Gorman-Rupp posts record third-quarter sales and earnings

The Gorman-Rupp Company (NYSE: GRC) reported record net sales of $193.3 million for the third quarter ended September 30, 2026, an increase of 11.8 percent from the same period last year. The Mansfield, Ohio-based manufacturer also recorded a record net income of $22.7 million, or $0.86 per share, doubling the prior-year figure of $11.3 million.

Gorman-Rupp attributed the revenue growth to volume increases and price adjustments implemented in the first quarter of 2026. The company noted that sales rose across all of its markets, with the agriculture segment contributing a $4.7 million increase and the construction market adding $3.5 million. Industrial sales grew by $3.4 million, driven in part by higher HVAC demand and improved performance across Fill-Rite sales channels. The fire suppression market saw a $3.8 million rise due to increased international sales, while the municipal, OEM, petroleum, and repair markets added $2.0 million, $1.4 million, $1.0 million, and $0.6 million respectively.

Gross profit reached $64.5 million in the quarter, resulting in a gross margin of 33.4 percent compared to 29.2 percent in the third quarter of 2025. The company cited a 420 basis point margin improvement driven by lower labor and overhead expenses, the non-recurrence of $2.7 million in facility optimization costs from the prior year, and a reduction in LIFO expense. Selling, general and administrative expenses declined to 14.3 percent of net sales from 15.0 percent a year earlier, reflecting better leverage from increased sales volume.

Operating income stood at $33.9 million for the quarter, yielding an operating margin of 17.5 percent, up from 12.4 percent in the prior-year period. Adjusted EBITDA hit a record $41.8 million, representing 21.6 percent of sales, an increase of $9.5 million or 29.4 percent over the third quarter of 2025.

For the first nine months of 2026, Gorman-Rupp reported net sales of $555.9 million, up 7.8 percent from $515.8 million in the same period of 2025. Net income for the nine-month period was $60.0 million, or $2.27 per share, compared to $39.3 million, or $1.49 per share, in the prior year. Adjusted EBITDA for the first nine months reached $115.5 million, or 20.8 percent of sales.

The company’s total debt decreased by $58.0 million through the first nine months of 2026, contributing to a drop in interest expense to $13.9 million from $18.0 million a year earlier. Incoming orders for the nine-month period totaled $562.2 million, a 2.2 percent increase over the same period in 2025.

Gorman-Rupp’s backlog of orders stood at $236.8 million as of September 30, 2026, compared to $234.2 million at September 30, 2025, and $244.0 million at December 31, 2025.