  

  

  

 56,051

  

  

  

 44,863

  

 

 
 Municipal

  

  

 28,782

  

  

  

 29,836

  

  

  

 53,735

  

  

  

 51,845

  

 

 
 Petroleum

  

  

 5,084

  

  

  

 5,549

  

  

  

 10,221

  

  

  

 11,019

  

 

 
 OEM

  

  

 13,206

  

  

  

 12,299

  

  

  

 25,924

  

  

  

 23,343

  

 

 
 Repair parts

  

  

 19,937

  

  

  

 20,621

  

  

  

 40,001

  

  

  

 41,384

  

 

 
 Total net sales

  

 $

 186,065

  

  

 $

 179,045

  

  

 $

 362,658

  

  

 $

 342,994

  

 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Geographic Location

  

 

 
  

  

 Three Months Ended
June 30,

  

  

 Six Months Ended
June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 United States

  

 $

 140,353

  

  

 $

 136,104

  

  

 $

 274,684

  

  

 $

 257,542

  

 

 
 Foreign countries

  

  

 45,712

  

  

  

 42,941

  

  

  

 87,974

  

  

  

 85,452

  

 

 
 Total net sales

  

 $

 186,065

  

  

 $

 179,045

  

  

 $

 362,658

  

  

 $

 342,994

  

 

 
 
The Company attributes revenues to individual countries based on the customer location to which finished products are shipped. International sales represented approximately 25% and 24% of total net sales for the second quarter of 2026 and 2025, respectively. 

 6

 
  

 On June 30, 2026, the Company had $239.7 million of remaining performance obligations, also referred to as backlog. The Company expects to recognize as revenue substantially all of its remaining performance obligations within one year. 
The Company’s contract assets and liabilities as of June 30, 2026 and December 31, 2025 were as follows:
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,
2026

  

  

 December 31,
2025

  

 

 
 Contract assets

  

 $

 —

  

  

 $

 634

  

 

 
 Contract liabilities

  

  

 10,161

  

  

  

 7,658

  

 

 
 
Revenue recognized for the six months ended June 30, 2026 and 2025 that was included in the contract liabilities balance at the beginning of the period was $5.0 million and $5.8 million, respectively.

NOTE 3 - INVENTORIES 
LIFO inventories are stated at the lower of cost or market and all other inventories are stated at the lower of cost or net realizable value. Replacement cost approximates current cost and the excess over LIFO cost was approximately $107.0 million and $104.6 million at June 30, 2026 and December 31, 2025, respectively. Allowances for excess and obsolete inventory totaled $8.6 million and $7.3 million at June 30, 2026 and December 31, 2025, respectively. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management’s estimate of expected year-end inventory levels and costs, and are subject to the final year-end LIFO inventory valuation.
 
Pre-tax LIFO expense was $1.1 million and $1.9 million for the three months ended June 30, 2026 and 2025, respectively, and $2.4 million and $2.9 million for the six months ended June 30, 2026 and 2025, respectively.
Inventories are comprised of the following: 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,
2026

  

  

 December 31,
2025

  

 

 
 Inventories, net:

  

  

  

  

  

  

 

 
 Raw materials and in-process

  

 $

 26,879

  

  

 $

 26,312

  

 

 
 Finished parts

  

  

 45,021

  

  

  

 51,719

  

 

 
 Finished products

  

  

 15,230

  

  

  

 18,426

  

 

 
 Total net inventories

  

 $

 87,130

  

  

 $

 96,457

  

 

 

 
 
 
NOTE 4 – PROPERTY, PLANT AND EQUIPMENT 
Property, plant and equipment, net consist of the following:
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,
2026

  

  

 December 31,
2025

  

 

 
 Land

  

 $

 6,110

  

  

 $

 6,040

  

 

 
 Buildings

  

  

 127,378

  

  

  

 125,397

  

 

 
 Machinery and equipment

  

  

 241,449

  

  

  

 240,293

  

 

 
 

  

 $

 374,937

  

  

 $

 371,730

  

 

 
 Less accumulated depreciation

  

  

 (241,644

 )

  

  

 (237,599

 )

 

 
 Property, plant and equipment, net

  

 $

 133,293

  

  

 $

 134,131

  

 

 

 

 7

 
  

 NOTE 5 - PRODUCT WARRANTIES 
A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures. The Company expenses warranty costs directly to Cost of products sold. Changes in the Company’s product warranties liability are: 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Balance at beginning of year

  

 $

 2,551

  

  

 $

 2,210

  

 

 
 Provision

  

  

 747

  

  

  

 1,852

  

 

 
 Claims

  

  

 (1,265

 )

  

  

 (1,749

 )

 

 
 Balance at end of period

  

 $

 2,033

  

  

 $

 2,313

  

 

 

 
NOTE 6 - PENSION AND OTHER POSTRETIREMENT BENEFITS 
 
The Company sponsors a defined benefit pension plan (“GR Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The GR Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The GR Plan was closed to new participants effective January 1, 2008. Employees hired after this date, in eligible locations, participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits.
 
