RPM International (RPM) 4 Oct 232024 Q1 Earnings call transcript

Good morning, and welcome to the RPM International Fiscal First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Matt Schlarb, Senior Director of Investor Relations. Please go ahead.

Thank you, Andrea, and welcome to RPM International's Conference Call for the Fiscal 2024 First Quarter. recorded. being is call Today's

Officer. Joining on today's Rusty and Chairman CEO; accessed Chief Sullivan, Laroche, webcast also and can RPM are Vice President website Frank be Accounting and Gordon, Controller Officer; or President RPM's call and is Vice being replayed and live and call This the Chief Michael www.rpminc.com. Financial at

to that include be involve this on based statements made cause forward-looking actual different. call could materially may results and risks current Comments uncertainties, which expectations on

For and reports more uncertainties, please filed with on these information risks review the RPM's SEC.

may During all RPM this XXXX, RPM conference made quarter website. comparisons that our Also, directly and otherwise comparable be financial call, in first of most fiscal non-GAAP the references measures. you To please an terms, note understanding GAAP to these as-adjusted will basis be assist are comments financial the non-GAAP on unless on the reconciliations posted to has to measures indicated.

supplemental support website at the have section RPM Presentation the slide in We of presentation and accessed on a our this www.rpminc.com. It be to provided Webcasts can call. comments

Additionally, under Asia that being effective previously as earnings of most our are part Group Construction June the reported Pacific Performance the XXXX. Products Coatings managed were X, businesses certain and we now discussed call, on in recent Group

no over recast has result, turn the a change to approximately generate businesses $XXX time, to The on reflect all and I Frank. million At structure. this this As references annual like updated to today CPG consolidated PCG call the would in sales, results. and impact

overview our then conclusion our At Schlarb balance CFO, of next fiscal call Then to Matt to cover your pleased 'XX. everyone call and first you then an quarter detail. we'll the remarks, joining our discuss the quarter on more today. with over I'll in the update of Matt, Gordon, prepared Mike for of will call turn on today's our and and to be Laroche financials us outlook will the you, thank one Thank performance, answer and I'll begin of Rusty businesses, our the to questions. an for provide

and on deck, X.X% could executing growth our put high investor all-time quarter sales. a a simply we quarter level. XXXX our represent expanded consecutive to of EBIT sales the described it and at These seventh sales results adjusted by execution grew an record of generated resulting as EBIT. continued initiatives, first be quarterly environment, Driven the very and Slide margins adjusted Beginning by associates XX.X% MAP We mixed record. best record X our are in what of economic to

flow. Importantly, record. converting this this focused all-time cash into quarter, of in on from which generated the is we $XXX.X And an our operating resulted profitability million during activities remain focus cash

effect driven were volume Sales wraparound unit the X. our Slide pricing to increases Moving mainly in growth Group. implemented XXXX by of in fiscal Products from strong and Construction

differentiated was Our strategic segment its on the leverages there service repair team CPG fastest-growing model. and and maintenance as our turnkey focus

leverage where we led in the XXXX put as particularly of infrastructure Construction spending efficiency initiatives The to MAP volumes able Products capital businesses the structural quarter, have themselves of that to continued Coatings and the more fully into execution from expansion Group benefit our highlighted were past, in we've quarter. successful place. our margin the Performance and our businesses As we which positioned during Group during on several to projects grew in improvements reshoring

$XXX all-time MAP record adjusted EBIT a million. of to key an in XXXX driver growing is

and coordination respectively. being were a EBIT well working improvements to improved this initiatives efficient on R&D and structural addition area, quarter. As while sales XX% cash growth is contributing have of I data-driven mentioned, in in conversion the this XX%, progress sales, MAP stack strong capital This I'm processes. to in adjusted growth procurement operations, proud decision-making our the we results to prior do and are strong X-year sustainable in And through as XXXX year, rates also and in agile making we during more as flow we become more are a basis. work inventory more contributed the still with organization, improving significant between to have

This the by and East results continued when infrastructure in Sales in sales spending strongest Slide emerging on growth by were prior sales these X. double at was Looking to digits. on addition strong America, up these Middle driven geography growth Latin in markets. projects year in regions is Africa,

in teams captured time XXXX the growth our remains first opportunities leveraging and economic in while Europe margins. initiatives the expanding expand region is to growth over a year, our for subdued, MAP

level the surface on North important appear prior America and high The in moderate, to year, in mind a rate is the in North X-year sales are we begun in keep with it may our control. increased XX.X%. growth momentum, growth America that North XX%. at RPM America year executing stack While that is the can in positive Overall, our nearly revenues things on teams fiscal has

executing MAP to fiscal new and opportunities throughout leveraging to We growing bringing on program, growth focused products year. XXXX our to the market capture remain strengths our continue competitive

Laroche our more like in to now to the detail. over I'd financial turn cover call Michael to results

utilization, sales pricing X. improved XXXX growing with cycle first $XXX generated quarter. X.X% expansion contributing benefits. million growth. fixed driven growth, initiatives and segments, translation by XX.X% commodity Consolidated a to sales. Adjusted of this cost to was margin grew all-time Slide All except Gross quarter with on divestitures consumer by volume businesses with X.X% X.X% sales volumes. a Starting by increased record driver both at of an during $X.XX foreign to EBIT Organic increased acquisitions, record and particularly the led modest billion, currency MAP less Frank. Thanks,

particular, been other raw consumers' segment's longer has and and of inflation and material Because segments. TiOX continued packaging, than metal raw in material basket larger this the

actions the and fourth improved higher growth by compensation were due variable $X.XX to SG&A adjusted as by to EBIT the growth. to offset investments reduction increased in a driven helped Adjusted EPS increase. performance. during percentage driven the implemented Expense and quarter XX.X% the was of SG&A sales expenses grew quarter, financial

the Europe the segment our in to XX.X% its Concrete growth. After well sales on for maintenance to from admixtures sales strength differentiated with of strategic Construction restoration Products several products and all-time and as helped of X.X% contributing Sales declines, focus by the to sales X, and increase growth. period. of quarters foreign turnkey sales. Slide our growth $XXX Group was record and would service benefited X.X% prior facade also Turning translation Organic as repair growth X.X% systems acquisitions structures parking drive on from million year led roofing, achieved was have an adding repair segment's currency returned model. sales results

stronger increased but an million, expected, record other on strategic and Adjusted including XX% improved office repair and demand cycle all-time As in construction softness. benefits, focus new and $XXX maintenance commodity led more to our leverage this was EBIT end markets cost XXXX fixed than weak, benefits. by offset MAP

financial result by compensation end increase in performance, a expense the fiscal offset of reduction variable As partially was of and XXXX. improved put place actions at

