RPM International — Oct 1, 2025 release
Fiscal 2026 first-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001193125-25-225841
Showing in the filing
Sales and adjusted EBIT growth
“mid-single-digit”
Period
Q2 FY2026
Measure
Company-defined measure
Source
Prose
All guidance in this release · 8
Sales and adjusted EBIT growth for Q2 FY2026
“mid-single-digit”
Sales for FY2026
“increase toward the higher end of the previously announced low-to mid-single-digit range”
Adjusted EBIT for FY2026
“increase toward the lower end of the previously announced high-single- to low-double-digit range”
Consolidated Sales Growth for Q2 FY2026
“increase in the mid-single-digit percentage range compared to prior-year results”
Consumer Segment Sales Growth for Q2 FY2026
“moderately higher than the other two segments due to acquisitions”
Consolidated Adjusted EBIT Growth for Q2 FY2026
“up in the mid-single-digit percentage range compared to prior-year record results”
Consolidated Sales Growth for FY2026
“increase toward the higher end of the previous outlook of low-single- to mid-single-digit growth compared to prior-year record results”
Consolidated Adjusted EBIT Growth for FY2026
“increase toward the lower end of the previous outlook of high-single- to low-double-digit percentage growth compared to prior-year record results”
Exhibit 99.1 · full document
Exhibit 99.1
RPM Reports Record Fiscal 2026 First-Quarter Results
•
Record first-quarter sales of $2.11 billion, an increase of 7.4% compared to the prior year
•
First-quarter net income of $227.6 million, diluted EPS of $1.77, and record EBIT of $314.0 million
•
Record first-quarter adjusted diluted EPS of $1.88, an increase of 2.2% over the prior-year record; record
adjusted EBIT of $337.8 million, an increase of 2.9% over the prior-year record
•
Fiscal 2026 second-quarter outlook calls for mid-single-digit sales and
adjusted EBIT growth
•
Fiscal 2026 full-year outlook calls for sales to increase toward the higher end of the previously announced low-to mid-single-digit range and adjusted EBIT to increase toward the lower end of the previously announced high-single- to
low-double-digit range MEDINA, OH – October 1, 2025 – RPM International Inc.
(NYSE: RPM), a world leader in specialty coatings, sealants and building materials, today reported record financial results for its fiscal 2026 first quarter ended August 31, 2025.
Frank C. Sullivan, RPM chairman and CEO commented, “Our associates’ focused pivot to growth was evident during the quarter with organic sales up
solidly in a challenging macro environment. We leveraged our ability to provide turnkey solutions and systems to high-performance buildings and benefited from our focus on repair and maintenance. The successful integration of strategic business
acquisitions also played an important role in achieving record sales. Adjusted EBIT was a record as the strong top-line growth and MAP 2025 operational improvement benefits more than offset the impact of
SG&A growth investments, higher healthcare expenses and increased inflation. I am proud of our ability to generate record adjusted EBIT in 14 out of the last 15 quarters.”
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
2
First-Quarter 2026 Consolidated Results
Consolidated
Three Months Ended
$in 000s except per share data
August 31,
August 31,
2025
2024
$ Change
% Change
Net Sales
$
2,113,743
$
1,968,789
$
144,954
7.4
%
Net Income Attributable to RPM Stockholders
227,605
227,692
(87
)
(0.0
%)
Diluted Earnings Per Share (EPS)
1.77
1.77
—
0.0
%
Income Before Income Taxes (IBT)
298,047
290,451
7,596
2.6
%
Earnings Before Interest and Taxes (EBIT)
313,969
303,859
10,110
3.3
%
Adjusted EBIT (1)
337,792
328,342
9,450
2.9
%
Adjusted Diluted EPS (1)
1.88
1.84
0.04
2.2
%
(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. Record first-quarter sales were driven
by systems and turnkey solutions to serve high-performance buildings as well as a focus on repair and maintenance. Acquisitions also played a meaningful role in generating the record results.
Geographically, Europe led sales growth with an increase of 20.7%, driven by acquisitions and favorable foreign exchange. North America sales increased 5.9%,
driven by demand for systems and turnkey solutions. Sales were mixed in emerging markets, with Africa / Middle East leading growth, driven by infrastructure and high-performance building projects.
