RPM Q2 2023 Earnings Report

RPM's Q2 2023 results showcased record sales and significant margin expansion, leading to record adjusted EBIT, despite macroeconomic challenges and foreign exchange headwinds.

Key Takeaways

RPM International Inc. reported record fiscal 2023 second-quarter results, with net sales increasing by 9.3% to a record $1.79 billion and net income increasing by 5.2% to $131.3 million. The company's adjusted EBIT increased by 36.4% to a record $214.7 million, driven by strong sales growth and MAP 2025 benefits.

Record second-quarter net sales of $1.79 billion, a 9.3% increase year-over-year.

Net income reached a record $131.3 million, up 5.2% from the previous year.

Adjusted EBIT increased by 36.4% to a record $214.7 million.

All four segments achieved record second-quarter sales, and three of the four segments generated record second-quarter adjusted EBIT.

Total Revenue

$1.79B

Previous year: $1.64B

+9.3%

EPS

$1.1

Previous year: $0.79

+39.2%

Gross Profit

$690M

Previous year: $583M

+18.5%

Cash and Equivalents

$232M

Previous year: $193M

+20.4%

Total Assets

$6.85B

Previous year: $6.25B

+9.5%

RPM

RPM Revenue by Segment

Forward Guidance

The company expects consolidated sales to increase in the low-single-digit to mid-single-digit percentage range and adjusted EBIT to be between $75 million and $85 million for the fiscal year 2023 third quarter.

Positive Outlook

Consolidated sales to increase in the low-single-digit to mid-single-digit percentage range.
PCG sales to increase in the high-single-digit to low-double-digit percentage range.
Consumer Group sales to increase in the mid-single-digit percentage range.
MAP 2025 initiatives are expected to contribute to performance.
Company is well positioned to navigate near-term volatility.

Challenges Ahead

Economic conditions have recently become increasingly challenging as higher interest rates have negatively impacted construction activity, existing home sales, and overall economic activity.
Some customers are temporarily moderating purchases as they normalize inventories in response to a more stable supply chain.
Certain RPM businesses have experienced reduced customer demand, a trend that is expected to continue throughout the third quarter.
Forecasting year-over-year adjusted EBIT growth to slow or possibly modestly decline for the first time in five quarters
CPG sales to decline in the low-single-digit to mid-single-digit percentage range.

Company Overview

Full financial data and analysis

View RPM