RPM International — Jul 24, 2025 release
Fiscal 2025 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001193125-25-163802
Showing in the filing
Consolidated adjusted EBIT
“up in the low- to mid-single-digit percentage range compared to prior-year record results”
Period
Q1 FY2026
Measure
Company-defined measure
Source
Prose
All guidance in this release · 7
Adjusted EBIT for FY2026
“increase in the high-single- to low-double-digit range”
Consolidated sales for FY2026
“increase in the low- to mid-single-digit range compared to prior-year record results”
Consolidated adjusted EBIT for FY2026
“increase in the high-single- to low-double-digit percentage range compared to prior-year record results”
Consolidated sales for Q1 FY2026
“increase in the low- to mid-single-digit percentage range compared to prior-year results”
Sales growth by segment for Q1 FY2026
“to be similar among the three segments, with Consumer slightly higher, driven by the acquisitions of The Pink Stuff and Ready Seal”
Consolidated adjusted EBIT for Q1 FY2026
“up in the low- to mid-single-digit percentage range compared to prior-year record results”
Sales and adjusted EBIT growth for Q1 FY2026
“low- to mid-single-digit”
Exhibit 99.1 · full document
Exhibit 99.1
RPM Reports Record Fiscal 2025 Fourth-Quarter and Full-Year Results
•
Record fourth-quarter sales of $2.08 billion, an increase of 3.7% compared to the prior year
•
Record fourth-quarter net income of $225.8 million, record diluted EPS of $1.76, and record EBIT of
$271.0 million
•
Record fourth-quarter adjusted diluted EPS of $1.72, an increase of 10.3% over the prior-year record; record
adjusted EBIT of $314.4 million, an increase of 10.1% over the prior-year record
•
Record fiscal 2025 sales of $7.37 billion, an increase of 0.5% compared to the prior-year record
•
Record fiscal 2025 net income of $688.7 million, record diluted EPS of $5.35 and record EBIT of
$865.2 million
•
Record fiscal 2025 adjusted diluted EPS of $5.30, an increase of 7.3% over the prior-year record; record adjusted
EBIT of $976.0 million, an increase of 3.7% over the prior-year record; and record adjusted EBIT margin of 13.2%
•
Fiscal 2026 full-year outlook calls for sales to increase in the low- to mid-single-digit range and adjusted EBIT to increase in the high-single- to low-double-digit range
•
Fiscal 2026 first-quarter outlook calls for low- to mid-single-digit sales and adjusted EBIT growth MEDINA, OH – July 24, 2025 – RPM
International Inc. (NYSE: RPM), a world leader in specialty coatings, sealants and building materials, today reported record financial results for its fiscal 2025 fourth quarter and full year ended May 31, 2025.
Frank C. Sullivan, RPM chairman and CEO commented, “By leveraging top-line growth with improved operating
efficiency, we demonstrated the Power of RPM and generated record results for the fourth quarter and full year. Our ability to provide systems and turnkey solutions for high-performance buildings, as well as our focus on maintenance and restoration,
resulted in solid organic growth in the fourth quarter. Aided by the continued implementation of MAP 2025 operating improvements and acquisitions, we generated double-digit consolidated adjusted EBIT growth during the quarter, with each segment
increasing adjusted EBIT.” He added, “For the full fiscal year, we delivered record sales, adjusted EBIT and adjusted EPS, an accomplishment
that we have achieved every year since we began MAP 2025. Importantly, in fiscal year 2025, we also generated record adjusted EBIT margins, despite a mixed economic environment. These results are a testament to the dedication and persistence of our
associates.” Sullivan continued, “In an effort to continue building on this positive momentum, we are reorganizing into three
segments—Construction Products Group, Performance Coatings Group and the Consumer Group. The former Specialty Products Group businesses have joined our other segments. This streamlined structure will allow our businesses to collaborate more
closely to fuel revenue growth and leverage the cultural shift toward working together that has been enabled by MAP. It will also provide additional operating efficiencies, including reduced overhead, which is a hallmark of our MAP initiatives, to
continue expanding margins. As we look forward, we are focused on accelerating growth to take full advantage of the operational improvements we’ve made over the past several years and realize the full Power of RPM.”
