Gorman-Rupp Considers Data Center Expansion and Acquisitions as Debt Falls Below Threshold
Gorman-Rupp Company (NYSE: GRC) is exploring new opportunities in data centers, infrastructure projects, and potential acquisitions after reducing its debt to below a key leverage threshold. The company reported strong operating performance for the first half of 2026, with year-to-date sales up nearly 6%, EPS rising by 33% to $2.14 per share (a record), adjusted EBITDA exceeding 20% of sales, and a backlog reaching $240 million. With leverage now at 1.9 times EBITDA—below its self-imposed threshold of 2x—the company is reactivating acquisition plans focused on complementary pump industry targets while maintaining dividends and reinvesting in the business. CEO Scott King emphasized Gorman-Rupp’s diverse market exposure, including water systems, agriculture, construction, HVAC, fire protection, and industrial applications. The firm also highlighted its growing involvement in data center-related applications, which currently account for about 10% of revenue but are expected to rise gradually over time. These include roles in municipal water supply, fueling equipment, HVAC systems, coolant distribution units, and flood protection projects.
Tickers: $GRC
Topics: data_centers debt_reduction executive_appointment infrastructure_growth M&A_activity