What Happened?
Shares of gorman-Rupp (NYSE: GRC) manufactures and sells pumps globally. fell 4.9% in the afternoon session after Gorman-Rupp reported third-quarter 2025 financial results that missed analyst expectations. The company's revenue came in at $172.8 million, slightly below the anticipated $174.6 million, even though it marked a 2.8% increase from the same period in the previous year. More significantly, adjusted earnings per share were $0.52, falling short of the $0.57 consensus estimate. The weaker-than-expected profitability was also reflected in the company's gross margin, which fell to 29.2% from 31.3% in the prior year's quarter.
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What Is The Market Telling Us
Gorman-Rupp’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 7.6% on the news that the company reported record second-quarter financial results that surpassed analyst expectations, driven by strong sales linked to infrastructure spending. The industrial pump manufacturer posted earnings of $0.60 per share on a record $179 million in revenue, surpassing analyst expectations. This performance marked a significant improvement compared to the $0.32 per share reported in the same quarter last year. The revenue growth was primarily fueled by a $3.5 million increase in sales to the municipal market, which the company attributed to infrastructure investment. The fire suppression, industrial, and petroleum markets also contributed to the gains. In a further sign of strength, Gorman-Rupp announced record incoming orders of $188 million, up 15.7% from the prior year, which suggested a positive outlook for the second half of the year.
Gorman-Rupp is up 24.6% since the beginning of the year, and at $46.47 per share, it is trading close to its 52-week high of $49.12 from October 2025. Investors who bought $1,000 worth of Gorman-Rupp’s shares 5 years ago would now be looking at an investment worth $1,425.
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