Gorman-Rupp Posts Record Third-Quarter Sales of $193.3 Million
Key Facts
Gorman-Rupp said on October 23 that it posted record net sales of $193.3 million in the third quarter of 2026, up 11.8%, or $20.4 million, from the same period a year earlier. Net income was $22.7 million, or $0.86 per share, compared with $11.3 million and $0.43 per share in the third quarter of 2025. Adjusted earnings per share were also $0.86, up from $0.52 a year earlier. Adjusted earnings beat the average analyst estimate of $0.70 by $0.16. Revenue exceeded the estimate of $182.33 million, though by a smaller margin in relative terms than earnings per share.
Chief Executive Scott King said the company achieved record sales, gross margin and earnings per share during the quarter. He added that this was the third consecutive quarter of record earnings per share and the second consecutive quarter of record sales. This reflects continued earnings and sales growth in recent quarters, alongside the current quarter’s results. Gorman-Rupp makes pumps and pumping systems for a range of fluid-handling applications. The quarterly figures show an improvement in net income and earnings per share alongside sales growth, rather than growth driven by revenue alone.
The company said sales increased across all markets, driven by higher volumes and price increases implemented in the first quarter of 2026. Agriculture contributed the largest increase among the markets cited, with sales rising $4.7 million. Construction added $3.5 million, industrial sales increased $3.4 million, and fire protection equipment sales rose $3.8 million. These increases point to broader sources of sales growth across the company’s sectors, rather than reliance on a single market. The company also cited increased demand for rental equipment in construction and for heating, ventilation and air-conditioning equipment in the industrial sector, while it did not attribute the quarter’s results to data centers.
Gross margin rose to 33.4% in the third quarter from 29.2% in the same period of 2025, an increase of 420 basis points. The company attributed the improvement to operating leverage in labor and overhead costs, the absence of previously incurred facility improvement costs, and lower LIFO inventory valuation expenses. Margin expansion accompanied sales growth, while net income doubled from a year earlier to $22.7 million. For the first nine months of 2026, net cash provided by operating activities was $114.9 million. The company reduced its total debt by $58.0 million over the same period.
Orders received totaled $562.2 million in the first nine months of 2026, up 2.2%, or $12.0 million, year over year. The backlog stood at $236.8 million on September 30, 2026. At the end of 2025, the company had reported a backlog of $244.0 million, up 18.5% from the end of 2024, and said then that about 90% of unshipped orders were scheduled for shipment during 2026. It also posted record annual sales of $682.4 million in 2025, while orders received for the year rose 10.5% from 2024. These figures put current order growth in the context of the company’s expansion in sales and orders last year.
The company said on October 23 that it raised its quarterly cash dividend to $0.20 per share, up 5.3% from the $0.19 paid in the previous quarter. The dividend is scheduled to be paid on December 10, 2026, to shareholders of record on November 13. The company did not explicitly link the increase in its announcement to margin expansion or cash flow, although its nine-month results showed operating cash flow of $114.9 million and debt reduction. The company says it increased its annual dividend for 53 consecutive years through 2025 and announced its 304th consecutive quarterly dividend in January 2026. The latest announcement extends the dividend record cited in its annual report.
The stock moved in two distinct periods around the announcement: GRC shares closed at $70.13 on October 22, before results were released the following day. After the announcement, the stock rose 5.83%, according to Investing.com coverage published on October 23. The previous closing price does not represent the market’s reaction to the results, as it preceded their release. On capital spending, capital expenditures were $14.7 million in the first nine months of 2026, mainly for machinery and equipment. The company plans capital expenditures of about $22.0 to $24.0 million for the full year. The investor relations calendar lists the Industrials Investor Access Virtual Day on November 17, 2026.