Gorman Rupp (GRC) risk factors, FY2024 10-K

Gorman Rupp's FY2024 10-K, filed Mar 03, 2025, lists 19 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
190 groups
Section length
4k wordsItem 1A

Gorman Rupp's biggest risks in the FY2024 10-K

  • Substantial debt including a $370 million term loan and $100 million revolving facility creates financial pressure.

The risks most specific to Gorman Rupp

  • The Company has substantial indebtedness, which may impact the Company’s financial condition and the way it operates its business

    The company carries substantial indebtedness, including a $370 million term loan, $100 million revolving credit facility, and $30 million in senior secured notes.

  • Defined benefit pension plan settlement expense

    Eligible retiring employees frequently choose lump-sum pension distributions from the GR Plan, creating ongoing settlement expense risks.

  • In 2024, 2023, and 2022, the Company recorded pre-tax non-cash LIFO expense of $5.1 million, $6.9 million, and $18.0 million, respectively. See Note 4 to the Consolidated Financial Statements, Inventories

    The company has a LIFO reserve of $100.2 million representing $21.0 million in deferred income taxes, which is vulnerable to potential LIFO repeal.

  • Family ownership of common equity

    Concentrated ownership by the Gorman family creates lower trading volume and higher susceptibility to stock price fluctuations.

  • Conditions in foreign countries in which the Company conducts business

    International and export sales accounted for 25% of net sales in 2024, exposing the company to foreign operating risks.

All 19 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Intellectual property security
  2. 02Growth through Acquisitions
  3. 03The Company has substantial indebtedness, which may impact the Company’s financial condition and the way it operates its business
  4. 04challenges to repaying or refinancing any of the Company’s debt
  5. 05Acquisition performance and integration
  6. 06Impairment in the value of intangible assets, including goodwill
  7. 07Defined benefit pension plan settlement expense
  8. 08In 2024, 2023, and 2022, the Company recorded pre-tax non-cash LIFO expense of $5.1 million, $6.9 million, and $18.0 million, respectively. See Note 4 to the Consolidated Financial Statements, Inventories
  9. 09Family ownership of common equity
  10. 10Continuation of current and projected future business environment
  11. 11Highly competitive markets
  12. 12Availability and costs of raw materials and labor
  13. 13Artificial intelligence presents risks and challenges that can impact our business
  14. 14Compliance with, and costs related to, a variety of import and export laws and regulations
  15. 15Environmental compliance costs and liabilities
  16. 16Exposure to fluctuations in foreign currency exchange rates
  17. 17Conditions in foreign countries in which the Company conducts business
  18. 18Insurrections, armed conflicts, terrorism or war
  19. 19Changes in our tax rates and exposure to additional income tax liabilities

Other Gorman Rupp 10-Ks

  • FY2025 10-K risk factors
    19 risks1 new1 dropped2 reworded

    Tariffs are added as a new trade policy risk to material costs and international product sales. LIFO reserve figures updated from $100.2 million to $104.6 million. Potential LIFO tax repayment increased from $21.0 million to $22.0 million.

    Filed Mar 02, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.