MANSFIELD — The Gorman-Rupp Company (NYSE: GRC) reported record-setting results for the second quarter, which ended June 30, 2025.
The Board of Directors of The Gorman-Rupp Company has declared a quarterly cash dividend of $0.185 per share on the common stock of the Company, payable Sept. 10, 2025, to shareholders of record Aug. 15, 2025.
This will mark the 302nd consecutive quarterly dividend paid by The Gorman-Rupp Company.
“We were pleased to report record sales, earnings per share and incoming orders during the quarter,” said Scott A. King, President and CEO of Gorman-Rupp.
“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.”
Second quarter 2025 highlights
- Record net sales of $179.0 million increased 5.6%, or $9.5 million, compared to the second quarter of 2024.
- Record second quarter net income was $15.8 million, or $0.60 per share, compared to net income of $8.3 million, or $0.32 per share, for the second quarter of 2024.
- Adjusted earnings per share1 for the second quarter of 2024 were $0.54.
- Record incoming orders of $188.0 million increased 15.7%, or $25.5 million, compared to the second quarter last year.
“A number of our markets are benefiting from increased demand related to data center construction,” King said.
“While we will continue to monitor tariffs and plan to mitigate their impact through selling price increases, we believe that our primarily U.S. based supply chain provides a competitive advantage.”
Net sales for the second quarter of 2025 were $179.0 million compared to net sales of $169.5 million for the second quarter of 2024, an increase of 5.6% or $9.5 million.
“Our strong cash flow has allowed us to reduce our debt levels, including a $30 million reduction in the first half of 2025, contributing to our significant improvement in interest expense,” King said.
“With positive incoming order trends and current backlog levels, we are well positioned for the second half of the year.”
Sales increased in the majority of markets including a sales increase of $3.5 million in the municipal market due to water and wastewater projects related to increased infrastructure investment.
Sales also increased $2.8 million in the fire suppression market, $1.6 million in the industrial market, $1.5 million in the petroleum market, $1.5 million in the repair market, and $0.1 million in the construction market.
These increases were partially offset by a sales decrease of $1.2 million in the agriculture market primarily driven by significant declines in farm income, as well as a sales decrease of $0.3 million in the OEM market.
Gross profit was $56.1 million for the second quarter of 2025, resulting in gross margin of 31.3%, compared to gross profit of $54.1 million and gross margin of 31.9% for the same period in 2024.
The 60 basis point decrease in gross margin was primarily driven by a 120 basis point increase in cost of material, which included a 40 basis point increase in LIFO2 expense and an 80 basis point increase in cost of material primarily driven by product mix.
The increase in cost of material was partially offset by a 60 basis point improvement from labor and overhead leverage due to increased sales.
Selling, general and administrative (“SG&A”) expenses were $26.0 million and 14.5% of net sales for the second quarter of 2025 compared to $24.9 million and 14.7% of net sales for the same period in 2024. SG&A expenses for the second quarter of 2024 included $1.3 million of refinancing transaction costs and a $1.1 million gain on the sale of a fixed asset.
Operating income was $26.9 million for the second quarter of 2025, resulting in an operating margin of 15.0%, compared to operating income of $26.0 million and an operating margin of 15.4% for the same period in 2024.
Operating margin decreased 40 basis points compared to the same period in 2024 due to increased cost of material, partially offset by improved leverage on labor, overhead, and SG&A expenses due to increased sales.
Interest expense was $6.0 million for the second quarter of 2025 compared to $9.0 million for the same period in 2024. The decrease in interest expense was due primarily to the series of refinancing transactions the Company completed on May 31, 2024, as well as a decrease in outstanding debt.
Other income (expense), net was $0.5 million of expense for the second quarter of 2025 compared to $6.3 million of expense for the same period in 2024.
Other expense for the second quarter of 2024 included a $4.4 million write-off of unamortized previously deferred debt financing fees and a $1.8 million prepayment fee related to the early retirement of the unsecured Subordinated Credit Facility.
Net income was $15.8 million, or $0.60 per share, for the second quarter of 2025 compared to net income of $8.3 million, or $0.32 per share, in the second quarter of 2024.
Adjusted earnings per share1 for the second quarter of 2024 were $0.54 per share. The adjustments to Adjusted earnings per share apply only to the 2024 results.
