RPM International Inc (RPM) 2025 Q2 法說會逐字稿

Good day and welcome to the RPM International Fiscal Year 2025 Second Quarter Earnings Call. (Operator Instructions) Please note that this event is being recorded.

美好的一天，歡迎參加 RPM 國際 2025 財年第二季財報電話會議。（操作員說明）請注意，該事件正在被記錄。

I would now like to turn the conference over to Matt Schlarb, Vice President of Investor Relations and Sustainability. Please go ahead.

我現在想將會議交給投資者關係和永續發展副總裁 Matt Schlarb。請繼續。

Thank you, Nick. And welcome to RPM International's conference call for the fiscal 2025 second quarter. Today's call is being recorded. Joining today's call are Frank Sullivan, RPM's Chair and CEO; Rusty Gordon, Vice President and Chief Financial Officer; and Michael LaRoche, Vice President, Controller and Chief Accounting Officer. This call is also being webcast and can be accessed live or replayed on the RPM website at www.rpminc.com.

謝謝你，尼克。歡迎參加 RPM International 2025 財年第二季的電話會議。今天的通話正在錄音。參加今天電話會議的還有 RPM 董事長兼執行長 Frank Sullivan； Rusty Gordon，副總裁兼財務長；拉羅什 (Michael LaRoche)，副總裁、財務長兼首席會計官。這次電話會議也進行了網路直播，可以在 RPM 網站 www.rpminc.com 上進行現場直播或重播。

Comments made on this call may include forward-looking statements based on current expectations that involve risks and uncertainties, which could cause actual results to be materially different. For more information on these risks and uncertainties, please review RPM's reports filed with the SEC.

本次電話會議的評論可能包括基於當前預期的前瞻性陳述，涉及風險和不確定性，這可能導致實際結果有重大差異。有關這些風險和不確定性的更多信息，請查看 RPM 向 SEC 提交的報告。

During this conference call, references may be made to non-GAAP financial measures. To assist you in understanding these non-GAAP terms, RPM has posted reconciliations to the most directly comparable GAAP financial measures on the RPM website. Also, please note that our comments will be on an as-adjusted basis and all comparisons are to the second quarter of fiscal 2024, unless otherwise indicated.

在本次電話會議期間，可能會提及非公認會計準則財務指標。為了幫助您理解這些非 GAAP 術語，RPM 在 RPM 網站上發布了最直接可比較的 GAAP 財務指標的調整表。另請注意，除非另有說明，我們的評論將基於調整後的基礎上，所有比較均與 2024 財年第二季度進行。

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

我們提供了補充幻燈片演示來支持我們對此電話會議的評論。可以在 RPM 網站 www.rpminc.com 的簡報和網路廣播部分存取它。

Now I would like to turn the call over to Frank.

現在我想把電話轉給弗蘭克。

Thanks, Matt, and thank you to everybody joining us for today's call. I'll start by providing a high-level review of our results, then Mike Laroche will cover the financials in more detail. Matt Schlarb will then give a balance sheet update and provide details on our MAP 2025 progress and Rusty Gordon will provide our outlook. At the conclusion of our prepared remarks, we'll be happy to answer your questions.

謝謝馬特，也謝謝參加今天電話會議的所有人。我將首先對我們的業績進行高級別審查，然後邁克·拉羅什 (Mike Laroche) 將更詳細地介紹財務狀況。然後，Matt Schlarb 將提供資產負債表更新並提供有關 MAP 2025 進展的詳細信息，Rusty Gordon 將提供我們的展望。在我們準備好的發言結束時，我們很樂意回答您的問題。

Our second quarter highlights are on slide 3. We had a strong quarter with records in several areas, including sales, adjusted EBIT margin, and adjusted EPS. We achieved these results in a continuing no- to low-growth macroeconomic environment and despite a $4.4 million earnings headwind from a customer bankruptcy charge in our consumer group. Additionally, we achieved record adjusted EBIT for the 12th consecutive quarter.

我們的第二季亮點在幻燈片 3 上。我們的季度表現強勁，在多個領域均創下紀錄，包括銷售額、調整後息稅前利潤率和調整後每股盈餘。儘管我們的消費者集團的客戶破產指控為我們帶來了 440 萬美元的收入阻力，但我們還是在持續無成長或低成長的宏觀經濟環境中取得了這些成果。此外，我們連續第 12 個季度實現了創紀錄的調整後息稅前利潤。

Over the last three years, our associates have consistently made progress implementing our MAP 2025 operating improvements while simultaneously demonstrating their ability to navigate mixed economic conditions to outgrow our markets. We are pleased with the structural improvements we've made to MAP 2025. Our pipeline of MAP improvements remains full and continues to grow and we will implement these initiatives for the balance of the 2025 fiscal year and in fiscal 2026.

在過去三年中，我們的員工在實施 MAP 2025 營運改善方面不斷取得進展，同時展現了他們駕馭複雜經濟條件以超越我們市場的能力。我們對 MAP 2025 所做的結構改進感到滿意。我們的 MAP 改善管道仍然完整且持續成長，我們將在 2025 財年剩餘時間和 2026 財年實施這些措施。

Turning to slide 4, our ability to outgrow our markets was evident during the quarter as each one of our segments generated positive organic volume and sales in a mixed economic environment. Across our segments, we leveraged our focus on repair and maintenance and our entrepreneurial culture to capture growth opportunities.

轉向幻燈片 4，我們在本季超越市場的能力是顯而易見的，因為我們的每個部門在混合的經濟環境中都產生了積極的有機銷售和銷售額。在我們的各個細分市場中，我們利用對維修和維護的關注以及我們的創業文化來抓住成長機會。

Demand for our technical products serving high-performance construction projects was strong, particularly in our construction product group's turnkey roofing systems business. Residentially focused end markets, which have been under pressure for some time, showing signs of stabilizing in the second quarter, aided by favorable weather conditions through the first two months of the quarter. This was an incremental positive for our consumer and specialty products groups.

對我們服務於高性能建築專案的技術產品的需求強勁，特別是在我們的建築產品集團的交鑰匙屋頂系統業務中。以住宅為主的終端市場一段時間以來一直面臨壓力，在本季前兩個月有利的天氣條件的幫助下，第二季顯示出穩定的跡象。這對我們的消費者和特種產品團隊來說是一個漸進式的正面結果。

Across all our segments, we continued executing on MAP 2025 initiatives, including SG&A streamlining. It's important to note that after more than a year of increasing SG&A as a percent of sales declined during the quarter, which is due to our associates' focus on structurally reducing expenses while improving efficiencies. These MAP 2025 improvements drove adjusted EBIT growth in each of our four segments.

在我們的所有部門中，我們繼續執行 MAP 2025 計劃，包括 SG&A 精簡。值得注意的是，經過一年多的銷售成長、管理費用（SG&A）佔銷售額的百分比在本季度有所下降，這是因為我們的員工專注於結構性地減少開支，同時提高效率。MAP 2025 的這些改進推動了我們四個細分市場的調整後息稅前利潤成長。

Rusty Gordon will cover this in more detail, but so far in the third quarter, we are facing real winter compared to mild conditions in the prior year. This is putting pressure on some of our businesses, particularly in the consumer segment, which is offsetting growth in other areas of RPM and MAP 2025 initiatives that we put in place. RPM associates continue to do an excellent job executing on the things within our control and I want to thank them for their commitment to our MAP 2025 program into growing their businesses and making RPM a structurally stronger organization.

拉斯蒂·戈登（Rusty Gordon）將更詳細地介紹這一點，但到目前為止，第三季度，與去年溫和的天氣相比，我們面臨著真正的冬天。這給我們的一些業務帶來了壓力，特別是在消費者領域，這抵消了我們實施的 RPM 和 MAP 2025 計劃其他領域的成長。RPM 員工繼續出色地執行我們控制範圍內的事務，我要感謝他們對我們的 MAP 2025 計劃的承諾，以發展他們的業務並使 RPM 成為一個結構更強大的組織。

To summarize our current and expected results, our strong MAP 2025-driven performance is being temporarily interrupted by a real winter. But we'll continue in our spring fourth quarter where we expect to see a return to strong sales and earnings growth.

總結我們目前和預期的結果，我們由 MAP 2025 驅動的強勁業績正被真正的冬天暫時打斷。但我們將在春季第四季持續，預計銷售和獲利將恢復強勁成長。

I'd like to turn the call over to Michael Laroche to provide details on our quarterly results.

我想將電話轉給 Michael Laroche，以提供有關我們季度業績的詳細資訊。

Thanks, Frank. Starting with consolidated results on slide 5. Record sales were driven by positive volumes and sales in all four segments, with FX being a headwind, particularly in emerging markets. The commodity cycle was neutral on a consolidated basis, but there were pockets of inflation, particularly within our consumer group.

謝謝，弗蘭克。從投影片 5 上的綜合結果開始。創紀錄的銷售額是由所有四個細分市場的銷售和銷售額成長推動的，而外匯是一個阻力，特別是在新興市場。綜合來看，大宗商品週期是中性的，但存在一些通貨膨脹，特別是在我們的消費群體中。

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. Adjusted EBIT includes the negative impact of a $4.4 million bad debt expense from a consumer group customer's bankruptcy. As Frank mentioned, adjusted EBIT margin of 13.8% was a second quarter record.

受銷售成長和 MAP 2025 效益（包括設施整合進展和持續 SG&A 精簡）的推動，調整後息稅前利潤成長 7.7%，創第二季紀錄，但部分被不利的組合所抵消。調整後息稅前利潤包括消費集團客戶破產造成的 440 萬美元壞帳費用的負面影響。正如 Frank 所提到的，調整後息稅前利潤率為 13.8%，創下第二季紀錄。

Adjusted EPS of $1.39 was also a second quarter record and increased 13.9% compared to the prior year. This was primarily driven by adjusted EBIT growth and lower interest expense from $226.5 million in debt paydown over the past 12 months.

調整後每股收益 1.39 美元，也創下第二季紀錄，較前一年增長 13.9%。這主要是由於調整後的息稅前利潤增長以及過去 12 個月償還債務 2.265 億美元的利息支出下降所致。

Turning next to geographic results on slide 6. North American sales were generally solid across all segments. In Europe, macroeconomic conditions remain challenging. However, MAP 2025 improvements and improved collaboration in the region continued to drive strong profitability growth.

接下來轉到投影片 6 上的地理結果。北美所有細分市場的銷售整體表現強勁。在歐洲，宏觀經濟狀況仍充滿挑戰。然而，MAP 2025 的改進和該地區協作的改善繼續推動盈利能力的強勁增長。

In Africa and Middle East, our management teams focused strategy on serving high-performance construction and infrastructure projects, with technical solutions-generated strong growth. FX headwinds drove the decline in Latin America sales, while Asia Pacific sales declined due to challenging comparisons to the prior year when large projects were completed.

在非洲和中東，我們的管理團隊將策略重點放在服務高性能建築和基礎設施專案上，透過技術解決方案帶來強勁成長。外匯逆風導致拉丁美洲銷售額下降，而亞太地區銷售額由於與去年大型專案竣工時的比較具有挑戰性而下降。

Next, moving to the segments on slide 7. Construction products group generated another quarter of solid growth, run by its turnkey roofing systems and services business. With its focus on restoration, direct sales model, and high level of service, our roofing business offers a compelling value proposition to high-performance building owners and has been outgrowing its markets.

