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Aug 31, 2023

RPM Q1 2024 Earnings Report

RPM achieved record first-quarter results driven by strong execution and MAP 2025 initiatives.

Key Takeaways

RPM International Inc. reported record first-quarter net sales of $2.01 billion, a 4.1% increase over the prior year. Record net income was $201.1 million, with diluted EPS at $1.56. Adjusted diluted EPS increased 11.6% to $1.64, and adjusted EBIT increased 12.3% to $309.0 million, both all-time records. The company's construction markets were standouts, with the Construction Products Group (CPG) generating record sales and adjusted EBIT.

Record first-quarter net sales of $2.01 billion, a 4.1% increase year-over-year.

Record first-quarter net income of $201.1 million and diluted EPS of $1.56.

Adjusted diluted EPS of $1.64, an 11.6% increase year-over-year, and adjusted EBIT of $309.0 million, a 12.3% increase, both all-time records.

All-time record first-quarter cash provided by operating activities of $359.2 million.

Total Revenue
$2.01B
Previous year: $1.93B
+4.1%
EPS
$1.64
Previous year: $1.47
+11.6%
Gross Profit
$829M
Previous year: $744M
+11.3%
Cash and Equivalents
$241M
Previous year: $198M
+21.8%
Free Cash Flow
$307M
Total Assets
$6.72B
Previous year: $6.8B
-1.3%

RPM

RPM

RPM Revenue by Segment

Forward Guidance

The company expects consolidated sales to increase in the low-single-digit percentage range and consolidated adjusted EBIT to increase in the high-single to low-double-digit percentage range for the fiscal year 2024 second quarter. For the full fiscal year 2024, the company expects consolidated sales to increase in the mid-single-digit percentage range and consolidated adjusted EBIT to increase in the low-double-digit to mid-teen percentage range.

Positive Outlook

  • Positive momentum generated in the first quarter is expected to continue.
  • Strategically balanced business model.
  • Benefits from MAP 2025 initiatives.
  • Focus on repair and maintenance.
  • Strong position to serve infrastructure and reshoring demand with engineered solutions.

Challenges Ahead

  • Challenging comparisons from record prior-year results.
  • Potential impact of economic conditions.
  • Uncertainties surrounding global markets.
  • Volatility in financial markets.
  • Availability of capital.