RPM International Inc. (RPM) reported dismal third-quarter fiscal 2025 (ended Feb. 28, 2025) results, with earnings and net sales missing the Zacks Consensus Estimate and declining year over year.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.The quarterly results reflect soft contributions from all the company’s reportable segments due to unfavorable foreign exchange translation and unfavorable weather conditions limiting construction and restoration activity accompanied by low ...

Financial Data and Key Metrics Changes - Consolidated sales declined by 3.0% compared to the prior year, primarily due to unfavorable weather conditions and foreign currency translation [24] - Adjusted EBIT decreased by $31.9 million, driven by lower production volumes and temporary inefficiencies from plant consolidations [24][25] - Non-operating expenses increased due to higher M&A expenses and increased employee compensation [25] Business Line Data and Key Metrics Changes - Construction Products Group sales declined due to unfavorable weather, particularly in the southern and western US, and faced challenging comparisons to the prior year when adjusted EBIT increased by 69.8% [27] - Performance Coatings Group sales slightly declined against challenging prior year comparisons, with organic sales having increased by 9.2% in the previous year [29] - Specialty Products Group sales declined due to weak specialty OEM markets, although food coatings and additive business continued to perform well [30] - Consumer Group generated slightly positive organic growth aided by new product introductions, despite facing challenging comparisons to the prior year [32] Market Data and Key Metrics Changes - Sales declines in North America were primarily driven by weather, while Europe saw growth from sales and marketing initiatives, offset by foreign exchange impacts [26] - Africa and Middle East sales were down slightly after a significant growth in the prior year [26] - Latin America and Asia Pacific faced sales declines primarily due to foreign exchange impacts and challenging prior year comparisons [26] Company Strategy and Development Direction - The company continues to implement its MAP 2025 initiatives, focusing on improving working capital efficiency and identifying new opportunities for improvement [12][13] - The focus on extending asset life through products and services is emphasized during economic uncertainty, insulating the business from volatility in new construction [14] - The acquisition of the Pink Stuff is expected to broaden product offerings and strengthen market position in the cleaning products category, with significant growth potential [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted a low growth environment for the past eighteen months, with expectations of returning to profitable growth in Q4 despite a challenging macro environment [49][42] - The impact of tariffs on inflation is dynamic, with raw material inflation expected to increase in the mid-single digits due to recently announced tariffs [16][66] - Management expressed confidence in the backlog for roofing and construction projects, indicating that most projects have been pushed to Q4 rather than canceled [87][96] Other Important Information - The company reported the second-best-ever third-quarter operating cash flow in its history at $91.5 million, with a strong liquidity position of $1.21 billion [35][36] - The company has increased year-to-date CapEx by nearly $21 million, driven by growth projects and plant consolidations [36] Q&A Session Summary Question: What assumptions were made regarding macro growth for Q4 guidance? - Management indicated a low growth environment and does not foresee changes in the near future, expecting Q4 to resemble Q2 with self-help initiatives and market share gains [49][51] Question: How much lower were operating rates in the February quarter? - Management noted that organic growth was down 1.8%, primarily due to volume decline, and that inventory reduction initiatives led to reduced production [55] Question: How does the portfolio hold up in a potential GDP recession? - Management expressed confidence in outperforming due to a focus on reroofing and repair and maintenance businesses, which are expected to remain strong [60][63] Question: What is the expected impact of tariffs on raw material inflation? - Management indicated that the unmitigated impact of tariffs is about 3.2%, with efforts underway to mitigate these costs through various strategies [66][68] Question: What are the trends in nearshoring and its impact on business? - Management noted that reshoring trends continue, particularly in technology, while the automotive sector may see a slowdown [80][81] Question: What is the status of the backlog in construction? - Management confirmed a strong backlog in roofing and construction projects, with expectations for a return to profitable growth in Q4 [87][96] Question: What is the margin profile of the Pink Stuff acquisition? - Management indicated that the Pink Stuff acquisition will significantly enhance the consumer segment, with expected growth and a higher margin profile than RPM's average [99][100]

