RPM International Reports Record Q4 Sales and Growth Initiatives Amid Mixed Economic Environment.

RPM International Inc (RPM) achieved record Q4 sales, adjusted EBIT, and adjusted EPS, with annual sales, adjusted EBIT, and adjusted EPS at record levels since the inception of the MAP 2025 program. The company expanded gross margins close to their 42% goal and improved working capital efficiency. Despite headwinds from temporary cost inefficiencies, raw material inflation, and DIY softness, RPM has a strong balance sheet and aims to drive additional organic growth opportunities and synergies.

RPM International Inc. (NYSE:RPM) achieved record fourth-quarter (Q4) sales, adjusted EBIT, and adjusted EPS, as reported on July 24, 2025. The specialty chemicals company's performance marks a significant turnaround from its disappointing third-quarter results. The company's shares jumped 6.5% in premarket trading, reflecting investor enthusiasm for the better-than-expected results [1].

Quarterly Performance Highlights
RPM's Q4 2025 revenue reached $2.08 billion, up 3.7% year-over-year, with adjusted EBIT of $314.4 million, increasing 10.1%, and adjusted EPS of $1.72, rising 10.3% compared to the same period last year [1]. All four segments delivered adjusted EBIT growth, with the Construction Products Group (CPG) and Performance Coatings Group (PCG) leading the way with increases of 14.2% and 19.1%, respectively. The Specialty Products Group (SPG) and Consumer Group also contributed with growth of 7.4% and 3.6% [1].

Strategic Initiatives
The company's MAP 2025 operational efficiency program has been a key driver of the company’s improved performance. The initiative has delivered significant improvements across multiple metrics, including a 510 basis point increase in gross margins, a 260 basis point increase in adjusted EBIT margins, and a 320 basis point improvement in working capital as a percentage of sales [1]. The company has restructured into three main segments – Construction Products Group (39% of FY25 sales), Performance Coatings Group (27%), and Consumer Group (34%) – to promote growth and operational efficiency [1].

Forward-Looking Statements
Looking ahead to fiscal year 2026, RPM expects consolidated sales to increase in the low-to-mid single digits, with adjusted EBIT projected to grow in the high single digits to low double digits. This outlook is supported by ongoing operating efficiency initiatives and pricing strategies, though tempered by economic uncertainty [1].

Conclusion
RPM’s Q4 and full-year 2025 results demonstrate a strong recovery from its third-quarter challenges, with record performance across all segments. The company’s MAP 2025 initiatives have successfully driven margin expansion and operational efficiencies, positioning RPM well for continued growth in fiscal 2026 despite economic uncertainties. The consistent improvement in adjusted EBIT margins, which reached an all-time record of 13.2% for the full fiscal year 2025, highlights the effectiveness of the company’s strategic focus on efficiency and high-potential opportunities. With a strong balance sheet and positive outlook, RPM appears well-positioned to continue delivering value to shareholders in the coming fiscal year [1].

References:
[1] https://www.investing.com/news/company-news/rpm-q4-2025-slides-record-results-across-all-segments-as-map-initiatives-deliver-93CH-4150428
[2] https://finance.yahoo.com/news/steady-dividends-rpm-international-rpm-144602880.html
[3] https://au.finance.yahoo.com/news/rpm-international-inc-rpm-q4-071552455.html