Core Insights - RPM International (RPM) is expected to report quarterly earnings of $1.87 per share, a 1.6% increase year-over-year, with revenues projected at $2.04 billion, reflecting a 3.8% increase compared to the same period last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1][2] - Changes in earnings estimates are crucial for predicting investor reactions and have shown a strong correlation with short-term stock performance [2] Revenue Forecasts - Analysts predict 'Net Sales- Construction Products Group/CPG' to reach $828.27 million, a 4.3% increase from the previous year [4] - 'Net Sales- Performance Coatings Group/PCG' is forecasted at $434.20 million, indicating a year-over-year change of 16.8% [4] - The 'Net Sales- Consumer Segment' is expected to be $678.10 million, reflecting a 7.9% increase [4] - 'Net Sales- Specialty Products Group/SPG' is estimated at $174.84 million, showing a slight increase of 0.2% [5] Adjusted EBIT Estimates - 'Adjusted EBIT- Consumer Segment' is projected to reach $125.46 million, up from $116.21 million year-over-year [5] - 'Adjusted EBIT- Performance Coatings Group/PCG' is expected to be $77.54 million, compared to $64.59 million last year [6] - The consensus for 'Adjusted EBIT- Construction Products Group/CPG' stands at $171.02 million, an increase from $159.90 million year-over-year [6] - 'Adjusted EBIT- Specialty Products Group/SPG' is estimated at $17.98 million, slightly down from $18.11 million last year [7] Stock Performance - RPM International shares have decreased by 7.4% over the past month, contrasting with a 2.7% increase in the Zacks S&P 500 composite [7]

Core Insights - First Atlantic Nickel Corp. has renamed its flagship Atlantic Nickel Project to Pipestone XL, reflecting its 100% ownership of the 30-kilometer Pipestone Ophiolite Complex, which has significant nickel mineralization potential [1][7][34] - The company aims to double the strike length and expand the width of the awaruite mineralization at the RPM Zone through the newly initiated Phase 2X drilling program [3][11][18] - The project is strategically located in Newfoundland, a top mining jurisdiction, which offers supportive government policies and established infrastructure for efficient project development [19][21][34] Company Overview - First Atlantic Nickel Corp. is focused on developing the Pipestone XL project, which contains awaruite, a nickel-iron-cobalt alloy that allows for smelter-free magnetic separation, enhancing its potential in the North American critical minerals supply chain [34][35] - The company has advanced its geological understanding of the Pipestone Ophiolite Complex through systematic exploration, leading to the discovery of multiple mineralized zones [2][7][34] Project Details - The Pipestone XL project features a continuous 30 km belt of serpentinized ultramafic rocks enriched in nickel and chromium, characterized by a strong magnetic anomaly [3][7] - The Phase 1 drilling program at the RPM Zone delineated a 400m x 500m area of disseminated awaruite mineralization, with the highest grades drilled to date [3][10][11] - Davis Tube Recovery (DTR) testing confirmed average nickel grades of 0.12% DTR across all drilled intervals, with magnetic concentrate grades averaging 1.38% nickel and 1.67% chromium [3][10][11] Exploration and Drilling Programs - The Phase 2X program aims to systematically expand the known mineralized area using step-out holes, targeting large volumes of disseminated awaruite suitable for bulk mining [12][13] - The company has identified that nickel grades vary by rock type, with broader peridotite units containing higher grades of 0.10-0.17% DTR nickel [13][18] Market Position and Strategic Importance - Newfoundland and Labrador ranks among the world's top 10 mining jurisdictions, providing a favorable environment for mining investment and exploration [19][21] - The growing demand for nickel, particularly for batteries and stainless steel, positions Pipestone XL as a crucial North American source of this essential metal [18][35]

