RPM Q2 2024 Earnings Report
Key Takeaways
RPM International Inc. reported record second-quarter net sales of $1.79 billion and net income of $145.5 million. Adjusted diluted EPS increased by 10.9% to $1.22, and adjusted EBIT increased by 10.4% to $236.9 million, both records. The company's MAP 2025 initiatives drove gross margin expansion and double-digit adjusted EBIT growth.
Achieved record second-quarter net sales of $1.79 billion.
Reported record second-quarter net income of $145.5 million and diluted EPS of $1.13.
Adjusted diluted EPS increased 10.9% to $1.22 and adjusted EBIT increased 10.4% to $236.9 million, both records.
Generated record quarterly cash provided by operating activities of $408.6 million.
RPM
RPM
RPM Revenue by Segment
Forward Guidance
The company expects flat sales and adjusted EBIT growth of 25% to 35% for the third quarter of fiscal 2024. For the full year, revenue growth is expected to be in the low-single digits, and adjusted EBIT growth is expected to be in the low-double digits to mid-teens.
Positive Outlook
- Strength in CPG and PCG segments expected to continue.
- International markets expected to remain strong.
- Market share gains expected to offset weakness in DIY and specialty OEM demand.
- Adjusted EBIT growth expected to accelerate due to less challenging prior-year comparisons.
- MAP 2025 benefits expected to drive growth.
Challenges Ahead
- Weakness in DIY and specialty OEM demand expected to persist.
- Lower volumes expected in certain businesses.
- Investments in future growth and efficiencies may offset some gains.
- SPG sales to decrease in the mid-teen percentage range compared to prior-year record results.
- Consumer Group sales to decrease in the low-single-digit percentage range compared to prior-year record results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income