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MANSFIELD, Ohio -On Friday, Gorman-Rupp Company (NYSE:GRC) reported record second quarter results that exceeded analyst expectations, driven by strong municipal market sales and infrastructure spending.
The pump manufacturer’s shares rose 3.35% in pre-market trading following the release
The company posted second quarter earnings of $0.60 per share, surpassing the analyst consensus of $0.57. Revenue reached a record $179 million, beating estimates of $175.45 million and increasing 5.6% compared to $169.5 million in the same quarter last year. The revenue growth was primarily fueled by a $3.5 million increase in municipal market sales related to infrastructure investment, along with gains in fire suppression, industrial, petroleum, and repair markets.
"We were pleased to report record sales, earnings per share and incoming orders during the quarter," said Scott A. King, President and CEO. "Sales increased in the majority of our markets led by the municipal market benefiting from infrastructure spending, including strong demand for flood control and storm water management."
The company also reported record incoming orders of $188 million, up 15.7% YoY, positioning it well for the second half of the year. Gross margin decreased slightly to 31.3% from 31.9% in the prior-year period, primarily due to higher material costs.
Gorman-Rupp’s strong cash flow enabled it to reduce its debt by $30 million in the first half of 2025, contributing to significantly lower interest expenses. Operating income was $26.9 million with an operating margin of 15.0%, compared to $26.0 million and 15.4% in the second quarter of 2024.
The company noted that several markets are benefiting from increased demand related to data center construction, and it plans to mitigate potential tariff impacts through selling price increases.
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