A Rust-Oleum RPM attributes a weaker outlook to the economic climate and weather

The Key Takeaways

• RPM International says that the current quarter results will be affected by bad weather and difficult economic conditions.
• Rust Oleum, the maker of Rust Oleum and other sealants and coatings, expects its third quarter fiscal 2025 to have flat sales and an adjusted EBIT that is up or down a single-digit percent.
• According to the company, high mortgage rates as well as a harsher than anticipated winter are impacting on demand.

RPM International’s (RPM), parent of DayGlo, Rust Oleum, and RPM International DayGlo products has issued some soft guidance for the current quarter. The company said bad weather conditions and economic challenges will negatively impact results. 

RPM expects its third quarter sales to remain flat in comparison with the $1.52 billion record it achieved the previous year. This is based on a change in adjusted earnings before tax and interest (EBIT) that’s typically in the low single-digits. Visible Alpha’s analysts expected $1.55bn in sales and an adjusted EBIT of 13.5%.

CEO Frank Sullivan explained that RPM faced "a mixed economic environment," and "market pressure caused by winter weather that is meaningfully harsher than the prior year." Sullivan said that bad weather and high mortgage rates had hurt the Consumer and Specialty Products division.

Q2 Results Top Estimates

This news was offset by better than expected second quarter results. RPM posted adjusted earnings per shares (EPS) at $1.39 and revenues up by 3%, to $1.85 Billion. These were both Q2 records that exceeded Visible Alpha’s forecasts.

RPM International’s shares barely changed after Tuesday morning’s opening bell. In the last 12 months, they have gained approximately 15%.

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