Specialty coatings maker RPM International's Q1 sales beat estimates, adjusted EPS in-line

RPM International

01/10/2025 12:08

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Overview

RPM fiscal Q1 sales rise 7.4% to $2.11 bln, beating estimates

Adjusted EPS meets analyst expectations at $1.88, per LSEG data

Adjusted EBIT misses analyst expectations, driven by cost inflation and SG&A growth

Outlook

Company expects Q2 sales to rise mid-single digits vs prior year

RPM anticipates Q2 consumer sales growth to be "moderately higher" than other segments

Company sees Q2 adjusted EBIT up mid-single digits vs prior year

RPM forecasts FY2026 sales growth at higher end of low- to mid-single digits

Result Drivers

SYSTEMS AND SOLUTIONS - Sales driven by systems and turnkey solutions for high-performance buildings and repair focus

ACQUISITIONS - Strategic acquisitions significantly contributed to record sales

GEOGRAPHIC GROWTH - Europe led sales growth with a 20.7% increase, aided by acquisitions and favorable forex

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$2.11 bln
$2.06 bln (14 Analysts)
Q1 Adjusted EPS
Meet
$1.88
$1.88 (15 Analysts)
Q1 EPS
$1.77
Q1 Net Income
$227.60 mln
Q1 Adjusted EBIT
Miss
$337.79 mln
$344.10 mln (13 Analysts)
Q1 Pretax Profit
$298.05 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the commodity chemicals peer group is "buy"

Wall Street's median 12-month price target for RPM International Inc is $135.00, about 12.7% above its September 30 closing price of $117.88

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw3cxyyya

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)