We look for GRC to post EPS of $0.55 in 2Q:25, a penny ahead of a year earlier, as the company faces a tough year over year profit comparison. 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. We expect Gorman-Rupp to benefit from favorable long-term trends in the pump market, including rising demand for water and wastewater treatment plants, infrastructure projects in developing economies, energy-efficient pump demand, reshoring of manufacturing facilities and the advent of smart pumps. Gorman's core business historically has had little cancellation risk due to the project nature of its business. We maintain our EPS estimates of $1.99 and $2.25 in 2025 and 2026, respectively. Following the sizable 2Q:22 Fill-Rite acquisition, debt repayment is a priority. The company finished 1Q:25 with net debt of $311.9 million ($11.88 per share). We look for net debt of $249.1 million ($9.47 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). Our $56 price target is based on 25x our 2026 EPS estimate of $2.25. GRC merits a moderate risk rating due to its manageable balance sheet and favorable market trends.