Financial Performance - Consolidated net sales for the three months ended February 28, 2025, were $1,476.6 million, a decrease of 3.0% compared to $1,523.0 million for the same period in 2024[115]. - The CPG segment reported net sales of $473.4 million, down 4.5% from $495.8 million in the prior year, primarily due to unfavorable weather conditions and foreign exchange impacts[115][116]. - The PCG segment experienced a slight decline in net sales of 0.8%, totaling $340.6 million, compared to $343.5 million in the previous year[115][117]. - The Consumer segment achieved modest organic sales growth, with net sales of $503.8 million, a decrease of 0.7% from $507.2 million, impacted by unfavorable foreign exchange[115][118]. - The SPG segment saw a significant decline in net sales of 10.1%, totaling $158.8 million, primarily due to lower demand in specialty OEM markets[115][119]. - Consolidated net income for the three months ended February 28, 2025, was $52.3 million, or 3.5% of net sales, down from $61.5 million, or 4.0% of net sales, for the same period in 2024[137]. - For the nine months ended February 28, 2025, consolidated net sales increased to $5,327.1 million, a slight increase of 0.7% compared to $5,290.7 million in the prior year[138]. - Consolidated net income for the nine months ended February 28, 2025, was $464.3 million, representing 8.8% of net sales, compared to $408.6 million or 7.7% of net sales for the same period in 2024[161]. Cost and Expenses - Consolidated gross profit margin decreased to 38.4% for the third quarter of fiscal 2025, down from 39.9% in the prior year, reflecting reduced fixed-cost absorption and inflationary pressures[120]. - SG&A expenses decreased by $3.1 million year-over-year but increased to 34.0% of net sales from 33.1% in the prior year, driven by MAP 2025 initiatives and other cost factors[122]. - The CPG segment's SG&A decreased by approximately $11.6 million, while the PCG segment's SG&A increased by about $4.0 million due to merit increases and acquisition-related expenses[123][124]. - SG&A expenses decreased by $1.4 million year-over-year but increased slightly to 29.4% of net sales from 29.3%[146]. - Total restructuring costs for the nine months ended February 28, 2025, were $18.2 million, compared to $14.1 million for the same period in 2024, reflecting an increase of 29.1%[153]. - Restructuring costs related to the MAP 2025 initiative totaled $3.5 million for the three months ended February 28, 2025, down from $6.4 million in the prior year[129]. Tax and Pension - A net favorable income tax adjustment of $22.1 million was recorded, increasing the total deferred tax asset related to U.S. foreign tax credit carryforwards to $43.9 million as of February 28, 2025[109]. - The effective income tax benefit rate for the three months ended February 28, 2025, was (27.7%), compared to (26.4%) for the same period in 2024, influenced by a $22.1 million favorable adjustment for deferred income taxes[136]. - The effective income tax rate for the nine months ended February 28, 2025, was 14.7%, significantly lower than 25.5% for the same period in 2024[159]. - For the three months ended February 28, 2025, total net periodic pension and postretirement benefit costs decreased to $12.3 million from $15.2 million, a reduction of $2.9 million[128]. - The total net periodic pension and postretirement benefit costs for the nine months ended February 28, 2025, decreased to $37.0 million from $45.5 million, a reduction of $8.5 million[152]. - The company expects future pension expenses to fluctuate based on investment performance and interest rate changes, which may materially impact consolidated financial results[152]. Cash Flow and Liquidity - Cash provided by operating activities decreased to $619.0 million in the first nine months of fiscal 2025, down from $941.1 million in the same period last year, a decline of 34.2%[162]. - Cash used for investing activities increased to $305.7 million in the first nine months of fiscal 2025, compared to $153.9 million in the prior year, an increase of 98.2%[166]. - As of February 28, 2025, the company had $1.21 billion in available liquidity, down from $1.36 billion as of May 31, 2024, a decrease of 11.0%[171]. - The Net Leverage Ratio as of February 28, 2025, was 1.56 to 1.00, well below the maximum allowable ratio of 3.75 to 1.00[174]. Interest and Market Risks - Interest expense decreased to $23.0 million for the three months ended February 28, 2025, compared to $28.5 million for the same period in 2024, reflecting a decrease in the average interest rate from 4.75% to 4.41%[131]. - Interest expense decreased to $70.6 million for the nine months ended February 28, 2025, down from $90.7 million in the prior year, a reduction of 22.1%[155]. - The average interest rate for the nine months ended February 28, 2025, was 4.50%, down from 4.75% in the prior year, reflecting lower market rates[155]. - The company faces various uncertainties that could materially affect actual results, including market volatility, raw material prices, and legal risks[181]. - There have been no material changes in exposure to market risks related to raw materials costs, interest rates, and foreign exchange rates since May 31, 2024[182]. Future Outlook - The company expects inflationary headwinds to continue affecting results throughout fiscal 2025 and into fiscal 2026, with potential impacts from tariffs[121]. - The company incurred approximately $13.0 million of future additional charges related to the implementation of the MAP 2025 initiative[153]. - Environmental obligations are being appropriately addressed, with no anticipated material impact on results of operations or financial condition[180]. - The company has no off-balance sheet financings or subsidiaries not included in its financial statements[179].

