MANSFIELD: The Gorman-Rupp Company (NYSE: GRC) announced record financial results for the second quarter ended June 30, 2025, driven by increased sales across most markets and significant growth in incoming orders.
The pump manufacturer reported second-quarter net sales of $179.0 million, a 5.6 percent increase, or $9.5 million, compared to $169.5 million in the same period last year. Net income surged to a record $15.8 million, or $0.60 per diluted share, compared to net income of $8.3 million, or $0.32 per share, in the second quarter of 2024. Adjusted earnings per share for Q2 2024 were $0.54.
A key indicator of future performance, incoming orders, also set a second-quarter record at $188.0 million, rising 15.7 percent, or $25.5 million, year-over-year.
Sales growth was broad-based, led by the municipal market ($3.5 million increase) benefiting from water, wastewater, flood control, and stormwater infrastructure projects. Increases were also seen in fire suppression ($2.8 million), industrial ($1.6 million), petroleum ($1.5 million), repair ($1.5 million), and construction ($0.1 million) markets. These gains were partially offset by declines in agriculture ($1.2 million), attributed to lower farm income, and OEM ($0.3 million).
Gross profit reached $56.1 million (31.3 percent margin), up from $54.1 million (31.9 percent margin) in Q2 2024. The margin decrease was primarily due to higher material costs, partially offset by improved labor and overhead leverage from increased sales volume.
Operating income was $26.9 million (15.0 percent margin) compared to $26.0 million (15.4 percent margin) in the prior year. A significant reduction in interest expense, down to $6.0 million from $9.0 million, resulted from debt refinancing completed May 31, 2024, and lower outstanding debt. Other expense also improved markedly to $0.5 million from $6.3 million, which included significant one-time fees in 2024.
For the first six months of 2025, net sales were $343.0 million, up 4.3 percent or $14.2 million from $328.8 million in 2024. Net income for the period was $27.9 million, or $1.06 per share, compared to $16.2 million, or $0.62 per share, in the first half of 2024. Adjusted earnings per share for H1 2024 were $0.84.
Adjusted EBITDA for the first half of 2025 was $65.0 million, a 2.2 percent increase from $63.6 million a year ago. The company reduced its total debt by $30.0 million during the first six months. Backlog stood at $224.4 million as of June 30, 2025, level with June 2024 and up from $206.0 million at the end of 2024. Incoming orders for H1 2025 were $365.7 million, up 7.1 percent.
“We were pleased to report record sales, earnings per share and incoming orders during the quarter,” said Scott A. King, President and Chief Executive Officer. “Sales increased in the majority of our markets led by the municipal market benefiting from infrastructure spending… In addition, a number of our markets are benefiting from increased demand related to data center construction.”
King highlighted the company’s U.S.-based supply chain as a competitive advantage amid tariff concerns and noted strong cash flow enabling debt reduction. “With positive incoming order trends and current backlog levels, we are well positioned for the second half of the year.”
Founded in 1933 and headquartered in Mansfield, Ohio, The Gorman-Rupp Company is a leading designer, manufacturer and international marketer of pumps and pump systems for diverse water, wastewater, construction, industrial, petroleum, and other liquid-handling applications.