What factors drove the changes in RPM International's revenue and profit?

What does RPM International do and what are its main business segments?

What were the key takeaways from RPM International's earnings call?

What guidance did RPM International's management provide for the next earnings period?

What is RPM International's gross profit margin?

Did RPM International beat or miss consensus estimates last quarter?

What is RPM International's latest dividend and current dividend yield?

What were the key takeaways from RPM International’s earnings call?

- **Record Sales with Softness**: Q2 revenue growth of 3.5% offset by Q3/Q4 slowdowns due to government shutdown and DIY decline.
- **$100M SG&A Savings**: $75M to be realized in FY2027, with Q3/Q4 2026 incremental benefits.
- **Strategic Acquisitions**: Kalzip acquisition to strengthen high-performance building solutions, with 18-24 month accretion timeline.
- **Tariff Impact**: Metal packaging tariffs driving inflation, expected to annualize in FY2027.
- **Backlog Growth**: CPG backlog expansion and PCG stability suggest potential Q4 recovery.

**【CEO Summary Section】**
- Achieved record sales in Q2 2026, driven by targeted growth investments, but momentum slowed in October and November due to government shutdown and DIY demand decline.
- Announced $100 million annual SG&A optimization savings, with $5 million realized in Q3, $20 million in Q4, and $75 million in FY2027. Implementation costs will be detailed in April 2026.
- Focused on high-growth opportunities like high-performance buildings (e.g., Kalzip acquisition) and business intelligence, with investments in innovation (e.g., AlphaGuard PUMA, TWB tilt-up construction solution).
- MAP 3.0 strategic plan to be unveiled at FY2026 Investor Day, focusing on manufacturing efficiency and SG&A realignment.

**【CFO Financial Commentary】**
- Consolidated sales grew 3.5% to a record $2.1 billion, with Europe (+12%) and North America (+2%) leading growth. Consumer Group sales declined due to DIY softness and product rationalization.
- Adjusted EBIT declined due to higher SG&A expenses (growth investments, M&A deal costs, health care), offset by MAP 2025 benefits.
- Consumer Group EBIT declined due to volume declines, while Construction Products Group (CPG) and Performance Coatings Group (PCG) saw EBIT declines from inefficiencies and consolidation costs.
- Reversed $12.7 million earn-out liability for Pink Stuff acquisition, reflecting revised sales forecasts.

**【Q&A Key Highlights】**
- **Government Shutdown Impact**: CPG and consumer sales were disproportionately affected, with Q2 delays expected to reverse in Q3/Q4.
- **Transitory Costs**: $100 million SG&A savings include $70 million personnel-related cuts and $30 million discretionary expense reductions. Q2 conversion costs added 1% margin pressure, primarily from plant shutdowns and shared distribution center inefficiencies.
- **M&A Strategy**: Acquisitions like Kalzip (EUR 75M in 2024 sales) target high-performance building solutions, with 18-24 month integration timelines for accretion.
- **Pricing Challenges**: Less than 1% price contribution in Q2, with metal packaging tariffs driving inflation. Tariff impacts expected to annualize in FY2027.
- **Backlog Visibility**: CPG backlog growth and PCG stability suggest potential Q4 recovery, contingent on volume growth.
- **MAP 3.0 Savings Allocation**: 2/3 of costs will be realized in Q3 2026, with 1/3 in Q4, primarily outside the U.S. due to notice periods.

RPM International Inc.(RPM)-20260108-2026 Q2 Earnings call transcript

- **Record growth momentum**: 14th straight quarter of EBIT records, 6%+ organic growth across all segments
- **Strategic investments paying off**: +8% unit volume in Performance Coatings, +4% in Construction Products despite market headwinds
- **Consumer turnaround**: Pink Stuff integration driving +12% EBIT margin in Consumer Group
- **Tariff mitigation**: 50% of $90M tariff impact offset via production shifts and pricing
- **2026 outlook**: Mid-single-digit sales growth, high single-digit EBIT growth despite $30M incremental SG&A spend

**【CEO Summary Section】**
- **Record organic growth**: All segments achieved 6%+ organic revenue growth, driven by systems/solutions and repair/maintenance focus. 
- **EBIT milestone**: 14th consecutive quarter of record adjusted EBIT, supported by MAP 2025 efficiency initiatives.
- **Growth investments**: 
  - $5.3M in new sales hires (e.g., Tremco Roofing, ICG)
  - $3.2M increase in advertising (social media, e-commerce)
  - $2.1M in M&A pipeline development
- **Strategic acquisitions**: READY SEAL and The Pink Stuff expanded consumer reach into grocery/dollar store channels.
- **Challenges**: $8.8M increase in healthcare costs, offset by $10M in deliberate growth spending.

