The chart below shows how RPM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RPM sees a -2.48% change in stock price 10 days leading up to the earnings, and a +0.58% change 10 days following the report. On the earnings day itself, the stock moves by +2.19%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Sales Performance: Record sales driven by positive volumes in all four segments, with FX being a headwind, particularly in emerging markets.
Record Adjusted EBIT Growth: Adjusted EBIT grew 7.7% to a second-quarter record driven by sales growth and MAP 2025 benefits, including progress on facility consolidations and continued SG&A streamlining, partially offset by unfavorable mix.
Record Adjusted EBIT Margin: Adjusted EBIT margin of 13.8% was a second-quarter record.
Record Adjusted EPS Growth: Adjusted EPS of $1.39 was also a second-quarter record and increased 13.9% compared to the prior year.
Record Cash Flow Achievement: Strong cash flow of $279 million during the quarter, the second-highest amount in RPM's history.
Negative
Customer Bankruptcy Impact: A $4.4 million charge from a customer bankruptcy negatively impacted earnings, indicating vulnerability in the consumer group.
Record EBIT Amid Economic Challenges: Despite achieving record adjusted EBIT for the twelfth consecutive quarter, the overall financial performance was hindered by a mixed economic environment.
Flat Sales Growth: Sales growth in the third quarter is expected to be flat compared to the prior year, reflecting ongoing challenges in the market.
Weather Impact on Sales: The company faced headwinds from unfavorable weather conditions, which negatively impacted sales in the consumer segment.
Operating Cash Flow Analysis: Operating cash flow was strong at $279 million, but this was largely due to prior year adjustments rather than organic growth.
RPM International Inc. (RPM) Q2 2025 Earnings Call Transcript
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