RPM(US:RPM)2026-01-08 11:53Financial Performance - Record second-quarter sales of $1.91 billion, an increase of 3.5% compared to the prior-year record[5] - Second-quarter net income of $161.2 million, diluted EPS of $1.26, and adjusted diluted EPS of $1.20, a decrease of 13.7% compared to the prior-year record[5][6] - Net sales for the three months ended November 30, 2025, were $1,909,895, an increase from $1,845,318 for the same period in 2024, representing a growth of 3.0%[33] - Gross profit for the six months ended November 30, 2025, was $1,673,383, compared to $1,601,217 for the same period in 2024, reflecting an increase of 4.5%[33] - Net income attributable to RPM International Inc. stockholders for the three months ended November 30, 2025, was $161,207, down from $183,204 in the same period of 2024, a decrease of 11.9%[33] - The company reported a net income of $389.3 million for the six months ended November 30, 2025, down from $412.0 million in the same period of 2024[45] Sales and Growth - Europe led sales growth with an increase of 13.9%, while North America sales increased 1.9%[8] - Sales included a 0.5% organic decline, 3.4% growth from acquisitions, and a 0.6% benefit from foreign currency translation[9] - Consolidated sales expected to increase in the mid-single-digit percentage range compared to prior-year results[27] - The Consumer Group's sales growth was partially offset by softness in DIY markets, with a 4.7% organic decline[19] - The Consumer Segment reported net sales of $638,650 for the three months ended November 30, 2025, compared to $613,620 in the same period of 2024, an increase of 4.1%[34] Cost Management and Restructuring - SG&A-focused optimization actions expected to generate annual benefits of approximately $100 million, with $5 million realized in Q3 2026 and $20 million in Q4 2026[4] - The company is focused on identifying additional cost savings opportunities through ongoing restructuring initiatives[32] - Restructuring expenses for the three months ended November 30, 2025, were $4,531, compared to $7,557 in the same period of 2024, a decrease of 40.0%[33] - Restructuring expenses related to the Margin Achievement Plan (MAP 2025) totaled $4.5 million for Q2 2026, compared to $7.6 million in Q2 2025, with six-month totals of $13.3 million and $14.8 million respectively[40] Debt and Cash Flow - Total debt increased to $2.52 billion, up from $2.03 billion a year ago, primarily due to debt used for acquisitions[21] - Cash provided by operating activities was $583.2 million, the second-highest amount in the company's history[22] - Cash provided by operating activities for the six months ended November 30, 2025, was $583.2 million, an increase from $527.5 million in the same period of 2024[45] - Long-term debt, less current maturities, was $2.51 billion as of November 30, 2025, compared to $2.02 billion in the previous year[44] - Cash and cash equivalents at the end of the period were $316.6 million, an increase from $268.7 million at the end of November 2024[45] Outlook and Market Conditions - Fiscal 2026 third-quarter outlook calls for mid-single-digit sales growth and adjusted EBIT to increase mid- to high-single digits[5] - The company anticipates continued growth in demand for its products despite uncertainties in global markets and economic conditions[32] - Interest expense for the six months ended November 30, 2025, was $57,331, compared to $47,611 for the same period in 2024, an increase of 20.3%[33] Inventory and Assets - Total assets as of November 30, 2025, were $7.87 billion, up from $6.68 billion a year earlier[44] - Inventories increased to $1.08 billion as of November 30, 2025, from $995.3 million a year prior[44] - The net trade accounts receivable increased to $1.33 billion as of November 30, 2025, from $1.29 billion a year earlier[44]