Gorman Rupp Co

The decrease in interest expense was due primarily to a decrease in outstanding debt.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

The decrease in interest expense was due to a series of debt refinancing transactions the Company completed on May 31, 2024, as well as a decrease in outstanding debt.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Other expense for the first nine months of 2024 included a $4.4 million write-off of unamortized previously deferred debt financing fees and a $1.8 million prepayment fee related to the early retirement of the unsecured Subordinated Credit Facility.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Capital expenditures for the first nine months of 2025 were $12.5 million and consisted primarily of machinery and equipment.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Capital expenditures for the full-year 2025 are presently planned to be approximately $20.0 million.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Total debt decreased $45.0 million during the first nine months of 2025.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

King, President and CEO, commented, “During the quarter we made the decision to close two of our smaller facilities that primarily served the agriculture market and to transition a third facility to support both the expansion of our data center driven HVAC business and continued growth in the municipal and fire markets.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

The 210 basis point decrease in gross margin was driven by the 160 basis points in facility optimization costs, a 30 basis point increase in cost of material driven by the timing difference between price increases and tariff expense, and a 20 basis point increase in labor and overhead expense as a percentage of net sales.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Although our gross margin has decreased slightly from our record levels due to the timing of price increases versus the timing of tariff expenses, we expect to be able to maintain our margin rates over the long-term by monitoring the impact of tariffs and taking appropriate pricing actions.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

These forward-looking statements are based on current expectations about important economic, political, and technological factors, among others, and are subject to risks and uncertainties, which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Such uncertainties include, but are not limited to, our estimates of future earnings and cash flows, general economic conditions and supply chain conditions and any related impact on costs and availability of materials, retention of supplier and customer relationships and key employees, and the ability to service and repay indebtedness.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025

trade policy, including resulting tariffs; (17) environmental compliance costs and liabilities; (18) exposure to fluctuations in foreign currency exchange rates; (19) conditions in foreign countries in which The Gorman-Rupp Company conducts business; (20) changes in our tax rates and exposure to additional income tax liabilities; and (21) risks described from time to time in our reports filed with the Securities and Exchange Commission.

SEC original ↗Gorman Rupp Co — Earnings release (8-K exhibit)EX-99Oct 24, 2025