The Gorman-Rupp pany(GRC) - 2024 Q4 - Annual Results

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]