Gorman-Rupp Company (GRC) Conference June 11, 2025 11:30 AM ET Speaker0 Good afternoon. I'm sorry. Good morning, everybody. My name is John Fernsrobe. I'm a senior analyst here at Sidoti and Company. Our next presentation of the day is Gorman Rupp, ticker GRC. For those who are not familiar with Gorman Rupp, Gorman is a manufacturer of pumps and pumps related systems across an ever widening range of end markets. We are fortunate to have with us today CEO, Scott King CFO, Jim Kerr and Vice President of Finan ...

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Core Viewpoint - Gorman-Rupp (GRC) is identified as a promising growth stock due to its strong earnings and cash flow growth, along with positive earnings estimate revisions, making it a solid choice for growth investors [2][10]. 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 higher than the industry average of 6.3% [4]. Cash Flow Growth - The company is experiencing a year-over-year cash flow growth of 19.3%, which surpasses the industry average of 1.6% [5]. - Over the past 3-5 years, Gorman-Rupp's annualized cash flow growth rate has been 10.6%, compared to the industry average of 8.4% [6]. Earnings Estimate Revisions - The current-year earnings estimates for Gorman-Rupp have been revised upward, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8].

Core Insights - Gorman-Rupp (GRC) is currently viewed as a more attractive investment option compared to Trimble Navigation (TRMB) for value investors due to its stronger earnings outlook and better valuation metrics [3][7]. Valuation Metrics - GRC has a forward P/E ratio of 19.61, while TRMB has a higher forward P/E of 24.68 [5]. - The PEG ratio for GRC is 1.51, indicating a more favorable growth outlook compared to TRMB's PEG ratio of 2.47 [5]. - GRC's P/B ratio stands at 2.69, which is lower than TRMB's P/B ratio of 3.14, suggesting GRC is undervalued relative to its book value [6]. Earnings Estimate Revisions - GRC has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook compared to TRMB [7].

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]