接下來，前往投影片 7 上的片段。建築產品集團在交鑰匙屋頂系統和服務業務的推動下，又實現了一個季度的穩健成長。我們的屋頂業務專注於修復、直銷模式和高水準的服務，為高性能建築業主提供了令人信服的價值主張，並且已經超越了其市場的成長。

We've also introduced new products that contributed to sales growth. One example from our concrete admixtures and repair business includes a patent-pending bond breaker EucoTilt WB, which increases user productivity in the expanding tilt up construction market by providing clean release of cast panels and reduces need for repairs, in line with our Building a Better World sustainability program that also has lower VOCs than competing products.

我們也推出了有助於銷售成長的新產品。我們的混凝土外加劑和維修業務的一個例子包括正在申請專利的粘結劑EucoTilt WB，它通過提供澆注板的清潔釋放來提高不斷擴大的傾斜建築市場中的用戶生產力，並減少維修需求，符合我們的「建設更好」世界永續發展計畫的揮發性有機化合物含量也低於競爭產品。

We have also introduced VersaSpeed RMC, which is a premixed product that can be used in multiple restoration situations. It has low permeability and freeze-thaw resistance to prevent cracking and is able to cope in only five hours to enhance productivity on the job site.

我們也推出了 VersaSpeed RMC，這是一種預先混合產品，可用於多種修復情況。它具有低滲透性和抗凍融性，可防止開裂，僅需 5 小時即可應對，提高作業現場的生產力。

CPG second quarter sales in the Southeastern US were negatively impacted by hurricane activity in the quarter. Despite this, CPG achieved record Q2 adjusted EBIT due to sales growth and MAP 2025 benefits, partially offset by unfavorable mix.

美國東南部的快速消費品第二季銷售受到本季颶風活動的負面影響。儘管如此，由於銷售成長和 MAP 2025 效益，CPG 實現了創紀錄的第二季調整後息稅前利潤，但部分被不利的組合所抵消。

On slide 8, performance coatings group achieved record sales, led by the flooring and protective coatings businesses serving high-performance construction projects. European sales growth was strong, driven by improved collaboration through MAP 2025. Double-digit sales improvement in Africa/Middle East also contributed to the growth. Adjusted EBIT was a second-quarter record and was driven by MAP 2025 benefits and sales growth.

在投影片 8 上，高性能塗料集團的銷售額創下歷史新高，其中以服務高性能建築專案的地板和防護塗料業務為首。在 MAP 2025 改善協作的推動下，歐洲銷售成長強勁。非洲/中東的兩位數銷售額成長也促進了成長。調整後息稅前利潤創下第二季紀錄，受到 MAP 2025 效益和銷售成長的推動。

Moving to slide 9. Specialty products group returned to sales growth led by the disaster restoration business, as the response to hurricane activity resulted in higher demand for its products. The food coatings and additive business also grew during the second quarter, aided by a previous acquisition. Specialty OEM, which serves many residential-focused end markets, showed signs of stabilization during the quarter. Adjusted EBIT growth was driven by MAP 2025 benefits as well as improved sales.

轉到投影片 9。由於對颶風活動的反應導致對其產品的需求增加，特種產品集團在災難復原業務的帶動下恢復了銷售成長。由於先前的收購，食品塗料和添加劑業務在第二季也有所成長。服務於許多以住宅為重點的終端市場的專業 OEM 在本季度顯示出穩定的跡象。調整後的息稅前利潤成長是由 MAP 2025 效益以及銷售成長所推動的。

On slide 10, the consumer group also returned to sales growth in the quarter as we gain market share in DIY takeaway stabilized, but also aided by favorable weather conditions in September, October. Customer inventory levels were steady during the quarter. International growth continued, primarily driven by targeted marketing campaigns focused directly on end users. Consumer generated record adjusted EBIT in the quarter due to MAP 2025 benefits, higher sales, and the rationalization of lower margin products, particularly or partially offset by moderate inflation and negative impact of the $4.4 million in bad debt expenses from a customer bankruptcy.

在幻燈片 10 上，消費群體在本季也恢復了銷售成長，因為我們在 DIY 外送市場份額穩定，但也得益於 9 月、10 月的有利天氣條件。本季客戶庫存水準保持穩定。國際業務持續成長，主要是由直接針對最終用戶的有針對性的行銷活動推動的。由於MAP 2025 效益、更高的銷售額以及低利潤產品的合理化，消費者在本季度產生了創紀錄的調整後息稅前利潤，特別是或部分被溫和的通貨膨脹和客戶破產造成的440 萬美元壞帳費用的負面影響所抵銷。

Now I'll turn the call over to Matt, who will cover the balance sheet and cash flow and provide an update on MAP 2025 initiatives.

現在我將把電話轉給 Matt，他將介紹資產負債表和現金流，並提供 MAP 2025 計劃的最新資訊。

Thank you, Mike. On slide 11, we continue to make progress on working capital efficiency. Working capital as a percentage of sales declined 100 basis points from the last year and 670 basis points from two years ago, driven by MAP 2025 initiatives. This working capital efficiency and expanded margins resulted in operational cash flow of $279 million during the quarter, the second highest amount in RPM's history. The record was in fiscal year 2024 when we benefited from a larger working capital increase as supply chains normalized. Strong cash flow over the past year has allowed us to reduce debt by $226 million.

謝謝你，麥克。在投影片 11 中，我們持續在營運資本效率方面取得進展。在 MAP 2025 計畫的推動下，營運資本佔銷售額的百分比比去年下降了 100 個基點，比兩年前下降了 670 個基點。營運資金效率和利潤率的提高使得該季度的營運現金流達到 2.79 億美元，這是 RPM 史上第二高的金額。這項紀錄出現在 2024 財年，隨著供應鏈正常化，我們受惠於營運資本的大幅增加。過去一年強勁的現金流使我們減少了 2.26 億美元的債務。

In the second quarter, we increased our dividend for the 51st consecutive year, returned to $83.1 million to shareholders through dividends and share repurchases during the period. Liquidity remains strong at $1.5 billion.

第二季度，我們連續第 51 年增加股息，期間透過股息和股票回購向股東返還 8,310 萬美元。流動性依然強勁，達到 15 億美元。

Now I'd like to provide an update on our MAP 2025 initiatives on slide 12. As Frank mentioned earlier, we are confident that we will be able to continue building on the structural progress we have made in MAP 2025, and our Green Belt program is one example why. Our Green Belt program is part of MS 168. It is a process-driven program that helps our associates identify areas for improvement, create solutions to address those challenges, implement the solutions, and then monitor the results.

現在我想在投影片 12 上提供有關 MAP 2025 計劃的最新資訊。正如弗蘭克之前提到的，我們有信心能夠繼續在 MAP 2025 中取得的結構性進展的基礎上繼續前進，我們的綠帶計劃就是一個例子。我們的綠帶計劃是 MS 168 的一部分。這是一個流程驅動的計劃，可幫助我們的員工確定需要改進的領域，創建解決方案來應對這些挑戰，實施解決方案，然後監控結果。

What started as a small program focused on the US has expanded globally, and we now have over 400 associates with completed training, which is now offered in seven different languages. Six of these Green Belts have been promoted to plant managers. To date, more than $36 million in verified savings have been recorded, and that number grows monthly. Initially a top-down program, it has evolved to become more collaborative and has resulted in sharing ideas and best practices across businesses.

最初是一個專注於美國的小項目，現已擴展到全球，我們現在有 400 多名員工完成了培訓，現在以七種不同的語言提供培訓。其中六名綠帶已晉升為工廠經理。迄今為止，經核實的節省已超過 3600 萬美元，並且該數字每月都在增長。它最初是一個自上而下的計劃，後來演變為更具協作性，並導致跨企業分享想法和最佳實踐。

In addition to financial savings, we are realizing other benefits such as improving safety, reducing waste and decreasing our environmental impact. A recent Green Belt program at Rust-Oleum developed a solvent recovery system and is producing benefits in all these areas.

除了節省金錢之外，我們還實現了其他好處，例如提高安全性、減少浪費和減少對環境的影響。Rust-Oleum 最近的綠帶計畫開發了溶劑回收系統，並在所有這些領域產生了效益。

Green Belt projects have also been instrumental in our ability to increase effective capacity through more efficient processes. In one example, Stonhard implemented a Green Belt project that eliminated unnecessary steps in the manufacturing process to increase throughput and improve quality with limited capital investments. These are just a few examples of the ongoing work across RPM businesses with several trainings and new projects in the pipeline.

綠帶專案也有助於我們透過更有效率的流程提高有效產能。舉個例子，Stonhard 實施了一項綠帶項目，該項目消除了製造過程中不必要的步驟，從而以有限的資本投資提高產量並提高品質。這些只是整個 RPM 業務正在進行的工作的幾個例子，還有一些培訓和新專案正在籌備中。

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

現在我想將電話轉給 Rusty 以介紹前景。

Thank you, Matt. Our outlook for the third quarter, which, as a reminder, is our seasonally slowest quarter is on slide 13. We expect the mixed macro environment to continue and the weather-related tailwinds during September and October have now become headwinds, negatively impacting DIY demand and some construction activity. Additionally, at today's rates, FX will negatively impact sales and adjusted EBIT. On a consolidated basis, we expect sales growth in the third quarter to be flat compared to the prior year period.

謝謝你，馬特。我們對第三季的展望（提醒一下，這是我們季節性最慢的季度）載於投影片 13。我們預計複雜的宏觀環境將持續下去，9 月和 10 月與天氣相關的順風現已成為逆風，對 DIY 需求和一些建築活動產生負面影響。此外，按照今天的匯率，外匯將對銷售和調整後的息稅前利潤產生負面影響。綜合來看，我們預計第三季的銷售成長將與去年同期持平。

By segment, we expect low single-digit growth in our construction products group as we continue momentum in selling waterproofing solutions, partially offset by unfavorable weather when compared to unseasonably mild conditions in the prior year. In performance coatings group, we expect sales to be flat to up slightly as underlying demand for high-performance buildings remain solid, but the segment faces challenging comparisons to the prior year period when organic sales increased 9.2% and/or boosted by the timing of project completions.

按細分市場劃分，我們預期建築產品集團將出現低個位數成長，因為我們繼續銷售防水解決方案的勢頭，與上一年異常溫和的條件相比，部分成長被不利的天氣所抵消。在高性能塗料組中，我們預計銷售額將持平或小幅增長，因為對高性能建築的潛在需求仍然強勁，但該細分市場與去年同期相比面臨著挑戰​​，當時有機銷售額增長了9.2% 和/或因專案完成情況。

In residential end markets, which primarily impact our consumer and specialty products group, we saw stabilization in the second quarter. However, favorable weather trends in the second quarter have now reversed and mortgage rates remain elevated to laying further end market improvement. We expect sales in both these segments to decline in the low single-digit range. Consolidated third quarter adjusted EBIT is expected to be up or down low single digits compared to a record prior year period as MAP 2025 benefits, including structural SG&A reductions, are offset by the softness in residential end markets and moderate inflation in raw materials and labor.

在主要影響我們的消費品和特種產品集團的住宅終端市場中，我們在第二季度看到了穩定性。然而，第二季的有利天氣趨勢現已逆轉，抵押貸款利率仍然較高，為終端市場的進一步改善奠定了基礎。我們預計這兩個細分市場的銷售額都將下降到個位數的低點。與去年創紀錄的同期相比，第三季綜合調整後息稅前利潤預計將出現低個位數的增長或下降，因為MAP 2025 的收益（包括結構性銷售及管理費用削減）被住宅終端市場的疲軟以及原材料和勞動力的溫和通膨所抵消。

On the topic of raw material inflation, there is uncertainty as to the outcome of what potential tariffs and a port strike could have. However, no matter what materializes, we are as well positioned to navigate any potential challenges as we've ever been because of our center-led procurement team. While we have modest imports from countries potentially subject to tariffs, our procurement team has developed contingency plans to mitigate potential risks from different scenarios.

