NYSE$RPM

RPM International Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported record results for the second quarter of fiscal year 2024, driven by the MAP 2025 initiatives and strong performance in CPG and PCG segments.

RPM International Inc. reported record second-quarter net sales of $1.79 billion and net income of $145.5 million. Adjusted diluted EPS increased by 10.9% to $1.22, and adjusted EBIT increased by 10.4% to $236.9 million, both records. The company's MAP 2025 initiatives drove gross margin expansion and double-digit adjusted EBIT growth.

  • Achieved record second-quarter net sales of $1.79 billion.
  • Reported record second-quarter net income of $145.5 million and diluted EPS of $1.13.
  • Adjusted diluted EPS increased 10.9% to $1.22 and adjusted EBIT increased 10.4% to $236.9 million, both records.
  • Generated record quarterly cash provided by operating activities of $408.6 million.

Headline financials

Total Revenue

$1.79B

Previous: $1.79B+0.0%
EPS

$1.13

Previous: $1.10+2.7%
Capital Expenditures

-$37.1M

No prior period
Free Cash Flow

$146M

Previous: $131M+10.8%
Net Income

$146M

Previous: $131M+10.8%
Operating Income

$225M

Previous: $236M-4.4%
Gross Profit

$748M

Previous: $690M+8.4%
Cash & Equivalents

$263M

Previous: $232M+13.2%
Total Assets

$6.54B

Previous: $6.85B-4.6%

Revenue & EPS history

RPM · Revenue · Quarterly

$1.79B

Q2 2024+0%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

RPM · $1.18B total across 3 segments · Q2 2019

  • Construction Products
    $467M
  • Consumer
    $425M
  • Performance Coatings
    $292M

Forward guidance

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

Tailwinds

  • Strength in CPG and PCG segments expected to continue.
  • International markets expected to remain strong.
  • Market share gains expected to offset weakness in DIY and specialty OEM demand.
  • Adjusted EBIT growth expected to accelerate due to less challenging prior-year comparisons.
  • MAP 2025 benefits expected to drive growth.

Headwinds

  • Weakness in DIY and specialty OEM demand expected to persist.
  • Lower volumes expected in certain businesses.
  • Investments in future growth and efficiencies may offset some gains.
  • SPG sales to decrease in the mid-teen percentage range compared to prior-year record results.
  • Consumer Group sales to decrease in the low-single-digit percentage range compared to prior-year record results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.7%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+12.5%

Q4 2023

Best reaction

-11.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.7%+13.2%+4.2%
Q2 2026+1.7%+6.5%+11.6%
Q1 2026-0.8%-3.1%-7.3%
Q4 2025-2.4%-1.2%+10.1%
Q3 2025-9.1%-2.2%+3.9%
Q2 2025+1.8%+0.0%+2.6%
Q1 2025+6.0%+7.6%+5.3%
Q4 2024+6.0%+7.9%+4.9%
Q3 2024-4.7%-4.6%-7.8%
Q2 2024-2.2%-1.3%-0.6%
Q1 2024+6.3%+5.4%+3.8%
Q4 2023+12.5%+10.4%+6.6%
Q3 2023-2.6%-2.6%-3.7%
Q2 2023-11.7%-11.4%-6.8%
Q1 2023+5.6%+1.3%+3.3%
Q4 2022+0.4%+5.0%+7.6%
Q3 2022+4.0%+3.8%+1.5%
Q2 2022-2.8%-5.3%-11.0%
Q1 2022+0.4%+0.4%+12.9%
Q4 2021-3.7%-1.8%-5.4%
Q3 2021-2.7%-2.4%+3.3%
Q2 2021-1.2%-1.0%-2.9%
Q1 2021+2.8%+4.5%+9.7%
Q4 2020+2.1%+2.4%+7.8%
Q3 2020+5.4%+3.7%+10.2%
Q2 2020-1.8%-1.0%+0.4%
Q1 2020+0.3%+1.3%+8.8%
Q4 2019+5.6%+7.9%+9.5%
Q3 2019+1.0%+1.0%+3.0%
Q2 2019-3.8%+0.7%+4.4%
Q1 2019-6.3%-5.3%-2.3%
Q4 2018+1.4%+2.4%+5.1%
Q3 2018-1.2%+2.2%+2.3%
Q2 2018+1.9%+0.1%-4.6%
Q1 2018-2.4%-3.0%-0.0%
Q4 2017-3.9%-4.6%-11.0%
Q3 2017-2.6%-3.4%-2.0%
Q2 2017-3.5%-4.9%-5.6%
Q1 2017-4.8%-6.9%-10.6%
Q4 2016+6.2%+4.5%+6.5%
Q3 2016+1.3%
Q2 2016-3.0%
Q1 2016+0.8%
Q4 2015+0.6%
Q3 2015-1.9%
Q2 2015-4.5%
Q1 2015-3.6%
Q4 2014+2.5%
Q3 2014+2.1%
Q2 2014+2.0%
Q1 2014+3.8%
Q4 2013+3.7%
Q3 2013-2.2%
Q2 2013+1.1%
Q1 2013+2.3%
Q4 2012-2.4%
Q3 2012-0.9%
Q2 2012-6.4%
Q1 2012+1.6%
Q4 2009-2.8%
Q4 2011-2.8%
Q3 2010-1.2%
Q3 2011-1.2%
Q2 2010+2.1%
Q2 2011+2.1%
Q1 2011+1.4%
Q4 2010+1.4%
Q1 2010+1.4%

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