Investing.com -- On Friday, Gorman-Rupp Company (NYSE:GRC) reported third quarter results that exceeded analyst expectations.
Shares of the pump manufacturer went up 5.83% following the announcement.
The company posted adjusted earnings per share of $0.86 for the third quarter, beating the analyst consensus of $0.70 by $0.16. Revenue reached a record $193.3 million, up 11.8% from $172.8 million in the same quarter last year and surpassing the analyst estimate of $182.33 million. The revenue growth was driven by volume increases and price adjustments implemented in the first quarter of 2026, with gains across all market segments.
Net income for the quarter was $22.7 million, or $0.86 per share, compared to $11.3 million, or $0.43 per share, in the third quarter of 2025. The year-ago quarter included $3.0 million in facility optimization costs.
Gross margin expanded to 33.4% from 29.2% in the prior year period, reflecting improved leverage on labor and overhead expenses, the absence of prior-year facility optimization costs, and reduced LIFO expense. Operating margin increased to 17.5% from 12.4%.
"We are very pleased with our third-quarter results, which included record net sales, gross margin, and earnings per share," said Scott A. King, President and CEO. "This marks the third consecutive quarter with record earnings per share and the second consecutive quarter with record sales."
For the first nine months of 2026, the company generated $114.9 million in operating cash flow and reduced total debt by $58.0 million. The company's backlog stood at $236.8 million at September 30, 2026.
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