On July 25, 2024, RPM International Inc (RPM, Financial) released its 8-K filing reporting record financial results for its fiscal 2024 fourth quarter and full year ended May 31, 2024. RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives, organized into four segments: Construction Products Group, Performance Coatings Group, Consumer Group, and Specialty Products Group. The majority of revenue comes from North America.
Fourth-Quarter 2024 Consolidated Results
For the fourth quarter of fiscal 2024, RPM International Inc reported net sales of $2.008 billion, a slight decrease of 0.4% compared to $2.016 billion in the same period last year. This was in line with the analyst estimate of $2.008 billion. Net income attributable to RPM stockholders increased by 19.3% to $180.6 million, with diluted earnings per share (EPS) rising to $1.40, an 18.6% increase from $1.18 in the prior year. Adjusted diluted EPS was $1.56, surpassing the analyst estimate of $1.53.
Despite the slight decline in sales, RPM achieved record adjusted EBIT for the 10th consecutive quarter, driven by strategic balance and MAP 2025 operating improvement initiatives. Adjusted EBIT for the quarter was $285.6 million, a 6.6% increase from $267.8 million in the previous year.
Segment Performance
The Construction Products Group (CPG) reported a 6.6% increase in net sales to $762.2 million, driven by strong demand for turnkey roofing systems and wall systems. Adjusted EBIT for CPG rose by 14.5% to $138.5 million.
The Performance Coatings Group (PCG) experienced a 6.7% decline in net sales to $365.6 million, impacted by challenging comparisons and unfavorable timing of project completions. Adjusted EBIT for PCG decreased by 12.2% to $48.5 million.
The Specialty Products Group (SPG) saw an 8.0% decline in net sales to $178.0 million, primarily due to weak demand in the disaster restoration business. Adjusted EBIT for SPG fell by 35.1% to $10.6 million.
The Consumer Group reported a 1.9% decline in net sales to $702.5 million, attributed to weaker DIY takeaway at retail stores. However, adjusted EBIT for the Consumer Group increased by 12.9% to $118.2 million, driven by MAP 2025 benefits and product rationalization.
Full-Year 2024 Consolidated Results
For the full fiscal year 2024, RPM International Inc reported record net sales of $7.335 billion, a 1.1% increase from $7.256 billion in the previous year. Net income attributable to RPM stockholders rose by 22.9% to $588.4 million, with diluted EPS increasing by 22.6% to $4.56. Adjusted diluted EPS was $4.94, surpassing the analyst estimate of $4.67.
Adjusted EBIT for the full year was $941.6 million, an 11.9% increase from $841.6 million in the prior year. The company's strong performance was driven by the Construction Products Group and Performance Coatings Group, despite challenges faced by the Consumer Group and Specialty Products Group.
Financial Position and Cash Flow
RPM International Inc reported strong operating cash flow for fiscal 2024, driven by structural margin and working capital improvements. The company implemented several MAP 2025 initiatives to streamline its selling, general, and administrative expense structure, contributing to improved profitability.
Business Outlook
Looking ahead to fiscal 2025, RPM International Inc remains focused on outgrowing its markets, improving operating cash flow, and leveraging MAP 2025 initiatives. The company expects continued benefits from structural improvements and aims to navigate the mixed economic environment effectively.
For more detailed information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from RPM International Inc for further details.
