GORMAN RUPP CO SEC 10-Q Report

The Gorman-Rupp Company, a leading manufacturer of pumps and pumping systems, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's robust financial performance and significant business developments, driven by strategic market positioning and operational efficiencies.

Financial Highlights

• Net Sales: $179.0 million, an increase of 5.6% from the second quarter of 2024, driven by pricing increases and strong performance in municipal and fire suppression markets.
• Gross Profit: $56.1 million, with a gross margin of 31.3%, slightly down from 31.9% in the same period of 2024 due to increased cost of materials.
• Operating Income: $26.9 million, representing an operating margin of 15.0%, a slight decrease from 15.4% in the second quarter of 2024 due to increased material costs.
• Net Income: $15.8 million, a significant increase of 89.5% compared to $8.3 million in the second quarter of 2024, reflecting improved financial performance and reduced interest expenses.
• Earnings per Share: $0.60, up from $0.32 in the second quarter of 2024, indicating strong earnings growth.

Business Highlights

• Revenue Segments: The Gorman-Rupp Company reported increased sales in several key markets for the second quarter of 2025. The municipal market saw a significant increase of $3.5 million due to water and wastewater projects related to infrastructure investment. The fire suppression market increased by $2.8 million, the industrial market by $1.6 million, the petroleum market by $1.5 million, and the repair parts market by $1.5 million. However, the agriculture market experienced a decline of $1.2 million, primarily due to significant declines in farm income.
• Geographical Performance: Sales in the United States increased, contributing to the overall growth in net sales. International sales represented approximately 24% of total net sales for the second quarter of 2025, slightly down from 25% in the same period of 2024. The company attributes revenues to individual countries based on the customer location to which finished products are shipped.
• Future Outlook: The company is optimistic about the second half of the year, with positive incoming order trends and current backlog levels. Sales in the municipal market are expected to benefit from infrastructure spending, including strong demand for flood control and storm water management. Additionally, several markets are benefiting from increased demand related to data center construction. The company plans to continue monitoring tariffs and mitigate their impact through selling price increases, leveraging its primarily U.S.-based supply chain as a competitive advantage.

SEC Filing: GORMAN RUPP CO [ GRC ] - 10-Q - Jul. 28, 2025