NYSE$GRC

The Gorman-Rupp Company · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Gorman-Rupp's financial performance decreased slightly due to reduced sales, but adjusted EPS and EBITDA improved.

Gorman-Rupp reported a slight decrease in net sales for Q2 2024, but saw improvements in adjusted earnings per share and adjusted EBITDA. Incoming orders increased, and the company refinanced its debt, which is expected to reduce interest expenses.

  • Net sales decreased by 0.9% to $169.5 million compared to Q2 2023.
  • Net income was $8.3 million, or $0.32 per share, compared to $10.5 million, or $0.40 per share, in Q2 2023.
  • Adjusted earnings per share increased to $0.54 from $0.41 in Q2 2023.
  • Incoming orders increased by 5.5% to $162.5 million compared to Q2 2023.

Headline financials

Total Revenue

$170M

Previous: $171M-0.9%
EPS

$0.32

Previous: $0.41-22.0%
Incoming Orders

$163M

No prior period
Adjusted EBITDA

$35.4M

No prior period
Gross Margin

31.9%

Previous: 30.2%+5.6%
SG&A Expenses

$24.9M

No prior period
SG&A % of Sales

14.7%

No prior period
Operating Margin

15.4%

Previous: 14.2%+8.5%
Interest Expense

$9.05M

No prior period
Capital Expenditures

-$3.23M

No prior period
Free Cash Flow

$8.34M

Previous: $10.5M-20.4%
Net Income

$8.34M

Previous: $10.5M-20.4%
Operating Income

$26M

Previous: $24.3M+7.3%
Gross Profit

$54.1M

Previous: $51.7M+4.7%
Cash & Equivalents

$34.2M

Previous: $12.2M+181.3%
Total Assets

$891M

Previous: $904M-1.4%
Stock-Based Comp

$881K

Previous: $1.14M-22.8%

Revenue & EPS history

Gorman-Rupp · Revenue · Quarterly

$170M

Q2 2024-0.9%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Gorman-Rupp · $4.1M total across 7 segments · Q2 2021

  • Petroleum
    $2.1M
  • OEM
    $2M
  • Construction
    $1.6M
  • Fire Protection
    $900K
  • Agriculture
    $500K
  • Industrial
    $300K
  • Municipal
    -$3.3M

Forward guidance

The company is focused on top line growth through backlog reduction in the second half of the year, as well as delivering strong gross margin and earnings. The refinancing is expected to result in significant interest savings going forward.

Tailwinds

  • Focus on top line growth through backlog reduction.
  • Aiming for strong gross margin and earnings.
  • Refinancing expected to result in significant interest savings.
  • Incoming orders have continued at a solid pace
  • Pricing strategies contributed to improved gross margin and increased adjusted earnings.

Headwinds

  • General economic conditions and supply chain conditions and any related impact on costs and availability of materials
  • Integration of the Fill-Rite business in a timely and cost effective manner
  • Retention of supplier and customer relationships and key employees
  • The ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated
  • The ability to service and repay indebtedness incurred in connection with the transaction

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.6%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.1%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+13.5%

Q2 2023

Best reaction

-14.3%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.9%-0.8%-1.5%
Q4 2025+10.3%+11.3%+2.4%
Q3 2025-5.5%-9.1%-8.2%
Q2 2025-2.7%-3.5%-0.9%
Q1 2025+2.4%+2.2%+1.7%
Q4 2024-2.3%-0.4%+1.3%
Q3 2024-1.5%+2.0%+11.8%
Q2 2024+0.5%+1.7%-3.2%
Q1 2024-8.4%-9.0%-8.7%
Q4 2023+2.2%+4.2%+10.3%
Q3 2023-1.9%-1.0%+5.6%
Q2 2023+13.5%+15.2%+9.4%
Q1 2023+4.7%+6.9%+6.1%
Q4 2022-5.3%-6.9%-7.2%
Q3 2022+1.3%-0.4%+3.4%
Q2 2022-2.3%-5.7%-16.4%
Q1 2022+0.4%-4.2%-10.7%
Q4 2021-4.9%-3.2%-2.1%
Q3 2021+4.5%+9.5%+5.9%
Q2 2021+2.0%+1.0%+2.5%
Q1 2021+0.9%+0.5%+2.0%
Q4 2020+4.8%+1.4%+8.0%
Q3 2020-0.5%-6.1%+3.0%
Q2 2020-0.5%-2.7%+0.4%
Q1 2020+2.1%+6.0%+8.7%
Q4 2019-7.6%-4.9%-12.0%
Q3 2019+2.8%+3.2%+0.6%
Q2 2019+2.6%+4.7%-8.1%
Q1 2019-8.3%-7.8%-14.6%
Q4 2018-2.5%-1.1%-1.5%
Q3 2018+10.0%+12.8%+6.9%
Q2 2018-1.0%-0.0%+0.9%
Q1 2018+4.6%+4.4%+12.1%
Q4 2017+1.3%+0.8%+12.7%
Q3 2017-4.4%-4.3%-0.9%
Q2 2017+13.4%+9.8%+4.0%
Q1 2017-4.8%-8.0%-18.5%
Q4 2016-2.0%-8.0%-1.1%
Q3 2016+2.3%-3.1%+32.8%
Q2 2016+5.6%+5.5%+6.5%
Q1 2016-5.5%
Q4 2015-0.1%
Q3 2015+3.9%
Q2 2015-9.8%
Q1 2015-5.4%
Q4 2014-6.6%
Q3 2014-4.8%
Q2 2014-14.3%
Q1 2014+0.2%
Q4 2013-0.9%
Q3 2013+1.9%
Q2 2013+0.4%
Q1 2013-1.5%
Q4 2012-1.7%
Q3 2012+1.7%
Q2 2012-6.1%
Q1 2012-3.6%
Q4 2011-7.3%
Q3 2011-7.9%
Q2 2011-4.5%
Q1 2011-4.7%
Q4 2010-5.2%
Q3 2010+4.8%
Q2 2010-1.6%
Q1 2010+3.0%

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