Core Insights - First Atlantic Nickel Corp. has renamed its flagship Atlantic Nickel Project to Pipestone XL, highlighting its 100% ownership of the 30-kilometer Pipestone Ophiolite Ultramafic Complex and its district-scale potential for nickel alloy mineralization [1][6] - The company aims to double the strike length and expand the width of the awaruite mineralization at the RPM Zone through the newly designated Phase 2X drilling program [1][11] - The project emphasizes clean energy potential, including ongoing research into geologic hydrogen in collaboration with the Colorado School of Mines [1][3] Company Overview - First Atlantic Nickel Corp. is a Canadian mineral exploration company focused on developing the Pipestone XL project, which is strategically located near existing infrastructure in Newfoundland [36] - The project features awaruite, a naturally occurring nickel-iron-cobalt alloy, which allows for smelter-free magnetic separation, enhancing North America's critical minerals supply chain [36][37] - The company is positioned to meet the growing demand for responsibly sourced nickel, particularly in the context of U.S. critical mineral requirements for electric vehicles [37] Geological Insights - The Pipestone XL project comprises a continuous 30 km belt of serpentinized ultramafic rocks enriched in nickel and chromium, characterized by a strong magnetic anomaly [3][8] - The Phase 1 drilling program at the RPM Zone delineated a 400m x 500m area of disseminated awaruite mineralization, with the highest grades drilled to date [3][10] - Historical drilling in the Atlantic Lake zone revealed 0.22% nickel over 87.15 meters, indicating untested potential at depth [9] Exploration and Drilling Programs - The Phase 2X program aims to systematically expand the known mineralized area using step-out holes, targeting large volumes of disseminated awaruite suitable for bulk mining [12][13] - The company has identified that nickel grades vary by rock type, with broader peridotite units containing higher grades of 0.10-0.17% DTR nickel [14] - The RPM Phase 2X drilling program will utilize an optimal primary orientation from east to west to better intersect mineralized zones [12] Mining Jurisdiction and Infrastructure - Newfoundland and Labrador ranks among the world's top 10 mining jurisdictions, offering streamlined permitting and a skilled workforce [20][24] - The province's efficient regulatory environment has enabled First Atlantic to advance from acquisition to drilling in under 12 months [20] - Recent successful projects, such as Equinox Gold's Valentine Lake Mine, demonstrate Newfoundland's capability to support major mining operations [23]

Core Insights - First Atlantic Nickel Corp. has reported a significant expansion of visible awaruite nickel-alloy mineralization at the RPM Zone, increasing the mineralized section's width to 750 meters, a 50% increase from the previous 500 meters established in Phase 1 [1][6][8] - The Phase 2 drilling program has successfully tested 800 meters of north-south strike length and aims to define over 1 kilometer of continuous awaruite mineralization [1][6][22] - Awaruite, a naturally occurring nickel-iron-cobalt alloy, offers advantages over traditional nickel ores, including a higher average nickel grade of approximately 76% and the elimination of conventional smelting processes [2][31] Company Developments - The RPM Zone has emerged as a significant discovery within First Atlantic's 30-kilometer Atlantic Nickel Project, with drilling confirming a mineralized footprint of approximately 750 meters in width and 400 meters in length [20][21] - The company has completed holes AN-25-08 and AN-25-09, further extending the tested strike length and demonstrating the scale potential of the RPM Zone [1][22] - The geological team's systematic approach has led to the recognition of awaruite mineralization that previous operators overlooked, contributing to the project's rapid advancement [5][31] Metallurgical Insights - The drilling at the RPM Zone has returned magnetically recoverable nickel averaging 1.38% in magnetic concentrate, with a mass pull of 9.08%, indicating the mineralization's amenability to simple magnetic separation processing [6][20] - Awaruite's properties allow for smelter-free processing, aligning with the company's vision of establishing a clean, onshore North American nickel supply chain [31][32] Future Outlook - The company anticipates providing additional updates on the Phase 2 drilling and exploration progress in the coming weeks, indicating ongoing developments in the RPM Zone [1][23]

