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May 31, 2023
RPM Q4 2023 Earnings Report
RPM's Q4 2023 earnings were released, showcasing record sales and adjusted EBIT, driven by MAP 2025 initiatives amidst challenging market conditions.
Key Takeaways
RPM reported record fourth-quarter net sales of $2.02 billion, a 1.6% increase year-over-year. Net income was $151.4 million, with diluted EPS at $1.18. Adjusted diluted EPS reached $1.36, and adjusted EBIT increased by 1.5% to a record $267.8 million. The company's cash flow from operations hit a record $314.1 million, driven by inventory normalization initiatives.
Record fourth-quarter net sales of $2.02 billion, up 1.6% year-over-year.
Net income for the quarter was $151.4 million, with diluted EPS at $1.18.
Adjusted diluted EPS was $1.36, and adjusted EBIT increased by 1.5% to a record $267.8 million.
Record fourth-quarter cash provided by operating activities of $314.1 million.
RPM
RPM
RPM Revenue by Segment
Revenue by Segment
Consumer Group Revenue
CapyFin.com Forward Guidance
RPM anticipates continued positive trends in the first quarter of fiscal year 2024, including increasing demand for engineered solutions, ongoing benefits from MAP 2025 initiatives, and moderating profitability headwinds. The company expects these factors to result in a seventh consecutive quarter of record sales and adjusted EBIT, along with improved cash flow from operations. For the full fiscal year 2024, RPM expects mid-single-digit sales growth and low-double-digit to mid-teen adjusted EBIT growth.
Positive Outlook
- Increasing demand for engineered solutions serving infrastructure and reshoring projects.
- Continued benefits from MAP 2025 initiatives.
- Moderating headwinds from foreign currency translation.
- Customer destocking expected to moderate.
- Material cost inflation expected to moderate.
Challenges Ahead
- Challenging market conditions in some businesses.
- Volatile demand trends.
- Uncertainty in commercial construction.
- Potential for economic recession.
- Difficult comparisons in Performance Coatings Group.