Street Calls of the Week
MANSFIELD, On Friday, Ohio - Gorman-Rupp Company (NYSE:GRC) reported third-quarter earnings and revenue that fell short of analyst expectations, but strong order growth and facility optimization plans overshadowed the miss.
The company’s shares edged up 1.79% in pre-market trading after the results.
The pump manufacturer reported adjusted earnings per share of $0.52 for the third quarter, below the analyst estimate of $0.57. Revenue came in at $172.8 million, up 2.8% YoY but missing the consensus estimate of $174.49 million. The company reported $3 million in one-time facility optimization costs during the quarter as it reduced its National Pump Company footprint from six facilities to three.
Incoming orders surged 19.2% to $184.5 million compared to the same period last year, pushing the company’s backlog to $234.2 million at quarter-end, up from $207.8 million a year earlier. The industrial market saw the largest sales increase at $5.3 million, primarily driven by data center demand.
"While it is always a difficult decision to close facilities, we believe these actions will improve profitability by reducing fixed costs while also supporting our higher growth markets," said Scott A. King, President and CEO. "We continued to see strong incoming orders during the quarter across the majority of our markets with year-to-date incoming orders now up over 10% from the same period last year."
The company reduced its total debt by $45 million during the first nine months of 2025. Gorman-Rupp expects the facility optimization to generate annual savings between $2 million and $2.5 million in payroll and facility costs.
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