在原物料通膨問題上，潛在關稅和港口罷工可能產生的結果存在不確定性。然而，無論發生什麼，我們都能夠像以往一樣應對任何潛在的挑戰，因為我們有中心領導的採購團隊。雖然我們從可能徵收關稅的國家進口的商品數量不多，但我們的採購團隊制定了應急計劃，以減輕不同情況下的潛在風險。

Our fiscal 2025 full year guidance is on slide 14. Our sales outlook remains unchanged with expected growth in the low single digits. We are narrowing our adjusted EBIT range to 6% to 10% growth from the previous outlook of up mid-single digits to low double digits. We expect economic conditions to generally remain similar to the second quarter. And while there is clarity on the outcome of the US election, political uncertainty has increased in other large economies like Germany, France, Canada and Korea. The impact and trajectory of interest rate changes is also not clear. We expect pricing to be positive in response to continued inflation in raw materials and labor.

我們的 2025 財年全年指引請見投影片 14。我們的銷售前景維持不變，預期成長率為低個位數。我們將調整後的息稅前利潤成長範圍從先前的中個位數成長至低兩位數的預期縮小至 6% 至 10%。我們預期經濟狀況大致與第二季相似。儘管美國大選結果已經明朗，但德國、法國、加拿大和韓國等其他大型經濟體的政治不確定性增加。利率變化的影響和軌跡也尚不清楚。我們預計，由於原物料和勞動力的持續通膨，定價將會積極。

By segment, CPG is expected to outgrow its markets with continued strength in high-performance building and restoration projects. At PCG, we expect incremental demand improvements in the fourth quarter when comparisons become easier. At consumer and SPG, we expect that residential end market demand has potential for an improvement later in the fiscal year. An elevated interest rates for longer may push out the timing of this recovery. On a consolidated level, we expect adjusted EBIT growth to be led by MAP 2025 improvements and the realization of these benefits on the P&L will be driven by how quickly volumes recover.

按細分市場來看，CPG 預計將憑藉在高性能建築和修復項目方面的持續優勢，超越其市場。在 PCG，我們預計第四季度需求將有所改善，屆時比較將變得更加容易。在消費者和 SPG 方面，我們預期住宅終端市場需求在本財年稍後有改善的潛力。利率持續升高可能會推遲復甦的時間。在綜合層面上，我們預期調整後的息稅前利潤成長將由 MAP 2025 的改進帶動，而這些損益表效益的實現將取決於銷售恢復的速度。

This concludes our prepared comments. We will now be pleased to answer your questions.

我們準備好的評論到此結束。我們現在很樂意回答您的問題。

(Operator Instructions) Mike Harrison, Seaport Research Partners.

（操作員說明）Mike Harrison，海港研究夥伴。

Congrats on a nice quarter here. I wanted to ask about the third quarter guidance I understand that this is a seasonally slower quarter, and it's a quarter where typically you can see a more pronounced impact of volume as it's being leveraged across your fixed cost, but I'm a little bit surprised to see that you're guiding to flat sales and flat EBIT. So I'm just kind of curious, why would you not expect to be able to show some EBIT growth despite flat sales because you have some MAT benefits? What are the negatives that are offsetting the MAT benefits, I guess, is my question.

恭喜您度過了一個愉快的季度。我想詢問第三季度的指導，我知道這是一個季節性放緩的季度，在這個季度，通常您可以看到銷量的更明顯影響，因為它在固定成本中發揮了槓桿作用，但我有點很驚訝地發現您的銷售額和息稅前利潤持平。所以我只是有點好奇，為什麼儘管銷售額持平，但你不希望能夠顯示出一些息稅前利潤增長，因為你有一些 MAT 的好處？我想，我的問題是哪些負面因素抵消了 MAT 的好處。

Sure. So first of all, I think the outlook for Q3 is real simple. It is -- we had a number of years, particularly last year that was very mild and whether it's in our construction products group or early spring sales in our consumer group. We benefited by a very strong all-time record third quarter last year on top of a record third quarter of the year before. And all you need to do is look out the window almost anywhere in this country, and you're seeing snow and the return of a real winter. And we have been -- remain have always been seasonal. And so I think the simple story is the strong leverage to our bottom line and a return in the second quarter to volume growth, not just growth but unit volume growth in each one of our segments is being interrupted by a real winter.

當然。首先，我認為第三季的前景非常簡單。多年來，尤其是去年，無論是我們的建築產品部門還是我們消費者部門的早春銷售，情況都非常溫和。去年第三季我們創下了歷史最高紀錄，而前年第三季創出了歷史新高，這讓我們受益匪淺。您所需要做的就是向窗外看，幾乎在這個國家的任何地方，您都會看到雪花和真正的冬天的回歸。我們一直都是季節性的。因此，我認為簡單的故事是對我們底線的強大槓桿作用以及第二季度銷售增長的回歸，不僅僅是增長，而且我們每個細分市場的單位銷售增長都被真正的冬天打斷了。

We fully expect to see strong sales and earnings growth return in the spring. It's a combination of I think we've turned the corner in growth after a sluggish probably 12 or 15 months. Our MAP benefits are continuing to leverage revenue growth to our bottom line. And we've got a number of new product introductions, particularly in consumer that will be starting to ship in February and March. So we feel pretty good about where we are. We are a seasonal business and have been since our founding, and that seasonality is showing up this winter.

我們完全預期春季銷售和獲利將恢復強勁成長。我認為，在經歷了 12 或 15 個月的低迷之後，我們已經扭轉了成長的困境。我們的 MAP 優勢正在繼續利用收入成長來提高我們的利潤。我們推出了許多新產品，特別是消費者產品，將於二月和三月開始出貨。所以我們對自己所處的位置感覺很好。我們是一家季節性企業，自成立以來一直如此，而這種季節性在今年冬天就顯現出來了。

All right. That's helpful. And then you mentioned in both the consumer business and specialty business that you're seeing some benefits from stabilization in residential markets. Can you maybe give us a little bit more color? I know you called out specifically the residential OEM piece of specialty and then maybe it's that some of your big box retailers have seen some stabilization in their inventory levels. But just talk about what's giving you confidence that you're seeing stabilization in those resi markets.

好的。這很有幫助。然後您在消費品業務和專業業務中提到，您看到了住宅市場穩定帶來的一些好處。你能給我們多一點顏色嗎？我知道您特別提到了住宅 OEM 專業產品，然後可能是您的一些大型零售商的庫存水平有所穩定。但只要談談是什麼讓您有信心看到這些 Resi 市場趨於穩定。

Sure. Some of it's in your comps. I think as those on the call know, we suffered through an extraordinary period of time, particularly in our consumer group with modestly negative consumer takeaway for many quarters. We were the beneficiary of the COVID bump, and then we bumped into supply chain challenges, rising interest rates, old story -- but we've never seen a 12- or 15-month flat to negative consumer takeaway in our consumer segment in our history, and that's what we're coming out of. So some of it's easier comps.

當然。其中一些在你的比較中。我認為，正如那些參加電話會議的人所知，我們經歷了一段非同尋常的時期，特別是在我們的消費者群體中，許多季度的消費者外賣都出現了適度的負面影響。我們是新冠肺炎疫情衝擊的受益者，然後我們遇到了供應鏈挑戰、利率上升、老故事——但我們從未見過我們的消費領域出現12 或15 個月的消費者外賣持平到負的情況。所以有些比較容易比較。

You're starting to see some softening in what were historically low housing turnover rates relative to rising interest rates. And so housing turnover, home sales in home construction are stabilizing and moving in the right direction, albeit in a choppy period -- but my experience is when times are good, and you start to see some choppy performance, it might be an indicator of a down swing. And when times have been tough, and you see some choppy performance on the upswing. It might be an indication of a turn. And I think that's where we are.

你開始看到歷史上較低的房屋週轉率相對於不斷上升的利率有所放緩。因此，房屋成交量、房屋建築中的房屋銷售正在穩定並朝著正確的方向發展，儘管處於波動時期——但我的經驗是，當形勢好的時候，你開始看到一些波動的表現，這可能是一個指標向下擺動。當情況艱難時，你會看到上升過程中出現一些不穩定的表現。這可能是個轉折的跡象。我認為這就是我們現在的情況。

Quite honestly, the year-over-year weather impact is disappointing because we've really started focusing on a pivot to growth across RPM on top of real strong MAP initiatives going back to the initiation of those in 2018 and second quarter was very encouraging, and it's being interrupted. So I think the dynamics that we're looking at are starting to move in the right direction.

老實說，同比天氣影響令人失望，因為除了真正強大的 MAP 舉措之外，我們已經真正開始關注 RPM 增長的支點，這可以追溯到 2018 年啟動的這些舉措，第二季度非常令人鼓舞，並且它正在被中斷。所以我認為我們正在關注的動態正在開始朝著正確的方向發展。

But as Rusty said, there's certainly a lot of uncertainty relative to the pace of interest rate reductions and/or what's coming geopolitically relative to threat and tariffs and other things. So we'll respond to those, I think, effectively. Put all that aside, it feels like we hit bottom in some of our more challenged specialty products group and consumer product lines that have had a difficult year, year-and-a-half, and should be moving in the right direction.

但正如魯斯蒂所說，相對於降息的步伐和/或相對於威脅、關稅和其他事情的地緣政治變化，肯定存在許多不確定性。因此，我認為我們將有效地回應這些問題。撇開所有這些不談，感覺我們的一些更具挑戰性的特種產品集團和消費產品線已經觸底，這些產品線經歷了艱難的一年、一年半，應該朝著正確的方向前進。

John Roberts, Mizuho.

約翰·羅伯茨，瑞穗。

In the consumer segment, are you seeing a significant bifurcation in your customers? I mean, you've got one that went bankrupt? Are you seeing like above average growth in the large home center area and these smaller customers are struggling and so the business is starting to bifurcate.

在消費者細分市場中，您是否發現客戶有明顯的分歧？我的意思是，你有一家破產了嗎？您是否看到大型家居中心區域的成長高於平均水平，而這些較小的客戶正在苦苦掙扎，因此業務開始分化。

I think that's been true over the last year, 1.5 years, where you saw some challenges at some of the big boxes and strength in some of the dollar store and discount chain, large discount chain customers, where we saw better consumer takeaway as consumers shifted in that direction.

我認為過去一年，即1.5 年，情況確實如此，你看到一些大盒子麵臨一些挑戰，也看到一些一元商店和折扣連鎖店、大型折扣連鎖店客戶的實力，隨著消費者的轉變，我們看到更好的消費者外賣朝那個方向。

You also saw in response to that at some of our larger customers, inventory adjustments over the last couple of years. We think most of those are behind us. And I think you're going to start to see a return this spring to more traditional consumer takeaway across our entire supply chain or customer base. But your comments were certainly true over the last 12 or 15 months, and we can see it in our consumer takeaway numbers with stronger results in certain areas and weaker results than others.

您還看到我們的一些較大客戶在過去幾年中進行了庫存調整。我們認為其中大部分已經過去了。我認為今年春天你將開始看到我們整個供應鏈或客戶群中更傳統的消費者外送的回歸。但在過去 12 或 15 個月裡，您的評論肯定是正確的，我們可以從我們的消費者外送數據中看到這一點，某些領域的結果更強，而其他領域的結果則較弱。

And do you think your bad debt reserves sort of anticipate any additional smaller customers going down?

您認為您的壞帳準備金是否可以預見任何其他小型客戶的減少？

Yes. And we don't see any challenges on the horizon. This one hardware store co-op business was challenged. It's assets been picked up by a related entity and I think some of that business will return, but it was a little bit of a surprise to us and to others.