Core Insights - First Atlantic Nickel Corp. has reported significant results from drill hole AN-25-06, marking the longest continuous mineralized intersection to date at the RPM Zone of the Atlantic Nickel Project, with an average of 1.27% nickel and 1.69% chromium over 447.35 meters [1][6][10] Summary by Sections Drill Results - Drill hole AN-25-06, located 200 meters east of AN-24-05, intersected visibly disseminated awaruite throughout its entire length, returning 0.22% total nickel and 0.31% total chromium over 447.35 meters [2][7] - The hole achieved a DTR nickel grade of 0.11% with a total nickel recovery averaging 51.84%, and peak recoveries reached up to 81.4% [1][6][10] Phase 2 Drilling Program - The Phase 2 drilling program aims to expand the mineralized zone beyond the previously established footprint, with ongoing drilling targeting extensions in multiple directions [12][13] - Drill holes AN-25-08 and AN-25-09 are currently testing the continuation of awaruite mineralization further north, contributing to a total north-south strike length of 800 meters at the RPM Zone [3][7] Metallurgical Performance - The DTR metallurgical test results from AN-25-06 are consistent with previous Phase 1 drilling, indicating a predictable metallurgical response across the RPM Zone, with an average nickel grade of 1.38% in magnetic concentrate across the first five holes [10][11] - The average mass pull for these holes is 9.08%, yielding an average DTR nickel grade of 0.12% [10][11] Awaruite and Market Context - Awaruite, a naturally occurring nickel-iron alloy, offers a cleaner processing alternative compared to conventional nickel sources, aligning with North America's critical minerals supply chain needs [23][24] - The U.S. Inflation Reduction Act emphasizes the importance of domestic sourcing of critical minerals, positioning awaruite as a viable option for electric vehicle manufacturers to meet stringent requirements [24][36] Exploration and Infrastructure - The district-wide exploration program has identified new occurrences of visible awaruite, which will help define larger zones for future drilling [6][12] - Significant infrastructure upgrades have been made to support the Phase 2 drilling program, enhancing road access and camp facilities [13][36]

Core Viewpoint - RPM International's international revenue performance is crucial for assessing its financial resilience and growth prospects in a tightly interconnected global economy [2][3]. Revenue Performance - The total revenue for RPM International in the quarter was $2.08 billion, reflecting a 3.7% increase [4]. - Latin America generated $72.56 million, constituting 3.49% of total revenue, which was a surprise of -11.54% compared to the expected $82.03 million [5]. - Europe contributed $302.71 million, accounting for 14.54% of total revenue, exceeding expectations by +7.65% [6]. - Canada accounted for $148.82 million, or 7.15% of total revenue, with a surprise of +5.61% [7]. - Asia Pacific generated $37.9 million, representing 1.82% of total revenue, falling short of expectations by -16.74% [8]. - Other Foreign regions contributed $26.5 million, making up 1.27% of total revenue, also missing the consensus estimate by -11.89% [9]. Future Projections - For the upcoming fiscal quarter, total revenue is projected to reach $2.06 billion, a 4.5% increase year-over-year, with regional contributions expected as follows: Latin America 4% ($81.36 million), Europe 13.6% ($278.71 million), Canada 6.4% ($131.33 million), Asia Pacific 2.2% ($45.92 million), and Other Foreign 1.5% ($30.54 million) [10]. - For the entire year, total revenue is forecasted at $7.67 billion, an improvement of 4% from the previous year, with regional contributions expected as follows: Latin America 4.2% ($325.38 million), Europe 14.5% ($1.11 billion), Canada 6.9% ($528.43 million), Asia Pacific 2.4% ($182.51 million), and Other Foreign 1.6% ($121.25 million) [11]. Conclusion - RPM International's reliance on international markets presents both opportunities and challenges, making the tracking of international revenue trends essential for future projections [12].