Sales included 3.0% organic growth, 3.8% growth from acquisitions, and a 0.6% benefit from foreign currency translation.
Adjusted EBIT was a record, driven by sales and volume growth, which leveraged MAP 2025 operational improvements, and the successful integration of acquired
businesses. This was partially offset by cost inflation and higher SG&A, which included an increase in healthcare and M&A expenses. Growth investments also contributed to higher SG&A.
Adjusted diluted EPS was a record and was driven by the improvement in adjusted EBIT, partially offset by higher interest expense resulting from debt being
used to finance acquisitions.
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
3
First-Quarter 2026 Segment Sales and Earnings
Construction Products Group
Three Months Ended
$in 000s
August 31,
August 31,
2025
2024
$ Change
% Change
Net Sales
$
881,446
$
828,006
$
53,440
6.5
%
Income Before Income Taxes
163,376
161,095
2,281
1.4
%
EBIT
163,941
161,563
2,378
1.5
%
Adjusted EBIT (1)
169,121
164,003
5,118
3.1
%
(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 and infrastructure projects, partially offset by soft market conditions in Europe and in the disaster restoration business due to reduced storm activity compared to the prior year.
Sales included 5.4% organic growth, 0.5% growth from acquisitions, and a 0.6% benefit from foreign currency translation.
Adjusted EBIT was a record, and the increase was driven by higher sales and MAP 2025 benefits, partially offset by SG&A growth investments and temporary
inefficiencies from plant consolidations as production was being transferred. This adjusted EBIT growth was in addition to strong growth in the prior-year.
Performance Coatings Group
Three Months Ended
$in 000s
August 31,
August 31,
2025
2024
$ Change
% Change
Net Sales
$
538,478
$
489,960
$
48,518
9.9
%
Income Before Income Taxes
82,679
77,119
5,560
7.2
%
EBIT
82,064
76,511
5,553
7.3
%
Adjusted EBIT (1)
86,995
78,341
8,654
11.0
%
(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 were driven by broad-based strength including turnkey flooring solutions
serving high-performance buildings, protective coatings and specialty OEM coatings. Acquisitions also contributed to the sales increase. Sales included
6.7% organic growth, a 2.5% increase from acquisitions, and a 0.7% benefit from foreign currency translation. Adjusted EBIT increased to a record, driven
by higher sales and MAP 2025 operational improvement initiatives, partially offset by growth investments and unfavorable mix.
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
4
Consumer Group
Three Months Ended
$in 000s
August 31,
August 31,
2025
2024
$ Change
% Change
Net Sales
$
693,819
$
650,823
$
42,996
6.6
%
Income Before Income Taxes
108,761
106,429
2,332
2.2
%
EBIT
108,976
106,906
2,070
1.9
%
Adjusted EBIT (1)
119,851
116,478
3,373
2.9
%
(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 record sales were driven by the successful integration of
acquisitions, partially offset by softness in DIY markets and product rationalization. Sales included a 2.9% organic decline, 9.1% growth from
acquisitions, and a 0.4% benefit from foreign currency translation. Adjusted EBIT growth was driven by acquired businesses with accretive margins and MAP
2025 benefits, which were partially offset by cost inflation, reduced fixed-cost utilization from lower volumes, temporary inefficiencies from plant consolidations and increased marketing expenses.
Cash Flow and Financial Position During the first three
months of fiscal 2026:
•
Cash provided by operating activities was $237.5 million, driven by profitability growth and efficient
working capital enabled by MAP 2025 initiatives, partially offset by strategic inventory purchases to mitigate the future impact of tariffs and to ensure high service levels during the consolidation of 6 manufacturing facilities.
•
Capital expenditures were $62.5 million compared to $50.7 million during fiscal year 2025 with the
increase driven by growth investments, including the purchase of RPM’s recently constructed Malaysian plant.
•
The company returned $82.0 million to stockholders through cash dividends and share repurchases, an increase
of 7.4% compared to the prior year. As of August 31, 2025:
•
Total debt was $2.67 billion compared to $2.05 billion a year ago, with the $617.3 million
increase driven by debt used to finance acquisitions.
•
Total liquidity, including cash and committed revolving credit facilities, was $933.4 million, compared to
$1.44 billion a year ago, with the decrease driven by the use of the credit facilities to finance acquisitions.
