Gorman-Rupp Company (GRC) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of $682.4 million for 2025, up 3.4% year-over-year, and record net income of $53.0 million, up from $40.1 million in 2024.

• Fourth quarter net sales rose 2.4% to $166.6 million, with net income of $13.7 million, up from $11.0 million in Q4 2024.

• Incoming orders reached a record $728.4 million for the year, up 10.5%, and backlog increased to $244.0 million.

Financial highlights

• Gross profit for 2025 was $209.1 million (gross margin 30.6%), slightly down from 31.0% in 2024 due to one-time facility optimization costs.

• Adjusted earnings per share for 2025 were $2.14, up from $1.75 in 2024; Q4 adjusted EPS was $0.55, up from $0.42.

• Adjusted EBITDA for 2025 was $128.8 million (18.9% of sales), up from $124.6 million in 2024.

• Interest expense dropped to $23.4 million in 2025 from $33.6 million in 2024, reflecting lower debt.

• Net cash from operating activities rose to $106.2 million in 2025 from $69.8 million in 2024.

Outlook and guidance

• Management expects continued strength in the municipal market from infrastructure spending and ongoing demand in several markets, including data center construction.

• Strong cash flow is expected to support further debt reduction and lower interest expense.