Rpm International Inc. · NYSE:RPM
Rpm International — Q2 2025 Earnings Presentation
31 slides from Rpm International's earnings presentation, Jan 7, 2025
Slide 1: Fiscal 2025 Second-Quarter Results
Fiscal 2025 Second-Quarter Results January 7, 2025
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 Q2-25 Adjusted EBIT, Adjusted EBIT Margin and Adjusted EPS
Record Consolidated Q2-25 Adjusted EBIT, Adjusted EBIT Margin and Adjusted EPS Q2 FINANCIAL HIGHLIGHTS Adjusted EBIT¹ Growth 40% Adj. EBIT Growth (1) 36.4% +3.0% 35% 33.1% SALES GROWTH TO A RECORD 31.3% & ALL SEGMENTS GREW SALES 30% 25% $255.1M 12 RECORD Q2 ADJUSTED EBIT ¹ 20% +7.7% FROM PY Consecut
Slide 4: MAP 2025 Benefits and Organic Growth Generate Record Adjusted EBIT
MAP 2025 Benefits and Organic Growth Generate Record Adjusted EBIT Q2-25 Q2-25 Q2-25 Adj. HIGHLIGHTS Sales Adj. EBIT¹ EBIT¹ Margin Strength in Roofing Growth Growth Expansion • All four segments generated positive volume and sales growth • Focus on repair & maintenance and capturing CPG ✓ ✓ ✓ organi
Slide 5: Fiscal 2025 Second-Quarter Financial Results | Consolidated
Fiscal 2025 Second-Quarter Financial Results | Consolidated Record Q2 adjusted EBIT, adjusted EBIT margin and adjusted EPS ($ in millions, except Q2 Q2 KEY POINTS 2025 2024 % Change per share amounts) • Positive Q2 volume and sales in all four segments • Sales included a 3.7% organic increase, -0.6%
Slide 6: Sales Growth in USD by Region | Q2-25
Sales Growth in USD by Region | Q2-25 KEY POINTS • Generally solid sales across North EUROPE American businesses NORTH AMERICA 15% of total sales • Europe profitability improved, driven 77% of total sales +1.2% by MAP 2025 initiatives +4.2% ASIA/PACIFIC • Africa / Middle East grew sharply, 2% of tot
Slide 7: Construction Products Group
Fiscal 2025 Second-Quarter Financial Results Record Q2 sales and adjusted EBIT driven by roofing and MAP 2025 benefits Q2 Q2 CONSTRUCTION ($ in millions, except margins) 2025 2024 % Change Sales Components PRODUCTS GROUP Sales $690.1 $661.8 +4.3% • Organic +4.9% EBIT1 $106.6 $99.0 +7.7% • Acquisitio
Slide 8: Performance Coatings Group
Fiscal 2025 Second-Quarter Financial Results Record Q2 sales and adjusted EBIT driven by volume growth and MAP 2025 benefits Q2 Q2 PERFORMANCE ($ in millions, except margins) 2025 2024 % Change Sales Components COATINGS GROUP Sales $380.1 $374.9 +1.4% • Organic +3.3% EBIT1 $63.2 $60.1 +5.3% • Acquis
Slide 9: Specialty Products Group
Fiscal 2025 Second-Quarter Financial Results Sales and adjusted EBIT growth driven by end-market improvement and MAP 2025 Q2 Q2 SPECIALTY ($ in millions, except margins) 2025 2024 % Change Sales Components PRODUCTS GROUP Sales $184.9 $177.0 +4.4% • Organic +2.4% EBIT1 $16.8 $10.0 +67.4% • Acquisitio
Slide 10: Consumer Group
Fiscal 2025 Second-Quarter Financial Results Market share gains and DIY stabilization drove record adjusted EBIT Q2 Q2 CONSUMER ($ in millions, except margins) 2025 2024 % Change Sales Components GROUP Sales $590.2 $578.7 +2.0% • Organic +2.7% EBIT1 $88.4 $97.2 -9.0% • Acquisitions / N/A Divestiture
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 Q2-25 Update 30% 28.7% • MAP 2025 initiatives improved operating working capital 670 bps 2-Year as a percentage of sales¹ by 100 bps year-over-year to Improvement 22.0%, and 670 bps over past 2
Slide 12: Positive Momentum with MAP 2025 | Green Belt Program
Positive Momentum with MAP 2025 | Green Belt Program 400+ $36 mm Green Belts Realized Trained Savings 7 6 Training New Plant Languages Managers Rust-Oleum Stonhard Solvent Recovery Process Improvement . . • • Significant cost savings Improved safety • • Greater efficiency Increased throughput Increa
Slide 13: Outlook Q3-25
Outlook Q3-25 Q3-25 Q3-25 OUTLOOK (YOY) PRIOR-YEAR RECORD SALES | Consolidated Flat Construction Products Group + LSD % Performance Coatings Group Flat to up slightly Specialty Products Group - LSD % Consumer Group - LSD % ADJUSTED EBIT | Consolidated + / – LSD % Expected Trends in Q3 (+) MAP 2025 (
Slide 14: Outlook FY-25
