Gorman-Rupp Sales Growth Accelerates After a Slower Second Quarter

The Tip Desk · October 24, 2026 · 3 min read

Third-quarter net sales reached a record $193.3 million, up 11.8% from a year earlier, and earnings were $0.86 a share.

The Gorman-Rupp Company (GRC), a designer and manufacturer of pumps and pump systems, reported record third-quarter net sales of $193.3 million, up 11.8%, or $20.4 million, from $172.8 million a year earlier.

That year-over-year rate was faster than the 3.9% increase recorded in the second quarter of 2026, when sales were $186.1 million. Sequential sales also rose to $193.3 million. President and Chief Executive Officer Scott A. King said the quarter marked the second consecutive period of record sales and the third consecutive quarter of record earnings per share.

The company said sales increased across all of its markets on volume growth and price increases taken in the first quarter of 2026. Agriculture sales rose $4.7 million, construction $3.5 million, and industrial $3.4 million, in each case due in part to improvement across Fill-Rite’s sales channels. Construction also benefited from increased sales of rental equipment, and industrial from increased HVAC demand. Fire suppression sales increased $3.8 million on higher international sales, reversing a $2.2 million year-over-year decline in the second quarter. Municipal sales rose $2.0 million, OEM $1.4 million, petroleum $1.0 million, and repair $0.6 million.

Gross profit was $64.5 million, and gross margin expanded to 33.4% from 29.2% a year earlier. The company attributed the 420-basis-point lift to a 190-basis-point improvement in labor and overhead expense (130 basis points from leverage on higher sales and 60 basis points from favorable medical expenses), a 160-basis-point improvement from 2025 facility optimization costs that did not recur, and a 70-basis-point reduction in LIFO expense.

Selling, general and administrative expenses were $27.5 million, or 14.3% of net sales, versus 15.0% a year earlier, which the company said reflected improved leverage from higher sales. Operating income was $33.9 million, and operating margin was 17.5%, compared with $21.5 million and 12.4% a year earlier. The 510-basis-point operating-margin increase came from the 420-basis-point gross-margin improvement and 90 basis points of leverage on SG&A and amortization.

Net income was $22.7 million, or $0.86 a share, compared with $11.3 million, or $0.43 a share, in the third quarter of 2025. Adjusted earnings per share were $0.86 versus $0.52. Adjusted EBITDA was a record $41.8 million, or 21.6% of sales, up $9.5 million, or 29.4%, from $32.3 million and 18.7% of sales a year earlier.

Interest expense was $4.3 million, down from $5.8 million a year earlier, which the company said was due primarily to a decrease in outstanding debt.

For the first nine months of 2026, net sales were $555.9 million, up 7.8%, or $40.1 million, from $515.8 million. Net income was $60.0 million, or $2.27 a share, versus $39.3 million, or $1.49 a share. Adjusted EBITDA was $115.5 million, or 20.8% of sales.

Incoming orders for the nine months were $562.2 million, up 2.2%, or $12.0 million. Backlog was $236.8 million at September 30, 2026, compared with $234.2 million a year earlier and $244.0 million at December 31, 2025. Net cash provided by operating activities was $114.9 million, versus $91.2 million a year earlier, which the company said was primarily due to increased net income. Total debt decreased $58.0 million in the nine months. Cash and cash equivalents were $59.3 million at September 30, 2026, versus $35.1 million at year-end 2025. Long-term debt, net of current portion, was $250.2 million.

Capital expenditures for the nine months were $14.7 million. Full-year 2026 capital expenditures are presently planned at approximately $22.0 million to $24.0 million.