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
2
Fourth-Quarter 2025 Consolidated Results
Consolidated
Three Months Ended
$ in 000s except per share data
May 31,
May 31,
2025
2024
$ Change
% Change
Net Sales
$
2,081,975
$
2,008,163
$
73,812
3.7
%
Net Income Attributable to RPM Stockholders
225,758
180,611
45,147
25.0
%
Diluted Earnings Per Share (EPS)
1.76
1.40
0.36
25.7
%
Income Before Income Taxes (IBT)
248,376
239,278
9,098
3.8
%
Earnings Before Interest and Taxes (EBIT)
271,034
257,973
13,061
5.1
%
Adjusted EBIT (1)
314,377
285,550
28,827
10.1
%
Adjusted Diluted EPS (1)
1.72
1.56
0.16
10.3
%
(1)
Excludes certain items that are not indicative of RPM’s ongoing operations. See tables below titled
Supplemental Segment Information and Reconciliation of Reported to Adjusted Amounts for details. The fourth-quarter sales increase was
primarily driven by sales of systems and turnkey solutions to serve high-performance buildings, as well as products and services focused on maintenance and repair. Acquisitions also contributed to top-line
growth. Geographically, Europe led sales growth with an increase of 14.9%, fueled by high-performance coatings and acquisitions. In North America, a 2.7%
sales increase was driven by demand for systems and turnkey solutions serving high-performance buildings. Sales were mixed in emerging markets, as growth in products serving infrastructure projects in Latin America was offset by unfavorable foreign
currency translation and weak economic conditions in Asia. Africa / Middle East grew modestly after strong prior-year growth. Sales included 2.0% organic
growth, 2.0% growth from acquisitions net of divestitures, and a 0.3% decline from foreign currency translation. Adjusted EBIT was a record, driven by
organic sales growth, which leveraged MAP 2025 operational improvements, partially offset by transitory costs related to plant consolidations and start-ups, as well as raw material cost inflation. SG&A
increased during the quarter, driven by higher M&A expenses, variable compensation related to the sale of technical products, and SG&A from acquired businesses. Additional SG&A streamlining actions were put in place during the quarter to
help offset the increased expenses. The adjusted diluted EPS increase was driven by the improvement in adjusted EBIT.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
3
Fourth-Quarter 2025 Segment Sales and Earnings
Construction Products Group
Three Months Ended
$ in 000s
May 31,
May 31,
2025
2024
$ Change
% Change
Net Sales
$
809,913
$
762,174
$
47,739
6.3
%
Income Before Income Taxes
153,455
131,429
22,026
16.8
%
EBIT
154,043
131,980
22,063
16.7
%
Adjusted EBIT (1)
158,108
138,506
19,602
14.2
%
(1)
Excludes certain items that are not indicative of RPM’s ongoing operations. See table below titled
Supplemental Segment Information for details. Record CPG sales were driven by systems and turnkey roofing solutions serving
high-performance buildings. The growth was in addition to strong prior-year sales, which increased 6.6%. Sales included 6.7% organic growth, 0.3% growth
from acquisitions, and a 0.7% decline from foreign currency translation. Adjusted EBIT was a record, and the increase was driven by MAP 2025 benefits and
higher sales of engineered systems and services that expanded margins, partially offset by temporary inefficiencies from plant consolidations as production was being transferred.
Performance Coatings Group
Three Months Ended
$ in 000s
May 31,
May 31,
2025
2024
$ Change
% Change
Net Sales
$
399,208
$
365,555
$
33,653
9.2
%
Income Before Income Taxes
54,711
46,589
8,122
17.4
%
EBIT
54,131
45,700
8,431
18.4
%
Adjusted EBIT (1)
57,774
48,529
9,245
19.1
%
(1)
Excludes certain items that are not indicative of RPM’s ongoing operations. See table below titled
Supplemental Segment Information for details. Record PCG sales included strong demand for turnkey flooring solutions serving
high-performance buildings and a double-digit increase in sales of fiberglass reinforced plastics structures, driven by demand from data centers. An acquisition also contributed to the sales increase.
Sales included 4.4% organic growth, a 5.0% increase from acquisitions net of divestitures, and a 0.2% decline from foreign currency translation.
Adjusted EBIT increased to a record as higher volumes improved fixed-cost leverage, which was aided by MAP 2025 operational improvement initiatives, and as
sales mix improved.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
4
Specialty Products Group
Three Months Ended
$ in 000s
May 31,
May 31,
2025
2024
$ Change
% Change
Net Sales
$
181,315
$
177,975
$
3,340
1.9
%
(Loss) Income Before Income Taxes
(10,763
)
7,439
(18,202
)
(244.7
%)
EBIT
(10,637
)
7,528
(18,165
)
(241.3
%)
Adjusted EBIT (1)
11,379
10,591
788
7.4
%
(1)
Excludes certain items that are not indicative of RPM’s ongoing operations. See table below titled
Supplemental Segment Information for details. The SPG sales increase included improved sales to specialty OEM markets, which showed
signs of stabilization after a cyclical downturn. The food coatings and additives business generated strong sales growth, due in part to a prior acquisition. The fluorescent pigments and disaster restoration businesses experienced soft demand during
the quarter. Sales included flat organic growth, 1.7% growth from an acquisition, and a 0.2% benefit from foreign currency translation.
The adjusted EBIT increase was driven by MAP 2025 operational improvement initiatives. This was partially offset by a $2.5 million bad debt expense due
to a customer bankruptcy and higher start-up expenses at the Resin Center of Excellence that SPG managed on behalf of all RPM segments.
