Core Viewpoint - RPM International Inc. reported strong earnings for the first quarter of fiscal 2025, driven by record adjusted EBIT for the 11th consecutive quarter and reduced interest expenses, although net sales fell short of expectations and declined year-over-year [2][4]. Financial Performance - Adjusted earnings per share (EPS) reached $1.84, exceeding the Zacks Consensus Estimate of $1.76 by 4.6% and increasing 12.2% from the previous year [4]. - Net sales totaled $1.97 billion, missing the consensus estimate of $2.02 billion by 2.4% and declining 2.1% from $2.01 billion in the prior year [5]. - Selling, general and administrative expenses as a percentage of net sales increased to 26.7% from 26.4% year-over-year [8]. Segment Performance - Construction Products Group (CPG) sales increased 1.4% year-over-year to $794 million, driven by organic growth and acquisitions, despite a 1.2% decline due to foreign currency translation [9]. - Performance Coatings Group (PCG) sales decreased 1.8% year-over-year to $371.8 million, with organic sales up 1.8% but impacted by divestitures and currency headwinds [10]. - Consumer Group sales fell 6.1% year-over-year to $628.5 million, attributed to weaker DIY sales and customer destocking, with organic sales down 5% [12]. - Specialty Products Group (SPG) sales totaled $174.6 million, declining 3.5% year-over-year, with a 1.3% contribution from acquisitions [14]. Geographic Performance - North America sales declined 1.4%, accounting for around 80% of total sales, while Europe saw a 5.2% decline due to economic conditions and currency translation [6]. - Latin America experienced a 10.4% decline year-over-year, while Asia/Pacific and Africa/Middle East grew by 1.2% and 6.6%, respectively, supported by infrastructure spending [6]. Operational Initiatives - Adjusted EBIT increased 6.3% year-over-year to $328.3 million, with an adjusted EBIT margin improvement of 130 basis points to 16.7%, driven by MAP 2025 initiatives [8]. - Cash provided by operations was $248.1 million, down from $359.2 million in the previous year [17]. Future Outlook - For the second quarter of fiscal 2025, RPM anticipates flat consolidated sales year-over-year, with expectations of low-single-digit growth in CPG and flat sales in PCG, while SPG and Consumer Group are expected to decline [18]. - For fiscal 2025, RPM expects total net sales to increase in the low-single digits and adjusted EBIT to rise in the mid-single to low-double-digit range [19].
RPM International Q1 Earnings Beat Estimates, Margin Rises Y/Y