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].

Company Performance - Gorman-Rupp reported quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.55 per share, but showing an increase from $0.34 per share a year ago, representing an earnings surprise of -10.91% [1] - The company posted revenues of $168.18 million for the quarter ended September 2024, which was 1.54% below the Zacks Consensus Estimate, and a slight increase from $167.46 million year-over-year [1] - Over the last four quarters, Gorman-Rupp has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [1] Stock Performance - Gorman-Rupp shares have increased by approximately 7.2% since the beginning of the year, compared to a 21.8% gain in the S&P 500 [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $164.7 million, and for the current fiscal year, it is $1.85 on revenues of $664.29 million [4] - The trend of estimate revisions for Gorman-Rupp is mixed, and future changes in estimates will be closely monitored following the recent earnings report [4] Industry Context - The Manufacturing - General Industrial industry, to which Gorman-Rupp belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5] - Another company in the same industry, Idex, is expected to report quarterly earnings of $1.89 per share, reflecting a year-over-year decline of 10.9%, with revenues projected at $790.95 million, down 0.3% from the previous year [5]

Group 1 - Gorman-Rupp (GRC) is currently outperforming its peers in the Industrial Products sector, with a year-to-date return of approximately 4.5% compared to the sector average of 1.5% [4] - The Zacks Rank for Gorman-Rupp is 2 (Buy), indicating a positive outlook based on earnings estimate revisions and improving earnings outlooks [3] - Over the past 90 days, the Zacks Consensus Estimate for Gorman-Rupp's full-year earnings has increased by 11.5%, reflecting improved analyst sentiment [4] Group 2 - Gorman-Rupp is part of the Manufacturing - General Industrial industry, which has an average year-to-date gain of 5.3%, indicating that Gorman-Rupp is slightly underperforming its industry [6] - Another stock in the Industrial Products sector, Zurn Water (ZWS), has shown a year-to-date increase of 10.4% and also holds a Zacks Rank of 2 (Buy) [5] - The Manufacturing - Electronics industry, which includes Zurn Water, has performed better with a year-to-date increase of 7.4% [7]

Company Overview - Gorman-Rupp (GRC) is an Industrial Products company headquartered in Mansfield, with a year-to-date price change of -0.17% [3] - The company currently pays a dividend of $0.18 per share, resulting in a dividend yield of 2.03%, which is significantly higher than the Manufacturing - General Industrial industry's yield of 0.09% and the S&P 500's yield of 1.59% [3] Dividend Performance - Gorman-Rupp's annualized dividend of $0.72 has increased by 2.1% from the previous year [4] - Over the last five years, the company has raised its dividend five times, achieving an average annual increase of 6.07% [4] - The current payout ratio is 47%, indicating that the company distributes 47% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Gorman-Rupp's earnings in 2024 is projected at $1.85 per share, reflecting a year-over-year earnings growth rate of 35.04% [5] Investment Considerations - Gorman-Rupp is viewed as an attractive dividend investment, with benefits such as improved stock investing profits and reduced overall portfolio risk [6] - The company holds a Zacks Rank of 2 (Buy), suggesting it is a compelling investment opportunity [7]

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Gorman-Rupp (GRC) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Gorman-Rupp is a member of our Industrial Products group, which includes 218 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best t ...

Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Gorman-Rupp (GRC) or Crane (CR) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with str ...

Core Viewpoint - Gorman-Rupp (GRC) is identified as an attractive investment opportunity due to a significant improvement in its earnings outlook, supported by upward revisions in earnings estimates by analysts [4][6][12]. Current-Year Estimate Revisions - For the current quarter, Gorman-Rupp is expected to earn $0.55 per share, reflecting a year-over-year increase of +61.76% [5]. - The full-year earnings estimate stands at $1.85 per share, indicating a change of +35.04% from the previous year [10]. - The trend in estimate revisions for the current year is positive, with one estimate moving higher and no negative revisions, leading to an 11.45% increase in the consensus estimate [14]. Current-Quarter Estimate Revisions - Over the past 30 days, one estimate for Gorman-Rupp has been revised upward, with no negative revisions, resulting in a 17.02% increase in the Zacks Consensus Estimate [13]. Favorable Zacks Rank - Gorman-Rupp currently holds a Zacks Rank 1 (Strong Buy), which is associated with strong performance and positive earnings estimate revisions [6][8]. - The stock has appreciated by 13.9% over the past four weeks, indicating strong investor interest and potential for further upside [12].

Cautionary Note Regarding Forward-Looking Statements We are exposed to various market risks, including changes in foreign currency exchange rates and interest rates. Exposure to foreign exchange rate risk is due to certain costs and revenue being denominated in currencies other than one of the Company's subsidiaries functional currency. The Company is also exposed to market risk as the result of changes in interest rates which may affect the cost of financing. We continually monitor these risks and regularl ...

Exhibit 99 Box 1217 · Mansfield, Ohio 44901-1217, USA · Tel: 419-755-1011 · Fax: 419-755-1263 · gormanrupp. GORMAN-RUPP REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Mansfield, Ohio – July 26, 2024 – The Gorman-Rupp Company (NYSE: GRC) reports financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Highlights • Net sales of $169.5 million decreased 0.9%, or $1.5 million, compared to the second quarter of 2023 • Second quarter net income was $8.3 million, or $0.32 per share, compare ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Gorman-Rupp in Focus In terms of dividend growth, the company's current annualized dividend of $0.72 is up 2.1% from last year. In the past five-year period, Gorman-Rupp has increased its dividend 5 times on a year-over-year basis for an avera ...