Additionally, the Company sponsors defined contribution pension plans made available to all domestic and Canadian employees. The Company funds the cost of these benefits as incurred.
 
The Company also sponsors a non-contributory defined benefit postretirement health care plan that provides health benefits to certain domestic and Canadian retirees and eligible spouses and dependent children. The Company funds the cost of these benefits as incurred. 
The following tables present the components of net periodic benefit costs:
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Pension Benefits

  

  

 Postretirement Benefits

  

 

 
  

  

 Three Months Ended
June 30,

  

  

 Three Months Ended
June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Service cost

  

 $

 474

  

  

 $

 493

  

  

 $

 220

  

  

 $

 202

  

 

 
 Interest cost

  

  

 714

  

  

  

 750

  

  

  

 327

  

  

  

 310

  

 

 
 Expected return on plan assets

  

  

 (879

 )

  

  

 (832

 )

  

  

 —

  

  

  

 —

  

 

 
 Amortization of prior service cost

  

  

 —

  

  

  

 —

  

  

  

 (19

 )

  

  

 (19

 )

 

 
 Recognized actuarial loss (gain)

  

  

 213

  

  

  

 285

  

  

  

 13

  

  

  

 (8

 )

 

 
 Net periodic benefit cost (a)

  

 $

 522

  

  

 $

 696

  

  

 $

 541

  

  

 $

 485

  

 

  
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Pension Benefits

  

  

 Postretirement Benefits

  

 

 
  

  

 Six Months Ended
June 30,

  

  

 Six Months Ended
June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Service cost

  

 $

 948

  

  

 $

 986

  

  

 $

 440

  

  

 $

 403

  

 

 
 Interest cost

  

  

 1,429

  

  

  

 1,500

  

  

  

 654

  

  

  

 621

  

 

 
 Expected return on plan assets

  

  

 (1,758

 )

  

  

 (1,665

 )

  

  

 —

  

  

  

 —

  

 

 
 Amortization of prior service cost

  

  

 —

  

  

  

 —

  

  

  

 (38

 )

  

  

 (37

 )

 

 
 Recognized actuarial loss (gain)

  

  

 426

  

  

  

 571

  

  

  

 26

  

  

  

 (17

 )

 

 
 Net periodic benefit cost (a)

  

 $

 1,045

  

  

 $

 1,392

  

  

 $

 1,082

  

  

 $

 970

  

 

  
(a)The components of net periodic cost other than the service cost component are included in Other income (expense), net in the Consolidated Statements of Income.

 8

 
  

 NOTE 7 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 
The components of Accumulated other comprehensive income (loss) as reported in the Consolidated Balance Sheets are:
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

 Currency Translation Adjustments

  

  

 Deferred Gain (Loss) on Cash Flow Hedging

  

  

 Pension and OPEB Adjustments

  

  

 Accumulated Other Comprehensive (Loss) Income

  

 

 
 Balance at December 31, 2025

 $

 (6,948

 )

  

 $

 (970

 )

  

 $

 (12,458

 )

  

 $

 (20,376

 )

 

 
 Reclassification adjustments

  

 —

  

  

  

 260

  

  

  

 226

  

  

  

 486

  

 

 
 Current period benefit (charge)

  

 (1,633

 )

  

  

 870

  

  

  

 230

  

  

  

 (533

 )

 

 
 Income tax benefit (charge)

  

 —

  

  

  

 (272

 )

  

  

 (111

 )

  

  

 (383

 )

 

 
 Balance at June 30, 2026

 $

 (8,581

 )

  

 $

 (112

 )

  

 $

 (12,113

 )

  

 $

 (20,806

 )

 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

 Currency Translation Adjustments

  

  

 Deferred Gain (Loss) on Cash Flow Hedging

  

  

 Pension and OPEB Adjustments

  

  

 Accumulated Other Comprehensive (Loss) Income

  

 