The expand million. a fiscal the second in recently wall panelized acquired annual as $XX construction. offering business fabricator approximately XXXX, acquired CPG of of its in has sales announced we system offsite to quarter Additionally,

X.X% currency the at a acquisitions sales record added record the also was foreign grew reshoring engineered headwind. Coatings systems by solutions increased flooring to adjusted strong $XXX Group Sales segment's to and for strong X, contributed and driven On Demand X.X%, projects. were pricing Slide demand was for growth. infrastructure other X.X% achieved and capital and million. and X.X% translation EBIT. net internationally increased Organic sales Performance Revenue

to XX.X% benefits. benefits, by These commodity The strong and programs a record year of results an increased all-time driven by excellence Europe and in $XX million. strong are led on cycle growth increase. prior was EBIT Adjusted MAP of sales included XXXX top commercial

service our Part of focus related which million PCG business charges XXXX Europe, divested in improving EBIT. there. this incurred of adjusted profitability to business, on $XX.X are excluded non-core PCG MAP from divested a

Group sales translation of Organic net X.X%, Moving foreign tailwind was Specialty million. sales Products X.X% acquisitions $XXX and currency next to declined to XX.X% X.X%. sales a by reduced declined the divestitures of slide.

demand the and particularly for doors, that was sector, cabinets. including in the coatings quarter, OEM businesses residential weak during furniture, serve windows

impacted which levels pressuring sales is volumes. SPG inventory by averages, negatively holding customers historical were below Additionally,

business the the business to some of declined also cost reduced product XX.X%, to and year million. sales. leverage offset to The non-core Pricing decline, this decline. fixed mix fiscal furniture divestiture partially furniture helped also last $XX adjusted sales decline. drove EBIT contributed divestiture The The the warranty non-core SPG EBIT adjusted warranty of of unfavorable the and weakness.

percentage to SPG initiatives in investments by a impact in Expense this. reduction sales unfavorable a as helped revenue. SG&A of increased and driven offset deleveraging actions implemented at of lower QX growth

growth quarter impact first first acquisitions. XX. pricing, response Slide large X.X% X.X%, a X.X% currency sales and was headwind first headwind million. although Consumer record sales persisted for $XXX was still driven instituted Group XXXX primarily from sales a inflation. The increased by Organic due to consumer of quarter. in the Foreign in increased during to there and to of less increase to was a no translation increased of quarter the Inflation, segment the of The the Moving

averages, customers reduced prior and began Consumer after reminder, in year levels material declined quarter offset share holding helped XXXX availability by partially it improved. below sales of raw the a driven surged Volumes first gains pressures. a challenging historical these comparison retailers faced As inventory as takeaway restocking XX.X% when certain moderately, to volume customer

the $XXX XXXX to utilization Adjusted slowed by MAP as to the million, inflation in as fixed and X.X% Cost headwind lower was sales cost a EBIT was benefits continued EBIT increased driven normalize quarter inventories. adjusted to and increase. we production

insurance from received first the this EBIT. interruption the gain has business and a reimbursement $XX.X been with associated also excluded million during We quarter adjusted reimbursement

to over and to Matt flow the like sheet cash provide I'd a to business go Now over balance the update. turn and call

Mike. you, Thank

and an dividends by Inventories to of The compared working cash XXXX. progress structurally made continued quarter. This shareholders improving us Moving during to quarter, by MAP $XX we XX. $XXX flow first the compared driven $XXX enabled million in growth to inventory million return our Working in actions through $XX first of million first operating capital. the resulted quarter capital prior from initiatives profitability management year. and in in record strong activities to million Slide fourth the all-time to improve the to the declined quarter normalization working XXXX capital

We from September. the have have of repurchase share shares and year fiscal program the bought $XX million the back beginning continued of our end through of

also $XXX quarter. during reduced the by million We debt

We'd Pure quality include indoor and environmental business indoor CPG in HVAC solutions consulting, turnkey like service acquired Now turning restoration. address an air fiscal to and provides XX. Slide cleaning HVAC on building update Air These HVAC system quality to diagnostics issues. XXXX. Pure and that to provide performance Air, the and

worn and end impact become efficiency resulting dirty for commercial become schools, which quality. all These but hospitals in buildings reduced air down, places issues performance, like markets As in CPG. key age, problems are negatively systems HVAC they can in and can critical

address of these joined equipment Pure focused sides building life a to future. lower disruption Air's significant X of challenges expand Air last and partner the savings about turnkey on XX Sales instead over the when repair, extended and asset efficiency, offering what owners, resulting drives as occupants. Air more owners offload they Pure HVAC maintenance are we costs. optimistic and reduce solutions products months it, than of which CPG's replacing building's building increased its their Pure and double role are services restoration the all the building and of in restoring RPM, were to a possibility

like to to Rusty the cover call the outlook. I'd to Now over turn

Thanks, Matt.

the outlook quarter experienced first the quarter. expected the second second we quarter to are on is Slide the Our of trends Many in in for continue XX.

tailwinds MAP resilient including reduced reshoring side, On infrastructure and demand include the for and positive cycle, maintenance. commodity the destocking repair and the XXXX, demand,

volumes realized As our lower seasonally of fully and MAP benefits they be naturally volume so QX. lower quarters, on QX XXXX QX more a will reminder, dependent and QX stronger quarters volume some in and are higher our of be to and

a construction pricing new expected face to although quarter weakness is second the are markets of expect and benefit in demand, still continued be from pricing, reduced OEM positive. softness in challenges in end we to some Some the

We Taking range low also are by when a prior Specialty faced showing grew declines. this year increase account, challenging single-digit of led we X% CPG in the XX%. and with sales sales into to comparisons still increased forecasting by on consolidated PCG adjusted all the basis and to EBIT

to and digits We of expect EBIT adjusted digits. adjusted to EBIT expand to growth low-double margins generate consolidated high-single

Moving XX. to Slide

MAP drivers strategic Turning maintenance. XXXX. the to with Number number growth the outlook, infrastructure solutions. we our still we our growth. number economic modest leveraging on And repair macro focus strong year full on engineered we are three, position focused expect our including Despite reshoring two, control, one, serving backdrop, soft demand and our and

comparison We also second half to the continue year. inflation, destocking from reduced to easier reduced benefit the in and expect of

As the was the the at in least in weakness year year. certain new in first weakness quarter, construction and last markets the anticipate case we of half demand, OEM throughout

Our expected range. the consolidated the current on growing unchanged. EBIT our a low outlook double-digit This concludes XXXX adjusted mid-single-digit remains to range are remarks. basis in for in increase mid-teen to Sales prepared with

We are pleased to answer now questions. your

Partners. [Operator And first Mike Instructions] Harrison Research our from comes of question Seaport

like pretty across strong the seems construction was the business It board.

down see X.X% could where the continue? organic curious momentum you are and you volume expecting break choppiness? we potentially Where between Just can to growth see some And pricing?

