GORMAN RUPP CO Revenue Disclosure
Note 3 – Revenue
Disaggregation of Revenue
The following tables disaggregate total net sales by end market and geographic location:
|
End Market |
2024 |
2023 |
2022 |
|||||||||
|
Industrial |
$ | 131,479 | $ | 136,978 | $ | 100,826 | ||||||
|
Fire |
121,418 | 143,551 | 121,001 | |||||||||
|
Agriculture |
82,224 | 83,053 | 57,703 | |||||||||
|
Construction |
85,149 | 86,996 | 60,557 | |||||||||
|
Municipal |
100,019 | 78,528 | 69,726 | |||||||||
|
Petroleum |
24,188 | 23,168 | 16,464 | |||||||||
|
OEM |
40,343 | 37,708 | 34,820 | |||||||||
|
Repair parts |
74,847 | 69,529 | 59,930 | |||||||||
|
Total net sales |
$ | 659,667 | $ | 659,511 | $ | 521,027 | ||||||
|
Geographic Location |
2024 |
2023 |
2022 |
|||||||||
|
United States |
$ | 491,516 | $ | 497,387 | $ | 381,306 | ||||||
|
Foreign countries |
168,151 | 162,124 | 139,721 | |||||||||
|
Total net sales |
$ | 659,667 | $ | 659,511 | $ | 521,027 | ||||||
International sales represented approximately 25% of total net sales for 2024, 25% for 2023 and 27% for 2022, and were made to customers in many different countries around the world.
On December 31, 2024, the Company had $206.0 million of remaining performance obligations, also referred to as backlog. The Company expects to recognize as revenue substantially all of its remaining performance obligations within year.
The Company’s contract assets and liabilities as of December 31, 2024 and 2023 were as follows:
|
2024 |
2023 |
|||||||
|
Contract assets |
$ | 390 | $ | - | ||||
|
Contract liabilities |
$ | 6,840 | $ | 12,521 | ||||
Revenue recognized for the year ended December 31, 2024 that was included in the contract liability balance at December 31, 2023 was $11.0 million. Revenue recognized for the year ended December 31, 2023 that was included in the contract liability balance at December 31, 2022 was $6.0 million.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.