RPM International Inc. has reported record financial results for its fiscal 2025 second quarter ended November 30, 2024. The company achieved record second-quarter sales of $1.85 billion, marking a 3.0% increase over the prior year. Net income attributable to RPM stockholders also reached a record high of $183.2 million, resulting in a record diluted earnings per share (EPS) of $1.42, reflecting a 25.7% increase over the prior year.
The company's adjusted diluted EPS for the second quarter increased by 13.9% to $1.39, while adjusted earnings before interest and taxes (EBIT) reached a record $255.1 million, marking a 7.7% increase over the prior year. The strong second-quarter performance was supported by cash provided by operating activities of $279.4 million.
In terms of the company's outlook, RPM International Inc. reiterated its fiscal 2025 full-year sales outlook with expectations of low-single-digit growth and narrowed its adjusted EBIT outlook to a range of 6% to 10% growth.
The company's construction products and performance coatings groups drove good growth, leveraging their focus on repair and maintenance and high-performance construction projects. The consumer and specialty products groups also saw sales growth, with signs of stabilization in residential end markets and favorable weather conditions contributing to the positive performance.
Looking at specific segment results, the construction products group achieved record sales, driven by turnkey roofing systems and services, while the performance coatings group also achieved record second-quarter sales, led by the flooring and protective coatings businesses serving high-performance construction projects.
The specialty products group's sales growth was driven by the disaster restoration business's response to hurricane activity and strength in the food coatings and additives business. The consumer group's sales growth was attributed to market share gains and stabilization in DIY takeaway, supported by favorable weather conditions.
In terms of cash flow and financial position, the company reported that cash provided by operating activities was $527.5 million for the first six months of fiscal 2025, driven by improved profitability and working capital efficiency. Additionally, total debt was reduced to $2.03 billion compared to $2.25 billion a year ago, with total liquidity, including cash and committed revolving credit facilities, at $1.50 billion.
Looking ahead, the company expects consolidated sales to be flat in the fiscal 2025 third quarter compared to prior-year record results, with consolidated adjusted EBIT anticipated to grow or decline in the low-single-digit percentage range.
Today the company's shares have moved 0.9% to a price of $121.47. For the full picture, make sure to review RPM International's 8-K report.