Sure.

it the Tremco and was business our and in and then Southern growth developing Group their of is boy, Tremco quarter Sealant countries. mostly growth, WTI was Roofing broadly, this strong and Construction to So our unit Products volume business, our Group the the Euclid and Coatings pretty Performance X/X at X/X in Hemisphere

And so good real there. strength

many trends. we're In bucking instances,

talked in starts Pure Air, integrate a off slow got Roofing very finally into and growth after something the year and that investing we that some initiatives its focused well. this of force, it's about we about, this talked we've effort first is gaining quarter the to sales had going in is year, which Had to which in past, Matt a on it As start. and traction WTI real real one into our which is

example off of some pay So of specific to the us the in that's it very the buck we're and starting that's, investing I that initiatives think, to allowing construction of trends markets. one some

that the over seems Specialty seeing little and thoughts then like for from mentioned into that's and on But any that expectations And stabilizes, on November to once longer-term your it you bit continue going that like quarter. looks you're margin segment? maybe about the business demand what OEM right. business, All a growth it Specialty weak talk customers,

Sure.

lot and there biggest windows of a wood finishes impact the kitchen So is doors, cabinets. do and into We housing. into furniture, stains

market, and higher demand, inventory that's notwithstanding American us. be And for so in particularly the housing U.S. rate North weak, weak the to market hurt interest environment, mismatch continues and housing this is

weak and/or categories other have they those post-COVID And Some after including the housing that RVs. been bump. in, strong are manufactured

targeted that some believe adjuvant allow some the There's that very a patented benefit the that products initiatives All and and that. [indiscernible] of reduction notwithstanding, we for in in there have significant in our investing we're of herbicides business, in business. use we pesticides, long-term

is mix, Products Specialty handle up and/or when on benefits in something. channel out business of those take manufacturing are we our of Rusty a few thing better MAP with that as just improved our most floor show lower that in sell the conversion investing is XXXX for group. We're should the on highlighted, Legend Those cost an one But storm-related the mix the these are Brands volume expanding and significant items MRO cyclicality. hiding some price, cost, some examples. And improvements improvements only

so hiding. is lower And the volume

Products I good think, and of efforts along executing initiative. the on RPM folks made, Specialty the MAP the in with Group 'XX our have rest

next from The Panjabi question Baird. comes of Ghansham

improvement, cost last factors, you you I guess to about bridge have terms the margin those Frank, rank margin in of you savings, et from highlighted several stack the question would MAP think there. raw fixed as follow-up that How and year-over-year? saw the standpoint dynamics cetera. on improvement a a us construction materials,

sure you the not could understand -- repeat Ghansham. that? I I'm I'm question,

Yes.

-- to just basis that. CPG, as year-over-year, points in the think, improvement was relates drivers margin XXX the it at main up I So

the call conversion improvement are decision-making. think we're I MAP this what in I standard-driven seeing initiatives and initiative main 'XX where costs. So mentioned RPM drivers we DX at

on much we So that's mix a basis, are better and driving today helping going-forward us. at

certainly And We a are products construction initiatives commodity those. in few strategic disinflation the quarter in focused in then of it is to places, the very starting from a benefit and repair is benefiting maintenance. efforts really we're around cycle that one

seeing strong core our results we're business. real roofing in So

we've reroofing -- of we on roofs, repair is XX% and expect that and we're We'll construction. Pure tens very continue. of existing dollars new of has not of that new millions strong, been to Air see significant All the volume on X something working is a from X just piece announced initiative. of years. for that Texas in or with week. been this past Panelization added this last We that acquisition we

that booming during focusing that maintenance for us. last tend large to of in a the really there it's So and And business can significant repair control some that out the spending was year things good have sector. we and not year COVID. Last that a I'll comment make we areas. The market had on hospitals is been coming be for

weighed had the relative also our that performance fiscal and because on so some effort pickup on on But a focused on the seeing market. system. in a of in 'XX residential 'XX, expanding understanding specifications Nudura some basis again, and there pickup we're and a happening what's And the the very which for Nudura, challenged ICF

a So into our sit best spending very here of Products seeing lot of deliberate that again, Group lot specific spending self-help results Construction across as RPM, the today. initiatives we and impacting of a and it's you're

sheet, context specifically that, And the thinking interest acquisitions. all of to expect to end basis. you just net incremental I'm the for terms appetite sheet And fiscal then capital are uncertainty. on of terms are a macroeconomic referring to where your the do about sort and the you what in related balance of And end allocation in -- year in up how of of just debt-to-EBITDA balance rates guess 'XX at I

question. Great Sure.

things. of simply, trying cycle in MAP a we work, cash our with in conversion and let be trying do this program two it's working. improve step data-driven; and back and particularly in trying address our to just growth what our and kind are And seeing initiatives, it's me you're decision-making on significantly Group. really focus specific to We're with investing that we're so And picture more Products real to organic Construction big

-- $XX repurchases? And and record first so did share in so notwithstanding fourth of or like first looks followed is cash Rusty cash a operations, operations, we of acquire quarter record what what maybe that record acquisitions year handful from quarter by last million from

Last year, we did million. $XX

we million in million. $XX repurchases. $XXX by reduced Year-over-year, share debt

conversion cash on focus that so is really working. And

those -- that expect We continue. improvements to

And we're do. to so that's trying picture big what of

the continuing. all few The experienced over years volatility is that last we've

we we'll as our better slow. coming so we Board, allocation. But about M&A And quarters, with sit today, in work think the the a I as how here think have market Ghansham, relatively answer capital about is we

to zero. opinion, will true We We if to least are of was through my forever, cost on strategic almost continue not days medium-sized But multiples, temporarily. time That went capital huge the is period execute at incremental a in small- good of deals. over, today. where of not

And the said conversion to can. the focusing where likes so and rolling both feels in of that a lot than and like we our that growth MAP a Rusty environment time are on recession, we markets given costs and It's are the done as organic driving easier an choppiness initiatives our sectors. and attention geographically across benefiting economic efficiency, is, in say,

