Rpm International Inc. · NYSE:RPM
Rpm International — Q1 2025 Earnings Presentation
24 slides from Rpm International's earnings presentation, Oct 2, 2024
Slide 1: Fiscal 2025 First-Quarter Results
Fiscal 2025 First-Quarter Results October 2, 2024
Slide 2: Forward-Looking Statements & Regulation G
Forward-Looking Statements & Regulation G This presentation contains “forward-looking statements” relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncert
Slide 3: Record Consolidated Q1-25 Adjusted EBIT & Adjusted EPS with Strong Cash Flow
Record Consolidated Q1-25 Adjusted EBIT & Adjusted EPS with Strong Cash Flow Q1 FINANCIAL HIGHLIGHTS Adjusted EBIT Growth 40% Adj. EBIT Growth (1) 36.4% 33.1% $328.3M 35% 31.3% RECORD Q1 30% ADJUSTED EBIT ¹ +6.3% FROM PY 25% 11 20% Consecutive +12.2% 15% 11.7% 12.3% Quarters Q1 ADJUSTED EPS¹ GROWTH
Slide 4: MAP 2025 Benefits and Business Agility Generate Record Adjusted EBIT
MAP 2025 Benefits and Business Agility Generate Record Adjusted EBIT HIGHLIGHTS Record YoY Adj. Agility to Q1-25 EBIT Margin Capture Growth • Captured new construction opportunities Adj. EBIT¹ Expansion through entrepreneurial culture and differentiated products and services CPG +160 bps • Solid res
Slide 5: Fiscal 2025 First-Quarter Financial Results | Consolidated
Fiscal 2025 First-Quarter Financial Results | Consolidated Record Q1 adjusted EBIT and adjusted EPS ($ in millions, except Q1 Q1 KEY POINTS 2025 2024 % Change per share amounts) • Q1 sales lower with F/X headwinds and slight organic decline Sales $1,968.8 $2,011.9 -2.1% • Sales included a -0.9% orga
Slide 6: Sales Growth in USD by Region | Q1-25
Sales Growth in USD by Region | Q1-25 KEY POINTS • North American sales trends EUROPE in-line with overall company NORTH AMERICA 13% of total sales • MAP 2025 drove profitability 80% of total sales -5.2% growth in Europe despite sales -1.4% ASIA/PACIFIC decline primarily due to F/X 2% of total sales
Slide 7: Construction Products Group
Fiscal 2025 First-Quarter Financial Results Record Q1 sales and adjusted EBIT aided by repair and maintenance focus and system selling Q1 Q1 CONSTRUCTION ($ in millions, except margins) 2025 2024 % Change Sales Components PRODUCTS GROUP Sales $794.0 $782.8 +1.4% • Organic +2.2% EBIT1 $157.5 $143.8 +
Slide 8: Performance Coatings Group
Fiscal 2025 First-Quarter Financial Results Record Q1 adjusted EBIT driven by organic growth and MAP 2025 benefits Q1 Q1 PERFORMANCE ($ in millions, except margins) 2025 2024 % Change Sales Components COATINGS GROUP Sales $371.8 $378.5 -1.8% • Organic +1.8% EBIT1 $63.8 $43.7 +46.0% • Divestitures -2
Slide 9: Specialty Products Group
Fiscal 2025 First-Quarter Financial Results Adjusted EBIT growth driven by MAP 2025 despite continued end-market softness Q1 Q1 SPECIALTY ($ in millions, except margins) 2025 2024 % Change Sales Components PRODUCTS GROUP Sales $174.6 $181.0 -3.5% • Organic -4.8% EBIT1 $15.3 $16.3 -6.2% • Acquisition
Slide 10: Consumer Group
Fiscal 2025 First-Quarter Financial Results MAP 2025 drove EBIT margin expansion as DIY weakness persisted Q1 Q1 CONSUMER ($ in millions, except margins) 2025 2024 % Change Sales Components GROUP Sales $628.5 $669.6 -6.1% • Organic -5.0% EBIT1 $108.4 $131.1 -17.3% • Acquisitions / N/A Divestitures A
Slide 11: Continued Working Capital Efficiency Driven by MAP 2025
Continued Working Capital Efficiency Driven by MAP 2025 Operating Working Capital as a Percentage of Sales Q1-25 Update 30% • MAP 2025 initiatives improved operating working capital as 540 bps 2-Year a percentage of sales¹ by 250 bps year-over-year to 22.7%, 28.1% Improvement and 540 bps over past 2
Slide 12: Technical Solutions to Serve Growing Global Data Center Construction