是的。我們沒有看到任何挑戰。這一五金店合作社業務受到了挑戰。它的資產被相關實體收購，我認為其中一些業務將會回歸，但這對我們和其他人來說有點驚訝。

Josh Spector, UBS.

喬許‧斯佩克特，瑞銀集團。

So I wanted to ask just on the November quarter, really strong performance on sales. I assume that 3% beat versus your expectations was primarily volumes, but correct me if I'm wrong. But on that basis, your EBIT beat by about 4%. I guess I would have thought that there would have been a lot more leverage to that volume because a lot of the MAP savings, we've talked about bigger leverage on bigger volumes. So why don't we see that come through in a much stronger way in the December -- or sorry, November quarter?

所以我想問一下 11 月季度的銷售表現是否真的強勁。我認為 3% 超出您的預期主要是銷量，但如果我錯了，請糾正我。但在此基礎上，您的息稅前利潤增加了約 4%。我想我會認為該交易量會有更多的槓桿作用，因為大量的 MAP 節省，我們已經討論過對更大交易量的更大槓桿作用。那麼，為什麼我們不看到這一點在 12 月——或者抱歉，11 月季度以更強勁的方式實現呢？

Sure. So first of all, it was all unit volume and each one of our segments was at 3% unit volume growth or better. And I think when you look across our segment performance, we did demonstrate some leverage to the bottom line with the exception of consumer. If you adjusted for the $4.4 million bankruptcy, you would have seen a much better performance there on the EBIT line. And -- so that's kind of where we are there and we would expect to see solid leverage, you'll see in our Q4 solid leverage if we have the right volume growth.

當然。因此，首先，這都是單位銷量，我們的每個細分市場的單位銷售成長率均為 3% 或更高。我認為，當你縱觀我們的細分市場表現時，我們確實展示了對消費者以外的利潤的一些影響力。如果你對 440 萬美元的破產進行調整，你會看到息稅前利潤線的表現要好得多。而且——這就是我們所處的位置，我們預計會看到穩定的槓桿，如果我們有適當的銷售成長，你會在我們的第四季看到穩定的槓桿。

I guess related to that is -- so to your point, on the May quarter, I mean my math is the midpoint of your guidance will be about 15% EBIT growth. What volumes do you need to underwrite to achieve that?

我想與此相關的是——所以就你的觀點而言，在 5 月份這個季度，我的意思是我的數學是你的指導的中點將是 15% 左右的息稅前利潤增長。為了實現這一目標，您需要承保多少數量的資金？

I don't know off the top of my head. But certainly, 3% unit volume growth that we've experienced in Q2 will be in the range of what we need to drive a solid double-digit earnings growth in Q4. Assuming there's not any -- again, I think you have to adjust out the $4.4 million receivable write-off that we took in Q2 to get to a more reasonable leverage number.

我根本不知道。但可以肯定的是，我們在第二季度經歷的 3% 的銷售成長將在我們推動第四季度實現兩位數獲利成長所需的範圍內。假設沒有任何——我認為你必須調整我們在第二季度進行的 440 萬美元應收帳款沖銷，以獲得更合理的槓桿數字。

Yes. One last comment on that. Q4 is a higher volume quarter as well. That's why you'll see better leverage. Our back to seasonality, our strongest quarter is Q4 and Q1, Q2 is sadly a lower revenue quarter and Q3 is our seasonal low period and always has been.

是的。最後對此發表評論。第四季也是銷量較高的季度。這就是為什麼您會看到更好的槓桿作用。我們回到季節性，我們最強勁的季度是第四季度和第一季度，遺憾的是第二季度是收入較低的季度，第三季度是我們的季節性低谷期，而且一直如此。

Vincent Andrews, Morgan Stanley.

文森安德魯斯，摩根士丹利。

Just two quick ones to clarify some things. First, the $4.4 million, was that in the original guidance or the guidance for fiscal 2Q? Or did that I get that you had to leave it in for certain reasons, but was that anticipated in the numbers you gave us last quarter?

只需兩個簡短的內容即可澄清一些事情。首先，440 萬美元是在最初的指導還是在第二財季的指導中？或者我知道您出於某些原因必須將其保留，但您上季度提供給我們的數據是否預期了這一點？

No, it was not. It was a late October event and not something we anticipated.

不，事實並非如此。這是十月下旬的事件，出乎我們的意料。

Okay. And then you've left the sales guidance loan for the full year, but you've narrowed the full year EBIT range. I just want to understand, are you pointing us a little bit more towards the lower end of that sales guide and that's what's driving the narrowing of the EBIT range? Or is there one or two items that's causing that?

好的。然後，您保留了全年的銷售指導貸款，但縮小了全年息稅前利潤範圍。我只是想了解，您是否向我們指出了銷售指南的下限，這就是導致息稅前利潤範圍縮小的原因？或者是否有一兩個因素導致了這種情況？

No, it's really the seasonality of Q3 and what it's doing to our expected results versus an all-time record in Q3 last year. And then I think the the variation there in Q4, which, again, we expect a strong fourth quarter, whether it's modestly strong or very strong depends on whether the seasonality and the impact of weather pushes sales that we otherwise would have had in Q3 to Q4 beyond what we expect. So I think there is some wide -- a little bit of a wide range in terms of what we expect on the bottom line will be double digit. That's at least our expectation today. Some of that's going to be whether we pick up otherwise what would have been Q3 results in Q4.

不，這實際上是第三季的季節性以及它對我們的預期結果與去年第三季的歷史記錄的影響。然後我認為第四季度的變化，我們再次預計第四季度會強勁，無論是適度強勁還是非常強勁，都取決於季節性和天氣的影響是否會推動我們在第三季度的銷售量第四季度超出了我們的預期。所以我認為，就我們預期的底線而言，有一些寬泛的範圍——一點點寬泛的範圍將是兩位數。這至少是我們今天的期望。其中一些問題是我們是否會在第四季獲得第三季的結果。

John McNulty, BMO Capital Markets.

約翰·麥克納爾蒂 (John McNulty)，BMO 資本市場部。

So I guess the first one is, I know over the last couple of quarters, you had spoken to in terms of the onshoring there was a little bit of a pause that was taking place and like the performance in the construction segments, but you thought that would pretty soon come to an end. I guess, is that still the case? Are we pretty much through that that slow period?

所以我想第一個是，我知道在過去的幾個季度裡，您曾談到在岸外包方面出現了一點暫停，就像建築領域的表現一樣，但您認為這很快就會結束。我想，現在還是這樣嗎？我們已經度過了那個緩慢的時期了嗎？

And also, I guess with the election now having taken place and maybe they're a little bit more about US protectionism. Are you seeing any signs of an increase around onshoring yet? Or is it a little bit too early to see that?

而且，我想現在選舉已經開始，也許他們更關注美國的保護主義。您是否看到了外包增加的跡象？或者現在看到這一點還為時過早嗎？

I think it's too early. We're seeing a continuation in kind of small- to medium-sized projects in manufacturing, which is benefiting us. As we commented in the last quarter, some of the larger projects in microelectronics, things like that, that we're committed to and already have some US dollar support behind. I believe will play out over a longer period of time. And so for instance, there's a big Intel project here in our home state of Ohio, I don't see that being canceled or halted, but the expectations here now is just going to play out over a five- to seven-year period as opposed to a three- to five-year period. So it will even out some of this, but we don't expect any of it to go away.

我認為現在還為時過早。我們看到製造業中小型專案的持續進行，這使我們受益。正如我們在上個季度所評論的那樣，我們致力於微電子領域的一些大型項目，諸如此類，並且已經得到了一些美元的支持。相信會在較長一段時間內發揮作用。舉例來說，我們的家鄉俄亥俄州有一個大型英特爾項目，我不認為該項目會被取消或停止，但現在的期望只會在五到七年的時間內實現與三到五年的期限相反。因此，它會抵消一些影響，但我們預計這些影響不會消失。

Got it. Okay. No, that makes sense. And then on the MAP side, you indicated that you're seeing kind of the pipeline for MAP projects actually growing at this point. I guess, can you help to frame that in terms of size or potential uplift maybe to the past targets or anything like that.

知道了。好的。不，這是有道理的。然後在 MAP 方面，您表示您看到 MAP 專案的管道此時實際上正在成長。我想，您能否幫助我們從規模或潛在提升的角度來建立過去的目標或類似的目標。

Sure. Our original MAP program targeted $290 million of savings and efficiencies, and we shared that detail on how it would play out over a three-year MAP -- our 2020 MAP growth program. And when we concluded that program, we achieved actually about $325 million.

當然。我們最初的 MAP 計劃的目標是節省 2.9 億美元並提高效率，我們分享了該計劃如何在三年 MAP（我們的 2020 MAP 增長計劃）中發揮作用的細節。當我們完成該計劃時，我們實際上獲得了約 3.25 億美元的收入。

When we introduced MAP 2025, I believe the number over the entire period was $465 million. You will see that in our P&L in fiscal '26 as we are continuing to execute on initiatives. It's likely that the benefits of MAP '25 will reach $500 million. And so our people continue to perform pretty well. Matt Schlarb, highlighted, again, and we've done this in some calls, some of what those initiatives look like.

當我們推出 MAP 2025 時，我相信整個時期的數字為 4.65 億美元。您將在我們 26 財年的損益表中看到這一點，因為我們正在繼續執行措施。MAP '25 的收益可能會達到 5 億美元。因此，我們的員工繼續表現出色。馬特·施拉布（Matt Schlarb）再次強調，我們在一些電話會議中做到了這一點，這些舉措的一些內容如下。

And I'll just reiterate, RPM had a very entrepreneurial culture and a lot of independents, particularly in the manufacturing and operations side. Our ability to bring a center-led approach and to beginning to introduce lean manufacturing disciplines that are not new to manufacturing, but have been relatively new to RPM over the last four or five years is having a really good impact. And so we expect to see that continue as we introduce these into European and international markets, the impact of which was delayed by COVID as our initial focus is we're in North America.

我重申一下，RPM 擁有非常創業的文化和許多獨立人士，特別是在製造和營運方面。我們能夠採用以中心為主導的方法，並開始引入精益製造學科，這些學科對於製造業來說並不新鮮，但在過去四五年裡對於 RPM 來說相對較新，正在產生非常好的影響。因此，當我們將這些產品引入歐洲和國際市場時，我們預計這種情況會持續下去，其影響將因新冠肺炎疫情而推遲，因為我們最初的重點是北美。

So I think the biggest change in our MAP initiatives, while we've executed on a bunch of cost savings and efficiency programs, and we can identify the number of plants that we've closed, we can identify the number of ERP systems that we've consolidated. Probably the biggest harder-to-value measure is how it's changed our culture. There is a level of collaboration across our operations and our businesses today that quite candidly didn't exist seven years ago, and we're reaping the benefits of that, and there's more to come.

因此，我認為我們的 MAP 計劃中最大的變化是，雖然我們執行了一系列成本節約和效率計劃，並且我們可以確定我們關閉的工廠數量，我們可以確定我們關閉的 ERP 系統的數量。 。也許最難評估的衡量標準是它如何改變了我們的文化。今天，我們的營運和業務之間存在一定程度的協作，而這是七年前根本不存在的，我們正在從中受益，而且還會有更多的好處。

Frank Mitsch, Fermium Research.

弗蘭克米奇，費米研究中心。

I'd like to talk about the interplay between price and raws. Last quarter indicated that deflation was about 2% in the fiscal first quarter. Just curious what the second quarter is and what your outlook is there. And it sounded like price was pretty close to flat in the fiscal second quarter. Just curious if you could provide any more color there.