Capital from comes question McNulty of next The Markets. John BMO

guess first on the So just one raw materials. would I be

little for you. complicated and of quarters FIFO think to makes were about really previous a you destocking trending last guys it kind bit are how Your implementing the that raws over few

you flow think throughout can help continuing should us think guess, [Technical we about material it Has we looks some got the to How thinking to? the recently? -- on some in that So you terms improvement you quarter. deflation impact oil of should be raw attention about any through has like in that pay of Difficulty] had first that in trends to that? about How the rest the of and move I upward

impact first. of number I'll where Sure. oil but the That's portion immediately acetone. in it is address The your particular, an a move Rust-Oleum. we're your place a us prices businesses, last impacts question of our prime -- seeing in coatings only

cycle many years, increases, increases you down, see So pick the RPM and follow up some lagging margin. our cycles the then And as margin as so lost we in industry up we followed with for typically in the general, commodity price compression. commodity cycle you

in cans, except We to are consumer. We metal in QX. attention packaging pretty tariff most up that QX, in rounding and for now TiOX some we that price is would material extreme We're begin of relative businesses and segments, activity metal to see that. increases. that to our increases raw experiencing see reacting is the to to current which modestly the primary expect raw tinplate, were things and in are that consumer spray material acetone like and packaging year-over-year only is

Construction benefit things is So sell it the QX, something. to and the another to particularly us, as segment QX Products continue would Coatings of expansion you our benefited in Again, commodity that to Performance well. expect cycle be margin volume that's get those when and one we in in benefit you a driven,

on And maybe just then consumer the segment.

as down inventory can So to spoke are or your it help still And as that's that, guess speak played out I a drawing about you point? an us disconnect well? sales customers you're some you guess, the I to can what sounds mentioned normal levels. maybe those below some I add of this at there's seeing if like of pull? terms terms if -- in you guess, on kind point to largely and of then share in think gains, to of you of

Sure.

to good continuing at segment think, our perform, I So is consumer level. a

consumer of I it low-to-mid last consumer improvement trends was were which experienced mid- last of kind think terms behind of second while certainly will solidly year. us. is improved, less negative, significant negative inventory of it adjustments single-digit half what the I range, across kind we the upper the which and is different in you negative of takeaway, from slight a tell the most are to still channels different takeaway. product in They meaning categories year, in in

the from Some bump. COVID of that's hangover

had we big-box in some to past, major we the lost account. As communicated had share

own related was supply challenges. our that of to Some

challenges are over. supply Our

the fill XX XX volume. of MAP solid Through back created or we numbers. to units rates have initiative Our through million million are efficiencies,

our And some so have in incremental. is product incremental The well. universal. Any we're in and going X spray that's in I'd picking share with gains X We're up really good Rust-Oleum been new shape accounts, today say gains, there. And and really showing face We've takeaway in at negative some spray foam product look of the slightly spray that's good. [ got consumer a received. numbers as positive well X-component well new a that's introduced one introductions being ] well and can being textured really as DAP

So experienced new at well, we introductions, product the going volume unit new the introductions are in and positive actually some product because DAP. of growth quarter

the kind that's what's so And of in of broad overview happening Consumer.

The next America Steven from of Bank comes of Securities. question Byrne

expanding you treatment, Pure seems as revenue to And more and wondering areas that or had expanding Air to see inside that an -- service the water would roofing got model you because as quality estimate a if Do could seems service revenue service a question some materials versus about other be the component into I selling on But importantly, component. potentially it just is seems as and from in in segment this maybe there's question a Frank, cleaning to you how your given be service I that something on it's projects. of the CPG. and generated be for much a this that have asked complicated into model air you're such that view on -- beyond your building? if restoration turnkey something you of maintenance service

Sure.

we year for roofing just a not higher, Construction and Products for walkways. We've some whereby revenues of in Services we of asked talked for XX%, And that and instances, was terms with an project, hand in that for And we that in many expand. us XX% most years, are because fix. existing we right element Group to revenue growth have with and And addressing services the that a our in fiber for there issues but on and clean, repair material really services Pure rooftop of does and to great while we the of repair And Tremco millions a but and asked this. key good took with would is materials, when higher. It's we the a to service reroofing dollars business expect driven too we're about roughly on disinfect Pure the those general, meaningfully address the example. been terms do little question. million glove It a ago, is answer this air services only safety a not quality. years potential many, indoor ambiguity roof for business, no. at roof systems of acquired we're selling assessment of there maybe HVAC our in time HVAC a issues service it, many little and XX% was sales. and other work instance. I components. capabilities in So with long bit sell go Air by That a product revenues years -- then over Air, $XX instances, that's we cases, acquired railings sale WTI And good repair can have the it of addresses about there's -- expect we or in tens grade and as been there's many a few Group Two slightly in

indoor replacement. The that's old that things. an immediately as total efficiency benefits in XX% a of or are services benefits a X/X our other motors are business immediate getting benefit or measurable cost quality. blades air of as because significant that And of And down one improvement a system in there is versus so about basically grow, will share that rose higher, the business

that it's And really so exciting for the construction products hospitals and school for serve, customers our group market system, us.

or service thoughts example, other issues any of as expanding services, go about Frank, into some such for water? And to cleaning that

Yes.

continued think value. come share the can like where I that market are from expansion add gains the But our areas broadly we expand roofing. Air will Pure we'll a

can we add value versus replacement. So significant

as services. element value to where it's but for business, or got our look Pure components true cleaning the critical in component are we'll more so of in disinfecting to blade to just with start to or is add of but commodity-like areas opportunities the it's it's service, limited was first truly the it. One Stonhard year repair material opposed they'll think that which I and to And a that be off adding and we staffing. reason or rough back it's we the other And other also areas that can go not flooring factor, Air along the for

industrial in are I think work anybody significant. any and commercial or construction, doing residential workforce that is issues

solved We our that roofing issue with Air workforce. with have Pure WTI

We with installers business. collection great a our have Stonhard of

that certainty people time so in the in on the flooring of the the having get and the HVAC a industrial staying in done is environment getting to and advantage job restoration us roofing this on also job, markets. our it And competitive on

Okay. see And you value, for Do or you propositions? proposition that thus product to insulation hurricane, are value based of more Nudura. its tornado the those be that claimants how product its And two one quick marketing or one value? value cold in more protective on on either hot

But that most It's residential It's and So most got educate structures building the simple answer commercial also today. and for to continue one its the the characteristics commercial we on. to systems to structures the one in that unique have market people is, today. residential of yes. energy-efficient of durable it's

Kentucky of direct approval so for for of we other that can looking ago. result is zero the The the tornado part, durability for Nudura piece, in also a they net components are of And it's so ago. Nudura school the years but a a Kentucky. durability for face a So in had -- that few a people year terrible Nudura that was, for net not in known new for a hurricanes the zero the It's and specifications instance, well climate-driven more buildings. building completed becoming with events. energy in just schools first We weather experience and of expectations combination in efficiency got deliver we it's