Technical Solutions to Serve Growing Global Data Center Construction Passive Fire Protection Roofing and Wall Systems • Up to 3 hours of passive fire protection • Guaranteed waterproof structure • Low outgassing • Roofing maintenance and restoration • Fast application reduces risk of disruption • Wa
Slide 13: Outlook Q2-25
Outlook Q2-25 Q2-25 Q2-25 OUTLOOK (YOY) PRIOR-YEAR RECORD SALES | Consolidated Approximately Flat Construction Products Group + LSD % Performance Coatings Group Approximately Flat Specialty Products Group - LSD % Consumer Group - LSD % ADJUSTED EBIT | Consolidated + MSD % Expected Trends in Q2 (+) M
Slide 14: Outlook FY-25
Outlook FY-25 PRIOR-YEAR PRIOR-YEAR FY25 FY25 OUTLOOK RESULTS RECORD SALES | Consolidated + LSD % +1.1% ADJUSTED EBIT | Consolidated + MSD % to + LDD % +11.9% Expected Trends in FY25 (+) MAP 2025 incl. structural SG&A actions and facility consolidations (-) Limited economic visibility, including ele
Slide 15: Appendix: Reconciliation of Non-GAAP to GAAP Measures
Appendix Reconciliation of Non-GAAP to GAAP Measures
Slide 16: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended August 31, 2024 % 2023 % % Change Net Sales $ 1,968,789 $ 2,011,857 (2.1) Cost of Sales 1,132,116 57.5 1,183,240 58.8 Gross Profit 836,673 42.5 828,617 41.2 SG&A 526,146
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following are the non-GAAP financial measures used in this presentation: *Interest (Income) Expense, Net includes the combination of interest (income) expense and investment (income) expense, net. **EBIT is defined as earnings (loss) before interest and taxes. Managem
Slide 18: Adjustments Detail
Adjustments Detail a. Includes charges incurred related to headcount reductions, facility closures and asset impairments recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled $7.2 million and $6.5 million for the quarters ended August 31, 2024 an
Slide 19: Reconciliation of Reported to Adjusted EPS: Three Months
Reconciliation of "Reported" to "Adjusted" EPS: Three Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Three Months Ended August 31, Earnings per Diluted Share (All amounts presented after-tax): 2024 2023 Reported Earnings per Diluted Share $ 1.77 $ 1.56 Restructu
Slide 20: EBIT (Non-GAAP Measure): RPM Consolidated: Three Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended August 31, 2024 2023 Net Income $ 228,554 $ 201,313 Provision for Income Taxes 61,897 67,841 Income Before Income Taxes 290,451 269,154 Interest Expense 24,434 31,818 Invest
Slide 21: EBIT (Non-GAAP Measure): Construction Products Segment
EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended August 31, 2024 2023 Income Before Income Taxes $ 156,998 $ 140,452 Add: Interest Expense, Net* 466 3,396 EBIT** (non-GAAP measure) 157,464 143,848 Restructurin
Slide 22: EBIT (Non-GAAP Measure): Performance Coatings Segment
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended August 31, 2024 2023 Income Before Income Taxes $ 64,292 $ 44,821 Add: Interest (Income), Net* (473) (1,124) EBIT** (non-GAAP measure) 63,819 43,697 Restructurin
Slide 23: EBIT (Non-GAAP Measure): Specialty Products Segment
EBIT** (Non-GAAP Measure): Specialty Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended August 31, 2024 2023 Income Before Income Taxes $ 15,203 $ 16,397 Add: Interest Expense (Income), Net* 87 (99) EBIT** (non-GAAP measure) 15,290 16,298 Restructurin
Slide 24: EBIT (Non-GAAP Measure): Consumer Segment
EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended August 31, 2024 2023 Income Before Income Taxes $ 108,150 $ 131,829 Add: Interest Expense (Income), Net* 257 (750) EBIT** (non-GAAP measure) 108,407 131,079 Restructuring an