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
5
Business Outlook
Sullivan said, “Our pivot to growth will continue in the second quarter as we leverage our competitive strengths in
non-residential construction markets and benefit from growth investments in several of our businesses. While tariff-related inflation remains a challenge, we are working to mitigate these headwinds through a
series of measures, including price increases late in the first quarter. We will also begin realizing more efficiency benefits from our streamlined three-segment structure in the second quarter.”
He concluded, “For the full year, we are increasing our growth investments in areas with the highest potential. While these investments will increase
SG&A, we anticipate they will help accelerate our growth in what remains a challenging macro environment. Taking all of this into account, we expect to achieve record sales and adjusted EBIT in both the second quarter and for the full fiscal
year.” The company expects the following in the fiscal 2026 second quarter:
•
Consolidated sales to increase in the mid-single-digit percentage range
compared to prior-year results.
•
Consumer sales growth to be moderately higher than the other two segments due to acquisitions.
•
Consolidated adjusted EBIT to be up in the mid-single-digit percentage
range compared to prior-year record results. The company expects the following in full-year fiscal 2026:
•
Consolidated sales to increase toward the higher end of the previous outlook of
low-single- to mid-single-digit growth compared to prior-year record results.
•
Consolidated adjusted EBIT to increase toward the lower end of the previous outlook of high-single- to low-double-digit percentage growth compared to prior-year record results. 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 October 1, 2025, until October 8,
2025. The replay can be accessed by dialing 1-877-344-7529 or 1-412-317-0088 for international callers. The access code is 7196093. The call also will be available for replay and as a written transcript via the RPM website at www.RPMinc.com .
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
6
About RPM
RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates
across three reportable segments: consumer, construction products, and performance coatings. 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 17,800 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 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 second-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.
Forward-Looking Statements This press release includes
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
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
7
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, 2025, 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 2026 1st Quarter
October 1, 2025 Page
8
CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS, EXCEPT PER SHARE DATA
(Unaudited)
Three Months Ended
August 31,
August 31,
2025
2024
Net Sales
$
2,113,743
$
1,968,789
Cost of Sales
1,220,527
1,132,116
Gross Profit
893,216
836,673
Selling, General & Administrative Expenses
573,534
526,146
Restructuring Expense
8,814
7,202
Interest Expense
29,326
24,434
Investment (Income), Net
(13,404
)
(11,026
)
Other (Income), Net
(3,101
)
(534
)
Income Before Income Taxes
298,047
290,451
Provision for Income Taxes
70,207
61,897
Net Income
227,840
228,554
Less: Net Income Attributable to Noncontrolling Interests
235
862
Net Income Attributable to RPM International Inc. Stockholders
$
227,605
$
227,692
Earnings per share of common stock attributable to RPM International Inc.
Stockholders:
Basic
$
1.78
$
1.78
Diluted
$
1.77
$
1.77
Average shares of common stock outstanding - basic
127,283
127,691
Average shares of common stock outstanding - diluted
127,950
128,420
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
9
SUPPLEMENTAL SEGMENT INFORMATION
IN THOUSANDS
(Unaudited)
Three Months Ended
August 31,
August 31,
2025
2024
Net Sales:
CPG Segment
$
881,446
$
828,006
PCG Segment
538,478
489,960
Consumer Segment
693,819
650,823
Total
$
2,113,743
$
1,968,789
Income Before Income Taxes:
CPG Segment
Income Before Income Taxes (a)
$
163,376
$
161,095