Spector comes UBS. question from The next of Josh

it mean, you've based what price the I a detail little beyond pricing like And maybe up I you segments on seems wanted X.X-ish overall. group can construction. I to bit ask on guess percent. was more if given,

least few Our math years ago. a is versus stack a at on

this tracking year? sure just those about are that multiyear thinking right not. Second information think would down your the various segments half about in the maybe with based of quarter year, how numbers sequentially there step XX% been not that trend curious pricing rest the mid-XXs. I'm you or pricing has implies you're through last stack, I'm on a if

we And on in the that we're provide don't basis, consolidated segment. X.X% range. by a Sure. detail But

were X% in in and might it's businesses, as seeing impact price as by really low X.X% product on quarter really X.X% by basis, high But be as across -- raw you're driven we as and it's So our consolidated might price about segment, line material depending not a be the that the by issues. quarter.

sequential the more math that pricing is Thanks. I guess that of any question in segments? is may crux of incorrect? mean, step Okay. there I in be any down Or the

for to million that a No, or and us I cycle I saw our whole $XXX we've more of not manufacturing any industry than commodity material mean, a us we of think business. bigger that's seen. impacts been price that's most raw than matter, in have period, X-year it's consumer ever Over correct. unique fighting again,

And spring in were and our were something 'XX, that. a early. We top the so of to it, the of tell to I took P&L. starting time aspect we on long you it other inflation and whole of this And get that see can I throughout us is said

seen we've And inflation, continues. so which

an and with issue is see are stepping is insurance, just our While gave and the price of higher in terms I this are can you you a down, that quarter. Labor raw regulated still issue. like meaningful inflation. material inflation Items abating increases data

in number of Products interest still inflation that's of think because Group. inflation factors in I exists our still market. And housing part the we're so a exists challenges in seeing, rates and particularly Specialty the And of that

So I more sorry, one clarify to time. guess --

and persisting, when or your you're sequentially, sequentially this sequentially, quarter you're how talking moving pricing terms about So of thinking still your up outlook? are down holding about sequentially inflation in

quarter, up in the X%? year-over-year, we're So

In which quarter?

This quarter.

going The second price Josh. we're lap quarter. anniversaries increases, some of Yes, to selling

marginal expect price X.X% yes, in effect. So would decrease that we

areas of there's But we seeing necessary again, but impact price it's outside where it -- step the are that increases are a of was them had to little get cycle, a where sequentially few just down. we've price

off couple activity for future are tariff attention we're numbers being of expect quarters odd tinplate prices the we areas, in and in paying quarters. pushed this And so the for X.X%. that's relative to Congress. things that one's in I in relative that you oil to again, accounted And their slowly next impact to other to other can't -- would the give about price And increases bleed than sequentially quarter, out

impacting So couple we're nothing attention but increases to, areas that there today. a are paying additional price that's of

of The from Aleksey next Yefremov question KeyBanc. comes

on Ryan is This Aleksey. for

pockets my So And is of number markets? any backlogs in those different kind understand I of you in seen of us slowdown any of you a question, of trending through signs of I how but walk demand nonres, have each those can markets? first in guess there's

Sure.

many which very to construction not Residential the North on exposure, point is in There's many So construction there's statistics too have it to. not commercial take our in markets. is strong. too the America, constructions primary not good we chin where

at glut build-out You that distribution there. Amazon things growth. terms look big centers, the what's that, their course The like the happening of the of office run and in

and that a not us are areas for of sectors of signs around strength there's initiatives have talked very the that good lot strengthened. we in deliberate to. The things point maintenance about, we repair the to So

our stable, exposure maybe part new reroofing cyclical have. XX% and and I have markets the residential think in trends. XX% And given are so in say renovation, the markets. commercial, of that And some repair, reconstruction, we construction we we're bucking share group, in new is think And our I construct initiatives picking of up to big XX% between XX% a would is kind underlying I of performance Products those which or we're and the less means a

The of Performance Products that impacting that's Coatings a industrial that driven Group is area. more. capital substantial showing onshoring a other in construction little subsidies related by Construction to and area only -- and strength the government the And amount is movement Group our spending area continued bit in

Got you.

in helpful. Group. I a just Products Specialty -- the the question That's in your have then Okay. deck on here And comment

does us? held try business been this this uptick from Can So mean no you over mean you levels, parse restocking? is historical destocking mentioned inventories and customers there's kind I and that for of out below

Sure.

January it's think very remaining forward. chain challenges calendar for a to into showed other and And would for much big down over. and challenges, the back COVID was But is the done. for month or ] chain going It those while up it impact know a cabin in have in what 'XX. maintenance post the during furniture COVID common period I good I [ shut making supply that instance, of of shutdowns don't pre-COVID in a things. those and example businesses because period supply the RVs with they is disappeared,

they no shutdowns. so to back got more was And adjustments. There inventory

areas own thing in enough December done, we've emphasized inventory But very better this a that it. year, don't 'XX number some all starting in production our data adjustments. most deliberately of other I think really here The to of initiatives, we MAP is permanent our is and but last shut not by of of make driven

both of volumes 'XX, the decisions inventory of other that some to areas as overhead, really of issues companies, perspective, from millions tens Specialty volumes from from but some is level our permanent so lower well. dollars behind us address also market consumer And RPM. in unabsorbed production shut and products across deliberate to group down of lower our in of of we a half in had Most second

comes Bank. from David Deutsche question of next Huang The

I your how realization QX? -- price to $XXX million talk versus on a price cycle, dollar expectation you maybe now price historical a in about $XXX generate help think cycle cost $XXX tailwind inflation historically with consumer, cost in basis the you $XXX to And of cost then this I million the some million tailwind. was prices deflation much on range? higher million oil lingering and us understand Can

Sure.

I that I that a we would So you big disclose can by picture. give don't know quarter.

was savings. recovery. in and the ago commodity about that of MAP of out cycle initiative, achieving goals our big picture actually of went we a public $XXX that And million our year we with of goal, worth was it laid expectation $XXX So a MAP million

recovery. just initiatives, the MAP-driven non commodity cycle normal So

that Our time target would past, this be that to tell recovery. that Depending half of and is the as at $XXX $XXX million. we quarter's looking is results will cycle in MAP I that would our possible going dynamics year savings again, million. pending on it's exceed commodity rate the venture But happen.