我想談談價格和原料之間的相互作用。上季顯示，第一財季通貨緊縮約2%。只是好奇第二季度是什麼以及您的前景如何。聽起來第二財季的價格幾乎持平。只是好奇你是否可以在那裡提供更多顏色。

Absolutely. It's a great question. And your assumption is correct. We're about flat in a kind of an odd period of some raw materials that are -- have declined a little bit and some raw materials that are increasing. As we sit here today, it feels like as we get into calendar '25, we're seeing what across the board will be somewhere in the 1.5% to 2% inflation across our core raw materials. We have some modest price increases in one of our business units, especially products and one of our business categories in our construction products group announced both for end of January and in March, but we are on high alert in terms of where inflation might go relative to threat tariffs and/or other factors I think we -- and a lot of people have learned over the last couple of years, both what are the tools to use to raise prices where appropriate and how to instill courage in your sales force to go get it. And so we're certainly on alert for that.

絕對地。這是一個很好的問題。你的假設是正確的。我們正處於一個奇怪的時期，一些原材料略有下降，而一些原材料卻在增加。當我們今天坐在這裡時，感覺就像進入 25 日曆年一樣，我們看到我們的核心原材料將全面上漲 1.5% 至 2%。我們的一個業務部門，特別是建築產品集團的產品和一個業務類別，在 1 月底和 3 月份宣布價格略有上漲，但我們對通膨可能走向的相對高度保持高度警惕。 ，我認為我們以及許多人在過去幾年中已經了解到，在適當的情況下可以使用哪些工具來提高價格，以及如何向銷售人員灌輸勇氣得到它。因此，我們當然對此保持警惕。

And I guess the last comment I would make is that we are not very exposed to the Asian markets. We don't do much business in China. The Asia Pacific region is our smallest, and we also don't have a lot of exposure to import raw materials. Some of those will impact our food group to get some ingredients from China. Our Legend Brands business to get some components from China. Broadly speaking, certain chemical raw materials, but I think our exposure is less than many of our peers.

我想我要說的最後一句話是，我們對亞洲市場的曝險並不大。我們在中國做的生意不多。亞太地區是我們最小的地區，我們也沒有太多進口原料的機會。其中一些將影響我們的食品集團從中國獲取一些原料。我們的傳奇品牌業務從中國採購一些零件。從廣義上講，是某些化學原料，但我認為我們的接觸量比許多同行要少。

Terrific. Very helpful. And then you indicated that the balance sheet is about the best that it's been in a long time, and you obviously made an acquisition in the quarter, TMP Convert. You did some buybacks. Now with the stock down since Thanksgiving relatively significantly or materially, I'm just curious about the interplay between M&A versus buybacks.

了不起。非常有幫助。然後您表示資產負債表是很長一段時間以來最好的，而且您顯然在本季度進行了收購，TMP Convert。你做了一些回購。現在，自感恩節以來，股價相對顯著或大幅下跌，我只是對併購與回購之間的交互作用感到好奇。

Sure. So first of all, our balance sheet is in the best condition it's been since I joined RPM 35 years ago. Our cash flow is at record levels. As you saw in the quarter, we're continuing through the MAP initiatives to improve working capital efficiency. We're continuing to improve our cash conversion cycle. We continue to be focused on that. We will moderate the opportunities between buybacks and acquisition opportunities, but I do not want to be the CEO that falls in love with his best-ever balance sheet and becomes afraid to use it. So when opportunities arrive at the right value that are good strategic fits, we've built balance sheet strength so we can put it to use smartly and strategically.

當然。首先，我們的資產負債表處於我 35 年前加入 RPM 以來的最佳狀態。我們的現金流處於創紀錄的水平。正如您在本季度所看到的，我們將繼續透過 MAP 措施來提高營運資金效率。我們正在繼續改善現金轉換週期。我們將繼續關注這一點。我們將調整回購和收購機會之間的機會，但我不想成為愛上自己有史以來最好的資產負債表並害怕使用它的執行長。因此，當機會達到適合策略的正確價值時，我們就建立了資產負債表實力，以便我們可以明智地、策略性地利用它。

David Huang, Deutsche Bank.

黃大衛，德意志銀行。

Just on CPG, what percentage of volumes were negatively impacted by the hurricanes in Q2? Was that 1% to 2% and I guess the majority of those delayed volumes probably won't be impacted much by the winter weather. Do you expect those to come back in Q3, post insurance claim payouts or will Q4 see the actual pent-up volume improvement from all of the weather events in Q2 and Q3?

就 CPG 而言，第二季受到颶風負面影響的銷售百分比是多少？是 1% 到 2% 嗎？您是否預計這些會在第三季度恢復，保險索賠賠付後，或者第四季度會看到第二季度和第三季度所有天氣事件帶來的實際被壓抑的交易量改善嗎？

Sure. I don't have an exact answer to that. I can tell you that our construction products group and our performance coatings group had some disruptions at the beginning of the quarter because of the hurricanes and how that plays out in Q3 or Q4 is difficult to know.

當然。我對此沒有確切的答案。我可以告訴您，由於颶風，我們的建築產品部門和高性能塗料部門在本季初出現了一些中斷，很難知道第三季或第四季的情況如何。

Some of it, again, will be weather-related. If we continue with the severe cold weather and winter weather and snow across wide parts of the United States for another month or two, that would result in deferring -- for instance, products sold through distribution and our construction products group being deferred to later in the year, meaning February or March as opposed to now. That's reflected in our outlook. So it could have been a stronger quarter except for the early impact of the hurricanes and the write-off in our consumer group, but it is what it is.

其中一些再次與天氣有關。如果美國大部分地區的嚴寒天氣、冬季天氣和降雪繼續持續一兩個月，這將導致推遲——例如，透過分銷銷售的產品和我們的建築產品組將推遲到晚些時候年份，指的是二月或三月，而不是現在。這反映在我們的前景中。因此，除了颶風的早期影響和我們消費者群體的註銷之外，本季度可能會是一個更強勁的季度，但事實就是如此。

Okay. Got it. And then I guess you touched on this for consumer. But on the various construction end markets you're exposed to you, what are you seeing where are you seeing any incremental signs of either improvement or deterioration? Or has your outlook potential recovery change here?

好的。知道了。然後我猜你談到了消費者的這一點。但在您接觸到的各種建築終端市場上，您看到了什麼，您在哪裡看到了改善或惡化的增量跡象？或者您對潛在復甦前景的看法是否改變了？

Sure. So -- as I commented earlier, after 12 or 15 months of negative consumer takeaway, we kind of are seeing signs of that stabilizing. And so that's one piece of it. We are seeing some choppy signs that the housing market in terms of home turnovers and new home constructions are starting to improve.

當然。因此，正如我之前所評論的，在經歷了 12 或 15 個月的消費者負面影響之後，我們似乎看到了這種穩定的跡象。這就是其中的一部分。我們看到一些不穩定的跡象，顯示房地產市場的房屋成交量和新房屋建設正在開始改善。

And we've got a number of new product introductions coming out in our consumer business in a couple of categories, some in coatings, some in cleaning products that we're excited about. And so it feels like both the dynamics and rounding some easier comps because of the challenges that we've talked about, give us hope that we're going to start to see better week-by-week and month-by-month consumer takeaway.

我們的消費業務在幾個類別中推出了許多新產品，有些是塗料，有些是清潔產品，我們對此感到興奮。因此，由於我們所討論的挑戰，動力和四捨五入一些更容易的比較，給我們希望，我們將開始看到更好的每周和每月的消費者外賣。

Kevin McCarthy, Vertical Research Partners.

凱文·麥卡錫，垂直研究夥伴。

I want to follow up on two aspects of the prior discussion on the MAP program. First, has to do with timing. I think that previously, there was going to be some spillover of your savings into fiscal 2026. And now you've upsized the target to $500 million. So I was wondering if you could comment on what amount of savings you would expect to fall into this year versus next year?

我想對之前關於 MAP 計劃的討論的兩個方面進行跟進。首先，與時機有關。我認為之前，您的儲蓄會溢出到 2026 財年。現在您已將目標提高到 5 億美元。所以我想知道您是否可以評論今年與明年相比您預計會節省多少金額？

And then secondly, on MAP, I think a couple of quarters ago, Frank, you hinted that you're working on potential for a new program. And -- just wanted to follow up on that. How would you characterize the likelihood and timing of any new programs?

其次，在 MAP 上，我認為幾個季度前，弗蘭克，您暗示您正在研究新專案的潛力。而且——只是想跟進此事。您如何描述任何新計劃的可能性和時機？

Sure. I don't have any specifics. Maybe one of my colleagues does on how we think about MAP this year into next year other than our MAP '25 program, and we communicated this in both the original 2020 MAP growth in this one that we would achieve our results on an annualized run rate by May 31, 2025, meaning that the full impact would be realized in fiscal '26. And so you're not going to see the full impact of that $500 million until we get into fiscal '26.

當然。我沒有任何具體情況。也許我的一位同事會討論我們如何看待今年到明年的MAP，而不是我們的MAP '25 計劃，我們在最初的2020 年MAP 增長中傳達了這一點，我們將根據年化運行率實現我們的結果到 2025 年 5 月 31 日，這意味著全部影響將在 26 財年實現。因此，在進入 26 財年之前，您不會看到這 5 億美元的全部影響。

We have been running at about $30 million of MAP benefits per quarter, keeping in mind, and this goes back to an earlier question, a lot of the MAP 2025 benefits have been at the conversion cost, manufacturing level. So it's truly volume-driven. So with lower volume, you're going to get lower benefits with higher volume, you'll get higher benefits as opposed to an SG&A cut that kind of is even across your monthly periods.

我們每季的 MAP 收益約為 3000 萬美元，請記住，這又回到了先前的問題，MAP 2025 的許多收益都體現在轉換成本和製造層面。所以它確實是數量驅動的。因此，如果交易量較低，您將獲得較低的福利；如果交易量較高，您將獲得較高的福利，而不是在每月期間進行 SG&A 削減。

We will be working on what follows MAP 2025 in our spring strategic planning process. And it's my anticipation like we did in November of '18 and like we did in November of '22 that sometime this fall, we would have a communication on what follows MAP 2025. And I don't know that I would provide much more details on that in part because we're working on it and in part because it's not finalized. It'd be interesting to see what we call it. And -- but in any event, there is more work to do, and we would anticipate providing some details around the new strategic planning and growth program this fall.

我們將在春季策略規劃流程中致力於 MAP 2025 後續工作。我預計，就像我們在 18 年 11 月和 22 年 11 月所做的那樣，今年秋天的某個時候，我們將就 MAP 2025 之後的內容進行溝通。我不知道我是否會提供更多細節，部分原因是我們正在研究它，部分原因是它尚未最終確定。看看我們怎麼稱呼它會很有趣。但無論如何，還有更多工作要做，我們預計在今年秋天提供有關新策略規劃和成長計畫的一些細節。

I will tell you that the challenge for us in relationship to that great question about what's next is the need to embed and we're doing it, the MAP map learnings into our culture and then pivot the organization to growth. And the second quarter performance was felt good in terms of that movement that we need to make. And it's disappointing to see it being interrupted by a real winter, but we anticipate seeing that focus come back in Q4, and we'll provide more details in the fall.

