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Sep 30, 2025
Gorman-Rupp Q3 2025 Earnings Report
Gorman-Rupp delivered modest sales growth in Q3 2025, but profits declined due to facility optimization and higher material costs.
Key Takeaways
Despite increased sales and order volume, Gorman-Rupp's earnings declined in Q3 2025 due to one-time optimization costs and margin pressure. Strong incoming orders and a rising backlog suggest solid momentum going into 2026.
Net sales rose 2.8% YoY to $172.8M, driven by growth in industrial and municipal markets.
Net income declined to $11.3M due to $3M in facility optimization costs.
Adjusted EPS increased to $0.52, up from $0.49 in Q3 2024.
Backlog reached $234.2M, and incoming orders surged 19.2% YoY.
Revenue by Segment
Forward Guidance
Gorman-Rupp expects to benefit from facility consolidation and continued demand in key infrastructure sectors. However, margin pressures from tariffs and material costs remain a risk.
Positive Outlook
- Backlog reached $234.2M, supporting near-term revenue visibility
- Strong incoming orders across most markets
- Debt reduction of $45M YTD improves interest expense outlook
- Optimized facility footprint expected to reduce fixed costs
- Adjusted EPS and EBITDA improved YoY despite headwinds
Challenges Ahead
- Gross margin declined 210 basis points YoY
- Facility optimization cost $3M in the quarter
- Construction market sales fell by $4.6M
- Tariff timing mismatches increased cost of materials
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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