EBIT includes $13.1 million of non-cash asset impairment charges primarily related to fluorescent pigments, which
have been consolidated into the Consumer Group in fiscal year 2026 and have undergone overhead streamlining, and a $5.8 million charge for a legal settlement related to a business that was divested in fiscal year 2023. These charges have been
excluded from adjusted EBIT. Consumer Group
Three Months Ended
$ in 000s
May 31,
May 31,
2025
2024
$ Change
% Change
Net Sales
$
691,539
$
702,459
$
(10,920
)
(1.6
%)
Income Before Income Taxes
113,441
113,146
295
0.3
%
EBIT
113,570
113,204
366
0.3
%
Adjusted EBIT (1)
122,470
118,168
4,302
3.6
%
(1)
Excludes certain items that are not indicative of RPM’s ongoing operations. See table below titled
Supplemental Segment Information for details. The Consumer Group’s sales decline was driven by softness in DIY markets and product
rationalization, partially offset by new product introductions and the benefit of The Pink Stuff acquisition, which closed one month prior to the end of the fiscal quarter.
Sales included a 3.8% organic decline, 2.3% growth from acquisitions, and a 0.1% decline from foreign currency translation.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
5
Adjusted EBIT was a record, driven by MAP 2025 improvements, which were partially offset by cost inflation
and reduced fixed-cost utilization from lower volumes. Fiscal Year 2025 Consolidated Results
Consolidated
Year Ended
$ in 000s except per share data
May 31,
May 31,
2025
2024
$ Change
% Change
Net Sales
$
7,372,644
$
7,335,277
$
37,367
0.5
%
Net Income Attributable to RPM Stockholders
688,688
588,397
100,291
17.0
%
Diluted Earnings Per Share (EPS)
5.35
4.56
0.79
17.3
%
Income Before Income Taxes (IBT)
792,760
787,837
4,923
0.6
%
Earnings Before Interest and Taxes (EBIT)
865,204
860,832
4,372
0.5
%
Adjusted EBIT (1)
976,031
941,597
34,434
3.7
%
Adjusted Diluted EPS (1)
5.30
4.94
0.36
7.3
%
(1)
Excludes certain items that are not indicative of RPM’s ongoing operations. See tables below titled
Supplemental Segment Information and Reconciliation of Reported to Adjusted Amounts for details. Fiscal year 2025 sales were a record,
driven by turnkey solutions for high-performance buildings, partially offset by soft market conditions in the DIY and specialty OEM markets. Record
adjusted EBIT and adjusted EBIT margin of 13.2% were driven by MAP 2025 benefits, partially offset by lower fixed-cost absorption. SG&A streamlining actions partially offset increased variable compensation, benefits and M&A expenses.
Fiscal year 2025 adjusted EPS was a record, driven by the adjusted EBIT growth, and lower interest expense as a portion of the strong operational cash flow
was used to repay debt. Cash Flow and Financial Position
During fiscal 2025:
•
Cash provided by operating activities was $768.2 million, the second highest amount in company history,
driven by working capital efficiency enabled by MAP 2025 initiatives. This compares to a record $1.12 billion in fiscal year 2024 when there was a large working capital release as supply chains normalized.
•
Operating working capital as a percentage of sales increased to 24.3% compared to 23.5% in fiscal year 2024,
driven by strategic purchases in the fourth quarter of fiscal 2025 to mitigate the future impact of tariffs.
•
Capital expenditures were $229.9 million compared to $214.0 million during fiscal year 2024 with the
increase driven by investments in shared RPM facilities, including the Resin Center of Excellence and the newly opened distribution center in Belgium, as well as new production facilities in Malaysia and India, and MAP 2025-enabled plant
consolidations.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
6
•
The company returned $325.6 million to stockholders through cash dividends and share repurchases, an
increase of $38.7 million or 13.5% compared to the prior year. As of May 31, 2025:
•
Total debt was $2.65 billion compared to $2.13 billion a year ago, with the $519.5 million
increase driven by debt used to finance the acquisitions of The Pink Stuff, TMP Convert and other smaller companies.
•
Total liquidity, including cash and committed revolving credit facilities, was $969.1 million, compared to
$1.36 billion a year ago, with the decrease driven by the use of the credit facilities to finance the acquisition of The Pink Stuff.
Business Outlook Sullivan added, “We continue to
focus on what we control, which includes offering differentiated turnkey solutions and systems to high-performance building projects and improving our operational efficiency, including SG&A streamlining. Working capital released from MAP 2025
structural improvements has helped to fund several acquisitions, leading to RPM’s largest M&A year in fiscal 2025. We will benefit as we integrate these businesses into RPM and leverage our competitive strengths to accelerate their future
growth.” He concluded, “For the full fiscal year 2026, we anticipate solid top-line growth, which will
allow us to leverage the operational improvements we’ve implemented to generate record adjusted EBIT and adjusted EBIT margins. The momentum we generated at the end of fiscal 2025 is expected to continue in the fiscal 2026 first quarter,
leading to higher sales and profitability. However, we anticipate inflation will temporarily outpace pricing during the quarter and offset the benefits of efficiency initiatives.”