我會告訴你，我們面臨的挑戰是，我們需要將 MAP 地圖學習融入我們的文化中，然後推動組織成長，而我們正在這樣做。就我們需要採取的行動而言，第二季的表現感覺良好。令人失望的是看到它被真正的冬天打斷，但我們預計會在第四季度看到這一焦點回歸，我們將在秋季提供更多細節。

Okay. Sounds good. As a second question, if I may. Can you comment on your sales volume experience in the month of December. And I'm thinking about two things there, Frank. First, clearly, weather is an important variable as you've talked about. Is that whether something that you've already experienced over the last several weeks or something that you anticipate for January and February? And then the second thing would be just kind of destocking around the calendar year-end and how that impacted volumes, if at all, relative to a normal year?

好的。聽起來不錯。作為第二個問題，如果可以的話。您能否評論一下您在 12 月的銷售經驗？我正在考慮兩件事，弗蘭克。首先，顯然，正如您所說，天氣是一個重要的變數。這是您在過去幾週已經經歷過的事情還是您預計在一月和二月發生的事情？那麼第二件事就是在年底前後減少庫存，這對正常年份的銷售量（如果有的話）有何影響？

Sure. I don't know that we would want to get into month-by-month performance criteria. But I can tell you, our outlook is shaped by the early part of Q3 and certainly our February results. Again, if you follow the hyperbole of the media, it's snowmageddon, it's this horrible snow event in the Southeast. It's Alberta clipper coming across the United States. It's just a real winter. And there's been snow on the ground. There's been cold weather in the Southeast, I could go on and on. It's just a real winter. And in comparison to two record third quarters after each other, we are experiencing the seasonality that's been normal throughout RPM's history, started at the end of November. It's continuing in December.

當然。我不知道我們是否想要了解逐月的績效標準。但我可以告訴你，我們的前景是由第三季初期以及我們二月的業績決定的。再說一遍，如果你遵循媒體的誇張說法，那就是“snowmageddon”，這是東南部發生的可怕的降雪事件。這是阿爾伯塔快船穿越美國。這只是一個真正的冬天。而且地上已經有雪了。東南部天氣寒冷，我可以繼續說下去。這只是一個真正的冬天。與連續兩個創紀錄的第三季度相比，我們正在經歷 RPM 歷史上正常的季節性，從 11 月底開始。12月還在繼續。

And as I look out the window, it doesn't feel like we're going to see the green grass until sometime in February or March. And and that is reflected in our outlook. I can tell you, and this is just a wish and not something we would plan, I'd like to see us work like hell to have a positive EBIT number in Q3. Not sure that's in the cards based on how long this weather hands around. But if we did, it would be our 13th consecutive quarter of record earnings results. And it will be disappointing if that ends, but we'll pick up where we are, and you'll see solid results in Q4.

當我望向窗外時，感覺要到二月或三月的某個時候我們才能看到綠草。這反映在我們的前景中。我可以告訴你，這只是一個願望，而不是我們計劃的事情，我希望看到我們拼命工作，在第三季度獲得正的息稅前利潤。根據這種天氣持續多久，不確定是否會發生這種情況。但如果我們做到了，這將是我們連續第 13 季創紀錄的獲利業績。如果這種情況結束，將會令人失望，但我們會恢復現狀，你會在第四季看到堅實的結果。

Jeff Zekauskas, JPMorgan.

傑夫‧澤考斯卡斯，摩根大通。

The gross profit margin was lower year-over-year despite the 3% sales growth. Why was that?

儘管銷售額成長了 3%，但毛利率仍較去年同期下降。為什麼會這樣呢？

Principally around mix. In our construction products group, we have a significant and growing services business, it's our WTI weather-proofing technology. It's got a solid EBIT margin, but a significantly lower gross profit margin than our pure material sales. And so it was mixed in a number of places. It was mix in consumer and a few of our other businesses, but the biggest mix impact was in our construction products group. And that's what drove the essentially flat year-over-year gross profit. We are attuned, as I commented earlier, to what we anticipate is coming and are already taking a look where we can and price increases to overcome that to get back to a positive gross margin performance that we've been demonstrating for the last couple of years.

主要圍繞混合。在我們的建築產品集團中，我們擁有重要且不斷成長的服務業務，這就是我們的 WTI 防風雨技術。它的息稅前利潤率很高，但毛利率明顯低於我們的純材料銷售。所以它在很多地方都是混合的。這是消費者和我們其他一些業務的混合，但最大的混合影響是我們的建築產品部門。這就是毛利同比基本持平的原因。正如我之前所說，我們已經適應了我們預期的情況，並且已經在考慮如何透過價格上漲來克服這個問題，以恢復我們在過去幾年中所展示的積極的毛利率表現。

In thinking about the MAP program longer term, is the point of the program to grow SG&A. I don't know, 1% or 1.5% or some number that's below your normalized volume growth rate? Or is the point of the program something else?

從長遠角度考慮 MAP 計劃，該計劃的重點是提高 SG&A。我不知道，1% 或 1.5% 或某個低於正常銷售成長率的數字？或者這個計劃的目的又是別的？

So put aside the MAP initiatives, which are really focused on cash conversion cycle efficiency, operating improvements and you can see that in our results. We are becoming more strategic about our SG&A spend, notwithstanding some past criticism a year or so ago when you could see our SG&A growing at a rate faster than sales. It was very targeted at some growth initiatives.

因此，拋開 MAP 計劃不談，這些計劃真正關注的是現金轉換週期效率、營運改進，您可以在我們的結果中看到這一點。儘管大約一年前我們的 SG&A 支出成長速度快於銷售額，但我們對 SG&A 支出變得更具策略性，儘管過去曾受到一些批評。它非常有針對性地針對一些成長計劃。

After a year or so of that, we were able to pivot to focus our organization and kind of solidifying where we're having success with those initiatives and where we weren't -- where we weren't cutting back. So I think we'll be better communicators about where we're investing for growth.

經過一年左右的時間，我們能夠將重點放在我們的組織上，並在某種程度上鞏固我們在這些舉措上取得成功的地方和我們沒有成功的地方——我們沒有削減開支。因此，我認為我們將更好地溝通我們在哪些方面進行投資以促進成長。

There's some new product categories, for instance, in some cleaning products this spring in our consumer business. I would anticipate a higher SG&A spend as we introduce some of these new programs, we can provide details when they're in the market.

例如，今年春天我們的消費者業務中的一些清潔產品出現了一些新的產品類別。當我們推出其中一些新計劃時，我預計 SG&A 支出會更高，我們可以在它們上市時提供詳細資訊。

We are having higher spends associated with capital investments that are hitting our P&L. For instance, Corsicana was an acquisition of resin and production that we acquired as part of our construction products group. We're finally seeing a positive earnings out of that business, but it was vital in terms of what it provided for us during a challenging time. We are investing heavily in a resin center of excellence as part of our DayGlo Color group in Europe.

我們與資本投資相關的支出增加，這影響了我們的損益。例如，科西卡納是我們收購的樹脂和生產產品，也是我們建築產品集團的一部分。我們終於看到了該業務的正收益，但就其在充滿挑戰的時期為我們提供的服務而言，這至關重要。我們正在大力投資建立一個卓越的樹脂中心，作為歐洲 DayGlo Color 集團的一部分。

And so there's some areas where we're being very strategic that will impact our SG&A. When the results of those strategic investments in our P&L prove true, everybody will be happy. And when the result of those investments in our P&L aren't playing out, we'll cut them.

因此，我們在某些​​領域採取了非常策略性的策略，這將影響我們的銷售、管理和行政費用。當我們損益表中的這些策略投資的結果被證明是正確的時，每個人都會感到高興。當我們的損益表中這些投資的結果沒有發揮出來時，我們就會削減它們。

Mike Sison, Wells Fargo.

麥克西森，富國銀行。

Nice quarter. Just back to the volume growth in 2Q, pretty impressive 3% on what doesn't seem to be a very good economic environment. So in the fourth quarter, if the environment doesn't improve, is that how do you get to 3%? It sounds like your execution and is doing really well amongst the segments. Maybe just a little bit of color of -- if we stay in this little sluggish environment, how you get to growth in the fourth quarter.

不錯的季度。回到第二季的銷售成長，在經濟環境似乎不太好的情況下，成長了 3%，相當令人印象深刻。那麼第四季如果環境沒有好轉的話，你怎麼能達到3%呢？聽起來你的執行力在各個細分市場中都表現得非常好。也許只是一點點色彩——如果我們留在這個低迷的環境中，你將如何在第四季實現成長。

Sure. It starts with an easier comp. Last year was a challenging Q4 for us. And we had record earnings results driven by MAP. So real solid performance, but sales were relatively flat. And we do see some of the dynamics that we've talked about on the call today, improving. And so I think we're highly confident in forward momentum in Q4.

當然。它從一個更簡單的組合開始。去年對我們來說是充滿挑戰的第四季。在 MAP 的推動下，我們取得了創紀錄的獲利結果。業績確實穩健，但銷量相對持平。我們確實看到我們今天在電話會議上討論的一些動態正在改善。因此，我認為我們對第四季度的前進勢頭充滿信心。

Rusty commented on the uncertainty around some geopolitical things and where all that goes. So who knows what the impacts of those things are, but I think we're pretty confident forward momentum in Q4 relative to easier comps relative to the new product introductions that we intend to launch. And relative to some of the outperformance that we're seeing in our construction products group versus what some of their peers are putting up. So those dynamics are not changing.

拉斯蒂評論了一些地緣政治問題的不確定性以及所有事情的走向。所以誰知道這些事情的影響是什麼，但我認為相對於我們打算推出的新產品推出的更簡單的比較，我們對第四季度的前進勢頭非常有信心。相對於我們在建築產品部門看到的一些優於其他同行的表現。所以這些動態並沒有改變。

Got it. And then as a follow-up, if you think about longer term, maybe '26 to some degree, and the economic environment actually improves, which would be nice. What type of volume growth should that -- should RPM sort of elevate to. And if you think about the cost savings and MAP that you should get in '26, I mean, could '26 be one of these banner years and maybe you can keep pace of the Cavs next year as well.

知道了。然後作為後續行動，如果你考慮更長期的情況，也許在某種程度上，26 年，經濟環境實際上有所改善，這會很好。RPM 應該會提升到什麼類型的銷售成長。如果你考慮到 26 年應該節省的成本和 MAP，我的意思是，26 年可能是這些標誌性的年份之一，也許明年你也可以跟上騎士隊的步伐。

Well, first of all, I'd love to be a fraction of what the Cleveland Cavaliers are doing. They have the best record in the NBA, and they're not getting a lot of recognition for it. That's fine with me. They can just quietly sneak up on everybody. So go Cavs.

好吧，首先，我很樂意成為克利夫蘭騎士隊所做的一小部分。他們擁有NBA最好的戰績，但並沒有因此而得到太多肯定。這對我來說沒問題。他們可以悄悄地接近每個人。所以去騎士吧。

I get a little philosophical here, and this is geopolitical, but it's hard to know what's coming with all the geopolitical changes out there. And so there's two big crazy scenarios. One is a smooth highly geopolitical mess that leads to a meaningful economic downturn. The other is a peace dividend.

我在這裡有點哲學，這是地緣政治，但很難知道所有地緣政治變化會帶來什麼。所以有兩個瘋狂的場景。一是地緣政治高度混亂，導致嚴重的經濟衰退。另一個是和平紅利。

And so with these new administrations in Europe and US, if somehow there's a resolution to the Russia war in Ukraine, if the growing stability in the Middle East continues, our performance in Europe because of the MAP program is really strong in the bottom line, but economically, the European marketplace, which is both our second largest region and a region with lots of opportunity, return to growth in the UK and Europe would be very positive. And as stability in foreign currencies in Latin America would be very positive because our underlying performance there has been pretty solid.