SG&A. on Got it. And then

quantify if pare for making? can comp here, those much on the you're year-over-year talk you business? headwind back can your then the gets can you also spendings? incentive from how about you And investments First, And demand from worse

a results it's let of some Sure. of cash, truly some the Rusty address I'll better higher higher which is and issue is wages inflation mix and based it incentive comp in of and continued set on sales. and

Sure.

the of higher-margin you line. SG&A In pushing, a gross which obviously sell more, we there on saw margin is especially up One when David, products, go few areas is the the terms we're for quarter, of of and commissions that compensation.

performance-related on They're and accruals in in X% term, run about then now. wage the the And up long right the typically, be bonus basic X% have up those SG&A, would range Another area were salary to million during inflation quarter. a few X%. dollars over more

probably impacting increases as a range were the million million So or SG&A. in that, of result $X pay $X

to the our of ideas the first of BIG question, roughly QX And increase your big was SG&A growth, by part follow in focused. -- in XX% for your driven or XX% businesses. We

of can called product I Brands, Legend new Rust-Oleum. lot a Europe we're is Coatings CXB, -- These extra just MRO channel and very project for and One which and promotion on focus investment. our Air, a is specific new Group, of of focused so a attention turnaround are and on and advertising Pure our focused And Construction our for Products the a introductions some are to DAP specific Performance panelization, initiatives you that directional. Carboline investments But previously fluorescent I [indiscernible] channel in the of Nudura well broadly non-oil DayGlo as we Canada, them. In we're patented in second a and the mentioned gas the are there's resin at in segments. In around Specialty business. give our consumer, Products in increasing which in the as is adjuvants our billion. market in things. And getting segment Group, some color year example

our these we initiatives through if of increases follow associated would with growth. specific with of organic For XX% anywhere the intent from with be of plans probably the balance driving to XX% the year, SG&A

are But these people And some pound service easy we're advertising. these of to wise focus in hiring instances, think don't more some stories the I in promotion talking or in is All say see on digital investments. today, you'll successful, and intent MAP other savings cavalierly as it today. areas. that's here penny And advertising coming to or if It's Group we year, salespeople the back, tech some cut more we're growth and Products of truly that sit specific and specific in foolish. our what about our Construction we like

into side, these We pretty bump the deep recession millions new And if SG&A dollars could the expect economists that year. that of initiatives. to be cut good quickly. the balance continue of of in there CPG for flip of are in that got momentum They fear, the we tens on some

comes of Wells Fargo. Mike The next Sison from question

Richard is for This on Mike.

question, saw growth over strong you year-over-year in growth. Europe, X% first So

did noncore one You Coatings. Performance business in divest

Europe? And can driving give to should end business? margins somewhat from So the strong improve divested color me on quarter in you we some what markets this were expect growth

Yes.

Russian European So negatively was on really by and the elements war story then part recessionary I impacted think is of Europe the Ukraine.

'XX And it most we're challenging in 'XX so Europe calendar some of very a is and experienced of rounding easier comparisons. we in fiscal performance and so

having Europe. are the MAP effort initiatives 'XX The we a in area is other focused more that in

COVID. utilizing is improvement audits initiative, MS-XXX weeks, It's in-plant, plants. our takes a outside cycle. disciplines very driving really XX-day interrupted instance, hands-on performance consultants on across lean followed It and For by That continuous up manufacturing process. is by our which got a

bit. North Group Coatings who's focused our efforts our little President. were happen The positioned We're was share benefits Europe. We of lion halted larger in Dave in so a Dennsteadt, Performance And it those plants now America. on our initially seeing

aggressively has senior accelerate a in Europe. this in were operations some his Europe. he He and of some and and summer the to We divest U.K. more moved business also underperforming decision Europe, that. the big efficiencies part close leader to help a to have a family in opportunities presence The of to drive oversight

Europe for years. that And margin growth favorably all and next of in over bode and of the expansion quarter-by-quarter couple should so

of Great. how strong follow-up, limit well? margin XX.X% some talk growth the to pricing maybe And improvement we just a specific much about EBIT Obviously, can there on MAP as then Is from CPG margin to a as got to additional there? well. you CPG and see benefits

on here, talk know comments, I there room that from surprising Sure. and simplify of limits margin do our specifically trade-off in to what our still if is the not would any businesses. We the to I to about grow. near internally investors, have trying term don't growth. EBIT between RPM growth big expanding margins picture to But thing we're And across a good really organic companies in earlier my hopeful across coming in we're back we and investing into good and improve we're cycle economic significantly really up And there's conversion that that more having we're and improvement initiatives. growth cycle circumstances year. growth cash conversion our organic that, ramp in come. in we're the Construction and the see the piece improvement, in call organic the to we'll benefits having Products, we RPM And cash more and think progress in for it's more

The next comes Fermium Research. of Frank question from Mitsch

the is the I XXXX. expecting to expecting impact the end are to you expecting you're a you you're That XXXX P&L? back right? But run guys this And my million mentioned MAP actually understanding to that's before that come of to understanding year? about XXXX. benefit rate, believe want Is correct? in $XXX million I $XXX my fiscal

correct, That I clarifying that. appreciate is you're and XXX%

in saw the XXXX? Great. benefit the right. was actual All million Of what from And that $XXX you EBIT? the that quarter first

expect. you'd rate run the about at ran We

X/X that So a benefit, touch it maybe a was ahead. year's about of

P&L. million we in run million. million rate had expect our to And you're And $XXX it We through million or million $XX of $XXX have goal. $XX $XXX 'XX, exceeded that. And a flow fiscal we we So communicated in we goal July. right,

second of the run that begin realized in be is terms of half will in the to year Some of benefits rate. that

conversion is later accounting, that both than in XX of maybe our impact of cycle benefit on the up XX the and shows terms in that costs where Some we case, of FIFO LIFO. days or commodity

that's This commodity of in by or so would run that up. are we or other said of happening the past, about to $XXX the half as be that unless earlier, the of be as as or where we we prices well. And oil of the slightly expect year should there. spikes. with ahead I what's associated slightly benefits should rate on cycle I surprised that show And look less the than But for million lion's commodity for cycle the target get half some share benefits year. And

ask Got beginning picture are since we of pick July. But starting macro the you. also seeing I to Well, up a oil to bigger wanted question.

it you've believe no Given I you mentioned that indicating turn turn the that red the been been the guide green. last for sounded promising. year seeing assumes quarter through fairly you've recession, release, to yellow in to and reading

the soft you just for fiscal economy year? hard I'm stand landing, your as whole on no for the landing landing, do to So U.S. where curious

Yes.

economist construction it's maybe market Rusty in I our of a Group maybe through than taking can better we're it it a comment and Specialty results, Gordon seeing going can the -- like a on on chin, combination is has see reading our recession think Rusty it numbers. the any rolling know, this? in see you Products I But commented, seeing the housing feels sentiment captured tended negative his which bit and and be categories. half that improve, that And into We're go as that has of our strong in companies it single very and/or the many you not in it's less year. the to things. Retail other components to mid- takeaway that can second categories high across POS serve been means and residential in last we digits. furniture bad.

