The Gorman-Rupp Company delivered QQ1 2025 results that reflect steady revenue progression and meaningful margin improvement against a backdrop of a cyclical industrial pumps market. Revenue of $163.95 million rose 2.94% year-over-year and 0.76% quarter-over-quarter, supported by ongoing demand in water and wastewater, construction, and industrial applications. Gross profit reached $50.33 million for a gross margin of 30.7%, up 11.1% YoY and 2.3% QoQ, signaling improvements in product mix and pricing actions. Net income of $12.13 million and diluted EPS of $0.46 marked a strong YoY uplift (net income +53.8%, EPS +53.3%), aided by resilient operating leverage as the company managed fixed costs alongside a modest revenue base expansion.
Operationally, EBITDA stood at $28.81 million with an EBITDA margin of 17.6% and an operating margin of 13.5%. Cash flow metrics remained highlighting: net cash provided by operating activities of $21.10 million, capex of $3.02 million, and free cash flow of $18.08 million. The company ended QQ1 2025 with cash of $21.84 million and total debt of $352.21 million, yielding a net debt position of approximately $330.37 million. Liquidity remained healthy with a current ratio of 2.42 and a quick ratio of 1.35, but leverage remained elevated (debt to capitalisation about 0.48) and interest coverage was modest at 3.5x, underscoring sensitivity to demand deceleration and input-cost volatility.
Looking ahead, while management did not issue explicit forward guidance in the provided materials, the QQ1 trajectory suggests continued revenue stability with potential upside from new projects in water/wastewater and infrastructure-related segments. Investors should monitor capex cycles in end markets, commodity price dynamics, and any shifts in working capital that could influence cash generation. Overall, GRC presents a readable growth-and-stability profile with solid cash generation but faces near-term margin pressure relative to some peers in the broader industrial machinery space.