因此，對於歐洲和美國的這些新政府來說，如果俄羅斯在烏克蘭的戰爭能夠以某種方式解決，如果中東日益穩定的局勢繼續下去，我們在歐洲的表現將因為MAP 計劃而在底線中非常強勁，但從經濟角度來看，歐洲市場既是我們的第二大地區，也是一個充滿機會的地區，英國和歐洲的成長恢復將是非常積極的。由於拉丁美洲的外幣穩定將非常積極，因為我們在那裡的基本表現相當穩健。

And lastly, I'd comment on the platform approach we're taking to the developing world. It's really an RPM platform approach being driven by a leadership team out of South Africa, is part of the strength that we're showing in our Middle East results. We're investing in new production in India, and we expect the sand there. So we've got a lot of irons in the fire in terms of being prepared for positive turn to markets. Time will tell.

最後，我想評論一下我們對發展中國家採取的平台方法。這其實是由南非領導團隊推動的 RPM 平台方法，也是我們在中東表現中展現的實力的一部分。我們正在印度投資新的生產，我們期待那裡的沙子。因此，在為市場積極轉向做好準備方面，我們已經做好了許多準備。時間會證明一切。

Alexsey Yefremov, KeyBanc.

阿列克謝·葉夫雷莫夫，KeyBanc。

Just wanted to follow up on the pricing. You mentioned some targeted price increases in the second half of the year, but are you expecting overall to cover the raw materials and labor inflation that you're talking about, so that price cost in the second half of fiscal '25 is it neutral or negative or positive?

只是想跟進定價。您提到了下半年的一些目標價格上漲，但您是否預計總體上能夠涵蓋您所談論的原材料和勞動力通膨，以便 25 財年下半年的價格成本是中性的還是消極還是積極？

We would expect to cover the raw material inflation, if any, and what is moderating but still increasing labor costs and as I said earlier, we're kind of anticipating a 1.5% to 2% inflation in the second half. If it's less than that, that will be good. If it's more than that, we will respond accordingly, and some of it is really a function of even the anticipation of seeing that.

我們預計將涵蓋原物料通膨（如果有），以及正在放緩但仍在增加的勞動力成本，正如我之前所說，我們預計下半年通膨率為 1.5% 至 2%。如果低於這個數字，那就太好了。如果不止於此，我們會做出相應的反應，其中一些實際上甚至是預期的結果。

I think people are anticipating, from a supply chain perspective and otherwise, what's going to happen in raw materials, what are they going to do with pricing and what's going to happen with supply relative to threatened tariffs. And so how much of that gets realized is something that everybody in our supply chain is heightened to and I think positioned to move on as necessary.

我認為人們從供應鏈和其他方面的角度預測原材料會發生什麼，定價會發生什麼，以及相對於關稅威脅的供應會發生什麼。因此，我們供應鏈中的每個人都高度重視其中的實現程度，我認為有必要繼續前進。

And Frank, you mentioned growth in your services business, affecting the mix, they're still contributing. Is it -- does it just happen to be a quarter where services grew faster? Or is it something structural? And also, is this growth in services driving sales of materials and coatings as well?

弗蘭克，您提到服務業務的成長，影響了組合，他們仍在做出貢獻。是不是剛好是服務成長更快的季度？還是結構性的東西？此外，服務的成長是否也推動了材料和塗料的銷售？

So it's just the impact in the quarter. In our Tremco Construction Products Group, our largest units, our business, our roofing division, it's about I would say, 60% material sales and 40%, today, WTI, which is up meaningfully from where it was four or five years ago.

所以這只是本季的影響。在我們的Tremco 建築產品集團，我們最大的部門、我們的業務、我們的屋頂部門，我想說，大約60% 是材料銷售，而今天，WTI 則佔40%，比四五年前有了顯著的增長。

And ultimately, yes, the services business drives material sales. In some cases, immediately where our WTI business is acting as a general contractor and having subs do the work, which drives material sales. In other cases, it's the maintenance work that we're doing for large accounts. It keeps us on the roof and keeps us connected with those businesses such that when there's meaningful opportunities for material sales three or five years down the road, we're their partner for those restoration projects. And I would expect to see that grow over time with an interesting mix margin impact.

最終，是的，服務業務推動了材料銷售。在某些情況下，我們的 WTI 業務立即充當總承包商並讓分包商完成工作，從而推動材料銷售。在其他情況下，這是我們為大帳戶所做的維護工作。它讓我們保持在屋頂上，並讓我們與這些企業保持聯繫，這樣當三到五年後出現有意義的材料銷售機會時，我們就成為他們這些修復項目的合作夥伴。我預計這種增長會隨著時間的推移而增長，並產生有趣的混合利潤影響。

Pure Air, which is an HVAC restoration business that we acquired a few years ago was starting to grow. That's part of that. There's some other service areas that we're getting into. And so on the bottom line, we like it, and there's not a whole lot of difference in terms of EBIT margin impact. And in fact, over time, maybe we can improve that. But there is a significant difference in the gross margin.

Pure Air 是我們幾年前收購的暖通空調修復業務，這項業務開始成長。這是其中的一部分。我們正在進入一些其他服務領域。總而言之，我們喜歡它，而且在息稅前利潤率影響方面沒有太大差異。事實上，隨著時間的推移，也許我們可以改進這一點。但毛利率卻有顯著差異。

Ghansham Panjabi, Baird.

甘沙姆‧潘嘉比 (Ghansham Panjabi)，貝爾德 (Baird)。

So Frank, just sort of summarizing some of the questions. Just so I understand, obviously, there's many different micro trends across your operating segments. But as it stands today, do you think the volume outlook across your businesses on a consolidated basis is better from a trend line standpoint going forward, it seems like CPG and PCG are delivering solid growth, and it looks like residential has plateaued as well. And of course, I'm adjusting for 2Q and 3Q, which obviously there's some weather nuances in there.

弗蘭克，只是總結了一些問題。據我了解，顯然，您的營運部門存在許多不同的微觀趨勢。但就目前情況而言，您認為從未來趨勢線的角度來看，您的業務在綜合基礎上的銷售前景是否更好？當然，我正在對第二季和第三季進行調整，顯然其中存在一些天氣細微差別。

So I think the answer to that is yes. We saw a number of things, not only MAP-related, but this pivot to growth related show up in Q2. It's disappointing given the seasonality of the winter we're suffering that that's not going to be realized in the subsequent months. And as I commented earlier, right off the back in December, which is reflected in our outlook, we were seeing the impact of weather seasonality that's traditional in our business and hasn't really been a factor for the last couple of winters. But the underlying trend line in growth is positive.

所以我認為答案是肯定的。我們看到了很多事情，不僅與 MAP 相關，而且與成長相關的樞軸也出現在第二季。考慮到冬季的季節性，我們正在遭受痛苦，這在接下來的幾個月裡不會實現，這令人失望。正如我之前在12 月所說的那樣，我們看到了天氣季節性的影響，這在我們的業務中是傳統的，但在過去的幾個冬天並不是真正的影響因素，這反映在我們的展望中。但成長的基本趨勢線是正面的。

And organizationally, we are at the beginning of what we think of as embedding the map learnings into our culture and pivoting the organization to growth. The details of that are still in process. And so we will be in a position to provide in more detail what that looks like and what our expectations are on that over a multiyear period sometime this fall.

在組織上，我們正​​處於將地圖學習嵌入我們的文化並推動組織發展的開始。其細節仍在處理中。因此，我們將能夠在今年秋天的某個時候提供更詳細的信息，以及我們對未來多年的期望。

Okay. And then just second question on CPG specifically, on slide 14, where you have all the outlook drivers for fiscal year '25. You call out office construction, obviously, is one of the negatives. Is that sort of equally offset by some of the other positives in there, high-performance buildings and infrastructure, et cetera. Or is it a more substantial slowdown that you're expecting going forward for office construction?

好的。然後是關於 CPG 的第二個問題，在幻燈片 14 上，其中包含 25 財年的所有前景驅動因素。你指出辦公大樓建設顯然是負面影響之一。這是否同樣被那裡的其他一些積極因素所抵消，例如高性能建築和基礎設施等等。還是您預期未來辦公大樓建設會出現更大幅度的放緩？

No, it's an interesting mix, and I will tell you, particularly for our construction products group for our Stonhard business for our Euclid Chemical business have been incredibly impressed, and this isn't patting ourselves in the back necessarily, but our sales forces have become more agile and they have been able to move to where the money is. And so whether it was having a disproportionate share of flooring, fibers, floor toppings as the Amazons, we're building out their distribution centers. Or today, we're getting, I think, at least our fair share, if not more, in this data center build-out, both here and in Europe.

不，這是一個有趣的組合，我會告訴你，特別是我們的建築產品團隊、我們的Stonhard 業務、我們的Euclid 化學業務給我們留下了令人難以置信的印象，這不一定是自吹自擂，但我們的銷售人員已經變得更加敏捷，他們已經能夠轉移到有錢的地方。因此，無論它的地板、纖維、地板飾面的份額是否與亞馬遜不成比例，我們都在建造他們的配送中心。或者今天，我認為，我們至少在資料中心建設中獲得了公平的份額（如果不是更多的話），無論是在這裡還是在歐洲。

There's opportunities in other parts of the world like India, where we are working hard to catch up because we have real strength here. And so it's really been a combination of more agile sales forces. And hats off to our businesses and our salespeople that have been doing that.

世界其他地區也有機會，例如印度，我們正在努力追趕，因為我們在這裡擁有真正的實力。因此，這確實是更敏捷的銷售團隊的結合。向我們的企業和一直在這樣做的銷售人員致敬。

And it's overcome some of the core business that mostly was sold through distribution. And so broadly in expanding office building, expanding fast food chains, expanding hospitality, those products would have been served in the past, for instance, for Tremco Sealant through our distribution, that, quite candidly, has been relatively weak in the last couple of years and a return to growth in those areas would be, I think, a benefit. What we've learned to be is more direct on major projects and categories that are growing.

它克服了一些主要透過分銷出售的核心業務。在擴大辦公大樓、擴大快餐連鎖店、擴大酒店業等方面，這些產品在過去會透過我們的分銷提供給 Tremco 密封劑，坦白說，在過去的幾年裡，這些產品相對較弱。這些領域恢復成長將是一個好處。我們學到的是更直接地關注正在成長的重大項目和類別。

(Operator Instructions) Arun Viswanathan, RBC Capital Markets.

（操作員指示）Arun Viswanathan，RBC 資本市場。

So yes, just I want to clarify some of your comments, I guess, you noted that you have seen some stabilization in some of the consumer DIY takeaway categories. Where is that occurring?

所以，是的，我想澄清你的一些評論，我想，你注意到你已經看到一些消費者 DIY 外賣類別出現了一些穩定。這種情況發生在哪裡？

And also, you noted some share gains. So I guess maybe if you could just help us understand where those are occurring. And if they are occurring in areas that you would attribute to housing market recovery? Or is it more just other specific items?

而且，您還注意到一些份額的成長。所以我想也許你能幫助我們了解這些情況發生在哪裡。如果它們發生在您認為是房地產市場復甦的地區？或只是其他特定項目？

Sure. I can give you a few examples in the DIY. Some of its new product related. Our DAP business has introduced a new Wall & Cavity Foam product. They have expanded distribution of a wall Texas spray category that they weren't in, in a big way in the past. So we're getting sell-in into some of these new product categories.

