RPM International Inc

Latest Results (21.09.2025):

RPM International Inc. reported its financial results for the third quarter of fiscal 2025, ending February 28, 2025. The company experienced a decline in net sales and net income compared to the same period last year, primarily due to unfavorable weather conditions, reduced production levels, and foreign currency headwinds. Despite these challenges, RPM maintained strong cash flow through disciplined inventory management.

Overall Financial Performance

In Q3 fiscal 2025, RPM International Inc. reported net sales of $1.48 billion, a 3.0% decrease from $1.52 billion in Q3 fiscal 2024. Net income attributable to RPM stockholders declined by 15.0% to $52.0 million, while diluted earnings per share fell by 14.9% to $0.40. The adjusted EBIT decreased by 29.0% to $78.2 million, impacted by lower production levels and foreign currency headwinds.

Segment Performance

The Construction Products Group saw a 4.5% decline in net sales to $473.4 million, driven by adverse weather conditions. The Performance Coatings Group experienced a slight 0.8% decrease in sales to $340.6 million, while the Specialty Products Group reported a significant 10.1% drop in sales to $158.7 million. The Consumer Group’s sales decreased by 0.7% to $503.8 million, despite modest organic growth from new product introductions.

Cash Flow and Inventory Management

RPM prioritized cash flow over profitability, resulting in strong cash flow generation and a $36 million decline in inventories compared to the previous year. This disciplined inventory management is a key component of MAP 2025, although it led to lower production levels and impacted fixed cost absorption during RPM’s seasonally smallest quarter.

Business Outlook and Strategic Moves

RPM International Inc. entered into a definitive agreement to acquire the Star Brands Group, parent company of The Pink Stuff, aiming to expand its Consumer Group’s Rust-Oleum cleaners business. The acquisition is expected to enhance product offerings and distribution channels, with the transaction anticipated to close by late Q4 fiscal 2025 or early Q1 fiscal 2026.

Operational Challenges

The decline in adjusted EBIT was influenced by negative fixed-cost absorption from reduced production, foreign currency headwinds, and transitional costs from plant consolidations under MAP 2025. Additionally, corporate expenses increased due to higher M&A and compensation costs, further pressuring margins.