Gorman-Rupp Company (GRC) Gabelli Funds 35th Annual Pump, Valve & Water Symposium summary

Company overview and market position

• Designs and manufactures pumps for liquid handling, serving water, fuel, and other end markets, with a $1.3 billion enterprise value and a U.S.-centric supply chain.

• Holds leading market positions in several pump categories, including aircraft fueling, fire suppression, and municipal waste.

• Operates in a highly fragmented $100 billion global pump industry, with recent growth from organic expansion and acquisitions.

• Acquired Fill-Rite in 2022, a top brand with strong margins and growth opportunities.

• Maintains a culture focused on customer service, employee profit sharing, and continuous improvement.

Financial performance and capital allocation

• Achieved record adjusted earnings per share ($1.75) and EBITDA (nearly $125 million) in 2024, with significant margin improvement.

• Organic growth reached 15% in 2022 and 16% in 2023, supported by strong incoming orders and a healthy backlog over $200 million.

• Reduced debt following the Fill-Rite acquisition, refinancing in May 2024 to save $7 million annually in interest.

• Capital allocation priorities: invest in automation and efficiency, maintain dividend growth (52 consecutive years), delever, and pursue further acquisitions.

Strategic pillars and growth drivers

• Five growth pillars: customer focus, high-performing culture, organic growth via new products, international expansion, and strategic acquisitions.

• Product and market diversity reduce customer concentration risk and support resilience across economic cycles.

• Recent backlog shift favors longer-lead, custom-engineered projects, reflecting improved supply chain conditions.

• U.S.-centric supply chain and compliance with Buy America, Build America (BABA) provisions position the company well for infrastructure spending.