Interest (Expense), Net (b)
(565
)
(468
)
EBIT (c)
163,941
161,563
MAP initiatives (d)
5,180
2,440
Adjusted EBIT
$
169,121
$
164,003
PCG Segment
Income Before Income Taxes (a)
$
82,679
$
77,119
Interest Income, Net (b)
615
608
EBIT (c)
82,064
76,511
MAP initiatives (d)
4,931
2,067
(Gain) on sale of assets and a business, net (f)
—
(237
)
Adjusted EBIT
$
86,995
$
78,341
Consumer Segment
Income Before Income Taxes (a)
$
108,761
$
106,429
Interest (Expense), Net (b)
(215
)
(477
)
EBIT (c)
108,976
106,906
MAP initiatives (d)
3,758
9,572
Inventory step-up costs (e)
7,117
—
Adjusted EBIT
$
119,851
$
116,478
Corporate/Other
(Loss) Before Income Taxes (a)
$
(56,769
)
$
(54,192
)
Interest (Expense), Net (b)
(15,757
)
(13,071
)
EBIT (c)
(41,012
)
(41,121
)
MAP initiatives (d)
2,837
10,641
Adjusted EBIT
$
(38,175
)
$
(30,480
)
TOTAL CONSOLIDATED
Income Before Income Taxes (a)
$
298,047
$
290,451
Interest (Expense)
(29,326
)
(24,434
)
Investment Income, Net
13,404
11,026
EBIT (c)
313,969
303,859
MAP initiatives (d)
16,706
24,720
Inventory step-up costs (e)
7,117
—
(Gain) on sale of assets and a business, net (f)
—
(237
)
Adjusted EBIT
$
337,792
$
328,342
(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 2026 1st Quarter
October 1, 2025 Page
10
(d)
Reflects restructuring and other charges, which have been incurred in relation to our Margin Achievement Plan
(“MAP 2025”) as follows:
•
Restructuring and other related expense, net: Includes charges incurred related to headcount reductions and
facility closures recorded in “Restructuring Expense” on the Consolidated Statements of Income. Restructuring Expense totaled $8.8 million and $7.2 million for the period ended August 31, 2025 and August 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.
•
ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP
systems across the organization to one ERP platform 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 data analytics/decision making and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments as well as
Corporate/Other 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
August 31,
August 31,
2025
2024
Restructuring and other related expense, net
$
10,599
$
10,754
ERP consolidation plan
2,966
4,944
Professional fees
3,141
9,022
MAP initiatives
$
16,706
$
24,720
(e)
Amortization of inventory fair value adjustments related to acquisitions recorded in “Cost of
Sales”.
(f)
Reflects gains recorded in “SG&A” associated with post-closing adjustments for the sale of the non-core furniture warranty business which was sold in fiscal 2023.
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
11
SUPPLEMENTAL INFORMATION
RECONCILIATION OF “REPORTED” TO “ADJUSTED” AMOUNTS
(Unaudited)
Three Months Ended
August 31,
August 31,
2025
2024
Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share
(All amounts presented after-tax):
Reported Earnings per Diluted Share
$
1.77
$
1.77
MAP initiatives (d)
0.10
0.15
Inventory step-up costs (e)
0.04
—
Investment returns (g)
(0.03
)
(0.03
)
Income tax adjustment (h)
—
(0.05
)
Adjusted Earnings per Diluted Share (i)
$
1.88
$
1.84
(d)
Reflects restructuring and other charges, which have been incurred in relation to our Margin Achievement Plan
(“MAP 2025”) as follows:
•
Restructuring and other related expense, net: Includes charges incurred related to headcount reductions and
facility closures recorded in “Restructuring Expense” on the Consolidated Statements of Income. Restructuring Expense totaled $8.8 million and $7.2 million for the period ended August 31, 2025 and August 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.
•
ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP
systems across the organization to one ERP platform 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 data analytics/decision making and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments as well as
Corporate/Other 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)
Amortization of inventory fair value adjustments related to acquisitions recorded in “Cost of
Sales”.
(g)
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.
(h)
U.S. foreign tax credits recognized as a result of global cash redeployment and debt optimization projects
executed during the prior year.