We're I'm so performance in Europe Europe. recession. Again, of landing sense a this that in in went And a hopeful early. there'll somewhat rolling soft better be that seeing the is

seems around reasonable Russia's is the We're the candidly, for quite Continental of war impact U.K. there more comps half the stability come of here no our we us there and as some think out is because little rounding thing on be revenues performing than sit that's easier growth Europe U.K. I less in Ukraine. instance. for better in Europe to and the of And the a U.K. good than a

have in And economic our so to quarter Frank. is best on and the performance green other to at than pickups. that, or of that's any it this And say is as counting what a second as lot in expect shot we quarter much shoots self-help the

question next Kevin McCarthy of Vertical from comes Partners. Research The

phenomenon? flatten progresses do that to duration the of the magnitude accelerate fiscal and you when And that the to the last infrastructure of Frank, quarters. you continue the tailwind? will really some kind about think the seems have ask Can it of of impact project and the wanted you stimulus. in to traction Do as speak reshoring year or It couple gained peak contributions like I see out? over

is Yes. passed I stimulus bipartisan The I basis still that that a of infrastructure significant was think amount coming. a fiscal think $X.X trillion. there bill was on

in that's it, see infrastructure. was construction, billion see some -- of $XXX half of that the kind see expansions that highway analysis although think I if the in $XXX that I you manufacturing, was can you onshoring airports. But that coming. in of or can could of you infrastructure, in billion can still

go trillions you up. see are fighting today, each rates as to having or massive bond in that's market. that good of federal cost on And lot of mortgage, that here pretty for in cost that we at It's trends things fastest the the that stimulus impact of I country we is commercial amounts, that having has So our the One fighting the next other. cost X of I subsidies today, construction debt driven not and macro years a dollars think continuing of the housing and think the runway increase are a any big of rent, sit are as guess. X.X ever rate X well. There's this construction best interest And seen. look residential

us. I still economy the are we fighting Performance there's Construction Coatings how the your those pretty these trends, our there. each to for other good portions few Group, question and that tailwinds portions of Products So to But think impact think, are macro Group and things relative of impact our

great a my segue That's question. to second

low-margin rates maybe Frank, of less era relative call, starting The the bit about of businesses, how couple is divestitures on or punitive accretive. higher to side be of examples the earlier dilutive. spoke You the see a interest flip money. in coin case less less divestitures where appealing And a to we're render acquisitions of can free the actually become

to interesting started perhaps I'm do would across what next you, products so portfolio you that candidates trend kind look year or two cleanup to window for Guardian? the some you or call ask tempted And the as follow you of portfolio Specialty in could elsewhere be an portfolio, with the the think divestitures, in I

example the XXXX a in we business piece drive and where sell The businesses. and improve of Sure. and But all has where retain also USL high-margin RPM. latest then works to that nicely. to a piece, this margins a initiative U.K., that gone for we group not our of for off putting element margin, RPM restructure were positive low employees off divested there lines piece that the in MAP in continue part of have in of to to service no the at as margin of growth them. a We're different able was it that paid product our parts taking The manner continuing to look opportunities was quarter, business will

or product different and what European or improvement they're lower details. self-help businesses. executed, a and dynamics it we'll our the facility-related but tends come specific talking we growth line over of year and margin, expect There be we're initiative the in that provide MAP in meaningful part or is segments. And of more next restructuring be no closing the not when to is in to margins to broader So divesting only about, either quarter-by-quarter

The next JPMorgan. Jeff Zekauskas of from comes question

I adjusted at a XX% that growth way not should rate rate below the general, And too basis, grow think the in of SG&A costs longer over on the period growth, about your Isn't sales SG&A sales have high? the rate above a your do or of time sales you quarter. an were of up growth, costs target? of in

Sure.

general, in XX.X%. So the in SG&A quarter the up was

And so what the I'm adjusted... not are sure

right. is XX.X% Yes.

SG&A. of things really my a Yes. And earlier driving are comments, higher goes couple to it back

that those. much so is as salaries fiscal inflation of wages beginning we're 'XX. seeing it continued Some it We're we to were and annualize not in throughout today that seeing

costs, first wages in higher our us impact so all and of the fiscal and the And 'XX, things insurance the all half there. peers that salaries, are

want then as construction off of reinvest part big take these savings It's them to margin I of is mountains. Last consumer talking sales better RPM forces generating years of think time that And than sales very where data products initiatives sales could our growth. initiatives. and SPG would to big CFO We our we a and you element Coatings segments the to again, a fully top CEO ago, sales. And you're Where RPM all-time wasn't operating who intend more other One way been I've at other in with solid much maybe 'XX great have much record hindsight. X with mix. results and do mix commission-based still paying driving focus fair on is being really earnings forward. accuracy and we have in had long in driving company a lastly, of generate our were in remind twofold. P&L I deliberate MAP very at The about X the about. positive in in today, in commissions, as are mean as we mix of good the year, talking targeted at growth as we're Performance And level, initiatives XX.X%. or our analyzing we're we going particularly with and on Group, up some incentivize the today. higher their of ground of Construction QX. mix amount place most higher Products growth comes a an to and And I

our year think was up was I an EBIT QX it last in and all-time XX%. record,

both momentum improved and the long as we cash to have as so top We that expect. the we enhancements forward that cycle on we're expect and margin and experiencing sales line conversion the

growth will cut continue results We a years of reinvest initiatives. to couple, expected after have investing, the those or have in back these we're when areas. not And X in to we to seeing then X the discipline

sour for we the quickly, make. And lined already an we we I have we As would SG&A investments, on earlier, well, mentioned if I that turns and BIG: comment what are just targeting the up as Big very that. separately Ideas call specifically SG&A cuts can sheet on Jeff, economy Growth specific

big quarter-by-quarter sales. year, continue As you pounds to some see the long last than level year, year expect would outperform SG&A for balance to for of we I rise as big higher the versus at a

gross margin the year. run, margin at In that's SG&A or sales the and EBIT the at you'll level growth, While grow long below expansion time, should for same the correct. of see

raw step and Sort think follow-up, Should is follow-up. much And sequentially, then soft. And about year? are materials sort inventory in levels growth You're of but talked you mid-single-digit I X-part then what I this the change of Construction, comparisons organically in of demand Good. a And flat kind little that in for inventories a the Okay. down very but Construction my for get but the grew are? where quarter. from And first harder bit you XX% down growth? will accounts second we change the will around much price be quarter, for very

Yes.

you working a piece MAP inventory the as major and have to side, Jeff, objectives capital reduce On of is inventory know, that. we

year. progress this seen You've

the And thanks winter for RPM pronounced be -- think time, we'll late typical seasonal I MAP to think as to in build spring we go the to traditionally be what different better up that bit would big is you might because higher we I safety for forward as able see our a for a stocks lot not respond demand. going forward improvements, will of RPM orders.

