The Gorman-Rupp Company (GRC) reported a modest Q1 2024 revenue of $159.3 million, down 0.75% year over year and 0.81% sequentially, as top-line softness persisted in a cyclically influenced end-market. Despite a subdued revenue backdrop, the company delivered solid profitability with a gross margin of 28.45% and an EBITDA margin of 18.4%, supported by disciplined cost management and favorable product mix. Net income totaled $7.88 million, or $0.30 per share, up about 20% year over year despite lower quarterly revenue, reflecting leverage in the cost structure and a stable tax rate. Operating margin stood at 12.83%, driven by efficient overhead control and a focus on high-margin product output.
Cash flow remains a strength for GRC in QQ1 2024. Operating cash flow was $10.74 million and free cash flow was $6.84 million, translating to a free cash flow per share of roughly $0.26. The balance sheet shows a well-supported liquidity profile, with cash and cash equivalents of $27.77 million and a total debt load of $400.73 million, resulting in a net debt position of about $372.96 million. The company carries meaningful goodwill and intangible assets (Goodwill + intangibles about $491.37 million) against total assets of $887.36 million, indicating a leverage profile that requires ongoing monitoring if demand turns cyclical. Key liquidity metrics are solid but moderate: current ratio 2.32, quick ratio 1.33, and cash ratio 0.27, with interest coverage near 2.03x. The quarter underscored GRC’s resilience in a challenging industrial environment, while also signaling the sensitivity of earnings to volume and working capital movements.
Overall, the QQ1 2024 results reflect a company with stable cash generation and a defensible market position, but with leverage and cyclicality that necessitate watchful attention to backlog, pricing, and aftermarket service growth to sustain earnings momentum going forward.