 
 Balance at December 31, 2024

 $

 (12,712

 )

  

 $

 (103

 )

  

 $

 (12,628

 )

  

 $

 (25,443

 )

 

 
 Reclassification adjustments

  

 —

  

  

  

 (204

 )

  

  

 277

  

  

  

 73

  

 

 
 Current period benefit (charge)

  

 5,333

  

  

  

 (1,008

 )

  

  

 294

  

  

  

 4,619

  

 

 
 Income tax benefit (charge)

  

 —

  

  

  

 288

  

  

  

 (129

 )

  

  

 159

  

 

 
 Balance at June 30, 2025

 $

 (7,379

 )

  

 $

 (1,027

 )

  

 $

 (12,186

 )

  

 $

 (20,592

 )

 

 

 
NOTE 8 – COMMON SHARE REPURCHASES
The Company has a share repurchase program with the authorization to purchase up to $50.0 million of the Company’s common shares. As of June 30, 2026, the Company had $48.1 million available for repurchase under the share repurchase program. During the six-month period ending June 30, 2026, the Company repurchased 40,558 common shares at an average cost per share of $65.32 for a total of $2.6 million in the surrender of common shares to cover taxes in connection with the vesting of stock awards, which were not part of the share repurchase program. During the six-month period ending June 30, 2025, the Company repurchased 30,371 common shares at an average cost per share of $37.92 for a total of $1.2 million in the surrender of common shares to cover taxes in connection with the vesting of stock awards, which were not part of the share repurchase program. 

NOTE 9 – FINANCING ARRANGEMENTS
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 Debt consisted of:

  

  

  

  

  

  

 

 
  

  

 June 30,
2026

  

  

 December 31,
2025

  

 

 
 Senior Secured Credit Agreement

  

 $

 247,750

  

  

 $

 280,750

  

 

 
 Credit Facility

  

  

 —

  

  

  

 —

  

 

 
 6.40% Note Agreement

  

  

 30,000

  

  

  

 30,000

  

 

 
 Total debt

  

  

 277,750

  

  

  

 310,750

  

 

 
 Unamortized discount and debt issuance fees

  

  

 (2,752

 )

  

  

 (3,219

 )

 

 
 Total debt, net

  

  

 274,998

  

  

  

 307,531

  

 

 
 Less: current portion of long-term debt

  

  

 —

  

  

  

 (23,125

 )

 

 
 Total long-term debt, net

  

 $

 274,998

  

  

 $

 284,406

  

 

 
 
The carrying value of long term debt, including the current portion, approximates fair value as the variable interest rates approximate rates available to other market participants with comparable credit risk, and interest rates as of June 30, 2026 were approximately the same as interest rates at the time the fixed rate agreement was executed. 
Amended and Restated Senior Secured Credit Agreement 
On May 31, 2024, the Company entered into an Amended and Restated Senior Secured Credit Agreement (the “Amended and Restated Senior Credit Agreement”) with several lenders, which amended, extended, and restated the Company’s previous Senior Secured Credit Agreement, dated as of May 31, 2022. The Amended and Restated Senior Credit Agreement provides for a term loan facility in an aggregate principal amount of $370 million (the “Senior Term Loan Facility”), a revolving credit facility in an aggregate 

 9

 
  

