Dafinchi AI

GIC

Industrial

Gross margin reached a record 37.1% in Q2, up 190 basis points YoY and 220 basis points sequentially.
Approximately half of the margin increase is attributed to price timing and inventory valuation benefits from FIFO accounting.
Management expects some margin headwinds in Q3 due to tariff-related cost dynamics and inventory timing.
The margin expansion is partly temporary, but demonstrates proactive margin management amid inflationary pressures.

RPM

Industrial

RPM announced a strategic reorganization into three segments: Construction Products Group, Performance Coatings Group, and Consumer Group, aiming to enhance operational and administrative efficiencies.
The restructuring consolidates previously separate units, such as Specialty Products, into the new segments to leverage synergies in product development, sales, and sourcing.
This change is expected to generate approximately $15 million in upfront expense reductions in Q1 and ongoing cost savings.
The new structure facilitates closer collaboration across businesses, such as joint development of high-performance coatings and integrated supply chains, to drive growth.
Management emphasized that the core entrepreneurial culture and brand focus will remain unchanged despite the structural realignment.
The reorganization is part of RPM's broader strategy to accelerate growth and improve margins through operational efficiencies and market expansion.

Industrial

Americas segment delivered 9% revenue growth with adjusted EBITDA margins increasing by 120 basis points to 24%, marking a record quarterly EBITDA.
Asia Pacific revenue declined by high single digits with a 220 basis point margin contraction, primarily due to lower volumes in China.
Backlog remains strong at $7.1 billion, up 6% compared to year-end 2024, with a commercial HVAC book-to-bill ratio exceeding 100% in all regions.
EMEA revenue growth was up 3% with a 200 basis point decline in adjusted EBITDA margin due to channel investments and M&A integrations.
Enterprise and Americas Commercial HVAC organic bookings reached new all-time highs with increases of 4% and over 20%, respectively.
Incremental margins improved sequentially from 25% to 32%, driven by strong services growth, productivity, and volume leverage.
Organic revenues increased by 7%, adjusted EBITDA margins expanded by 70 basis points, and adjusted EPS rose by 18%.
Q2 was marked by record bookings and revenues, a 90 basis point expansion in adjusted operating margins, and 18% growth in adjusted EPS.
Services business represents one-third of enterprise revenues, delivering low teens growth in the quarter and maintaining a low teens CAGR since 2020.

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