UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-6747 The Gorman-Rupp Company (Exact name of registrant as specified in its charter) | Ohio | 34-0253990 | | --- | --- | | (State or other ju ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Gorman-Rupp (GRC) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Earnings Growth - Gorman-Rupp has a historical EPS growth rate of 8.7%, but projected EPS growth for this year is expected to be 13.7%, significantly outperforming the industry average of 6.4% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 19.3%, which is substantially higher than the industry average of 1.3%. Over the past 3-5 years, Gorman-Rupp's annualized cash flow growth rate has been 10.6%, compared to the industry average of 8.5% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Gorman-Rupp, with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month, indicating strong near-term stock price movement potential [8]. Overall Assessment - Gorman-Rupp has achieved a Growth Score of B and holds a Zacks Rank 2, reflecting its strong growth prospects and positive earnings estimate revisions, making it a solid choice for growth investors [9][10].

Investors interested in stocks from the Manufacturing - General Industrial sector have probably already heard of Gorman-Rupp (GRC) and Trimble Navigation (TRMB) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and ...

Exhibit 99 GORMAN-RUPP REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS Mansfield, Ohio – April 24, 2025 – The Gorman-Rupp Company (NYSE: GRC) reports financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights Net sales for the first quarter of 2025 were $163.9 million compared to net sales of $159.3 million for the first quarter of 2024, an increase of 2.9% or $4.7 million. Sales increased $1.8 million in the municipal market and $3.2 million in the repair market due to water a ...

Financial Performance - Net sales for 2024 were $659.7 million, a slight increase of 0.1% or $0.2 million from $659.5 million in 2023[103] - Gross profit for 2024 was $204.3 million, with a gross margin of 31.0%, up from $196.3 million and 29.8% in 2023[105] - Operating income increased by 5.1% to $91.4 million in 2024, resulting in an operating margin of 13.9%[108] - Net income for 2024 was $40.1 million, or $1.53 per share, compared to $35.0 million, or $1.34 per share, in 2023, representing a 14.8% increase[111] - Reported net income for 2024 was $40.1 million, an increase of 15.8% from $34.9 million in 2023 and a significant rise from $11.2 million in 2022[115] - Non-GAAP adjusted earnings for 2024 reached $46.0 million, up 28.3% from $35.8 million in 2023 and 87.5% from $24.5 million in 2022[115] - Adjusted earnings per share for 2024 was $1.75, a 27.7% increase from $1.37 in 2023 and a 86.2% increase from $0.94 in 2022[115] Orders and Backlog - The Gorman-Rupp Company's backlog of orders decreased by 5.6% to $206.0 million as of December 31, 2024, compared to $218.1 million in 2023[97] - Incoming orders for the year ending December 31, 2024, increased by 6.8% to $659.3 million compared to 2023[98] Expenses and Cash Flow - Interest expense decreased by 18.5% to $33.6 million in 2024, down from $41.3 million in 2023 due to debt refinancing[109] - Net cash provided by operating activities in 2024 was $69.8 million, a decrease from $98.2 million in 2023[121] - Rental expenses for operating and financing leases were $3.6 million in 2024, up from $2.8 million in 2023[128] Debt and Capital Management - The company had $340.8 million in debt outstanding due in 2029 and $30.0 million due in 2031, remaining compliant with debt covenants[118] - The Company had $340.8 million in borrowings under the Senior Term Loan Facility as of December 31, 2024[155] - The Board of Directors has authorized a share repurchase program of up to $50.0 million, with approximately $48.1 million remaining to be repurchased[127] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.185 per share, marking the 300th consecutive quarterly dividend payment[99] Pension and Employee Benefits - The company plans to contribute $2.9 million to its defined benefit pension plan in 2025, following a contribution of $5.1 million in 2024[120] - The discount rates used to value pension plan obligations were 5.3% at December 31, 2024, compared to 4.7% at December 31, 2023[138] - The expected rate of return on pension assets was 7.2% for 2024 and 6.2% for 2023[138] Goodwill and Assets - Goodwill relating to the National reporting unit is $13.6 million, or 1.6% of the Company's total assets as of December 31, 2024[147] - Goodwill relating to the Fill-Rite reporting unit is $230.7 million, or 26.9% of the Company's total assets as of December 31, 2024[147] Inventory and Contract Estimates - The Company uses the last-in, first-out (LIFO) method for the majority of its inventories[136] - The Company estimates profit on long-term contracts based on total estimated revenue and expected costs to complete[134] - The Company regularly reviews and updates its contract-related estimates to reflect significant changes[135] Market Conditions and Future Outlook - The company remains focused on benefiting from infrastructure spending and strong demand for flood control and storm water management[101] - A hypothetical increase of 100 basis points in interest rates would increase interest expense by approximately $1.9 million annually[157] - Foreign currency transaction losses for 2024 and 2023 were $(0.4) million each, while gains for 2022 were $0.2 million[158]