 principal amount of up to $100 million (the “Credit Facility”), a letter of credit sub-facility in the aggregate available amount of up to $30 million, as a sublimit of the Credit Facility, and a swing line sub-facility in the aggregate available amount of up to $20 million, as a sublimit of the Credit Facility. The obligations of the Company under the Amended and Restated Senior Credit Agreement are secured by a first priority lien on substantially all of its personal property, and guaranteed by certain of the Company’s direct, wholly-owned subsidiaries (the “Guarantors”), which guarantees are secured by a first priority lien in substantially all of the Guarantors’ personal property. 
The Amended and Restated Senior Credit Agreement has a maturity date of May 31, 2029, with the Senior Term Loan Facility requiring quarterly installment payments commencing on September 30, 2024 and continuing on the last day of each consecutive December, March, June and September thereafter. The Company has made payments in excess of the required minimum installment payments, which have been applied to future required minimum quarterly installment payments. As a result, the Company does not have any required quarterly installment payments due under the Senior Term Loan Facility within the next 12 months.
At the option of the Company, borrowings under the Senior Term Loan Facility and under the Credit Facility bear interest at either a base rate or at an Adjusted Term SOFR Rate (as defined in the Amended and Restated Senior Credit Agreement), plus the applicable margin, which ranges from 0.5% to 1.25% for base rate loans and 1.50% to 2.25% for Adjusted Term SOFR Rate loans. The applicable margin is based on the Company’s total leverage ratio. At June 30, 2026, the applicable interest rate under the Amended and Restated Senior Secured Credit Agreement was Adjusted Term SOFR plus 1.75%, or 5.5%.
The Amended and Restated Senior Credit Agreement requires the Company to maintain a consolidated total net leverage ratio not to exceed 3.50 to 1.00 for the four consecutive fiscal quarter periods ending December 31, 2025 and each of the four consecutive fiscal quarter periods ending thereafter.
The Amended and Restated Senior Credit Agreement requires the Company to maintain an interest coverage ratio of not less than 3.00 to 1.00 for any four consecutive fiscal quarter period.
The Amended and Restated Senior Credit Agreement contains customary affirmative and negative covenants, including among others, limitations on the Company and its subsidiaries with respect to the incurrence of liens and indebtedness, dispositions of assets, mergers, transaction with affiliates, and the ability to make or pay dividends in excess of certain thresholds.
The Amended and Restated Senior Credit Agreement also contains customary provisions requiring certain mandatory prepayments, including, among others, prepayments of the net cash proceeds from any non-ordinary course sale of assets, and net cash proceeds of any non-permitted indebtedness.
6.40% Note Agreement
On May 31, 2024, the Company entered into a Note Agreement (the “6.40% Note Agreement”) whereby the Company issued $30.0 million aggregate principal amount of 6.40% senior secured notes (the “6.40% Notes”). The Company’s obligations under the 6.40% Notes are secured by a first priority lien on substantially all of its personal property, and guaranteed by each of the Guarantors, which guarantees are secured by a first priority lien in substantially all of the Guarantors’ personal property. The liens granted under the 6.40% Notes are equal in priority to those granted pursuant to the Amended and Restated Senior Credit Agreement.
The 6.40% Note Agreement has a maturity date of May 31, 2031 and interest is payable semiannually on the last day of May and November in each year. 
The 6.40% Note Agreement includes representations, warranties, covenants and events of default, substantially consistent with those contained in the Amended and Restated Senior Credit Agreement.
Other 
The Company was in compliance with all debt covenants as of June 30, 2026. 
Interest Rate Derivatives
During the fourth quarter of 2022, the Company entered into interest rate swaps that hedge interest payments on its SOFR borrowing. All swaps have been designated as cash flow hedges. The following table summarizes the notional amounts, related rates and remaining terms of interest swap agreements as of June 30, 2026 and December 31, 2025:
 

 10

 
  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Notional Amount

  

  

 Average Fixed Rate

  

  

  

 

 
  

  

 June 30,
2026

  

  

 December 31,
2025

  

  

 June 30,
2026

  

  

 December 31,
2025

  

  

 Term

 

 
 Interest rate swaps

  

 $

 126,875

  

  

 $

 135,625

  

  

  

 4.1

 %

  

  

 4.1

 %

  

 Extending to May 2027

 

 
 
The fair value of the Company’s interest rate swaps was a payable of $0.1 million as of June 30, 2026 and a payable of $1.3 million as of December 31, 2025. The fair value was based on inputs other than quoted prices in active markets for identical assets that are observable either directly or indirectly and therefore considered level 2. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in Accumulated Other Comprehensive Loss. The interest rate swap agreements held by the Company on June 30, 2026 are expected to continue to be effective hedges through the end of their respective terms.
The following table summarizes the fair value of derivative instruments as recorded in the Consolidated Balance Sheets:
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,
2026

  

  

 December 31,
2025

  

 

 
 Liabilities:

  

  

  

  

  

  

 

 
 Accrued expenses

  

  

 (146

 )

  

  

 (847

 )

 

 
 Other long-term liabilities

  

  

 -

  

  

  

 (430

 )

 

 
 Total derivatives

  

 $

 (146

 )

  

 $

 (1,277

 )

 

 
 
The following table summarizes total gains (losses) recognized on derivatives:
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 Derivatives in Cash Flow Hedging Relationships

  

 Amount of (Loss) Gain Recognized in AOCI on Derivatives

  

 

 
  

  

 Three Months Ended
June 30,

  

  

 Six Months Ended
June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Interest rate swaps

  

 $

 308

  

  

 $

 (223

 )

  

 $

 870

  

  

 $

 (1,008

 )