Gorman-Rupp Eyes Data Centers, Acquisitions as Debt Falls

Lower debt has put Mansfield-based pump maker The Gorman-Rupp Company back in position to consider acquisitions, while data-center-related demand — already about 10% of revenue — has become a growth target.

For Mansfield, the next question is concrete: If those bets lead to new production, engineering, hiring or investment, how much will land at the company’s operations here?

At an Aug. 26 Midwest IDEAS Conference presentation in Chicago, Scott A. King, president, chief executive officer and a director of The Gorman-Rupp Company, tied its expanded options directly to the balance sheet. “Our leverage has come down as planned, a little bit ahead of our schedule, and currently sits at 1.9 times EBITDA,” he said.

Operating momentum

For the six months ended June 30, Gorman-Rupp reported net sales of $362.7 million, up 5.7% from $343.1 million in the same period of 2025.

Diluted earnings per share climbed 33%, from $1.06 to $1.41. Adjusted EBITDA reached $73.7 million, or 20.3% of net sales, compared with $65 million, or 18.9% of sales, a year earlier. Gorman-Rupp defines adjusted EBITDA as net income excluding interest, taxes, depreciation and amortization, with a further adjustment for non-cash LIFO expense.

The company also reduced total debt by $33 million during the first half and finished June with a $239.7 million backlog. “Our incoming orders have remained elevated, and our backlog is pretty healthy,” King said.

At the August conference, King projected 2026 revenue of a little more than $700 million. That figure remains a forecast rather than a reported full-year result.

Data-center demand

Gorman-Rupp makes pumps for water, wastewater, construction, dewatering, industrial, petroleum, agriculture, fire protection and HVAC applications. Data centers are emerging as another source of demand across its markets.

In the second quarter, higher data-center-related demand increased industrial-market sales by $1.6 million and original equipment manufacturer market sales by $900,000. Those figures measure quarterly sales increases in the two markets; King’s 10% estimate described the company’s broader revenue exposure.

“It certainly is something we’re focused on today,” King said at the August conference. “We think right now about 10% of our revenues are related to data centers.”

Deals return

Debt reduction has also revived Gorman-Rupp’s interest in buying other pump businesses. “Continuing to reduce debt and with our leverage now below 2x EBITDA, we are turning our mindset back toward evaluating acquisitions in the pump industry,” King said.

The company’s 2022 purchase of Fill-Rite and Sotera assets illustrates the potential scale of such a move. Gorman-Rupp paid $528 million in cash, using cash on hand and new debt. Financing included a $350 million term loan, a $100 million revolving credit facility and a $90 million unsecured subordinated term loan.

With leverage now lower, King said the company could again consider a sizable transaction, while leaving open the possibility of using stock.

“We’re starting to get to the point where we could do something of size again, now that our leverage is down to where it is. We would consider using equity if it were the right situation as we evaluate acquisition criteria. So we’ll be extremely disciplined around a business fitting these criteria,” he said.

The Mansfield stake

Gorman-Rupp’s headquarters and principal office are at 600 South Airport Road. Its Mansfield manufacturing facility and corporate headquarters encompass 825,000 square feet, including automated machining centers for pump castings. Worldwide, the company has more than 2 million square feet of design, manufacturing and distribution space.

Gorman-Rupp spent $7.9 million on capital projects during the first half of 2026 and planned approximately $22 million to $24 million in companywide spending for the full year, primarily for machinery and equipment financed with cash from operations.

Gorman-Rupp now has more financial room to choose its next move. Mansfield’s stake will be measured at 600 South Airport Road — in whether data-center growth and any future acquisition produce durable work and investment here.