Overview

* Gorman-Rupp ( GRC ) 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 ( GRC ) 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/Mis Actual Consensu

s s

Estimate

Q3 Miss $172.80 $174.60

Revenue mln mln (2

Analysts

)

Q3 Miss $0.52 $0.56 (2

Adjusted Analysts

EPS )

Q3 EPS $0.43

Q3 Net $11.30

Income mln

Q3 Beat $32.29 $31.50

Adjusted mln mln (1

EBITDA Analyst)

Q3 Gross 29.20%

Margin

Q3 Gross $50.40

Profit mln

Q3 $21.50

Operatin mln

g Income

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 ( GRC ) 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:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)