Gorman-Rupp Company (GRC) Q4 2023 earnings summary

Executive summary

• Q4 2023 net sales rose 10.0% YoY to $160.6M; net income increased to $9.0M from $2.4M.

• FY 2023 net sales rose 26.6% to $659.5M, including a full year of Fill-Rite sales; sales grew 15.8% excluding Fill-Rite.

• FY adjusted EBITDA reached a record $121.7M; net debt declined $58.2M during the year.

Financial highlights

• Q4 gross profit was $50.9M versus $36.6M YoY; gross margin increased to 31.7% from 25.1%.

• Q4 operating income was $21.8M versus $12.5M; operating margin rose to 13.6% from 8.6%.

• FY gross profit was $196.3M versus $130.9M; gross margin increased to 29.8% from 25.1%.

• FY net income was $35.0M, or $1.34/share, versus $11.2M, or $0.43/share; adjusted EPS was $1.37 versus $0.94.

• FY adjusted EBITDA was $121.7M, up 37.1% from $88.7M; Q4 adjusted EBITDA was $29.1M, up 2.1% YoY.

Outlook and guidance

• Backlog was $218.1M at Dec. 31, 2023, versus $267.4M a year earlier; incoming FY orders increased 4.4% to $617.6M.

• Backlog was expected to normalize during 2024; it remained elevated entering the year.

• FY 2024 capital expenditures were planned at $18M–$20M.