The Gorman-Rupp Company (NYSE: GRC) has announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported steady revenue growth, increased net income, and significant improvements in order volume, reflecting strong market demand and strategic pricing adjustments.
Key Financial Highlights
- Net Sales: $162.7 million, up 1.3% from Q4 2023.
- Net Income: $11.0 million ($0.42 per share), compared to $9.0 million ($0.34 per share) in Q4 2023.
- Operating Income: $21.1 million, representing an operating margin of 13.0%.
- Interest Expense: Reduced to $6.7 million from $10.1 million due to debt refinancing.
- Incoming Orders: Increased by 15.8% compared to Q4 2023.
- Adjusted EBITDA: $29.0 million, making up 17.8% of sales.
Revenue and Market Performance
The company’s net sales of $162.7 million in Q4 2024 reflected a modest increase over the previous year, largely driven by price increases implemented earlier in 2024. Strong performances in the municipal (+$6.6 million) and repair (+$2.2 million) markets, fueled by infrastructure investments, helped offset declines in fire suppression (-$5.8 million), petroleum (-$0.9 million), construction (-$0.8 million), and industrial (-$0.7 million) segments.
Operational Efficiency and Profitability
Despite an increase in labor and overhead expenses due to rising healthcare costs, Gorman-Rupp maintained a solid gross profit of $49.2 million, though gross margin declined to 30.2% from 31.7% in Q4 2023. Cost-saving measures, including a 70-basis point improvement in material costs, helped mitigate some of these pressures. Additionally, SG&A expenses dropped to $25.0 million (15.4% of sales) from $26.0 million (16.2% of sales), contributing to improved operational efficiency.
Gorman-Rupp’s financial strength continues to be bolstered by strategic refinancing’s and debt reductions, positioning the company for sustained growth in 2025. More Information