Gorman-Rupp Company (NYSE:GRC) reported fourth-quarter results that delivered a profit beat but fell short on revenue, a mixed outcome that weighed on investor sentiment and pushed the shares lower.
The pump manufacturer’s stock declined about 3% in premarket trading on Friday. Gorman-Rupp posted adjusted earnings of $0.55 per share for the quarter, comfortably ahead of analyst expectations of $0.47. Revenue, however, came in at $166.6 million, narrowly missing the $167.08 million consensus estimate, although it still represented a 2.4% increase from $162.7 million in the same period last year.
Sales growth was evident across several end markets. Fire suppression revenue rose by $2.8 million, industrial sales increased $2.2 million, and OEM revenue grew $1.9 million, with all three benefiting from higher demand tied to data center projects. These gains were partly offset by a $4.0 million decline in the municipal segment, driven by the timing of domestic flood control and wastewater projects.
“We are proud to have attained record sales, adjusted earnings per share and incoming orders during the year,” said Scott A. King, President and CEO of Gorman-Rupp Company. “Full year sales increased across the majority of our markets and all markets saw an increase in incoming orders. We maintained the record gross margin rates we achieved in 2024 and effectively managed our SG&A costs throughout the year.”
Operational efficiency continued to improve, with operating margin rising to 14.9% in the fourth quarter from 13.0% a year earlier, supported by better leverage on labor, overhead and SG&A expenses.
Order intake remained strong. Incoming orders totaled $178.2 million, up 9.2% year on year, while backlog reached $244.0 million at the end of the year, compared with $206.0 million a year earlier.
Looking ahead to 2026, Gorman-Rupp said it expects to benefit from ongoing infrastructure spending in the municipal market, alongside continued growth in demand linked to data center construction across multiple end markets.