RPM(US:RPM)2025-04-08 10:56Financial Performance - Third-quarter sales were $1.48 billion, a decrease of 3.0% compared to the prior year[4]. - Third-quarter net income was $52.0 million, with diluted EPS of $0.40, and adjusted diluted EPS of $0.35, reflecting declines of 14.9% and 32.7% respectively[4][5]. - Adjusted EBIT for the third quarter was $78.2 million, down 29.0% from the prior year, primarily due to lower production levels and foreign currency headwinds[4][9]. - Net sales for the third quarter of fiscal 2025 were $1,476,562, a decrease of 3.0% compared to $1,522,982 in the same period last year[38]. - Gross profit for the quarter was $567,490, down from $607,164, resulting in a gross margin of approximately 38.4%[38]. - Net income attributable to RPM International Inc. stockholders was $52,034, compared to $61,199 in the prior year, reflecting a decline of 14.1%[38]. - Basic earnings per share for the quarter were $0.41, down from $0.48 in the same quarter last year, representing a decrease of 14.6%[38]. - Adjusted EBIT for Q3 2025 was $78,236, down from $110,140 in Q3 2024, a decrease of 29.0%[39]. - Income before income taxes for the total consolidated entity was $40,951, down 51.0% from $83,581 in Q3 2024[39]. - Reported earnings per diluted share for the three months ended February 28, 2025, was $0.40, compared to $0.47 for the same period in 2024, while adjusted earnings per diluted share was $0.35 versus $0.52[45]. Cash Flow and Debt Management - The company generated $91.5 million in cash from operating activities, the second highest third-quarter amount in its history[4]. - Total debt decreased to $2.10 billion from $2.19 billion a year ago, reflecting improved cash flow used to repay higher-cost debt[26]. - Operating working capital as a percentage of sales improved by 70 basis points to 20.7% compared to 21.4% in the prior-year period[26]. - Interest expense for the quarter was $22,993, down from $28,527, showing a decrease of 19.5%[38]. - Cash provided by operating activities for the nine months ended February 28, 2025, was $619.0 million, down from $941.1 million in the prior year, indicating a decrease of approximately 34.2%[47]. - The company’s long-term debt, less current maturities, was $2.09 billion as of February 28, 2025, down from $2.19 billion a year earlier, indicating a reduction of approximately 4.9%[46]. Segment Performance - CPG Segment net sales decreased to $473,408 from $495,753, a decline of 4.5% year-over-year[39]. - PCG Segment net sales slightly decreased to $340,625 from $343,536, a decline of 0.6% year-over-year[39]. - SPG Segment net sales decreased to $158,737 from $176,494, a decline of 10.1% year-over-year[39]. - Consumer Segment net sales decreased to $503,792 from $507,199, a decline of 0.8% year-over-year[39]. - The CPG Segment's income before income taxes decreased to $9,923 from $15,060, a decline of 34.2% year-over-year[39]. - Corporate/Other segment reported a loss before income taxes of $65,045, compared to a loss of $53,480 in Q3 2024[39]. Future Outlook and Strategic Initiatives - The fiscal 2025 fourth-quarter outlook anticipates flat sales and adjusted EBIT growth in the low-single-digit percentage range[4][31]. - The company expects consolidated adjusted EBIT to increase in the low-single-digit percentage range compared to prior-year record results[31]. - The company anticipates continued growth in demand for its products, despite uncertainties in global markets and economic conditions[36]. - The Pink Stuff acquisition is expected to close late in the fourth quarter of fiscal 2025 or early in the first quarter of fiscal 2026, with 2024 sales of approximately £150 million[23][24]. - The company plans to consolidate over 75 ERP systems into four platforms as part of its Margin Acceleration Plan (MAP), aiming to improve operational efficiency[45]. Inventory and Assets - The company reported a decrease in inventories to $1.04 billion as of February 28, 2025, from $1.08 billion in the prior year, representing a decline of about 3.5%[46]. - Total assets as of February 28, 2025, amounted to $6.62 billion, an increase from $6.38 billion a year earlier, representing a growth of about 3.7%[46]. - Total current liabilities increased to $1.24 billion as of February 28, 2025, from $1.20 billion a year earlier, marking an increase of approximately 3.5%[46]. - The company’s retained earnings increased to $3.03 billion as of February 28, 2025, compared to $2.64 billion a year earlier, reflecting a growth of about 14.9%[46]. Restructuring and Cost Management - Restructuring expenses for the quarter were $3,456, compared to $6,359 in the same period last year, indicating a reduction in restructuring costs[38]. - MAP initiatives incurred expenses of $14,520 in Q3 2025, compared to $16,780 in Q3 2024, a decrease of 13.5%[42].