The Gorman-Rupp Company reported QQ4 2024 revenue of $162.7 million, up 1.3% year-over-year, with a gross margin of 30.2% and an operating margin of 13.0%, resulting in operating income of $21.1 million and net income of $10.98 million (EPS $0.42). Despite a modest top-line pace, the company generated $9.26 million of net cash from operating activities and delivered free cash flow of $5.25 million for the quarter. Balance sheet strength remains solid on a liquidity basis (current ratio 2.52; quick ratio 1.39) but the company carries a relatively high absolute debt load ($366.6 million total debt; net debt of $342.4 million) and moderate interest coverage (3.13x). The equity base is healthy, with total stockholders’ equity of $373.8 million, but debt-to-capitalization sits near 0.50 and debt-to-equity at 0.98, signaling meaningful leverage in a cyclically sensitive end market.
For 2024, GRC achieved a calendar-year revenue increase of about 1.3% vs. 2023, with gross profit of $49.19 million and net income of $41.98 million across the year. The company’s EBITDA of roughly $27.34 million and EBITDA margin of 16.8% reflect a stable, if modestly leveraged, earnings profile consistent with a provider of pumps and pump systems that services water, wastewater, construction, and industrial applications. Management commentary on 2025 remains unavailable in the provided transcript dataset; as a result, the forward outlook relies on the published quantitative results and sector dynamics.
Investment implication: GRC exhibits a resilient cash-generating machine in a cyclical industrials niche. The core strengths are a robust current liquidity position, steady profitability, and free cash flow generation that supports debt service and potential capital allocation. However, the elevated leverage and cyclicality of the pump market warrant close monitoring of order intake, backlog development, and any shift in commodity/input costs. Investors should weigh the relatively modest growth trajectory against the company’s ability to improve operating efficiency, reduce debt, and capture margin expansion through favorable mix or price realization.