(i)
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 2026 1st Quarter
October 1, 2025 Page
12
CONSOLIDATED BALANCE SHEETS
IN THOUSANDS
(Unaudited)
August 31, 2025
August 31, 2024
May 31, 2025
Assets
Current Assets
Cash and cash equivalents
$
297,075
$
231,555
$
302,137
Trade accounts receivable
1,515,499
1,393,283
1,551,953
Allowance for doubtful accounts
(42,506
)
(49,106
)
(42,844
)
Net trade accounts receivable
1,472,993
1,344,177
1,509,109
Inventories
1,068,183
1,003,459
1,036,475
Prepaid expenses and other current assets
365,271
319,107
322,577
Total current assets
3,203,522
2,898,298
3,170,298
Property, Plant and Equipment, at Cost
2,805,421
2,568,792
2,738,373
Allowance for depreciation
(1,306,637
)
(1,219,084
)
(1,264,974
)
Property, plant and equipment, net
1,498,784
1,349,708
1,473,399
Other Assets
Goodwill
1,657,612
1,315,790
1,617,626
Other intangible assets, net of amortization
832,195
504,562
780,826
Operating lease
right-of-use assets
394,831
365,972
370,399
Deferred income taxes
147,436
36,563
147,436
Other
210,165
178,982
215,965
Total other assets
3,242,239
2,401,869
3,132,252
Total Assets
$
7,944,545
$
6,649,875
$
7,775,949
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable
$
762,013
$
693,519
$
755,889
Current portion of long-term debt
7,434
6,779
7,691
Accrued compensation and benefits
189,846
180,785
287,398
Accrued losses
30,749
32,440
36,701
Other accrued liabilities
424,834
369,060
379,768
Total current liabilities
1,414,876
1,282,583
1,467,447
Long-Term Liabilities
Long-term debt, less current maturities
2,661,990
2,045,387
2,638,922
Operating lease liabilities
340,420
316,064
317,334
Other long-term liabilities
243,524
234,368
241,117
Deferred income taxes
227,141
119,946
224,347
Total long-term liabilities
3,473,075
2,715,765
3,421,720
Total liabilities
4,887,951
3,998,348
4,889,167
Stockholders’ Equity
Preferred stock; none issued
—
—
—
Common stock (outstanding 128,219; 128,702; 128,269)
1,282
1,287
1,283
Paid-in capital
1,183,272
1,156,977
1,177,796
Treasury stock, at cost
(973,372
)
(897,686
)
(953,856
)
Accumulated other comprehensive (loss)
(512,832
)
(540,590
)
(533,631
)
Retained earnings
3,356,848
2,929,439
3,193,764
Total RPM International Inc. stockholders’ equity
3,055,198
2,649,427
2,885,356
Noncontrolling interest
1,396
2,100
1,426
Total equity
3,056,594
2,651,527
2,886,782
Total Liabilities and Stockholders’ Equity
$
7,944,545
$
6,649,875
$
7,775,949
RPM Reports Results for Fiscal 2026 1st Quarter
October 1, 2025 Page
13
CONSOLIDATED STATEMENTS OF CASH FLOWS
IN THOUSANDS
(Unaudited)
Three Months Ended
August 31,
August 31,
2025
2024
Cash Flows From Operating Activities:
Net income
$
227,840
$
228,554
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
51,464
46,185
Deferred income taxes
1,304
(4,646
)
Stock-based compensation expense
5,475
6,226
Net (gain) on marketable securities
(8,673
)
(5,971
)
Other
(324
)
(70
)
Changes in assets and liabilities, net of effect from purchases and sales of businesses:
Decrease in receivables
49,331
78,011
(Increase) in inventory
(16,005
)
(43,991
)
(Increase) in prepaid expenses and other current and long-term assets
(18,051
)
(37,620
)
Increase in accounts payable
7,810
52,152
(Decrease) in accrued compensation and benefits
(99,296
)
(116,792
)
(Decrease) in accrued losses
(6,098
)
(123
)
Increase in other accrued liabilities
42,733
46,144
Cash Provided By Operating Activities
237,510
248,059
Cash Flows From Investing Activities:
Capital expenditures
(62,461
)
(50,742
)
Acquisition of businesses, net of cash acquired
(115,695
)
(6,223
)
Purchase of marketable securities
(6,283
)
(11,394
)
Proceeds from sales of marketable securities
1,525
4,188
Other
523
90
Cash (Used For) Investing Activities
(182,391
)
(64,081
)
Cash Flows From Financing Activities:
Additions to long-term and short-term debt
35,000
37,807
Reductions of long-term and short-term debt
(14,972
)
(131,809
)
Cash dividends
(64,521
)
(58,892
)
Repurchases of common stock
(17,500
)
(17,500
)
Shares of common stock returned for taxes
(1,921
)
(15,396
)
Other
(221
)
(162
)
Cash (Used For) Financing Activities
(64,135
)
(185,952
)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
3,954
(3,850
)
Net Change in Cash and Cash Equivalents
(5,062
)
(5,824
)
Cash and Cash Equivalents at Beginning of Period
302,137
237,379
Cash and Cash Equivalents at End of Period
$
297,075
$
231,555
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.