on So answer that's inventory. your

flow all-time and and capital that. a all-time flow had has point has would expect in capital in you're expansion. Yes. an more margin been cash part improvement of record sales, working And along of meaningful QX, in with basis and this cash that improvement I improvement been a We generation a cash working year, XXX as record QX, seeing percent inventory general, in meaningful record a part maybe flow

next Vincent of question Stanley. comes Morgan The from Andrews

is This Haynes guidance. on Vincent. on actually Steve Question for the

expected. that bit First is quarter. where quarter the sound was kind at like and kind of a of your also margin expected than than It last bit versus looks were don't a much macro we better better views XQ worse

more keeping the kind your end you high what's guidance biased range? of guess, I So from towards of, being

experienced Yes, keeping or X is from being the great bullish. more question. we've over last The volatility us X what's years

actually normal into We might that get whether shutdowns that it's bond conditions a too didn't suggests sharp have We've for as the nothing better. about cycle economy inversion. There's turns seen and there's a terms anticipating a to the start to in and while not get current picture, rates economic maybe we look seen an reverse rate government all expect. nothing is election things then headlines the little but of in that dicier -- or great reversed interest getting rise, bond we we'll as see year. big And get of of the that trends and

to control, with the we're landing a that's blowout comparisons, we'll next that to so have we beginning a second the year. recession, can if at are growth of easy we're unit the And our of delivering positive reading 'XX But half. Most peaches start focused and of to soft on if cream, challenges. calendar going anticipating what initiatives hit of see we're going is going have people we that across anticipating economy and start with our organization and volume a MAP is our

don't continuing confidence impact any things to we positively happen. know We can getting that that better. we have just economy the so the is And are

give you second lack we'll of we the a thereof And investors in when talk we're our January. of level half for confident QX. chance have that, pretty the or year to to confidence beyond So in

RBC of Markets. comes Arun Capital question next The Viswanathan from

soon as your saying mentioned where go more a year. and raising lot as -- I that and we not are that of little you that they're all far you're better bit more that too? as lines. also what of little we XXX do destocking be had for kind not somebody as cautious From shouldn't bites, they maybe as customers greater speak is coming no think year. you're you start Is see same as mean rest guidance better. buying you there, why spring What that standpoint, to situation getting of the making they wanted But wanted is that about potentially of a in thinking be add as kind -- or performance. holding down, full inventories a the those But if I bit Just the restocking a back folks the think commitments on question are pronounced to to and things on are to speaking in little basis of the why really going confidence case? a a points. volume is past, again, along them less to the you're coiled

Sure.

I'd I of in our modest we're So 'XX comment done, year, beyond second XX%. level earnings and growth and point because we've where of and particularly a much on sales the delivering really Number were X% are what last anticipate the we top initiatives up of MAP to record were in one, earnings out hesitant sales comments. think somewhat QX, half. quarter a albeit again up couple

rounding beat peers, some and an comps we're easier it. or quarter, going We're all-time unlike So rounding comps. second not modest record to we're

mortgage fastest in effect the you really question, United the the people lag and that And more biting is rates housing, to it raises how name Fed there into, was et think more when the a parts relates rates, rates broader it, in of I of cetera. car of increase the economy. history States. are it It filters interest the As rent, loans, rate

month. that. starting to this you're economist not begin good and student that are to to have very I'm Now at I'm be loans paid have going playing to But going

good there's lot say, elements doing a different of hesitant. The we're of think I think this. that job last I'll and comment I out So pretty a there make people

so at RPM And think, trends. sometimes, I I look what are

is spending solid. capital our really So

PCG manufacturing our Products a extent. of the we who most think our results really solid, are That's and Group I and spending. so lesser that doing Construction see to customers And our in capital of

capital RPM On sustainably down improving and means inventory. of ratios, the bringing hand, we're is other meaningfully our working which levels

most competitors. our of So our customers are are so most of and

are So those trends continuing.

hopefully so question. I And -- that answers your

the MAP a How dependent? One there. as? of volume would savings quick You follow-up. quantify What that are much mentioned you portion

of lower I conversion targeted better plants, are costs very at would cycle. a say conversion you're them, XX% so in efficiencies our cash they

how a is So to door, you it then positive [indiscernible] what door. pay you we them, of quickly what get the that's and add how you a the you how about data sell. decision And for us lot making even all value drive but quickly get the about that's out helping mix,

or but volume And the rebound growth. in volume now returns. in upper group you'll products so into of mid see it's negative a doing so EBIT Specialty unit nice they've and months our in real They're margins a do impact of that's when their terms why the operations, through X been having teens I the work think or

work positive the to of benefits growth. going we the volume So up there until aren't show seeing start

see savings Construction the leverage when you're leverage you positive volume unit to dependent. MAP Group real, nice It's in why Products volume the you'll are bottom seeing So very have our our line. nice and really

This question-and-answer conference over session. concludes Sullivan Frank for remarks. our the back turn closing to like I to would any

consecutive to rest today our thank forward year. online and fiscal of will tomorrow. started strong Andrea, Time, XXth And in will strengths and leveraging p.m. you X:XX that the about our our be cash what look increase Eastern our announcing I'd put done for be of our with on Meeting website appreciate will and We to like Stockholders it through in to deliberating joining dividends join meeting much. build meeting, be and shareholders. we will our Annual that It's hope It can momentum, very we positive be out your XXXX this you be. www.rpminc.com. At accessed tomorrow's us the will start the to virtually. Board RPM tomorrow annual at Board perspective.

for us cash for of hear driven was are Thank we growth creation you, in NAFTA XXXX a organic very our in that If speaks value consecutive to you compounded cash improving years you'll investor have our to then, annual strategy compounding consistent Since shareholders, that including XXXX. annually you interest, an XX growth ago like growing in rate in started our of the had dividend. My reigniting dividends and we over Tom father, cash It join most of our shareholders of XX have excited tell, in proud $X,XXX,XXX love businesses. Thank of have It's initiatives the and That track and as and you you today, August in meeting X/X far focused outcome on dividends invested great of would annual have on XX.X%. hope of in where reinvested power conversion you the of. RPM about about our we're record XXXX, of $X,XXX participation with To August power annually to growth and to further of invested the years tomorrow. perspective, from dividends, put businesses, XXX dividend. today. RPM by $XXX,XXX. if S&P stock today, a we're our value cycle that in can would And a $X,XXX of call same growing a you and our reinvested the as day. in significantly deliver XXXX we growth our your stability I

for conference now may today's now The presentation, attending and has you you concluded. disconnect. Thank