Gorman‑Rupp (NYSE: GRC) reported third‑quarter 2025 results on October 24, 2025, showing net sales of $172.8 million, a 2.8% increase from $168.2 million in the same quarter of 2024. Sales growth was driven by $5.3 million in the industrial market, $2.1 million in municipal, and $2.0 million in agriculture, while construction sales fell $4.6 million. The company’s gross profit rose to $50.4 million, but the gross margin contracted to 29.2% from 31.3% year‑ago, largely due to $2.7 million in facility‑optimization costs.
Operating income for the quarter was $21.5 million, a 12.4% margin versus 14.2% in Q3 2024. Interest expense fell to $5.8 million from $7.8 million, reflecting a $45 million debt reduction. Net income declined to $11.3 million, or $0.43 per share, down from $12.9 million ($0.49 per share) in the prior year. Adjusted earnings per share were $0.52, and adjusted EBITDA was $32.3 million, a modest increase from $32.0 million.
The company highlighted a $3.0 million one‑time facility‑optimization expense, including inventory rationalization and severance. Backlog of orders reached $234.2 million, up from $206.0 million at the end of 2024, while incoming orders for the first nine months totaled $550.2 million, a 10.9% increase. Capital expenditures for the year were planned at $20 million, with $12.5 million spent in the first nine months. Debt decreased by $45 million, improving the company’s leverage profile.
CEO Scott A. King noted that “closing two smaller facilities that served the agriculture market and transitioning a third to support our growing HVAC business will improve profitability by reducing fixed costs while supporting higher‑growth markets.” The company expects continued strong incoming orders and a backlog that supports revenue growth for the remainder of 2025.
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