RPM Q2 2025 Earnings Report
Key Takeaways
RPM International Inc. reported record second-quarter sales of $1.85 billion, a 3.0% increase year-over-year, and record net income of $183.2 million, with adjusted diluted EPS increasing 13.9% to $1.39.
Record second-quarter sales driven by positive volume in all four segments.
Net income attributable to RPM stockholders reached a record $183.2 million.
Adjusted EBIT increased by 7.7% year-over-year, achieving a record for the 12th consecutive quarter.
Strong operating cash flow supported debt paydowns and reduced interest expenses.
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RPM Revenue by Segment
Forward Guidance
The company anticipates sales and adjusted EBIT will be similar to the prior year in what is our seasonally slowest quarter. For full-year fiscal 2025, the company expects consolidated sales increasing in the low-single-digit percentage range compared to prior-year record results and consolidated adjusted EBIT increasing between 6% and 10% compared to prior-year record results.
Positive Outlook
- Construction Products and Performance Coatings Groups continue to execute well with their focus on high performance buildings.
- Construction Products and Performance Coatings Groups continue to focus on maintenance and restoration projects.
- Expects consolidated sales increasing in the low-single-digit percentage range compared to prior-year record results.
- Expects consolidated adjusted EBIT increasing between 6% and 10% compared to prior-year record results.
- MAP 2025 initiatives are expected to continue driving benefits.
Challenges Ahead
- End market pressure caused by winter weather that is meaningfully harsher than the prior year.
- Stubbornly elevated mortgage rates have put pressure on sales in Consumer and Specialty Products Groups.
- Unfavorable weather conditions have put pressure on sales in Consumer and Specialty Products Groups.
- Consumer Group sales to decrease in the low-single-digit percentage range compared to prior-year results.
- Consolidated adjusted EBIT to grow or decline in the low-single-digit percentage range compared to prior-year record results.