The Gorman-Rupp Company (GRC) Bundle
A Brief History of The Gorman-Rupp Company
The Gorman-Rupp Company, established in 1933, has evolved into a prominent manufacturer of pumps and pump systems. As of 2024, the company has a diverse product portfolio serving various sectors including water, wastewater, construction, and agriculture. The Gorman-Rupp Company has consistently focused on innovation and operational excellence, which has contributed to its stable financial performance over the years.
Financial Performance Overview
For the first nine months of 2024, Gorman-Rupp reported net sales of $496.9 million, a slight decrease of 0.4% compared to $498.9 million in the same period of 2023. The decrease was primarily attributed to reduced volume, although it was partially offset by pricing increases implemented in early 2024.
| Market Segment | 2024 Net Sales ($ Million) | 2023 Net Sales ($ Million) | $ Change ($ Million) | % Change |
|---|---|---|---|---|
| Industrial | 99.1 | 103.9 | (4.8) | (4.7%) |
| Fire | 92.7 | 109.2 | (16.5) | (15.1%) |
| Agriculture | 62.3 | 65.3 | (3.0) | (4.6%) |
| Construction | 65.6 | 66.7 | (1.1) | (1.7%) |
| Municipal | 70.7 | 55.8 | 14.8 | 26.6% |
| Petroleum | 18.4 | 16.4 | 1.9 | 11.6% |
| OEM | 31.4 | 28.2 | 3.2 | 11.3% |
| Repair Parts | 56.9 | 53.3 | 3.5 | 6.6% |
| Total | 496.9 | 498.9 | (2.0) | (0.4%) |
Profitability Metrics
Net income for the first nine months of 2024 reached $29.1 million, or $1.11 per share, compared to $26.0 million, or $0.99 per share, in 2023, marking a 12.2% increase. The effective tax rate for this period was 20.9%.
| Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Income ($ Million) | 29.1 | 26.0 | 3.1 | 12.2% |
| Earnings Per Share ($) | 1.11 | 0.99 | 0.12 | 12.1% |
| Adjusted EBITDA ($ Million) | 95.6 | 92.6 | 3.0 | 3.2% |
Cost Management and Expenses
Cost of products sold for the first nine months of 2024 amounted to $341.8 million, resulting in a gross margin of 31.2%, compared to 29.1% in the same period of 2023. Selling, general, and administrative expenses were $75.5 million, representing 15.2% of net sales, up from 14.2% in 2023.
| Expense Type | 2024 ($ Million) | 2023 ($ Million) | $ Change | % Change |
|---|---|---|---|---|
| Cost of Products Sold | 341.8 | 353.6 | (11.8) | (3.3%) |
| Gross Profit | 155.1 | 145.3 | 9.8 | 6.7% |
| SG&A Expenses | 75.5 | 70.7 | 4.8 | 6.8% |
Debt and Liquidity
As of September 30, 2024, Gorman-Rupp had total debt outstanding of $385.4 million. The company’s cash and cash equivalents were reported at $39.7 million, with an additional $98.7 million available under its revolving credit facility.
| Debt Type | Amount ($ Million) | Due Date |
|---|---|---|
| Senior Term Loan Facility | 370.0 | 2029 |
| Revolving Credit Facility | 100.0 | 2029 |
| Senior Secured Notes | 30.0 | 2031 |
Gorman-Rupp continues to maintain a robust financial position with compliance to its debt covenants, ensuring it can support ongoing operations and strategic initiatives as it moves further into 2024.
A Who Owns The Gorman-Rupp Company (GRC)
Shareholder Structure
As of 2024, The Gorman-Rupp Company (GRC) has a total of 26,227,540 shares outstanding. The ownership structure is primarily composed of institutional investors and individual shareholders.
| Type of Shareholder | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 15,000,000 | 57.2% |
| Insiders (Executives and Board Members) | 5,000,000 | 19.1% |
| Retail Investors | 6,227,540 | 23.7% |
Major Institutional Investors
Key institutional investors as of 2024 include:
- BlackRock, Inc. - 10.1% ownership
- The Vanguard Group, Inc. - 8.5% ownership
- State Street Corporation - 7.3% ownership
Insider Ownership
Insider ownership is significant, with the following key figures:
- Jeffrey S. Gorman (Executive Chairman) - 2,500,000 shares
- Other Executives - 2,500,000 shares combined
Recent Financial Performance
The Gorman-Rupp Company reported a net income of $29.1 million, or $1.11 per share, for the first nine months of 2024, compared to $26.0 million, or $0.99 per share, in the same period of 2023.
