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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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