Rpm International Inc. · NYSE:RPM
Rpm International — Q3 2025 Earnings Presentation
32 slides from Rpm International's earnings presentation, Apr 8, 2025
Slide 1: Fiscal 2025 Third-Quarter Results
Fiscal 2025 Third-Quarter Results April 8, 2025
Slide 2: Forward-Looking Statements & Regulation G
Forward-Looking Statements & Regulation G This presentation 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 uncert
Slide 3: Consolidated Q3-25 Results Challenged by Unfavorable Weather and F/X
Consolidated Q3-25 Results Challenged by Unfavorable Weather and F/X Q3 Adjusted EBIT¹ (in millions) Q3 FINANCIAL KEY POINTS $120 +31.3% $100 $110.1 $1.48B (record) -29.0% REVENUE $80 -3.0% FROM PY $83.9 $78.2 $60 $78.2M Q3 ADJUSTED EBIT ¹ $40 -29.0% FROM PY $20 $0.35 $0 Q3-23 Q3-24 Q3-25 Q3 ADJUSTE
Slide 4: Segment Earnings Improvement in a Similar Demand Environment
Segment Earnings Improvement in a Similar Demand Environment Q3 Adjusted EBIT¹ (in millions) $70.0 $60.0 $65.0 $50.0 $54.2 $47.1 $48.3 $40.0 $43.8 $30.0 $32.5 $20.0 $20.5 $16.8 $10.0 $12.1 $12.7 $12.1 $6.7 $0.0 Q3-23 Q3-24 Q3-25 Q3-23 Q3-24 Q3-25 Q3-23 Q3-24 Q3-25 Q3-23 Q3-24 Q3-25 CPG PCG SPG Consu
Slide 5: Factors Entering Fourth Quarter
Factors Entering Fourth Quarter Positive Factors Negative Factors • (+) MAP 2025 benefits Consolidated • (+) Repair & maintenance • (-) Inflation DATA • (-) Tariff uncertainty • (+) Pricing CENTERS • (+) Strong backlog in roofing CPG • (-) Uncertain macro environment • (+) M&A adds to system offerin
Slide 6: Definitive Agreement to Acquire The Pink Stuff
Definitive Agreement to Acquire The Pink Stuff KEY POINTS • Broadens the Consumer Group’s cleaning product offerings • Global presence and one of the fastest growing A global leader in household brands in the U.S. household cleaners category cleaning products • Strengthens RPM’s position in multiple
Slide 7: Fiscal 2025 Third-Quarter Financial Results | Consolidated
Fiscal 2025 Third-Quarter Financial Results | Consolidated Impact of lower volumes and transitory costs magnified during seasonally slow period ($ in millions, except Q3 Q3 KEY POINTS 2025 2024 % Change per share amounts) • Challenging comparisons to prior year when sales were a record and adjusted
Slide 8: Sales Growth in USD by Region | Q3-25
Sales Growth in USD by Region | Q3-25 KEY POINTS • North American sales negatively EUROPE impacted by weather NORTH AMERICA 15% of total sales • Europe growth offset by F/X 76% of total sales -1.2% • Africa / Middle East decline driven -2.5% ASIA/PACIFIC by challenging prior-year 3% of total sales -
Slide 9: Construction Products Group Third-Quarter Financial Results
Fiscal 2025 Third-Quarter Financial Results Sales and profitability impacted by unfavorable weather and F/X Q3 Q3 CONSTRUCTION ($ in millions, except margins) 2025 2024 % Change Sales Components PRODUCTS GROUP Sales $473.4 $495.8 -4.5% • Organic -1.7% EBIT1 $10.5 $15.7 -33.5% • Acquisitions +0.2% Ad
Slide 10: Performance Coatings Group Third-Quarter Financial Results
Fiscal 2025 Third-Quarter Financial Results Slight sales decline after strong prior-year growth Q3 Q3 PERFORMANCE ($ in millions, except margins) 2025 2024 % Change Sales Components COATINGS GROUP Sales $340.6 $343.5 -0.8% • Organic -0.3% EBIT1 $42.1 $45.8 -8.2% • Acquisitions / +1.1% Divestitures A
Slide 11: Specialty Products Group Third-Quarter Financial Results
Fiscal 2025 Third-Quarter Financial Results Softness in specialty OEM pressured sales and earnings Q3 Q3 SPECIALTY ($ in millions, except margins) 2025 2024 % Change Sales Components PRODUCTS GROUP Sales $158.7 $176.5 -10.1% • Organic -10.9% EBIT1 $5.4 $9.7 -44.8% • Acquisitions +1.4% Adjusted EBIT1
Slide 12: Consumer Group Third-Quarter Financial Results
Fiscal 2025 Third-Quarter Financial Results Positive organic growth offset by inflation and lower production to reduce inventories Q3 Q3 CONSUMER ($ in millions, except margins) 2025 2024 % Change Sales Components GROUP Sales $503.8 $507.2 -0.7% • Organic +0.3% EBIT1 $48.1 $64.2 -25.1% • Acquisition
Slide 13: Continued Working Capital Efficiency Driven by MAP 2025
Continued Working Capital Efficiency Driven by MAP 2025 Operating Working Capital as a Percentage of Sales Q3-25 Update 22% • MAP 2025 initiatives improved operating working capital 70 bps improvement as a percentage of sales¹ by 70 bps year-over-year toward 20.0% goal 21.4% • Q3-25 cash flow from o
Slide 14: Europe: MAP 2025 Improves Collaboration, Margins and Growth Potential
Europe: MAP 2025 Improves Collaboration, Margins and Growth Potential • Value-add selling strategy RPM CPG • M&A enhances system selling MAP Implementation • Products advancing sustainability Center-Led Functions • Fire protection collaboration PCG • Acquired TMP Convert • Commercial excellence • Re
Slide 15: Outlook Q4-25
Outlook Q4-25 Q4-25 Q4-25 OUTLOOK (YOY) SALES | Consolidated Flat Construction Products Group Flat Performance Coatings Group + MSD % Specialty Products Group - LSD% Consumer Group - LSD % ADJUSTED EBIT | Consolidated + LSD % Expected Trends in Q4 (+) MAP 2025, including SG&A streamlining (-) Econom