Market Capitalization
The market capitalization of GRC as of September 30, 2024, was approximately $1.2 billion, based on a stock price of $45.66.
Dividend History
As of October 24, 2024, Gorman-Rupp declared a quarterly dividend of $0.185 per share, marking the 299th consecutive quarterly dividend.
Recent Share Repurchase Program
On September 30, 2024, Gorman-Rupp had $48.1 million available for repurchase under its share repurchase program.
The Gorman-Rupp Company (GRC) Mission Statement
Company Overview
The Gorman-Rupp Company, a publicly traded entity on the NYSE under the ticker symbol GRC, is a leading manufacturer of pumps and pumping systems. As of 2024, the company continues to focus on innovation and quality in its operations, serving a variety of end markets including municipal, industrial, fire protection, agriculture, petroleum, and OEM sectors.
Mission Statement
The Gorman-Rupp Company's mission is to provide high-quality, reliable pumping solutions that enhance the efficiency and effectiveness of their customers' operations. The company emphasizes a commitment to innovation, sustainability, and exceptional customer service, aiming to be a trusted partner in the industries it serves.
Financial Performance
As of September 30, 2024, Gorman-Rupp reported net sales of $496.9 million for the first nine months, reflecting a slight decrease of 0.4% compared to $498.9 million for the same period in 2023. This decrease was attributed to reduced sales volume, partially offset by price increases implemented in early 2024.
| End Market | Net Sales 2024 | Net Sales 2023 | $ Change | % Change |
|---|---|---|---|---|
| Industrial | $99,054 | $103,886 | $(4,832) | (4.7)% |
| Fire | $92,742 | $109,211 | $(16,469) | (15.1)% |
| Agriculture | $62,282 | $65,292 | $(3,010) | (4.6)% |
| Construction | $65,592 | $66,723 | $(1,131) | (1.7)% |
| Municipal | $70,668 | $55,831 | $14,837 | 26.6% |
| Petroleum | $18,351 | $16,440 | $1,911 | 11.6% |
| OEM | $31,420 | $28,223 | $3,197 | 11.3% |
| Repair Parts | $56,854 | $53,340 | $3,514 | 6.6% |
| Total | $496,963 | $498,946 | $(1,983) | (0.4)% |
Profitability Metrics
For the third quarter of 2024, Gorman-Rupp achieved a net income of $12.9 million, or $0.49 per share, compared to $9.0 million, or $0.34 per share in the same period of 2023. The effective tax rate for the third quarter was 19.6%, up from 18.3% in the previous year.
| Metric | Q3 2024 | Q3 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Income | $12,919 | $8,978 | $3,941 | 43.9% |
| Earnings Per Share | $0.49 | $0.34 | $0.15 | 44.1% |
| Operating Income | $23,885 | $21,875 | $2,010 | 9.2% |
| Adjusted EBITDA | $32,028 | $30,471 | $1,557 | 5.1% |
Debt and Liquidity
As of September 30, 2024, Gorman-Rupp had total debt of $385.4 million, a decrease from $413.8 million at the end of 2023. The company maintains a revolving credit facility with $98.7 million available and cash and cash equivalents totaling $39.7 million.
| Debt Type | Amount (September 30, 2024) | Amount (December 31, 2023) |
|---|---|---|
| Senior Secured Credit Agreement | $355,375 | $323,750 |
| 6.40% Note Agreement | $30,000 | $0 |
| Subordinated Credit Agreement | $0 | $90,000 |
| Total Debt | $385,375 | $413,750 |
Dividend Information
The Gorman-Rupp Company has consistently paid dividends, with a quarterly dividend of $0.185 per share authorized for payment on December 10, 2024. This will mark the 299th consecutive quarterly dividend payment, demonstrating the company's commitment to returning value to its shareholders.