The company expects the following in full-year fiscal 2026:
•
Consolidated sales to increase in the low- to mid-single-digit range compared to prior-year record results.
•
Consolidated adjusted EBIT to increase in the high-single- to
low-double-digit percentage range compared to prior-year record results. The company expects
the following in the fiscal 2026 first quarter:
•
Consolidated sales to increase in the low- to mid-single-digit percentage range compared to prior-year results.
•
Sales growth to be similar among the three segments, with Consumer slightly higher, driven by the acquisitions of
The Pink Stuff and Ready Seal.
•
Consolidated adjusted EBIT to be up in the low- to mid-single-digit percentage range compared to prior-year record results.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
7
Earnings Webcast and Conference Call Information
Management will host a conference call to discuss these results beginning at 10:00 a.m. ET today. The call can be accessed via webcast at
www.RPMinc.com/Investors/Presentations-Webcasts or by dialing 1-844-481-2915 or 1-412-317-0708 for international callers and asking to join the RPM International call. Participants are asked to call the assigned number approximately 10 minutes
before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode.
For those unable to listen to the live call, a replay will be available from July 24, 2025, until July 31, 2025. The replay can be accessed by
dialing 1-877-344-7529 or
1-412-317-0088 for international callers. The access code is 2426392. The call also will be available for replay and as a written
transcript via the RPM website at www.RPMinc.com . About RPM
RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates
across four reportable segments: consumer, construction products, performance coatings and specialty products. RPM has a diverse portfolio of market-leading brands, including Rust-Oleum , DAP , The Pink Stuff , Zinsser ,
Varathane , DayGlo , Legend Brands , Stonhard , Carboline , Tremco and Dryvit . From homes and workplaces to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and
professionals alike to help build a better world . The company employs approximately 17,200 individuals worldwide. Visit www.RPMinc.com to learn more.
For more information, contact Matt Schlarb, Vice President – Investor Relations & Sustainability, at 330-220-6064 or mschlarb@rpminc.com . # # #
Use of Non-GAAP Financial Information
To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) in this
earnings release, we use EBIT, adjusted EBIT and adjusted earnings per share, which are all non-GAAP financial measures. EBIT is defined as earnings (loss) before interest and taxes, with adjusted EBIT and
adjusted earnings per share provided for the purpose of adjusting for one-off items impacting revenues and/or expenses that are not considered by management to be indicative of ongoing operations. We evaluate
the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest income (expense), net is essentially related to corporate functions, as opposed to segment
operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with
GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure
expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance.
We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
8
bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. See the financial statement section of this earnings
release for a reconciliation of EBIT and adjusted EBIT to income before income taxes, and adjusted earnings per share to earnings per share. We have not provided a reconciliation of our first-quarter fiscal 2026 or full-year fiscal 2026 adjusted
EBIT guidance because material terms that impact such measure are not in our control and/or cannot be reasonably predicted, and therefore a reconciliation of such measure is not available without unreasonable effort.
Use of Key Performance Indicator Metric To supplement
the financial information presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) in this earnings release, we use the key performance indicator (“KPI”) metric of operating working
capital as a percentage of sales, which is defined as the net amount of net trade accounts receivable plus inventories less accounts payable, all divided by trailing twelve-month net sales. We evaluate the working capital investment needs of our
business to support current operations as well as future changes in business activity. For that reason, we believe operating working capital as a percentage of sales is also useful to investors as a metric in their investment decisions.
Forward-Looking Statements This press release contains
“forward-looking statements” relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties
and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking
statements. These uncertainties and factors include (a) global and regional markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the viability of banks
and other financial institutions; (b) the prices, supply and availability of raw materials, including assorted pigments, resins, solvents, and other natural gas- and
oil-based materials; packaging, including plastic and metal containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal,
environmental and litigation risks inherent in our businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange
rates upon our foreign operations; (g) changes in global trade policies, including the adoption or expansion of tariffs and trade barriers; (h) the effect of non-currency risks of investing in and
conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (i) risks and uncertainties associated with our ongoing acquisition and divestiture
activities; (j) the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, and the risks of failing to meet any other objectives of our
improvement plans; (k) risks related to the adequacy of our contingent liability reserves; (l) risks relating to a public health crisis similar to the Covid pandemic; (m) risks related to acts of war similar to the Russian invasion of
Ukraine; (n) risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; (o) risks related to our or our third
parties’ use of technology including artificial intelligence, data breaches and data privacy violations; (p) the shift to remote work and online purchasing and the impact that has on residential and commercial real estate construction; and
(q) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Form 10-K for the year ended May 31, 2024, as the same may be updated
from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the filing date of this press release.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
9
CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS, EXCEPT PER SHARE DATA (Unaudited)
Three Months Ended
Year Ended
May 31,
May 31,
May 31,
May 31,
2025
2024
2025
2024
Net Sales
$
2,081,975
$
2,008,163
$
7,372,644
$
7,335,277
Cost of Sales
1,200,204
1,177,583
4,322,166
4,320,688
Gross Profit
881,771
830,580
3,050,478
3,014,589
Selling, General & Administrative Expenses
592,845
554,504
2,150,537
2,113,585
Restructuring Expense
6,764
15,912
24,979
30,008
Goodwill Impairment
11,352
—
11,352
—
Interest Expense
25,939
27,276
96,543
117,969
Investment (Income), Net
(3,281
)
(8,581
)
(24,099
)
(44,974
)
Other (Income) Expense, Net
(224
)
2,191
(1,594
)
10,164
Income Before Income Taxes
248,376
239,278
792,760
787,837
Provision for Income Taxes
22,367
58,442
102,433
198,395
Net Income
226,009
180,836
690,327
589,442
Less: Net Income Attributable to Noncontrolling Interests
251
225
1,639
1,045
Net Income Attributable to RPM International Inc. Stockholders
$
225,758
$
180,611
$
688,688
$
588,397
Earnings per share of common stock attributable to RPM International Inc.
