The Gorman-Rupp Company delivered a solid QQ3 2024 performance characterized by modest top-line growth, stable margins and strong cash flow generation in a cyclical industrial pumps market. Revenue for the quarter was $168.182 million, up 0.43% year over year (YoY) and down 0.79% quarter over quarter (QoQ). Gross profit reached $52.662 million with a gross margin of 31.31%, while operating income was $23.885 million (operating margin 14.20%). Net income totaled $12.919 million and diluted earnings per share (EPS) was $0.49, up 43.9% YoY and 55.0% QoQ, reflecting leverage from higher operating income and contained interest expense. EBITDA stood at $30.207 million ( EBITDA margin ~17.96%), underscoring healthy cash-flow generation in the quarter.
On the cash-flow front, operating cash flow was $27.177 million and free cash flow (FCF) was $23.999 million, supporting a strong liquidity profile. The company finished the period with $39.701 million in cash and cash equivalents and net debt of $341.288 million, after debt repayments of $14.625 million and dividends of $4.724 million. The balance sheet remains solid with total assets of $883.474 million, current ratio of 2.39 and a debt-to-capitalization of 0.509. Leverage metrics are elevated relative to some peers (debt-to-equity ~1.04; interest coverage ~3.08), but cash generation and moderate capex keep free-cash-flow generation positive.
The combination of steady demand for water and wastewater pumping solutions, resilient operating leverage, and disciplined capital allocation supports a cautiously constructive investment thesis. However, given the cyclicality of the industrial machinery segment and the modest balance-sheet leverage, investors should monitor infrastructure spending, commodity cost dynamics, and working capital trajectory going into the next year.