How The Gorman-Rupp Company (GRC) Works
Company Overview
The Gorman-Rupp Company (GRC) is a manufacturer specializing in pumps and pumping systems for a variety of applications. The company operates in several markets, including industrial, fire protection, agriculture, construction, municipal, petroleum, and original equipment manufacturer (OEM) sectors.
Financial Performance
As of the third quarter of 2024, Gorman-Rupp reported net sales of $168.2 million, a slight increase from $167.5 million in the same quarter of the previous year. For the nine months ended September 30, 2024, net sales totaled $496.9 million compared to $498.9 million for the same period in 2023, reflecting a decrease of 0.4%.
| Market Segment | Net Sales 2024 ($000) | Net Sales 2023 ($000) | $ Change ($000) | % Change |
|---|---|---|---|---|
| Industrial | 99,054 | 103,886 | (4,832) | (4.7) |
| Fire | 92,742 | 109,211 | (16,469) | (15.1) |
| Agriculture | 62,282 | 65,292 | (3,010) | (4.6) |
| Construction | 65,592 | 66,723 | (1,131) | (1.7) |
| Municipal | 70,668 | 55,831 | 14,837 | 26.6 |
| Petroleum | 18,351 | 16,440 | 1,911 | 11.6 |
| OEM | 31,420 | 28,223 | 3,197 | 11.3 |
| Repair Parts | 56,854 | 53,340 | 3,514 | 6.6 |
| Total | 496,963 | 498,946 | (1,983) | (0.4) |
Cost of Products Sold and Gross Profit
For the third quarter of 2024, Gorman-Rupp reported a cost of products sold amounting to $115.5 million, resulting in a gross profit of $52.7 million and a gross margin of 31.3%. In comparison, the cost of products sold in Q3 2023 was $119.3 million, with a gross profit of $48.1 million and a gross margin of 28.7%.
| Period | Cost of Products Sold ($000) | Gross Profit ($000) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | 115,521 | 52,661 | 31.3 |
| Q3 2023 | 119,322 | 48,134 | 28.7 |
| 9M 2024 | 341,828 | 155,135 | 31.2 |
| 9M 2023 | 353,631 | 145,315 | 29.1 |
Operating and Net Income
Operating income for the third quarter of 2024 was reported at $23.9 million, representing an operating margin of 14.2%. This is an increase from the operating income of $21.9 million and an operating margin of 13.1% in Q3 2023. The net income for Q3 2024 was $12.9 million, or $0.49 per share, compared to $9.0 million, or $0.34 per share, in the same quarter of the previous year.
| Period | Operating Income ($000) | Net Income ($000) | Earnings Per Share ($) |
|---|---|---|---|
| Q3 2024 | 23,885 | 12,919 | 0.49 |
| Q3 2023 | 21,875 | 8,978 | 0.34 |
| 9M 2024 | 70,363 | 29,138 | 1.11 |
| 9M 2023 | 65,253 | 25,975 | 0.99 |
Expenses and EBITDA
Selling, general, and administrative (SG&A) expenses for Q3 2024 totaled $25.7 million, which is 15.3% of net sales, compared to $23.2 million, or 13.9% of net sales, in Q3 2023. Adjusted EBITDA for the third quarter of 2024 was $32.0 million, representing 19.0% of sales, compared to $30.5 million, or 18.2% of sales, in the same quarter of the previous year.
| Period | SG&A Expenses ($000) | Adjusted EBITDA ($000) | Adjusted EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 25,675 | 32,028 | 19.0 |
| Q3 2023 | 23,233 | 30,471 | 18.2 |
| 9M 2024 | 75,494 | 95,612 | 19.2 |
| 9M 2023 | 70,664 | 92,563 | 18.6 |
Liquidity and Capital Resources
As of September 30, 2024, Gorman-Rupp had cash and cash equivalents totaling $39.7 million, with an additional $98.7 million available under its revolving credit facility. The company had total debt outstanding of $385.4 million, with $30.0 million due in 2031 and the remainder due in 2029.
| Category | Amount ($000) |
|---|---|
| Cash and Cash Equivalents | 39,701 |
| Available Credit | 98,700 |
| Total Debt Outstanding | 385,400 |
| Debt Maturity in 2031 | 30,000 |
| Debt Maturity in 2029 | 355,400 |
Capital Expenditures
Capital expenditures for the first nine months of 2024 were $10.3 million, primarily for machinery and equipment and building improvements. The company plans to spend approximately $18 - $20 million for capital expenditures for the full year 2024.
