Water pump maker Gorman-Rupp misses Q3 profit estimates on higher costs

The Gorman-Rupp

24/10/2025 11:40

Overview

Gorman-Rupp Q3 revenue rose 2.8% but missed analyst expectations

Adjusted EPS for Q3 missed analyst estimates

Adjusted EBITDA for Q3 beat analyst expectations

Company optimized facilities to reduce costs and support growth markets

Outlook

Company expects effective tax rate for 2026 to be between 21.0% and 23.0%

Gorman-Rupp sees strong incoming orders and increasing backlog for 2025 and 2026

Result Drivers

FACILITY OPTIMIZATION - Co reduced NPC facilities to lower fixed costs and support growth in fire, municipal, and HVAC markets

MARKET DEMAND - Increased sales in industrial and municipal markets due to data center demand and infrastructure investment

COST IMPACT - Facility optimization and material costs contributed to decreased gross and operating margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$172.80 mln
$174.60 mln (2 Analysts)
Q3 Adjusted EPS
Miss
$0.52
$0.56 (2 Analysts)
Q3 EPS
$0.43
Q3 Net Income
$11.30 mln
Q3 Adjusted EBITDA
Beat
$32.29 mln
$31.50 mln (1 Analyst)
Q3 Gross Margin
29.20%
Q3 Gross Profit
$50.40 mln
Q3 Operating Income
$21.50 mln


Analyst Coverage

The one available analyst rating on the shares is "strong buy"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for Gorman-Rupp Co is $55.00, about 10.7% above its October 23 closing price of $49.12

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw7Fr7VRa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)