Overview
Pump manufacturer's Q4 revenue rose 2.4%, slightly missing analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Gross margin improved due to better labor and overhead leverage
Outlook
Company plans capital expenditures of $20-22 mln for 2026
Company expects strong demand in municipal market from infrastructure spending
Gorman-Rupp aims to further reduce debt and interest expenses in 2026
Result Drivers
MARKET DEMAND - Sales increased in fire suppression, industrial, and OEM markets due to data center demand
GROSS MARGIN IMPROVEMENT - Gross margin rose due to improved labor and overhead leverage and reduced healthcare costs
INTEREST EXPENSE REDUCTION - Interest expense decreased due to lower outstanding debt
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $166.60 mln | $167.89 mln (2 Analysts) |
Q4 Adjusted EPS | Beat | $0.55 | $0.47 (2 Analysts) |
Q4 EPS | $0.52 | ||
Q4 Net Income | $13.70 mln | ||
Q4 Adjusted EBITDA | Beat | $31.50 mln | $27.29 mln (1 Analyst) |
Q4 Gross Margin | 31.40% | ||
Q4 Gross Profit | $52.30 mln | ||
Q4 Operating Income | $24.80 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
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 $59.00, about 0.9% above its February 5 closing price of $59.55
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nBw7jPMgSa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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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