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Feb 28, 2023
RPM Q3 2023 Earnings Report
RPM's Q3 2023 earnings were released, showcasing record sales and adjusted EBIT, driven by MAP 2025 initiatives and strong end-market positioning, despite economic headwinds and inventory adjustments.
Key Takeaways
RPM International Inc. reported record third-quarter net sales of $1.52 billion, a 5.7% increase year-over-year. Net income was $27.0 million, with diluted EPS at $0.21. Adjusted diluted EPS was $0.37, and adjusted EBIT increased by 4.2% to a record $83.9 million. The company's growth was driven by successful execution of MAP 2025 initiatives and strength in infrastructure and reshoring-related end markets, despite economic challenges and inventory destocking.
Record third-quarter net sales of $1.52 billion, up 5.7% year-over-year.
Net income reached $27.0 million, with diluted EPS at $0.21.
Adjusted diluted EPS was $0.37, and adjusted EBIT increased 4.2% to a record $83.9 million.
Fiscal year 2023 fourth-quarter outlook projects flat sales growth and adjusted EBIT to be flat to declining high-single digits compared to the previous year.
RPM
RPM
RPM Revenue by Segment
Revenue by Segment
Consumer Group Revenue
CapyFin.com Forward Guidance
The company expects consolidated sales to be flat compared to prior-year record results and consolidated adjusted EBIT to be flat to down in the high-single-digit percentage range compared to a record in the fiscal year 2022 fourth quarter.
Positive Outlook
- Remain on track to exceed year-one MAP 2025 EBIT target of $120 million.
- Aligning resources with demand levels.
- Launching new products over the next several quarters.
- Leveraging strong positions in expanding end markets that serve infrastructure and reshoring projects.
- PCG sales to increase in the mid-single-digit percentage range compared to prior-year record results.
Challenges Ahead
- Increasingly cautious economic outlook.
- Consolidated sales to be flat compared to prior-year record results.
- CPG sales to decline in the low- to mid-single-digit percentage range compared to prior-year record results.
- SPG sales to decline in the low-double-digit percentage range compared to prior-year record results.
- Consolidated adjusted EBIT to be flat to down in the high-single-digit percentage range compared to a record in the fiscal year 2022 fourth quarter.