Part I [Business](index=3&type=section&id=Item%201.%20Business) RPM International Inc. manufactures and markets specialty chemical products across four segments, reporting **$7.4 billion** in net sales for fiscal 2025 with international markets contributing approximately **30%** - RPM International Inc. manufactures and markets specialty chemical products, with **net sales of $7.4 billion** for the fiscal year ended May 31, 2025[14](index=14&type=chunk) Segment Contribution to Net Sales (FY 2025) | Segment | Percentage of Consolidated Net Sales | Description | | :--- | :--- | :--- | | **Construction Products Group (CPG)** | Approximately 38% | Construction sealants, adhesives, coatings, roofing systems, concrete products, and building envelope solutions | | **Performance Coatings Group (PCG)** | Approximately 20% | High-performance flooring, corrosion control coatings, infrastructure repair systems, and FRP structures | | **Consumer Group (Consumer)** | Approximately 33% | Rust-preventative paints, caulks, sealants, cleaners, woodcare coatings, and other branded consumer products | | **Specialty Products Group (SPG)** | Approximately 9% | Restoration equipment, colorants, industrial coatings, preservation products, and edible coatings for food/pharma | - International operations contributed approximately **28.9% of total net sales** in fiscal 2025, with direct U.S. exports adding another **0.8%**[24](index=24&type=chunk) - Sales to the top ten Consumer segment customers accounted for approximately **22% of the company's total net sales** in fiscal 2025[48](index=48&type=chunk) Research and Development Expenses (in millions) | Fiscal Year | R&D Expense (in millions) | | :--- | :--- | | 2025 | $94.7 | | 2024 | $92.2 | | 2023 | $86.6 | - The business exhibits seasonality, with stronger sales typically in the **first, second, and fourth fiscal quarters** and weaker performance in the **third fiscal quarter** (December-February)[47](index=47&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces various risks including economic downturns, financial liabilities, operational challenges, and legal/regulatory compliance issues - **Economic & Strategic Risks:** Operations are sensitive to global economic conditions, public health crises, inflation, interest rates, and changes in construction and real estate markets, potentially impacting access to capital[65](index=65&type=chunk)[66](index=66&type=chunk)[69](index=69&type=chunk) - **Financial Risks:** The company carries significant goodwill (**$2.4 billion**) and intangible assets subject to impairment risk, with total debt of approximately **$2.6 billion** as of May 31, 2025, potentially affecting operational flexibility and cash flow[77](index=77&type=chunk)[82](index=82&type=chunk) - **Operational Risks:** The business is exposed to fluctuations in raw material costs, intense market competition, and significant customer concentration, particularly in the Consumer segment where the top ten customers account for approximately **65% of segment sales**[84](index=84&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) - **Legal & Regulatory Risks:** The company faces inherent risks from product liability, warranties, and environmental matters, subject to stringent environmental, health, and safety laws that could lead to unforeseen expenditures[109](index=109&type=chunk)[110](index=110&type=chunk) - **Cybersecurity Risks:** Reliance on IT systems exposes the company to cyber-attacks, data breaches, and evolving data privacy laws, with potential for negative publicity, legal claims, and operational disruptions[94](index=94&type=chunk)[101](index=101&type=chunk) [Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments - Not Applicable[120](index=120&type=chunk) [Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) RPM's cybersecurity program, based on the NIST framework, is overseen by the Audit Committee and has not had a material impact from past incidents - The company's cybersecurity program is based on the U.S. National Institute for Standards and Technology (NIST) framework and is overseen by the Audit Committee of the Board of Directors[121](index=121&type=chunk)[125](index=125&type=chunk) - A dedicated Cybersecurity Team, including the CFO and General Counsel, assesses incident materiality, supported by a Senior Director - Information Security with over **15 years of experience**[126](index=126&type=chunk)[129](index=129&type=chunk) - While past cybersecurity incidents have occurred, none have had, or are materially likely to have, a material impact on RPM[125](index=125&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) As of May 31, 2025, RPM's operations occupied approximately **20.0 million square feet**, with **9.7 million square feet owned** and **10.3 million square feet leased** - As of May 31, 2025, the company's operations occupied a total of approximately **20.0 million square feet**[130](index=130&type=chunk) Property Ownership Breakdown (as of May 31, 2025) | Type | Square Feet (in millions) | | :--- | :--- | | Owned | 9.7 | | Leased | 10.3 | | **Total** | **20.0** | [Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in environmental remediation matters not expected to be material, but is disputing a **$6.2 million** EPA penalty for a Toxic Substances Control Act violation - The company is identified as a "potentially responsible party" for