Financial Performance - Net sales for Q4 2024 were $162.7 million, an increase of 1.3% or $2.1 million compared to Q4 2023[2] - Net income for Q4 2024 was $11.0 million, or $0.42 per share, compared to $9.0 million, or $0.34 per share in Q4 2023[7] - Full-year 2024 net sales were $659.7 million, a slight increase of 0.1% or $0.2 million from 2023[10] - Full-year 2024 net income was $40.1 million, or $1.53 per share, compared to $35.0 million, or $1.34 per share in 2023[17] - Net sales for Q4 2024 reached $162.704 million, a slight increase from $160.565 million in Q4 2023, while total net sales for the year were $659.667 million compared to $659.511 million in 2023[29] - Net income for Q4 2024 increased to $10.977 million, up from $8.976 million in Q4 2023, resulting in an annual net income of $40.115 million compared to $34.951 million in 2023[29] - Earnings per share for Q4 2024 were $0.42, compared to $0.34 in Q4 2023, with annual earnings per share of $1.53 versus $1.34 in 2023[29] Operational Metrics - Incoming orders for Q4 2024 increased by 15.8% compared to Q4 2023[9] - Adjusted EBITDA for 2024 was $124.6 million, representing an increase of 2.4% from $121.7 million in 2023[20] - Gross profit for 2024 was $204.3 million, resulting in a gross margin of 31.0%, up from 29.8% in 2023[12] - Gross profit for Q4 2024 was $49.193 million, down from $50.937 million in Q4 2023, with a yearly gross profit of $204.328 million compared to $196.253 million in 2023[29] - SG&A expenses for 2024 were $100.5 million, or 15.2% of net sales, compared to $96.7 million, or 14.7% of net sales in 2023[13] Balance Sheet and Cash Flow - Total assets decreased to $858.469 million in 2024 from $890.358 million in 2023, while total liabilities also decreased to $484.669 million from $540.899 million[31] - Cash and cash equivalents at the end of 2024 were $24.213 million, down from $30.518 million at the end of 2023[33] - The company reported a net cash provided by operating activities of $69.830 million for 2024, down from $98.225 million in 2023[33] - Total debt decreased by $43.0 million during 2024, improving leverage[20] - The company experienced a decrease in inventory levels, with net inventories at $99.205 million in 2024 compared to $104.156 million in 2023[31] Strategic Focus and Challenges - The company plans to continue focusing on cost savings and synergies from recent acquisitions, although risks related to integration and performance remain[26] - The company is facing challenges from competitive markets and rising costs of raw materials and labor, which may impact future performance[26] - The backlog of orders was $206.0 million at December 31, 2024, compared to $218.1 million at December 31, 2023[18]

Company Performance - Gorman-Rupp reported quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.45 per share, but showing an increase from $0.34 per share a year ago, resulting in an earnings surprise of -6.67% [1] - The company posted revenues of $162.7 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.46%, and compared to year-ago revenues of $160.57 million [2] - Over the last four quarters, Gorman-Rupp has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Outlook - Gorman-Rupp shares have declined approximately 0.3% since the beginning of the year, while the S&P 500 has gained 3.4% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.45 on revenues of $164.05 million, and $1.98 on revenues of $683.3 million for the current fiscal year [7] - The current Zacks Rank for Gorman-Rupp is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Manufacturing - General Industrial industry, to which Gorman-Rupp belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Gorman-Rupp's stock performance [5]

Group 1 - The Gorman-Rupp Company (NYSE: GRC) is experiencing a recovery in revenue, EBITDA, and net income after a prolonged decline [1] - The recovery in fundamentals is mirrored by an increase in the company's share price [1]

Market Overview - The Nasdaq reached an all-time closing high, but market volatility has increased recently, with the Dow and S&P 500 ending a six-week winning streak due to inflation concerns [1] - The Federal Reserve's recent 50-basis point rate cut was initially welcomed, but inflation data for September has created uncertainty [3][5] - The consumer price index (CPI) rose by 0.2% in September, exceeding the expected 0.1% increase, while year-over-year CPI increased by 2.4%, the smallest rise in over three and a half years [3][4] Dividend-Paying Stocks - In light of market volatility, investors may consider dividend-paying stocks as a stable income source [2][6] - The following companies have announced dividends: - **The Gorman-Rupp Company (GRC)**: Dividend of $0.19 per share with a yield of 1.93%, increased dividends six times in the past five years, payout ratio at 43% [8] - **Kontoor Brands, Inc. (KTB)**: Dividend of $0.52 per share with a yield of 2.60%, increased dividends four times in the past five years, payout ratio at 42% [9] - **West Pharmaceutical Services, Inc. (WST)**: Dividend of $0.21 per share with a yield of 0.26%, increased dividends five times in the past five years, payout ratio at 12% [11] - **Standex International Corporation (SXI)**: Dividend of $0.32 per share with a yield of 0.68%, increased dividends six times in the past five years, payout ratio at 17% [13]

