Gorman-Rupp Company (NYSE:GRC) saw its stock rise more than 3% in pre-market trading Friday after reporting record-breaking second-quarter results that outpaced analyst expectations, fueled by infrastructure-related demand and solid municipal sales.
The pump manufacturer reported earnings of $0.60 per share for the quarter, topping the average analyst forecast of $0.57. Revenue hit an all-time high of $179 million, exceeding estimates of $175.45 million and marking a 5.6% increase from the $169.5 million reported a year earlier. A $3.5 million boost in municipal sales tied to infrastructure projects was a key driver, with additional growth seen in fire suppression, industrial, petroleum, and repair segments.
“We were pleased to report record sales, earnings per share and incoming orders during the quarter,” said Scott A. King, President and CEO. “Sales increased in the majority of our markets led by the municipal market benefiting from infrastructure spending, including strong demand for flood control and storm water management.”
The company also achieved a new high for incoming orders, which totaled $188 million—up 15.7% year-over-year—setting a strong foundation for the second half of 2025.
Despite the solid top-line performance, gross margin edged down slightly to 31.3% from 31.9% in the same quarter last year, mainly due to increased material costs. Operating income totaled $26.9 million with a 15.0% operating margin, compared to $26 million and 15.4% in the prior-year period.
Strong cash generation allowed Gorman-Rupp to reduce debt by $30 million in the first six months of 2025, leading to significantly lower interest expenses. The company also highlighted increased demand from data center-related construction projects and said it intends to offset possible tariff pressures by adjusting pricing strategies.
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