certain environmental clean-up efforts but believes these proceedings will not have a material adverse effect on its financial condition[134](index=134&type=chunk) - On January 14, 2025, the EPA proposed a civil penalty of approximately **$6.2 million** against a Consumer segment subsidiary for an alleged violation of the Toxic Substances Control Act, which the company is disputing without an estimable outcome[135](index=135&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[136](index=136&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During Q4 fiscal 2025, RPM repurchased **171,447 shares** at an average price of **$111.09**, with approximately **$192.3 million** remaining for repurchase Share Repurchases in Q4 Fiscal 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | March 2025 | — | $— | | April 2025 | 466 | $106.75 | | May 2025 | 170,981 | $111.10 | | **Total Q4** | **171,447** | **$111.09** | - As of May 31, 2025, approximately **$192.3 million** remained available for repurchase under the stock repurchase program[139](index=139&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2025, consolidated net sales grew **0.5%** to **$7.37 billion**, gross profit margin improved to **41.4%**, and net income increased to **$690.3 million** due to a lower tax rate, while cash from operations decreased Consolidated Net Sales Growth by Segment (FY 2025 vs. FY 2024) | Segment | Total Growth | Organic Growth | Acquisition & Divestiture Impact | Foreign Currency Impact | | :--- | :--- | :--- | :--- | :--- | | CPG | 2.4% | 3.4% | 0.3% | (1.3%) | | PCG | 2.0% | 2.4% | 0.7% | (1.1%) | | Consumer | (1.8%) | (1.7%) | 0.6% | (0.7%) | | SPG | (1.8%) | (3.3%) | 1.5% | 0.0% | | **Consolidated** | **0.5%** | **0.8%** | **0.6%** | **(0.9%)** | - Consolidated gross profit margin increased by **30 basis points to 41.4%** in fiscal 2025, primarily due to savings from MAP 2025 initiatives offsetting reduced fixed-cost absorption and inflation[182](index=182&type=chunk) Key Financial Results (FY 2025 vs. FY 2024) | Metric | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net Income | $690.3 million | $589.4 million | | Diluted EPS | $5.35 | $4.56 | | Effective Tax Rate | 12.9% | 25.2% | - Cash provided by operating activities decreased to **$768.2 million** in fiscal 2025 from **$1.12 billion** in fiscal 2024, driven by less favorable changes in accounts receivable and increased inventory purchases[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Cash used for investing activities increased significantly to **$825.5 million** from **$206.4 million**, primarily due to a **$580.2 million increase** in cash used for business acquisitions, including the Star Brands Group[205](index=205&type=chunk) - The company formally concluded its MAP 2025 restructuring plan on May 31, 2025, incurring **$25.0 million** in related costs during the fiscal year, with an additional **$20.1 million** in charges expected in fiscal 2026[191](index=191&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk, with **37.0% of debt at floating rates**, and foreign currency risk, though a **10% exchange rate change** was not expected to materially impact fiscal 2025 net income - **Interest Rate Risk:** At May 31, 2025, **37.0% of debt** was subject to floating rates, where a hypothetical **100-bps increase** would have increased fiscal 2025 interest expense by **$4.8 million**[217](index=217&type=chunk) - **Foreign Currency Risk:** The company's financial statements are presented in U.S. dollars, exposing it to translation risk from foreign operations, but a **10% change** in foreign currency exchange rates would not have had a material impact on net income for fiscal 2025[218](index=218&type=chunk)[219](index=219&type=chunk) [Financial Statements and Supplementary Data](index=54&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) As of May 31, 2025, total assets were **$7.8 billion**, total debt **$2.6 billion**, net sales **$7.4 billion**, and net income **$690.3 million**, with detailed notes on acquisitions, goodwill, and a significantly lower effective tax rate of **12.9%** Consolidated Financial Highlights (in thousands) | Metric | May 31, 2025 | May 31, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | $7,775,949 | $6,586,543 | | Total Long-Term Debt | $2,638,922 | $1,990,935 | | Total Stockholders' Equity | $2,886,782 | $2,512,225 | | **Income Statement (FY Ended)** | | | | Net Sales | $7,372,644 | $7,335,277 | | Gross Profit | $3,050,478 | $3,014,589 | | Net Income | $690,327 | $589,442 | | **Cash Flow (FY Ended)** | | | | Cash from Operations | $768,190 | $1,122,305 | - **Acquisitions (Note F):** The company completed six acquisitions in fiscal 2025, most notably the purchase of Star Brands Group (The Pink Stuff) for a total price of **$487.4 million**, plus potential contingent consideration[316](index=316&type=chunk) - **Goodwill (Note C):** Goodwill increased to **$1.62 billion** from **$1.31 billion** due to acquisitions, with an impairment loss of **$11.4 million** recorded for the Color Group reporting unit in the SPG Segment[285](index=285&type=chunk)[286](index=286&type=chunk) - **Income Taxes (Note H):** The effective tax rate for fiscal 2025 was **12.9%**, a significant decrease from **25.2%** in 2024, primarily driven by a **$43.9 million** deferred tax adjustment related to U.S. foreign tax credit