Financial Performance - Net sales for Q3 2024 were $168.2 million, a slight increase of 0.4% compared to $167.5 million in Q3 2023, driven by pricing increases despite a decrease in volume[61]. - Gross profit for Q3 2024 was $52.7 million, resulting in a gross margin of 31.3%, up from $48.1 million and 28.7% in Q3 2023, reflecting a 260 basis point improvement[63]. - Operating income for Q3 2024 was $23.9 million, with an operating margin of 14.2%, compared to $21.9 million and 13.1% in Q3 2023, indicating a 110 basis point increase[66]. - 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 Q3 2023, representing a 43.9% increase[69]. - For the first nine months of 2024, total net sales were $496.9 million, a decrease of 0.4% from $498.9 million in the same period of 2023, attributed to a decrease in volume[71]. - Gross profit for the first nine months of 2024 was $155.1 million, with a gross margin of 31.2%, up from $145.3 million and 29.1% in the same period of 2023[73]. - Operating income increased to $70.4 million, with an operating margin of 14.2%, compared to $65.3 million and 13.1% in the same period of 2023[76]. - Net income for the first nine months of 2024 was $29.1 million, or $1.11 per share, compared to $26.0 million, or $0.99 per share, in the same period of 2023[81]. - Adjusted EBITDA was $95.6 million, representing 19.2% of net sales for the first nine months of 2024, compared to $92.6 million and 18.6% in the prior year[81]. Expenses and Costs - SG&A expenses increased to $25.7 million in Q3 2024, representing 15.3% of net sales, up from $23.2 million and 13.9% in Q3 2023, due to higher payroll and selling activity[65]. - SG&A expenses rose to $75.5 million, representing 15.2% of net sales, compared to $70.7 million and 14.2% in the prior year[75]. - Interest expense decreased to $7.8 million in Q3 2024, down 25.9% from $10.5 million in Q3 2023, primarily due to refinancing transactions[67]. - Interest expense decreased to $26.9 million, down 13.7% from $31.1 million in the same period of 2023, due to debt refinancing[77]. Cash Flow and Capital Management - Net cash provided by operating activities for the first nine months of 2024 was $60.6 million, a decrease from $71.7 million in the same period last year[90]. - Net cash used for financing activities was $43.6 million for the first nine months of 2024, primarily due to net payments on bank borrowings of $28.4 million and dividend payments of $14.2 million[92]. - Capital expenditures for the first nine months of 2024 were $10.3 million, with full-year 2024 planned capital expenditures expected to be approximately $18 - $20 million[87]. - Capital expenditures for the first nine months of 2024 included $10.3 million primarily for machinery and equipment, partially offset by $2.3 million in proceeds from the sale of property, plant, and equipment[91]. Debt and Interest Rates - As of September 30, 2024, the Company had total debt outstanding of $385.4 million, with $30.0 million due in 2031 and the remainder due in 2029[86]. - The Company had $355.4 million in borrowings under the Senior Term Loan Facility as of September 30, 2024, with interest rates ranging from 1.5% to 2.25%[97]. - A hypothetical increase of 100 basis points in interest rates would increase interest expense by approximately $2.0 million annually[99]. Dividends and Shareholder Returns - The company expects to continue its history of paying regular quarterly dividends, with a quarterly dividend of $0.185 per share authorized for payment on December 10, 2024[56][57]. - The Board of Directors authorized a quarterly dividend of $0.185 per share, marking the 299th consecutive quarterly dividend[88]. - A share repurchase program of up to $50.0 million has been authorized, with $48.1 million available for repurchase as of September 30, 2024[89]. Market Performance - Sales increased by $14.8 million in the municipal market due to domestic flood control and wastewater projects, while fire suppression market sales decreased by $16.5 million[72]. - Fire suppression incoming orders for the first nine months of 2024 were up 3.5% compared to the same period in 2023[72]. Other Income and Losses - Other income (expense), net was a loss of $6.7 million for the first nine months of 2024, compared to a loss of $1.4 million in the same period of 2023[78]. - Foreign currency transaction losses for the nine-month period ending September 30, 2023, were ($0.5) million, with no foreign currency gains or losses reported for the same period in 2024[100].