Adjusted EBITDA1 was $35.3 million for the second quarter of 2025 compared to $35.4 million for the second quarter of 2024.
Year to date 2025 Highlights
- Net sales of $343.0 million increased 4.3%, or $14.2 million, compared to the first six months of 2024
- Net income was $27.9 million, or $1.06 per share, compared to net income of $16.2 million, or $0.62 per share for the first six months of 2024
- Adjusted earnings per share1 for the first six months of 2024 were $0.84
- Adjusted EBITDA1 of $65.0 million for the first six months of 2025 increased $1.4 million or 2.2% from $63.6 million for the same period in 2024
- Total debt decreased $30.0 million through the first six months of 2025
Net sales for the first six months of 2025 were $343.0 million compared to net sales of $328.8 million for the first six months of 2024, an increase of 4.3% or $14.2 million.
Sales increased in the majority of our markets including a sales increase of $5.4 million in the municipal market due to water and wastewater projects related to increased infrastructure investment, $4.8 million in the repair market, $3.5 million in the fire suppression market, $2.5 million in the petroleum market, $2.2 million in the OEM market, and $0.6 million in the industrial market.
Offsetting these increases was a decrease of $2.6 million in the construction market due to a general slow down in construction activity including sales into the rental market and $2.2 million in the agriculture market primarily driven by significant declines in farm income.
Gross profit was $106.4 million for the first six months of 2025, resulting in gross margin of 31.0%, compared to gross profit of $102.5 million and gross margin of 31.2% for the same period in 2024.
The 20 basis point decrease in gross margin included a 10 basis point increase in cost of material, primarily driven by increased LIFO2 expense, and a 10 basis point increase in labor and overhead expenses as a percent of sales.
Selling, general and administrative (“SG&A”) expenses were $51.1 million and 14.9% of net sales for the first six months of 2025 compared to $49.8 million and 15.2% of net sales for the same period in 2024. SG&A expenses for the first six months of 2024 included $1.3 million of refinancing transaction costs and a $1.1 million gain on the sale of a fixed asset.
Operating income was $49.0 million for the first six months of 2025, resulting in an operating margin of 14.3%, compared to operating income of $46.5 million and operating margin of 14.1% for the same period in 2024.
Operating margin in the first six months of 2025 increased 20 basis points compared to the same period in 2024 primarily due to improved leverage on SG&A expenses.
Interest expense was $12.2 million for the first six months of 2025 compared to $19.1 million for the same period in 2024.
The decrease in interest expense was due to a series of debt refinancing transactions the Company completed on May 31, 2024, as well as a decrease in outstanding debt.
Other income (expense), net was $0.9 million of expense for the first six months of 2025 compared to $6.6 million of expense for the same period in 2024.
Other expense for the first six months of 2024 included a $4.4 million write-off of unamortized previously deferred debt financing fees and a $1.8 million prepayment fee related to the early retirement of the unsecured Subordinated Credit Facility.
Net income was $27.9 million, or $1.06 per share, for the first six months of 2025 compared to net income of $16.2 million, or $0.62 per share, for the first six months of 2024. Adjusted earnings per share1 for the first six months of 2024 were $0.84 per share.
The adjustments to Adjusted earnings per share apply only to the 2024 results.
Adjusted EBITDA1 was $65.0 million for the first six months of 2025 compared to $63.6 million for the first six months of 2024.
The Company’s backlog of orders was $224.4 million at June 30, 2025 compared to $206.0 million at Dec. 31, 2024, and $224.4 million at June 30, 2024. Incoming orders for the first six months of 2025 were $365.7 million, an increase of 7.1%, or $24.4 million, compared to the same period in 2024.
Net cash provided by operating activities for the first six months of 2025 was $48.9 million compared to $33.4 million for the same period in 2024. The increase in cash provided by operating activities in the first six months of 2025 was primarily due to increased net income and an increase in accrued expenses. Capital expenditures for the first six months of 2025 were $6.0 million and consisted primarily of machinery and equipment. Capital expenditures for the full-year 2025 are presently planned to be approximately $20.0 million. Total debt decreased $30.0 million during the first six months of 2025.
About The Gorman-Rupp Company
Founded in 1933, The Gorman-Rupp Company is a leading designer, manufacturer and international marketer of pumps and pump systems for use in diverse water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning (HVAC), military and other liquid-handling applications