Stockholders:
Basic
$
1.77
$
1.41
$
5.38
$
4.58
Diluted
$
1.76
$
1.40
$
5.35
$
4.56
Average shares of common stock outstanding - basic
127,396
127,666
127,570
127,767
Average shares of common stock outstanding - diluted
127,877
128,331
128,204
128,340
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
10
SUPPLEMENTAL SEGMENT INFORMATION
IN THOUSANDS (Unaudited)
Three Months Ended
Year Ended
May 31,
May 31,
May 31,
May 31,
2025
2024
2025
2024
Net Sales:
CPG Segment
$
809,913
$
762,174
$
2,767,428
$
2,702,466
PCG Segment
399,208
365,555
1,491,695
1,462,460
SPG Segment
181,315
177,975
699,469
712,402
Consumer Segment
691,539
702,459
2,414,052
2,457,949
Total
$
2,081,975
$
2,008,163
$
7,372,644
$
7,335,277
Income Before Income Taxes:
CPG Segment
Income Before Income Taxes (a)
$
153,455
$
131,429
$
426,028
$
385,339
Interest (Expense), Net (b)
(588
)
(551
)
(2,494
)
(5,170
)
EBIT (c)
154,043
131,980
428,522
390,509
MAP initiatives (d)
3,871
6,526
10,327
12,694
Acquisition-related costs (e)
194
—
453
—
Adjusted EBIT
$
158,108
$
138,506
$
439,302
$
403,203
PCG Segment
Income Before Income Taxes (a)
$
54,711
$
46,589
$
225,594
$
199,951
Interest Income, Net (b)
580
889
2,335
4,642
EBIT (c)
54,131
45,700
223,259
195,309
MAP initiatives (d)
3,128
2,829
6,840
20,233
Acquisition-related costs (e)
515
—
1,012
—
Adjusted EBIT
$
57,774
$
48,529
$
231,111
$
215,542
SPG Segment
(Loss) Income Before Income Taxes (a)
$
(10,763
)
$
7,439
$
26,391
$
43,784
Interest (Expense) Income, Net (b)
(126
)
(89
)
(439
)
204
EBIT (c)
(10,637
)
7,528
26,830
43,580
MAP initiatives (d)
3,159
3,063
10,100
11,179
(Gain) on sale of assets and a business, net (f)
—
—
(237
)
(1,206
)
Legal contingency adjustment on a divested business (h)
5,777
—
6,059
3,953
Goodwill and intangible asset impairments (i)
13,080
—
13,080
—
Adjusted EBIT
$
11,379
$
10,591
$
55,832
$
57,506
Consumer Segment
Income Before Income Taxes (a)
$
113,441
$
113,146
$
357,900
$
408,200
Interest (Expense) Income, Net (b)
(129
)
(58
)
(585
)
2,561
EBIT (c)
113,570
113,204
358,485
405,639
MAP initiatives (d)
6,339
8,591
28,464
9,840
Acquisition-related costs (e)
2,561
—
2,561
—
(Gain) on sale of assets and a business, net (f)
—
(3,627
)
—
(3,627
)
Business interruption insurance recovery (g)
—
—
—
(11,128
)
Adjusted EBIT
$
122,470
$
118,168
$
389,510
$
400,724
Corporate/Other
(Loss) Before Income Taxes (a)
$
(62,468
)
$
(59,325
)
$
(243,153
)
$
(249,437
)
Interest (Expense), Net (b)
(22,395
)
(18,886
)
(71,261
)
(75,232
)
EBIT (c)
(40,073
)
(40,439
)
(171,892
)
(174,205
)
MAP initiatives (d)
4,719
10,195
32,168
38,827
Adjusted EBIT
$
(35,354
)
$
(30,244
)
$
(139,724
)
$
(135,378
)
TOTAL CONSOLIDATED
Income Before Income Taxes (a)
$
248,376
$
239,278
$
792,760
$
787,837
Interest (Expense)
(25,939
)
(27,276
)
(96,543
)
(117,969
)
Investment Income, Net
3,281
8,581
24,099
44,974
EBIT (c)
271,034
257,973
865,204
860,832
MAP initiatives (d)
21,216
31,204
87,899
92,773
Acquisition-related costs (e)
3,270
—
4,026
—
(Gain) on sale of assets and a business, net (f)
—
(3,627
)
(237
)
(4,833
)
Business interruption insurance recovery (g)
—
—
—
(11,128
)
Legal contingency adjustment on a divested business (h)
5,777
—
6,059
3,953
Goodwill and intangible asset impairments (i)
13,080
—
13,080
—
Adjusted EBIT
$
314,377
$
285,550
$
976,031
$
941,597
(a)
The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally
Accepted Accounting Principles in the United States (GAAP), to EBIT and Adjusted EBIT.
