Gorman-Rupp posts record $193.3 million in sales as third-quarter net income doubles

The Gorman-Rupp Company reported record third-quarter net sales of $193.3 million, up 11.8% from $172.8 million a year earlier, and record net income of $22.7 million, or $0.86 a share, against $11.3 million, or $0.43, in the third quarter of 2025.

Sales rose in all eight reported end markets

Volume growth and price increases carried every market the Mansfield, Ohio, pump maker reports. Agriculture sales rose $4.7 million, fire suppression $3.8 million on stronger international business, construction $3.5 million with added rental-equipment demand, and industrial $3.4 million as HVAC demand improved. Municipal, OEM, petroleum and repair added $2.0 million, $1.4 million, $1.0 million and $600,000 respectively. The release says the agriculture, construction and industrial gains were each helped in part by improvement across Fill-Rite's sales channels.

A 420 basis point margin gain, partly from costs that will not repeat

Gross profit was $64.5 million, or 33.4% of sales, against $50.4 million and 29.2% a year earlier. The company attributes the 420 basis point expansion to four pieces: 190 basis points from labor and overhead, of which 130 came from leverage on higher sales and 60 from favorable medical expenses; 160 basis points because facility optimization costs booked in 2025 did not recur; and 70 basis points from lower LIFO expense. The facility-cost piece is a comparison effect rather than a saving, and the release says interim LIFO expense is an estimate that is adjusted as the year-end inflation assumption changes. Selling, general and administrative costs rose to $27.5 million from $25.9 million but fell to 14.3% of sales from 15.0%, and operating margin widened to 17.5% from 12.4%.

Net income doubles as interest costs fall

Operating income rose to $33.9 million from $21.5 million, a comparison that includes $3.0 million of facility optimization costs in the 2025 figure. Interest expense fell to $4.3 million from $5.8 million as debt came down, and net income rose 100.2% to $22.7 million, or $0.86 a share, from $11.3 million, or $0.43, a year earlier.

“We are very pleased with our third-quarter results, which included record net sales, gross margin, and earnings per share”, said Scott A. King, the company's president and chief executive. He said the quarter was “the third consecutive quarter with record earnings per share and the second consecutive quarter with record sales”.

Adjusted earnings per share was $0.86, level with the GAAP figure because the 2026 quarter carried no adjustments; the prior-year adjusted figure of $0.52 adds back $0.09 a share of facility optimization costs to reported EPS of $0.43. Adjusted EBITDA, which also excludes non-cash LIFO expense, was $41.8 million, or 21.6% of sales, against $32.3 million and 18.7%, an increase of 29.4%.

Orders edge higher while backlog sits below its year-end level

For the first nine months, net sales were $555.9 million, up 7.8% from $515.8 million, and net income was $60.0 million, or $2.27 a share, against $39.3 million, or $1.49. Incoming orders were $562.2 million, up 2.2%, or $12.0 million, from the same period a year earlier. Backlog was $236.8 million on September 30, against $234.2 million a year earlier and $244.0 million at December 31, 2025, so the order book is larger than a year ago and smaller than it was entering 2026. Operating cash flow of $114.9 million, against $91.2 million, covered $14.7 million of capital spending and a $58.0 million reduction in total debt, and the company repeated a plan to spend approximately $22.0 million to $24.0 million on capital projects this year.

The release, filed as Exhibit 99 to a Form 8-K on October 23, 2026, gives no revenue or earnings guidance and no third-quarter-only order figure. The next dated numbers will come with the fourth-quarter and full-year 2026 release, which the company has not scheduled.