**【CFO Financial Commentary】**
- **Top-line performance**: 
  - Consolidated sales +7.4% to $1.2B (organic +5.9%)
  - Europe +15% (FX, acquisitions), NA +5.9% (systems solutions)
- **Profitability**: 
  - Adjusted EBIT +2.9% to $222M
  - Adjusted EPS $1.88 (vs. $1.75 prior year)
- **Segment highlights**: 
  - Construction Products Group: Record EBIT despite plant consolidation inefficiencies
  - Performance Coatings Group: 8% unit volume growth in coatings
  - Consumer Group: Organic -3%, but +12% EBIT margin from Pink Stuff integration
- **Balance sheet**: 
  - $933M liquidity
  - $82M returned to shareholders (dividends + buybacks)

**【Q&A Highlights】**
- **Tariff impact**: $90M+ annualized impact, 50% mitigated via production shifts/pricing
- **Consumer recovery**: 2026 outlook for housing turnover improvement to drive DIY demand
- **SG&A trends**: 2026 SG&A up ~$30M vs. 2025, driven by sales hires and M&A
- **Pricing actions**: Q2 price increases to offset 2-3% material inflation
- **MAP 3.0**: New 3-year plan expected in H2 2026, building on MAP 2025 efficiency gains

RPM International Inc. (RPM) Q1 2026 Earnings Call Transcript

- **Record Q4 Growth**: 3.7% revenue rise to record levels, driven by systems and turnkey solutions. Adjusted EBIT and EPS hit new highs.
- **MAP 2025 Success**: 42% gross margin expansion, 260bps EBIT margin growth, and $70M in 2026 carryover benefits.
- **New Structure & Savings**: $15M SG&A streamlining to fund high-growth initiatives in turnkey solutions and international markets.
- **2026 Outlook**: Low to mid-single-digit sales growth, 10-12% EBIT expansion, and $105-115M interest expense due to M&A debt.
- **Tariff Challenges**: 4-5% unmitigated impact, partially offset by price hikes and production shifts. Metal packaging costs up 11-12%.
- **Consumer Recovery**: Consumer DIY market at 40-year low, but new products and acquisitions (e.g., The Pink Stuff) provide growth avenues.


**【CEO Summary Section】**
- **Record Q4 Results**: Revenue grew 3.7% to a record high, driven by systems and turnkey solutions for high-performance buildings. Adjusted EBIT and EPS also reached new highs.
- **MAP 2025 Impact**: Cumulative improvements include 42% gross margin expansion, 260bps EBIT margin growth, and 320bps working capital efficiency. Fiscal 2025 saw the largest M&A year in RPM's history.
- **New 3-Segment Structure**: Reorganized into Construction Products Group, Performance Coatings Group, and Consumer Group to enhance collaboration and streamline costs. $15M in SG&A savings will be reallocated to high-growth opportunities.
- **Growth Strategy**: Focus on turnkey solutions, international markets, and data-driven profitability. Consumer Group expanded into cleaning products with The Pink Stuff acquisition.

**【CFO Financial Commentary】**
- **Q4 Financials**: GAAP net income of $420M, Non-GAAP EPS of $1.08 (vs. $0.95 prior year). Operating cash flow of $768M, second-highest in company history.
- **2026 Outlook**: Sales growth of low to mid-single digits, adjusted EBIT up 10-12%. Interest expense expected to rise to $105-115M due to M&A-related debt.
- **M&A Activity**: $600M+ in debt-funded acquisitions in 12 months, including The Pink Stuff and Ready Seal. Balance sheet remains strong with near-all-time best leverage ratios.

**【Q&A Highlights】**
- **Organic Growth**: CEO targets 2-3% organic growth in 2026, driven by Construction and Performance Coatings Groups. Consumer DIY recovery is a key wildcard.
- **Tariff Impact**: Unmitigated tariff impact estimated at 4-5%, partially offset by price increases and production shifts. Metal packaging costs up 11-12%.
- **Working Capital**: Aims for 200-300bps improvement in 2026, building on MAP 2025 gains. Fiscal 2025 ended with $969M liquidity.
- **M&A Pipeline**: Actively pursuing $10-50M bolt-ons and larger adjacencies like cleaning products. No plans for $1B+ deals.
- **Segment Performance**: Construction Products Group led with 10%+ EBIT growth. Consumer Group rationalized SKUs, improving margins despite sales decline.


RPM International Inc. (RPM) Q4 2025 Earnings Conference Call Transcript

- **Acquisition Expansion**: $150M Pink Stuff deal opens $12B North American cleaning market, targeting e-commerce and grocery channels.
- **MAP 2025 Resilience**: $28M savings offset $74M tariff impact; 2026 savings guidance $100M despite Q3 plant consolidation costs.
- **Cash Flow Strength**: $91.5M Q3 operating cash flow (2nd highest on record) despite $83M shareholder returns.
- **Tariff Mitigation**: 3.2% raw material impact neutralized via sourcing, partnerships, and pricing; 4% U.S. steel price hikes absorbed by domestic producers.
- **Consumer Innovation**: Mean Green refillable cleaner wins 2025 award; Q4 consumer sales expected -1% to +1%.

