Gorman-Rupp Reports 53.8% Increase in Net Income to $12.1 Million for Q1 2025

The Gorman-Rupp Company reported a net income of $12.1 million, or $0.46 per share, for the first quarter of 2025, marking a significant increase from the $7.9 million, or $0.30 per share, recorded in the same period of 2024. This represents a 53.8% rise in net income year-over-year, driven by a 2.9% increase in net sales, which reached $163.9 million compared to $159.3 million in the prior year. The company's gross profit also improved, totaling $50.3 million with a gross margin of 30.7%, up from $48.4 million and a margin of 30.4% in the previous year.

In terms of operational performance, Gorman-Rupp's cost of products sold increased by 2.5% to $113.6 million, reflecting a gross margin improvement attributed to price increases and operational efficiencies. Selling, general, and administrative expenses rose slightly to $25.1 million, accounting for 15.3% of net sales, down from 15.6% in the prior year. The company’s operating income increased by 8.3% to $22.1 million, resulting in an operating margin of 13.5%, compared to 12.8% in the first quarter of 2024.

The company’s backlog of orders stood at $217.8 million as of March 31, 2025, a decrease from $234.2 million a year earlier but an increase from $206.0 million at the end of 2024. Incoming orders for the first three months of 2025 totaled $177.7 million, reflecting a slight decline of 0.7% compared to the same period in 2024. Gorman-Rupp continues to see strong demand in certain markets, particularly in municipal and repair parts, which benefited from increased infrastructure investments.

Gorman-Rupp's financial position remains stable, with total assets of $857.8 million and total liabilities of $475.8 million as of March 31, 2025. The company reported cash and cash equivalents of $21.8 million, down from $24.2 million at the end of 2024. The company has also maintained compliance with its debt covenants, with total debt outstanding at $356.1 million. The Board of Directors has authorized a quarterly dividend of $0.185 per share, marking the 301st consecutive quarterly dividend, reflecting the company's commitment to returning value to shareholders.

Looking ahead, Gorman-Rupp remains optimistic about its growth prospects, despite potential challenges from tariffs and market conditions. The company plans to continue investing in product development and operational efficiencies to drive future growth. Management expects to maintain its history of regular quarterly dividends while assessing the financial condition and business outlook for future declarations.