Following the sizable 2Q:22 Fill-Rite acquisition, debt repayment is a priority. The company finished 1Q:26 with net debt of $262.9 million ($9.98 per share). We look for net debt of $188.6 million ($7.17 per share) by the end of 2026. Despite the leverage, Gorman-Rupp has raised its dividend for 53 consecutive years. The company currently has an annual payout of $0.76 per share (0.9% yield). Our higher profit outlook raises our price target to $76, which is based on 25x our revised 2027 EPS estimate of $3.04. Our previous $73 price target was based on 25x our prior 2027 EPS estimate of $2.91. GRC merits a moderate risk rating due to its manageable balance sheet and favorable market trends.