RPM Worldwide posts Q2 earnings, income beat; Inventory falls 2% on steerage

MEDINA, Ohio – RPM Worldwide Inc. (NYSE:RPM) reported better-than-expected second quarter earnings and income on Tuesday, however its inventory fell as the corporate’s outlook dissatisfied.

The specialty coatings and sealants maker posted adjusted earnings per share of $1.39 for the quarter ended November 30, beating the analyst consensus of $1.34. Income rose 3% YoY to $1.85 billion, additionally topping estimates of $1.79 billion.

Nevertheless, RPM’s shares dropped 2.2% following the report, as buyers centered on the corporate’s steerage. For the fiscal third quarter, RPM expects flat gross sales in comparison with the prior yr and adjusted EBIT to develop or decline by low-single-digits.

“We stay centered on issues inside our management in a combined financial surroundings,” mentioned Frank C. Sullivan, RPM chairman and CEO. He famous that progress on the corporate’s initiatives is being offset by winter climate that’s “meaningfully harsher than the prior yr.”

For the second quarter, RPM mentioned all 4 of its enterprise segments generated optimistic gross sales quantity progress. The Development Merchandise Group led the best way with a 4.3% gross sales improve to $690.1 million.

The corporate highlighted its MAP 2025 working enchancment initiatives, which helped drive document adjusted EBIT of $255.1 million, up 7.7% YoY. RPM additionally famous robust money circulate, which allowed it to pay down $226.5 million in debt over the previous 12 months.

Wanting forward, RPM narrowed its full-year fiscal 2025 adjusted EBIT progress outlook to 6-10%, in comparison with its earlier forecast of mid-single-digit to low-double-digit progress.

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