(b)
Interest Income (Expense), Net includes the combination of Interest Income (Expense) and Investment Income
(Expense), Net.
(c)
EBIT is defined as earnings (loss) before interest and taxes, with Adjusted EBIT provided for the purpose of
adjusting for items impacting earnings that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT, or adjusted EBIT, as
a performance evaluation measure because Interest Income (Expense), Net is essentially related to corporate functions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment
decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating
performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom
believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing.
Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be
predictive of potential future results.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
11
(d)
Reflects restructuring and other charges, which have been incurred in relation to our Margin Acceleration Plan
(“MAP to Growth”) and our Margin Achievement Plan (“MAP 2025”), together MAP initiatives, as follows:
- Restructuring and other related expense, net: Includes charges incurred related to headcount reductions,
facility closures and asset impairments recorded in “Restructuring Expense” on the Consolidated Statements of Income. Restructuring Expense totaled $6.8 million and $15.9 million for the quarters ended May 31, 2025 and
May 31, 2024 respectively, and $25.0 million and $30.0 million for the year ended May 31, 2025 and May 31, 2024 respectively. Other related expenses include inventory write-offs in connection with restructuring activities
recorded in “Cost of Sales”, accelerated depreciation and amortization recorded within “Cost of Sales” or “Selling, General, & Administrative Expenses (“SG&A”)” depending on the nature of the expense
as well as the prior year loss on sale and increase in our allowance for doubtful accounts resulting from of the divestiture of the non-core Universal Sealant’s Bridgecare service business within our PCG
segment.
- Exited product lines: Sale of inventory that had previously been reserved for as a result of prior product
line rationalization initiatives at PCG partially offset by inventory write-offs related to the discontinuation of certain product lines within our SPG segment. These amounts resulted from ongoing product line rationalization efforts in connection
with our MAP initiatives and were recorded in “Cost of Sales”.
- ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP
systems across the organization to four ERP platforms, one per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been
incurred in all segments, as well as Corporate/Other, and have been recorded within “SG&A”.
- Professional fees: Includes expenses incurred to consolidate accounting locations, costs incurred to
implement technologies and processes to drive improved sales mix and salesforce effectiveness and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments
and recorded within “SG&A”. All of this spend is in support of stated MAP goals with the most significant expense incurred within Corporate/Other.
Included below is a reconciliation of the TOTAL CONSOLIDATED MAP initiatives.
Three Months Ended
Year Ended
May 31, 2025
May 31, 2024
May 31, 2025
May 31, 2024
Restructuring and other related expense, net
$
13,335
$
18,845
$
42,861
$
45,444
Exited product line
—
—
—
(248
)
ERP consolidation plan
3,525
2,695
15,044
11,426
Professional fees
4,356
9,664
29,994
36,151
MAP initiatives
$
21,216
$
31,204
$
87,899
$
92,773
(e)
Acquisition costs reflect amounts included in “Cost of Sales” for inventory step-ups.
(f)
Reflects gains associated with post-closing adjustments for the sale of the
non-core furniture warranty business in the SPG segment in fiscal 2023 which have been recorded in “SG&A”. In addition to this, the prior year reflects the sale of a property within our Consumer
segment which has also been recorded in “SG&A”.
(g)
Business interruption insurance recovery at our Consumer segment related to lost sales and incremental costs
incurred during fiscal 2021 and 2022 as a result of an explosion at the plant of a significant alkyd resin supplier, which has been recorded in “SG&A”.
(h)
Represents incremental expense related to an adverse legal ruling from a case associated with a business that
was divested in fiscal 2023.