Slide 16: Appendix: Reconciliation of Non-GAAP to GAAP Measures
Appendix Reconciliation of Non-GAAP to GAAP Measures
Slide 17: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended February 28, 2025 % February 29, 2024 % % Change Net Sales $ 1,476,562 $ 1,522,982 (3.0) Cost of Sales 909,072 61.6 915,818 60.1 Gross Profit 567,490 38.4 607,164 39.9 S
Slide 18: Consolidated Statements of Income: Nine Months
Consolidated Statements of Income: Nine Months ($ in thousands, except per share and percent data) (Unaudited) Nine Months Ended February 28, 2025 % February 29, 2024 % % Change Net Sales $ 5,290,669 $ 5,327,114 (0.7) Cost of Sales 3,121,962 59.0 3,143,105 59.0 Gross Profit 2,168,707 41.0 2,184,009
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following are the non-GAAP financial measures used in this presentation: *Interest (Income) Expense, Net includes the combination of interest (income) expense and investment (income) expense, net. **EBIT is defined as earnings (loss) before interest and taxes. Managem
Slide 20: Adjustments Detail
Adjustments Detail a. 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 $3.5 million, $6.4 million, and $4.2 million for the quarters ended Feb
Slide 21: Reconciliation of Reported to Adjusted EPS: Three Months
Reconciliation of "Reported" to "Adjusted" EPS: Three Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Three Months Ended Earnings per Diluted Share (All amounts presented after-tax): February 28, 2025 February 29, 2024 Reported Earnings per Diluted Share $ 0.40 $
Slide 22: Reconciliation of Reported to Adjusted EPS: Nine Months
Reconciliation of "Reported" to "Adjusted" EPS: Nine Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Nine Months Ended Earnings per Diluted Share (All amounts presented after-tax): February 28, 2025 February 29, 2024 Reported Earnings per Diluted Share $ 3.59 $ 3
Slide 23: EBIT: RPM Consolidated: Three Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended February 28, 2025 February 29, 2024 February 28, 2023 Net Income $ 52,314 $ 61,478 $ 27,239 (Benefit) Provision for Income Taxes (11,363) 22,103 15,248 Income Before Income
Slide 24: EBIT: RPM Consolidated: Nine Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Nine Months ($ in thousands, except percent data) (Unaudited) Nine Months Ended February 28, 2025 February 29, 2024 Net Income $ 464,318 $ 408,606 Provision for Income Taxes 80,066 139,953 Income Before Income Taxes 544,384 548,559 Interest Expense 70,604
Slide 25: EBIT: Construction Products Segment: Three Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended February 28, 2025 February 29, 2024 February 28, 2023 Income Before Income Taxes $ 9,923 $ 15,060 $ 6,886 Add: Interest Expense, Net* 542 668 3,513 EBIT** (non-
Slide 26: EBIT: Construction Products Segment: Nine Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Nine Months ($ in thousands, except percent data) (Unaudited) Nine Months Ended February 28, 2025 February 29, 2024 Income Before Income Taxes $ 272,573 $ 253,910 Add: Interest Expense, Net* 1,906 4,619 EBIT** (non-GAAP measure) 274,479 258,5
Slide 27: EBIT: Performance Coatings Segment: Three Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended February 28, 2025 February 29, 2024 February 28, 2023 Income (Loss) Before Income Taxes $ 42,818 $ 47,039 $ (7,057) Add: Interest (Income), Net* (746) (1,204) (5
Slide 28: EBIT: Performance Coatings Segment: Nine Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Nine Months ($ in thousands, except percent data) (Unaudited) Nine Months Ended February 28, 2025 February 29, 2024 Income Before Income Taxes $ 170,883 $ 153,362 Add: Interest (Income), Net* (1,755) (3,753) EBIT** (non-GAAP measure) 169,128 1
Slide 29: EBIT: Specialty Products Segment: Three Months
EBIT** (Non-GAAP Measure): Specialty Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended February 28, 2025 February 29, 2024 February 28, 2023 Income Before Income Taxes $ 5,257 $ 9,803 $ 39,482 Add: Interest Expense (Income), Net* 107 (90) (28) EBIT**
Slide 30: EBIT: Specialty Products Segment: Nine Months
EBIT** (Non-GAAP Measure): Specialty Products Segment: Nine Months ($ in thousands, except percent data) (Unaudited) Nine Months Ended February 28, 2025 February 29, 2024 Income Before Income Taxes $ 37,154 $ 36,345 Add: Interest Expense (Income), Net* 313 (293) EBIT** (non-GAAP measure) 37,467 36,0
Slide 31: EBIT: Consumer Segment: Three Months
EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended February 28, 2025 February 29, 2024 February 28, 2023 Income Before Income Taxes $ 47,998 $ 65,159 $ 68,146 Add: Interest Expense (Income), Net* 76 (1,000) (18) EBIT** (non-
Slide 32: EBIT: Consumer Segment: Nine Months
EBIT** (Non-GAAP Measure): Consumer Segment: Nine Months ($ in thousands, except percent data) (Unaudited) Nine Months Ended February 28, 2025 February 29, 2024 Income Before Income Taxes $ 244,459 $ 295,054 Add: Interest Expense (Income), Net* 456 (2,619) EBIT** (non-GAAP measure) 244,915 292,435 R