Outlook FY-25 PRIOR-YEAR PRIOR-YEAR FY25 FY25 OUTLOOK RESULTS RECORD SALES | Consolidated + LSD % +1.1% ADJUSTED EBIT | Consolidated +6% to +10% +11.9% Expected Trends in FY25 (+) MAP 2025 incl. structural SG&A actions and facility consolidations (-) Limited economic visibility, including EU electio
Slide 15: Appendix: Reconciliation of Non-GAAP to GAAP Measures
Appendix Reconciliation of Non-GAAP to GAAP Measures
Slide 16: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended November 30, 2024 % November 30, 2023 % % Change Net Sales $ 1,845,318 $ 1,792,275 3.0 Cost of Sales 1,080,774 58.6 1,044,047 58.3 Gross Profit 764,544 41.4 748,228 41.7
Slide 17: Consolidated Statements of Income: Six Months
Consolidated Statements of Income: Six Months ($ in thousands, except per share and percent data) (Unaudited) Six Months Ended November 30, 2024 % November 30, 2023 % % Change Net Sales $ 3,814,107 $ 3,804,132 0.3 Cost of Sales 2,212,890 58.0 2,227,287 58.5 Gross Profit 1,601,217 42.0 1,576,845 41.5
Slide 18: 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 19: 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 $7.6 million and $1.2 million for the quarters ended November 30, 2024
Slide 20: 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 Earnings per Diluted Share (All amounts presented after-tax): November 30, 2024 November 30, 2023 Reported Earnings per Diluted Share $ 1.42 $
Slide 21: Reconciliation of Reported to Adjusted EPS: Six Months
Reconciliation of "Reported" to "Adjusted" EPS: Six Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Six Months Ended Earnings per Diluted Share (All amounts presented after-tax): November 30, 2024 November 30, 2023 Reported Earnings per Diluted Share $ 3.19 $ 2.6
Slide 22: EBIT: RPM Consolidated: Three Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended November 30, 2024 November 30, 2023 Net Income $ 183,450 $ 145,815 Provision for Income Taxes 29,532 50,009 Income Before Income Taxes 212,982 195,824 Interest Expense 23,17
Slide 23: EBIT: RPM Consolidated: Six Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended November 30, 2024 November 30, 2023 Net Income $ 412,004 $ 347,128 Provision for Income Taxes 91,429 117,850 Income Before Income Taxes 503,433 464,978 Interest Expense 47,611 6
Slide 24: EBIT: Construction Products Segment: Three Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 105,652 $ 98,398 Add: Interest Expense, Net* 898 555 EBIT** (non-GAAP measure) 106,550 98,953 R
Slide 25: EBIT: Construction Products Segment: Six Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 262,650 $ 238,850 Add: Interest Expense, Net* 1,364 3,951 EBIT** (non-GAAP measure) 264,014 242,801
Slide 26: EBIT: Performance Coatings Segment: Three Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 63,773 $ 61,502 Add: Interest (Income), Net* (536) (1,425) EBIT** (non-GAAP measure) 63,237 60,0
Slide 27: EBIT: Performance Coatings Segment: Six Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 128,065 $ 106,323 Add: Interest (Income), Net* (1,009) (2,549) EBIT** (non-GAAP measure) 127,056 103
Slide 28: EBIT: Specialty Products Segment: Three Months
EBIT** (Non-GAAP Measure): Specialty Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 16,694 $ 10,145 Add: Interest Expense (Income), Net* 119 (104) EBIT** (non-GAAP measure) 16,813 10
Slide 29: EBIT: Specialty Products Segment: Six Months
EBIT** (Non-GAAP Measure): Specialty Products Segment: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 31,897 $ 26,542 Add: Interest Expense (Income), Net* 206 (203) EBIT** (non-GAAP measure) 32,103 26,339
Slide 30: EBIT: Consumer Segment: Three Months
EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 88,311 $ 98,066 Add: Interest Expense (Income), Net* 123 (869) EBIT** (non-GAAP measure) 88,434 97,197 Restr
Slide 31: EBIT: Consumer Segment: Six Months
EBIT** (Non-GAAP Measure): Consumer Segment: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended November 30, 2024 November 30, 2023 Income Before Income Taxes $ 196,461 $ 229,895 Add: Interest Expense (Income), Net* 380 (1,619) EBIT** (non-GAAP measure) 196,841 228,276 Res