Shares of Gorman-Rupp (GRC) are soaring 5.70% in Friday's pre-market trading following the release of the company's impressive second-quarter 2025 financial results. The pump manufacturer reported record net sales and a significant increase in earnings per share, surpassing analyst expectations.
Gorman-Rupp announced Q2 2025 net sales of $179.0 million, marking a 5.6% increase from the same period last year and beating the analyst consensus estimate of $174.60 million. The company's earnings per share (EPS) reached $0.60, up from $0.54 in Q2 2024, and surpassing the analyst expectation of $0.56. Net income for the quarter nearly doubled to $15.8 million, compared to $8.3 million in the previous year.
Scott A. King, President and CEO of Gorman-Rupp, attributed the growth to increased demand in the municipal market, driven by infrastructure spending and data center construction. The company also reported strong performance in the fire suppression market, with sales rising by $2.8 million. Despite a slight decrease in gross margin due to increased material costs, Gorman-Rupp's overall financial health remains robust, with the company reducing its total debt by $30 million in the first half of 2025. With a positive outlook on incoming orders and current backlog levels, Gorman-Rupp appears well-positioned for continued growth in the second half of the year.
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