The specialty coatings and sealants manufacturer missed fiscal 2025 Q3 expectations due largely to external challenges.RPM International (RPM -6.43%), a leading provider of specialty coatings and sealants, faced a challenging fiscal Q3 2025, as shown by the results it released on April 8. The company's adjusted earnings per share (EPS) of $0.35 fell $0.15 short of the anticipated $0.50. Revenue also missed, coming in at $1.48 billion against an estimated $1.51 billion. These results reflect a weak quarter i ...

For the quarter ended February 2025, RPM International (RPM) reported revenue of $1.48 billion, down 3.1% over the same period last year. EPS came in at $0.35, compared to $0.52 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.51 billion, representing a surprise of -2.49%. The company delivered an EPS surprise of -32.69%, with the consensus EPS estimate being $0.52.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Fiscal 2025 Third-Quarter Results April 8, 2025 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 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 result ...

RPM International (RPM) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -32.69%. A quarter ago, it was expected that this specialty chemicals company would post earnings of $1.35 per share when it actually produced earnings of $1.39, delivering a surprise of 2.96%.Over the last four q ...

U.S. stock futures were higher this morning, with the Dow futures gaining more than 900 points on Tuesday.Shares of The Greenbrier Companies, Inc. GBX fell sharply in today's pre-market trading as the company posted downbeat results for its second quarter.Greenbrier reported quarterly earnings of $1.56 per share which missed the analyst consensus estimate of $1.78 per share. The company reported quarterly sales of $762.100 million which missed the analyst consensus estimate of $898.530 million.Greenbrier sh ...

Exhibit 99.1 RPM Reports Fiscal 2025 Third-Quarter Results MEDINA, OH – April 8, 2025 – RPM International Inc. (NYSE: RPM), a world leader in specialty coatings, sealants and building materials, today reported financial results for its fiscal 2025 third quarter ended February 28, 2025. Frank C. Sullivan, RPM chairman and CEO commented, "The unfavorable weather conditions we discussed in early January continued and became more widespread as the third quarter progressed. Unseasonably cold weather in the south ...

RPM International Inc. (RPM) has signed a definitive agreement to acquire the UK-based Star Brands Group, mostly known for the globally renowned The Pink Stuff product.RPM stock dropped 4.2% during Thursday’s trading session and inched down 1% in the after-hours, following the buyout agreement announcement.More About RPM’s New BuyoutRPM International is engaging in this strategic transaction with Star Brands to enhance and diversify its Rust-Oleum subsidiary’s cleaners business. The addition of the acquired ...