This morning, Gorman-Rupp reported 2Q:25 EPS of $0.60, compared to our $0.55 estimate and $0.54 a year earlier. Relative to our estimate, modestly higher volumes and ensuing operating leverage were the primary reason earnings topped our estimate, rising 11% year over year. Backlog increased in the quarter to $224.4 million and remains at elevated levels compared to historical norms. About 75% of revenue is U.S. based, with no other country accounting for more than 10% of sales. U.S. production accounts for about 90% of the manufacturing footprint. Gorman's core business historically has had little cancellation risk due to the project nature of its business. We adjust our 2025 estimates to reflect the 2Q:25 beat and raise our EPS estimate to $2.05 (from $1.99). The higher backlog level prompts us to increase our 2026 estimate to $2.33 (from $2.25). Following the sizable 2Q:22 Fill-Rite acquisition, debt repayment is a priority. The company finished 2Q:25 with net debt of $291.6 million ($11.16 per share). We look for net debt of $225.9 million ($8.59 per share) by the end of 2025. Despite the leverage, Gorman-Rupp has raised its dividend for 52 consecutive years. The company has an annual payout of $0.74 per share (2.0% yield). We raise our price target to $58 (from $56), which is based on 25x our revised 2026 EPS estimate of $2.33. GRC merits a moderate risk rating due to its manageable balance sheet and favorable market trends.