**【CEO Overview】**
- Q3 revenue declined 3.0% YoY to $1.02 billion, driven by unfavorable weather in North America and FX headwinds. Adjusted EBIT fell $31.9 million due to lower production volumes and MAP 2025 transition costs.
- Announced acquisition of The Pink Stuff for £150 million (FY24 sales), expanding into a $12B North American cleaning market. Deal expected to close Q4 '25.
- MAP 2025 initiatives delivered $28M in savings, offsetting $74M in raw material tariff impacts. 2026 MAP savings projected at $100M.

**【CFO Financial Breakdown】**
- North America: CPG sales -6.2% YoY, EBIT -34.5% due to weather. PCG sales +0.4%, EBIT -25.3% vs prior year record. Consumer segment organic growth +1.0% vs -1.8% prior year.
- Europe: CPG +1.5% (FX adj), PCG +4.0%, SPG -1.0%. FX headwinds reduced overall EBIT by $12M.
- Q3 operating cash flow $91.5M (2nd highest on record), despite $83M returned to shareholders via dividends and buybacks.

**【Q&A Highlights】**
- Tariff Mitigation: 3.2% raw material impact offset via sourcing shifts, vendor partnerships, and price increases. $74M unmitigated impact across $2.5B spend.
- Consumer Trends: Mean Green refillable cleaner awarded 2025 House Clean Award. Q4 consumer sales expected -1% to +1% vs flat Q3.
- Construction Recovery: CPG backlog stable, Q4 growth driven by repair/maintenance vs new construction. PCG benefits from data center spending and passive fire protection growth.


RPM International (RPM)-8 Apr 25-2025 Q3 Earnings call transcript

- **Record Q2 Performance**: Adjusted EBIT margin of 13.8% and EPS of $1.39, driven by MAP 2025 initiatives and all-segment growth.
- **MAP 2025 Expansion**: $500M+ savings target by FY26, with $36M+ from Green Belt projects and 50% reduction in ERP instances.
- **Seasonal Q3 Challenges**: Flat sales growth due to real winter, but Q4 expected to rebound with MAP-driven leverage.
- **Consumer Recovery Signs**: Stabilization in DIY markets, new product launches, and MAP 2025 margin improvements.

**【CEO Opening Remarks】**
- Q2 highlights include record sales, adjusted EBIT margin of 13.8%, and adjusted EPS of $1.39, up 13.9% YoY. MAP 2025 initiatives drove structural improvements, with 12 consecutive quarters of record adjusted EBIT.
- All segments achieved positive organic volume growth, despite a $4.4M customer bankruptcy charge in the consumer group. MAP 2025 SG&A streamlining led to a 5% YoY decline in operating expenses.
- Q3 outlook faces seasonal challenges due to real winter conditions, but Q4 is expected to return to strong growth with MAP 2025 benefits.

**【CFO Financial Details】**
- Consolidated sales growth driven by all segments, with FX headwinds in emerging markets. Adjusted EBIT grew 7.7% to $279M, supported by MAP 2025 initiatives and lower interest expense from $226.5M debt reduction.
- North American segments showed solid performance, while Europe faced macro challenges but improved profitability. CPG and PCG achieved record adjusted EBIT, while Consumer Group saw stabilization in residential end markets.

**【MAP 2025 Progress】**
- Working capital efficiency improved 100bps YoY, with operational cash flow at $279M, second-highest in RPM history. MAP 2025 pipeline expanded to $500M+ savings, including $36M+ from Green Belt projects.
- MAP initiatives like facility consolidations and ERP streamlining reduced accounting locations from 100 to ~50 and ERP instances from 75 to ~14.

**【Q&A Key Takeaways】**
- **Third Quarter Guidance**: Flat sales growth due to seasonal weather, but MAP 2025 benefits offset by residential market softness. Q4 expected to rebound with MAP-driven leverage.
- **Consumer Segment Stabilization**: Signs of stabilization in DIY takeaway, aided by new product launches and targeted marketing. MAP 2025 rationalization of lower-margin products drove EBIT growth despite inflation.
- **MAP 2025 Future**: Targeting $500M+ savings by FY26, with focus on international expansion and lean manufacturing. New MAP program details expected in Q4 2025.
- **M&A Strategy**: Prioritize small, strategic acquisitions in North America and Europe to enhance profitability, with balance sheet strength supporting disciplined execution.

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