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

RPM International

01/10/2025 11:57

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