Water pump maker Gorman-Rupp misses Q3 profit estimates on higher costs

Reuters10-24
Water pump maker Gorman-Rupp misses Q3 profit estimates on higher costs

Overview

  • Gorman-Rupp 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 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/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$172.80 mln

$174.60 mln (2 Analysts)

Q3 Adjusted EPS

Miss

$0.52

$0.56 (2 Analysts)

Q3 EPS

$0.43

Q3 Net Income

$11.30 mln

Q3 Adjusted EBITDA

Beat

$32.29 mln

$31.50 mln (1 Analyst)

Q3 Gross Margin

29.20%

Q3 Gross Profit

$50.40 mln

Q3 Operating Income

$21.50 mln

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 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: ID:nBw7Fr7VRa

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(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.)

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