The Gorman-Rupp Company reported financial results for the third quarter ended September 30, 2026, highlighting record net sales and net income for the period. The company announced record net sales of $193.3 million, which represents an increase of $20.4 million, or 11.8%, compared to the third quarter of 2025. Net income for the third quarter was $22.7 million, or $0.86 per share, compared to $11.3 million, or $0.43 per share, in the prior year.
Adjusted earnings per share for the third quarter of 2026 were $0.86, compared to $0.52 for the same period in 2025. Adjusted EBITDA for the quarter was $41.8 million, or 21.6% of sales, an increase of $9.5 million, or 29.4%, over the third quarter of 2025.
Sales growth was reported across all markets, driven by volume increases and price increases implemented in the first quarter of 2026. Specific market performance included a $4.7 million increase in the agriculture market, a $3.5 million increase in the construction market, and a $3.4 million increase in the industrial market. The construction market benefited from increased rental equipment sales, while the industrial market saw growth due to increased HVAC demand. The fire suppression market also saw a $3.8 million increase, driven by international sales.
Gross profit for the third quarter of 2026 was $64.5 million, resulting in a gross margin of 33.4%, compared to gross profit of $50.4 million and a margin of 29.2% in 2025. The company noted that the 420 basis point increase in gross margin was driven by improvements in labor and overhead expenses, the absence of 2025 facility optimization costs, and a reduction in LIFO expense. Selling, general, and administrative (SG&A) expenses were $27.5 million, or 14.3% of net sales, compared to $25.9 million, or 15.0% of net sales in the prior year.
Operating income for the third quarter was $33.9 million, or 17.5% of sales, compared to $21.5 million, or 12.4% of sales in 2025. Interest expense for the third quarter of 2026 was $4.3 million, a decrease from $5.8 million in the prior year, primarily due to a reduction in outstanding debt.
For the first nine months of 2026, net sales totaled $555.9 million, an increase of 7.8%, or $40.1 million, compared to the same period in 2025. Net income for the year-to-date period was $60.0 million, or $2.27 per share, compared to $39.3 million, or $1.49 per share, in 2025. Adjusted EBITDA for the first nine months was $115.5 million, or 20.8% of sales. Total debt decreased by $58.0 million through the first nine months of 2026. Incoming orders for the first nine months were $562.2 million, an increase of 2.2%, and the backlog of orders was $236.8 million at September 30, 2026.
