Gorman-Rupp Co. Reports Q3 Earnings

MANSFIELD, Ohio – Shares of Gorman-Rupp Co. (NYSE:GRC) fell 2.8% despite the pump manufacturer's third quarter earnings and revenue exceeding estimates.

Earnings Overview

Gorman-Rupp reported Q3 adjusted earnings per share of $0.49, surpassing the analyst consensus of $0.39. Revenue for the quarter was $168.2 million, slightly above the $167.5 million consensus estimate and showing a 0.4% increase year-over-year.

Gross Margin and Expenses

The company reported a gross margin improvement of 260 basis points to 31.3% in Q3, attributed to a 240 basis point enhancement in the cost of materials. However, selling, general, and administrative expenses rose to $25.7 million, or 15.3% of sales, compared to 13.9% a year ago.

> "We continued to achieve gross margin and earnings improvement despite a nominal increase in sales compared to last year," said Scott A. King, President and CEO. "Our operating results allowed us to improve our debt, net of cash, by $20 million during the quarter, further improving leverage."

Incoming Orders and Backlog

Incoming orders for the first nine months of 2024 were up 4.1% from the same period in 2023. The company's backlog stood at $207.8 million at the end of Q3, down from $237.5 million a year earlier.

Future Guidance

Gorman-Rupp maintained its full-year 2024 capital expenditure guidance of $18-20 million. The company also announced that Jeffrey S. Gorman will transition from Executive Chairman to Chairman of the Board, effective January 3, 2025.

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