(i)
Reflects $11.4 million of goodwill impairment recorded in “Goodwill Impairment” and
$1.7 million of intangible asset impairment recorded in “SG&A”. Both charges are related to the Color Group reporting unit in our SPG Segment due to the continued softness in OEM markets and underperformance in our growth
initiatives associated with this reporting unit.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
12
SUPPLEMENTAL INFORMATION
RECONCILIATION OF “REPORTED” TO “ADJUSTED” AMOUNTS
(Unaudited)
Three Months Ended
Year Ended
May 31, 2025
May 31, 2024
May 31, 2025
May 31, 2024
Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax):
Reported Earnings per Diluted Share
$
1.76
$
1.40
$
5.35
$
4.56
MAP initiatives (d)
0.16
0.19
0.56
0.56
Acquisition-related costs (e)
0.02
—
0.02
—
(Gain) on sale of assets and a business, net (f)
—
(0.02
)
—
(0.03
)
Business interruption insurance recovery (g)
—
—
—
(0.07
)
Legal contingency adjustment on a divested business (h)
0.03
—
0.04
0.02
Goodwill and intangible asset impairments (i)
0.09
—
0.09
—
Investment returns (j)
—
(0.01
)
(0.02
)
(0.12
)
Income tax adjustments (k)
(0.34
)
—
(0.74
)
0.02
Adjusted Earnings per Diluted Share (l)
$
1.72
$
1.56
$
5.30
$
4.94
(d)
Reflects restructuring and other charges, which have been incurred in relation to our Margin Acceleration Plan
(“MAP to Growth”) and our Margin Achievement Plan (“MAP 2025”), together MAP initiatives, as follows:
- Restructuring and other related expense, net: Includes charges incurred related to headcount reductions,
facility closures and asset impairments recorded in “Restructuring Expense” on the Consolidated Statements of Income. Restructuring Expense totaled $6.8 million and $15.9 million for the quarters ended May 31, 2025 and
May 31, 2024 respectively, and $25.0 million and $30.0 million for the year ended May 31, 2025 and May 31, 2024 respectively. Other related expenses include inventory write-offs in connection with restructuring activities
recorded in “Cost of Sales”, accelerated depreciation and amortization recorded within “Cost of Sales” or “Selling, General, & Administrative Expenses (“SG&A”)” depending on the nature of the expense
as well as the prior year loss on sale and increase in our allowance for doubtful accounts resulting from of the divestiture of the non-core Universal Sealant’s Bridgecare service business within our PCG
segment.
- Exited product lines: Sale of inventory that had previously been reserved for as a result of prior product
line rationalization initiatives at PCG partially offset by inventory write-offs related to the discontinuation of certain product lines within our SPG segment. These amounts resulted from ongoing product line rationalization efforts in connection
with our MAP initiatives and were recorded in “Cost of Sales”.
- ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP
systems across the organization to four ERP platforms, one per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been
incurred in all segments, as well as Corporate/Other, and have been recorded within “SG&A”.
- Professional fees: Includes expenses incurred to consolidate accounting locations, costs incurred to
implement technologies and processes to drive improved sales mix and salesforce effectiveness and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments
and recorded within “SG&A”. All of this spend is in support of stated MAP goals with the most significant expense incurred within Corporate/Other.
(e)
Acquisition costs reflect amounts included in “Cost of Sales” for inventory step-ups.
(f)
Reflects gains associated with post-closing adjustments for the sale of the
non-core furniture warranty business in the SPG segment in fiscal 2023 which have been recorded in “SG&A”. In addition to this, the prior year reflects the sale of a property within our Consumer
segment which has also been recorded in “SG&A”.
(g)
Business interruption insurance recovery at our Consumer segment related to lost sales and incremental costs
incurred during fiscal 2021 and 2022 as a result of an explosion at the plant of a significant alkyd resin supplier, which has been recorded in “SG&A”.
(h)
Represents incremental expense related to an adverse legal ruling from a case associated with a business that
was divested in fiscal 2023. We strongly disagree with the legal ruling and have filed an appeal.
(i)
Reflects $11.4 million of goodwill impairment recorded in “Goodwill Impairment” and
$1.7 million of intangible asset impairment recorded in “SG&A”. Both charges are related to the Color Group reporting unit in our SPG Segment due to the continued softness in OEM markets and underperformance in our growth
initiatives associated with this reporting unit.
(j)
Investment returns include realized net gains and losses on sales of investments and unrealized net gains and
losses on equity securities, which are adjusted due to their inherent volatility. Management does not consider these gains and losses, which cannot be predicted with any level of certainty, to be reflective of the Company’s core business
operations.
(k)
The adjustment for the current three-month period and year ended May 31, 2025, includes incremental
benefits of the U.S. deduction for foreign derived intangible income and the foreign tax rate differential associated with certain global capital structure initiatives completed during the period. Additionally, the year-to-date adjustment includes adjustments to U.S. foreign tax credits recognized because of global cash redeployment and debt optimization projects, as well as other adjustments to our net deferred
tax asset related to U.S. foreign tax credit carryforwards resulting from our reassessment of income tax positions following developments in U.S. income tax case law. For fiscal year 2024, the adjustment relates to income taxes associated with the
fiscal year 2023 sale of the furniture warranty business.
(l)
Adjusted Diluted EPS is provided for the purpose of adjusting diluted earnings per share for items impacting
earnings that are not considered by management to be indicative of ongoing operations.
