RPM International Down After Earnings Report

By Bobby Samwell • Thursday, January 04 13:20 • Permanent Link

RPM International Inc. (NYSE: RPM) reported record financial results for its fiscal 2024 second quarter ended November 30, 2023. The company announced record second-quarter net sales of $1.79 billion, slightly up from the prior year. Additionally, it achieved record second-quarter net income of $145.5 million and record diluted earnings per share (EPS) of $1.13.

Frank C. Sullivan, RPM Chairman and CEO, commented on the company's performance, stating, "For eight consecutive quarters, we have generated record sales and adjusted EBIT, and we are making good progress toward achieving our MAP 2025 profitability goals by becoming a more efficient and collaborative organization."

The company's fiscal 2024 third-quarter outlook calls for flat sales and adjusted EBIT growth of 25% to 35%. For the full fiscal year 2024, RPM expects revenue growth in the low-single digits and adjusted EBIT growth in the low-double digits to mid-teens.

In terms of segment performance, RPM's Construction Products Group (CPG) achieved record second-quarter sales, driven by strength in concrete admixtures and repair products. The Performance Coatings Group (PCG) also generated record second-quarter sales, supported by growth in engineered turnkey flooring systems and market share gains. However, the Specialty Products Group (SPG) and Consumer Group faced sales declines due to weak demand in certain end markets.

RPM also highlighted its strong cash flow position, with all-time record quarterly cash provided by operating activities of $408.6 million in the second quarter of fiscal 2024. The company returned $138.3 million to stockholders through cash dividends and share repurchases during the first six months of fiscal 2024.

Looking ahead, Sullivan emphasized the company's focus on repair and maintenance, demand for infrastructure, high-performance buildings, and MAP 2025 to deliver another year of record sales and adjusted EBIT.

RPM's stock experienced a -4.2% movement, trading at a price of $102.66 per share following the press release.

The company's full 8-K submission is available here.

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