當然。我可以舉幾個DIY的例子給你聽。其一些新產品相關。我們的 DAP 業務推出了新的牆體和空腔泡棉產品。他們擴大了德克薩斯州牆壁噴霧類別的分銷範圍，而他們過去並沒有參與其中。因此，我們正在大力推銷其中一些新產品類別。

In our Rust-Oleum business, we picked up some share in the automotive channels to automotive retailers, the 5-in-1 spray that got off, I guess, to a slower start than we hoped. And part of it is you can introduce new products, but if you're introducing them into a negative consumer takeaway market, you're not going to have the excitement that you want. We're starting to see some expanded distribution and takeaway in the 5-in-1 patented spray application for some of our Rust-Oleum spray paint products.

在我們的 Rust-Oleum 業務中，我們在汽車零售商的汽車通路中獲得了一些份額，我猜五合一噴霧劑的起步比我們希望的要慢。部分原因是你可以推出新產品，但如果你將它們引入負面的消費者外送市場，你將不會獲得你想要的興奮。我們開始看到我們的一些 Rust-Oleum 噴漆產品的 5 合 1 專利噴塗應用有一些擴大的分銷和外賣。

And then also in Europe, part of our consumer segment. One of the few places in otherwise a very punky economic environment where we're seeing positive unit volume growth is in our consumer businesses in Europe, and it's being driven by two things: one, a really strong focus on our Zinsser primers into the European marketplace. Specialty primers aren't as or haven't been as ubiquitous in Europe and the UK as they are in US. And so that's going really well.

然後也是在歐洲，這是我們消費者細分市場的一部分。在一個非常落後的經濟環境中，我們看到單位銷售量正成長的少數幾個地方之一是我們在歐洲的消費業務，它是由兩件事驅動的：一是我們對Zinsser 引子進入歐洲市場的高度關注。特種底漆在歐洲和英國並不像在美國那樣普遍存在。一切進展順利。

And we have what I think of as paint unlimited, but it's a direct-to-consumer e-commerce model of specialty paints. And it was launched in the UK. It's being expanded into parts of Europe, and that is growing double digits, and it's very exciting. And so those are the areas of positive results in our consumer business, notwithstanding the underlying challenging dynamics.

我們擁有我認為的無限塗料，但這是一種直接面向消費者的特種塗料電子商務模式。它在英國推出。它正在擴展到歐洲部分地區，並且正在以兩位數的速度增長，這非常令人興奮。因此，儘管存在潛在的挑戰，但這些領域是我們消費者業務取得積極成果的領域。

Okay. Great. So it sounds like, as you said, the underlying dynamics are still challenging, but there's maybe some pockets of encouragement. And then just -- maybe I'll ask -- reask a question on M&A. There are some properties coming to market in the next, say, six months or so, it sounds like, as you noted, you wouldn't want to sit idle with cash. What kind of targets would you be looking after -- would you be interested in going further into Latin America, Asia and Europe? Or would you be more focused on North America. Maybe you can just provide us some regional and category kind of areas of interest.

好的。偉大的。所以聽起來，正如你所說，潛在的動力仍然具有挑戰性，但也許有一些鼓勵。然後，也許我會問一個有關併購的問題。有一些房產將在未來六個月左右上市，聽起來，正如您所指出的，您不想閒置現金。您會專注於什麼樣的目標—您是否有興趣進一步進入拉丁美洲、亞洲和歐洲？或者你會更關注北美。也許您可以向我們提供一些感興趣的區域和類別類型的領域。

Sure. So I think our M&A activity would be focused on the areas that you talk about. North America, firstly, Europe and Latin America, not likely to see it in the developing world in the near term. We have been pretty good at identifying small product lines that are highly strategic. And so if you could buy nice product lines, they might be $5 million or $10 million. But if they fit a need in our product category and we can double or triple the revenues. The IRRs are home runs.

當然。所以我認為我們的併購活動將集中在你談到的領域。北美，首先是歐洲和拉丁美洲，短期內不太可能在發展中國家看到這種情況。我們非常擅長辨識具有高度戰略意義的小型產品線。因此，如果你能購買優質的產品線，它們可能需要 500 萬或 1000 萬美元。但如果它們滿足我們產品類別的需求，我們就可以將收入增加一倍或三倍。IRR 是全壘打。

And so it's part of really thinking about an earlier question, how do we drive 3% or 4% organic growth and some of it is being very strategic about small- to medium-sized product lines that we can integrate and expand across our distribution or sales forces such that in year 2 and 3, it's adding to that organic growth number. So that's the first way that we think about it.

因此，這是真正思考先前問題的一部分，我們如何推動3% 或4% 的有機成長，其中一些對中小型產品線非常具有戰略意義，我們可以在我們的分銷或分銷中整合和擴展這些產品線。這是我們思考這個問題的第一種方式。

Secondly, there will be some larger perhaps coatings and/or specialty chemical. Our construction products business is coming to market out of private equity portfolios or otherwise. And I think we have a balance sheet that can accommodate that.

其次，可能會有一些更大的塗料和/或特殊化學物質。我們的建築產品業務正在透過私募股權投資組合或其他方式進入市場。我認為我們的資產負債表可以適應這一點。

We've missed some of the acquisition growth over the last five or seven years because we've always had pretty strong discipline about M&A value. Our goal in M&A is not to get bigger, it's to get better and more profitable. And so we got a balance sheet that's in good shape, and we will continue to look at opportunities as they come or as we can find them and execute on.

在過去的五、七年裡，我們錯過了一些收購成長，因為我們一直對併購價值有相當嚴格的紀律。我們併購的目標不是變得更大，而是變得更好、更有利潤。因此，我們的資產負債表狀況良好，我們將繼續尋找機會，或者我們可以找到它們並執行它們。

Steve Byrne, Bank of America.

史蒂夫伯恩，美國銀行。

One of the restructuring items as focused on accounting locations. Can you comment on how many accounting locations do you currently have? And what was it a few years ago?

重組項目之一集中在會計地點。您能評論一下您目前有多少個會計地點嗎？幾年前是什麼？

Yes. So I think when we started, MAP in 2020, we were around 100 accounting locations. We have significantly reduced that now. We're down to probably something in the 40 or 50-ish range. We've done a lot of work, leveraging the work we've done in consolidating ERPs and consolidating accounting locations as well as building out our accounting locations in our shared service centers in India and Mexico as well.

是的。所以我認為，當我們在 2020 年開始 MAP 時，我們有大約 100 個會計地點。我們現在已經大大減少了。我們可能會下降到 40 或 50 左右的範圍。我們已經做了很多工作，利用我們在整合 ERP 和整合會計地點以及在印度和墨西哥的共享服務中心建立會計地點方面所做的工作。

Just to add to that, from an ERP perspective, when we started the MAP initiative, we had essentially 75 versions or instances of ERP, some common like SAP, but different instances. And we have shrunk that down across RPM to somewhere in the mid-teens. 14 is the number that sticks in my head, but given some of our far-flung operations, it could be a few more than that. But that's a dramatic improvement from what was 75 identified different instances of ERP or IT systems. Ultimately, our goal is -- just to finish that, ultimately, our goal is to get those down to somewhere in the mid-single digits at least.

除此之外，從 ERP 的角度來看，當我們啟動 MAP 計劃時，我們基本上有 75 個 ERP 版本或實例，其中一些像 SAP 一樣常見，但實例不同。我們已經將每分鐘轉數 (RPM) 縮小到了十幾歲左右。 14 這個數字一直縈繞在我的腦海中，但考慮到我們的一些業務分佈廣泛，實際數字可能不只這個數字。但與 75 個已識別的不同 ERP 或 IT 系統實例相比，這是一個巨大的進步。最終，我們的目標是——只是為了完成這個目標，最終，我們的目標是將這些數字至少降至中個位數。

Okay. And what about total headcount, Frank, where would RPM be at right now? And what would you target in a few years net of M&A activity?

好的。那麼弗蘭克，總員工數現在的 RPM 是多少？扣除併購活動後的幾年內，您的目標是什麼？

Right now, it's about 17,000 a little bit more. I think that number has been stable for the last couple of years. And we've had a disproportionate growth in some of our shared service centers, which five or six years ago, where a few dozen and today are up to about 400. Those folks have more than paid for themselves.

現在，大約是 17,000 多一點。我認為這個數字在過去幾年裡一直保持穩定。我們的一些共享服務中心出現了不成比例的成長，五、六年前只有幾十個，現在增加到約 400 個。這些人付出的代價已經超出了自己的代價。

And the one area that we continue to look to expand and it's been challenging, but I think we're net-net winning is salesforce. It's been since COVID and through COVID and ups and downs. If there are good paints and coatings for construction product salespeople, we are open for business and looking to expand sales forces in our performance coatings business units, construction products business in particular.

我們繼續尋求擴展的一個領域，這一直具有挑戰性，但我認為我們正在淨贏的是銷售團隊。自新冠疫情以來，經歷了新冠疫情的起起落落。如果建築產品銷售人員有好的油漆和塗料，我們就會開放業務，並尋求擴大我們的高性能塗料業務部門，特別是建築產品業務的銷售團隊。

And just one quick one for you there, Frank, and that is, do you see any potential in moving any of the performance coatings products into a direct sales model similar to what you have in CPG.

弗蘭克，我想向您簡單介紹一下，即您認為將任何高性能塗料產品轉變為類似於 CPG 的直銷模式是否有潛力。

Sure. Great question. As part of our MAP initiatives going back to 2018, we look at our organization, look at our business units and our groups and think about what's the best way for us to be organized going forward. I can tell you that as it relates to the original MAP programs, some of that reorganization was done with a mind to what's going to make us more efficient. On a go-forward basis, if we make any changes, it's going to be entirely driven by what will allow us to accelerate growth

當然。很好的問題。作為我們自 2018 年起 MAP 計畫的一部分，我們審視我們的組織、我們的業務部門和我們的團隊，並思考什麼是我們未來組織的最佳方式。我可以告訴你，由於它與最初的 MAP 計劃相關，所以一些重組是為了提高我們的效率而進行的。從長遠來看，如果我們做出任何改變，那將完全是為了加速成長

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

我們的問答環節結束了。我想將會議轉回給弗蘭克·沙利文先生發表閉幕詞。

Thank you very much, Nick. So I want to conclude by recognizing someone who participated in all of our conference calls for more than 15 years and was part of RPM's growth for more than 30, which is Ed Moore, who retired as our Senior Vice President and General Counsel on December 31. He was the conscience of RPM and a significant part of our growth and success. And we wish Ed and his wife, Tim and their family, great joy and new adventures.

非常感謝你，尼克。最後，我想向一位參與我們所有電話會議超過15 年、並參與RPM 增長超過30 年的人表示感謝，他就是Ed Moore，他於12 月31 日以我們的高級副總裁兼總法律顧問的身份退休。他是 RPM 的良心，也是我們成長和成功的重要組成部分。我們祝福艾德和他的妻子提姆及其家人充滿歡樂和新的冒險。

And we are joined today by RPM's new General Counsel, Tracy Crandall, who's going to bring the same wisdom and kind of stable, even keel approach to keeping RPM on the right path. So welcome, Tracy.

今天，RPM 的新任總法律顧問 Tracy Crandall 也加入了我們的行列，她將帶來同樣的智慧和穩定、穩健的方法，讓 RPM 走在正確的道路上。歡迎，特雷西。

Thank you, everybody, for your participation in our call today and your interest in RPM. Best wishes to all for a happy, healthy and successful new year, and we look forward to talking to you throughout the next couple of days. And then again in April, when we conclude our third quarter, and we'll be able to talk about a return to growth in Q4 and beyond. Have a great day.

感謝大家今天參與我們的電話會議以及對 RPM 的興趣。祝大家新年快樂、健康、成功，我們期待在接下來的幾天與您交談。然後在四月份，當我們結束第三季時，我們將能夠談論第四季度及以後的成長恢復。祝你有美好的一天。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。