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
13
CONSOLIDATED BALANCE SHEETS
IN THOUSANDS (Unaudited)
May 31, 2025
May 31, 2024
Assets
Current Assets
Cash and cash equivalents
$
302,137
$
237,379
Trade accounts receivable
1,551,953
1,468,208
Allowance for doubtful accounts
(42,844
)
(48,763
)
Net trade accounts receivable
1,509,109
1,419,445
Inventories
1,036,475
956,465
Prepaid expenses and other current assets
322,577
282,059
Total current assets
3,170,298
2,895,348
Property, Plant and Equipment, at Cost
2,738,373
2,515,847
Allowance for depreciation
(1,264,974
)
(1,184,784
)
Property, plant and equipment, net
1,473,399
1,331,063
Other Assets
Goodwill
1,617,626
1,308,911
Other intangible assets, net of amortization
780,826
512,972
Operating lease
right-of-use assets
370,399
331,555
Deferred income taxes
147,436
33,522
Other
215,965
173,172
Total other assets
3,132,252
2,360,132
Total Assets
$
7,775,949
$
6,586,543
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable
$
755,889
$
649,650
Current portion of long-term debt
7,691
136,213
Accrued compensation and benefits
287,398
297,249
Accrued losses
36,701
32,518
Other accrued liabilities
379,768
350,434
Total current liabilities
1,467,447
1,466,064
Long-Term Liabilities
Long-term debt, less current maturities
2,638,922
1,990,935
Operating lease liabilities
317,334
281,281
Other long-term liabilities
241,117
214,816
Deferred income taxes
224,347
121,222
Total long-term liabilities
3,421,720
2,608,254
Total liabilities
4,889,167
4,074,318
Stockholders’ Equity
Preferred stock; none issued
—
—
Common stock (outstanding 128,269; 128,629)
1,283
1,286
Paid-in capital
1,177,796
1,150,751
Treasury stock, at cost
(953,856
)
(864,502
)
Accumulated other comprehensive (loss)
(533,631
)
(537,290
)
Retained earnings
3,193,764
2,760,639
Total RPM International Inc. stockholders’ equity
2,885,356
2,510,884
Noncontrolling interest
1,426
1,341
Total equity
2,886,782
2,512,225
Total Liabilities and Stockholders’ Equity
$
7,775,949
$
6,586,543
RPM Reports Results for Fiscal 2025 4th Quarter and Full Year
July 24, 2025 Page
14
CONSOLIDATED STATEMENTS OF CASH FLOWS
IN THOUSANDS (Unaudited)
Year Ended
May 31, 2025
May 31, 2024
Cash Flows From Operating Activities:
Net income
$
690,327
$
589,442
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
193,840
171,251
Goodwill Impairment
11,352
—
Deferred income taxes
(104,507
)
(5,638
)
Stock-based compensation expense
27,042
25,925
Net (gain) on marketable securities
(4,997
)
(19,914
)
Net (gain) on sales of assets and businesses
—
(971
)
Other
1,269
2,226
Changes in assets and liabilities, net of effect from purchases and sales of businesses:
(Increase) decrease in receivables
(55,037
)
82,895
(Increase) decrease in inventory
(34,458
)
179,843
(Increase) decrease in prepaid expenses and other current and long-term assets
(62,669
)
23,426
Increase (decrease) in accounts payable
84,074
(24,439
)
(Decrease) increase in accrued compensation and benefits
(17,130
)
39,891
Increase in accrued losses
3,899
5,958
Increase in other accrued liabilities
35,185
52,410
Cash Provided By Operating Activities
768,190
1,122,305
Cash Flows From Investing Activities:
Capital expenditures
(229,930
)
(213,970
)
Acquisition of businesses, net of cash acquired
(595,770
)
(15,549
)
Purchase of marketable securities
(85,793
)
(32,981
)
Proceeds from sales of marketable securities
87,093
46,689
Proceeds from sales of assets and businesses, net
—
6,921
Other
(1,134
)
2,450
Cash (Used For) Investing Activities
(825,534
)
(206,440
)
Cash Flows From Financing Activities:
Additions to long-term and short-term debt
478,111
—
Reductions of long-term and short-term debt
(9,008
)
(575,408
)
Cash dividends
(255,563
)
(231,883
)
Repurchases of common stock
(69,999
)
(54,978
)
Shares of common stock returned for taxes
(18,686
)
(24,548
)
Payment of acquisition-related contingent consideration
(1,122
)
(1,142
)
Other
(1,796
)
(2,075
)
Cash Provided By (Used For) Financing Activities
121,937
(890,034
)
Effect of Exchange Rate Changes on Cash and
Cash Equivalents
165
(4,239
)
Net Change in Cash and Cash Equivalents
64,758
21,592
Cash and Cash Equivalents at Beginning of Period
237,379
215,787
Cash and Cash Equivalents at End of Period
$
302,137
$
237,379
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.