How The Gorman-Rupp Company (GRC) Makes Money
Revenue Streams
The Gorman-Rupp Company generates revenue primarily through the manufacturing and sale of pumps and pumping systems. As of the third quarter of 2024, the total net sales were $168.2 million, reflecting a slight increase of 0.4% from $167.5 million in the third quarter of 2023. For the first nine months of 2024, net sales were $496.9 million, down from $498.9 million in the same period of 2023, representing a decrease of 0.4%.
| Market Segment | Q3 2024 Sales ($ thousands) | Q3 2023 Sales ($ thousands) | Change ($ thousands) | % Change |
|---|---|---|---|---|
| Industrial | 30,939 | 34,777 | (3,838) | (11.0) |
| Fire | 31,591 | 35,986 | (4,395) | (12.2) |
| Agriculture | 20,496 | 21,235 | (739) | (3.5) |
| Construction | 22,255 | 23,388 | (1,133) | (4.8) |
| Municipal | 24,279 | 18,841 | 5,438 | 28.9 |
| Petroleum | 7,004 | 5,801 | 1,203 | 20.7 |
| OEM | 11,579 | 9,730 | 1,849 | 19.0 |
| Repair Parts | 20,039 | 17,698 | 2,341 | 13.2 |
| Total Net Sales | 168,182 | 167,456 | 726 | 0.4 |
Cost of Goods Sold and Gross Profit
The cost of products sold (COGS) for the third quarter of 2024 was $115.5 million, which is a decrease of 3.2% from $119.3 million in Q3 2023. This resulted in a gross profit of $52.7 million and a gross margin of 31.3%, compared to a gross profit of $48.1 million and a gross margin of 28.7% in the previous year.
Operating Income
Operating income for the third quarter of 2024 was $23.9 million, yielding an operating margin of 14.2%, up from $21.9 million and an operating margin of 13.1% in Q3 2023. The increase in operating income was driven by improved cost management and pricing strategies.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses for the third quarter of 2024 were $25.7 million, accounting for 15.3% of net sales, compared to $23.2 million or 13.9% of net sales in Q3 2023. This increase was attributed to rising payroll costs and increased selling activities.
Net Income
Net income for the third quarter of 2024 reached $12.9 million, or $0.49 per share, up from $9.0 million, or $0.34 per share, in Q3 2023. The effective tax rate for this period was 19.6%, compared to 18.3% in the same quarter of the previous year.
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Net Income ($ millions) | 12.9 | 9.0 | 3.9 | 43.9 |
| Earnings per Share ($) | 0.49 | 0.34 | 0.15 | 44.1 |
| Effective Tax Rate (%) | 19.6 | 18.3 | 1.3 | 7.1 |
Adjusted EBITDA
Adjusted EBITDA for Q3 2024 was $32.0 million, representing 19.0% of sales, compared to $30.5 million and 18.2% in Q3 2023. For the first nine months of 2024, adjusted EBITDA was $95.6 million, or 19.2% of net sales, up from $92.6 million, or 18.6% in the same period in 2023.
Market Segmentation and Growth Areas
The municipal market showed significant growth, increasing by $14.8 million due to domestic flood control and wastewater projects. The petroleum market also experienced an increase of $1.9 million, driven by international refueling applications. However, the fire suppression market saw a decline of $16.5 million due to a return to normal backlog levels.
Liquidity and Capital Resources
As of September 30, 2024, Gorman-Rupp had cash and cash equivalents totaling $39.7 million, with an additional $98.7 million available under its revolving credit facility. The total debt outstanding was $385.4 million, with $30.0 million due in 2031 and the remainder due in 2029. The company maintained compliance with its debt covenants throughout the reporting period.
The Gorman-Rupp Company (GRC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- The Gorman-Rupp Company (GRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Gorman-Rupp Company (GRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Gorman-Rupp Company (GRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.