carryforwards[345](index=345&type=chunk)[346](index=346&type=chunk) - **Contingencies (Note P):** The company is involved in a lawsuit with a former supplier where a jury verdict of **$190.0 million** was reduced to **$110.8 million**, which the company is disputing and has accrued at the low end of its estimated range (**$0.5 million to $152.3 million**)[402](index=402&type=chunk)[403](index=403&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=117&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - None[456](index=456&type=chunk) [Controls and Procedures](index=117&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of May 31, 2025, with no material changes during the fourth quarter - Management concluded that disclosure controls and procedures were effective as of May 31, 2025[457](index=457&type=chunk) - Management's assessment of internal control over financial reporting concluded it was effective as of May 31, 2025, excluding the recently acquired Star Brands Group[433](index=433&type=chunk)[434](index=434&type=chunk) - No material changes were made to internal control over financial reporting during the fourth quarter of fiscal 2025[459](index=459&type=chunk) [Other Information](index=117&type=section&id=Item%209B.%20Other%20Information) No Director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during fiscal 2025 - No Director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during fiscal 2025[460](index=460&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=117&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This section is not applicable to the company - Not applicable[461](index=461&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=118&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section provides information on key executive officers, including Frank C. Sullivan (Chairman, President & CEO) and Russell L. Gordon (VP & CFO), with further details incorporated by reference from the 2025 Proxy Statement - Information regarding directors and corporate governance is incorporated by reference from the company's 2025 Proxy Statement[464](index=464&type=chunk) Key Executive Officers (as of July 24, 2025) | Name | Age | Position | | :--- | :--- | :--- | | Frank C. Sullivan | 64 | Chairman, President and Chief Executive Officer | | Russell L. Gordon | 59 | Vice President and Chief Financial Officer | | Tracy D. Crandall | 52 | Vice President, General Counsel and Chief Compliance Officer | | Michael J. Laroche | 42 | Vice President, Controller and Chief Accounting Officer | [Executive Compensation](index=120&type=section&id=Item%2011.%20Executive%20Compensation) Information required by this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[473](index=473&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=120&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required by this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[474](index=474&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=120&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required by this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[475](index=475&type=chunk) [Principal Accountant Fees and Services](index=120&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required by this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the 2025 Proxy Statement[476](index=476&type=chunk) Part IV [Exhibits and Financial Statement Schedule](index=121&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedule) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section contains the list of all financial statements, schedules, and exhibits filed with the Form 10-K[478](index=478&type=chunk)[479](index=479&type=chunk)

Company Participants - RPM International's leadership includes Frank C. Sullivan as Chairman, President & CEO, Matthew E. Schlarb as Vice President of Investor Relations & Sustainability, Michael J. Laroche as VP, Controller & Chief Accounting Officer, and Russell L. Gordon as VP & CFO [1] Conference Call Overview - The RPM International Fiscal Fourth Quarter and Fiscal Year 2025 Earnings Conference Call was initiated with a welcome message and instructions for participants [2] - The call featured key executives including Frank Sullivan, Rusty Gordon, and Michael Laroche, and was recorded for future access on the RPM website [3]

Core Insights - RPM International reported $2.08 billion in revenue for the quarter ended May 2025, marking a year-over-year increase of 3.7% and exceeding the Zacks Consensus Estimate by 3.21% [1] - The company's EPS for the same period was $1.72, up from $1.56 a year ago, representing a surprise of 7.5% over the consensus estimate of $1.60 [1] Revenue Performance - Net Sales for the Construction Products Group (CPG) reached $809.91 million, surpassing the five-analyst average estimate of $765.19 million, with a year-over-year change of 6.3% [4] - Net Sales for the Specialty Products Group (SPG) were $181.32 million, exceeding the average estimate of $174.42 million, reflecting a year-over-year increase of 1.9% [4] - Net Sales for the Consumer Segment totaled $691.54 million, slightly below the estimated $693.37 million, showing a decline of 1.6% year-over-year [4] - Net Sales for the Performance Coatings Group (PCG) amounted to $399.21 million, exceeding the average estimate of $383.18 million, with a year-over-year increase of 9.2% [4] Adjusted EBIT Performance - Adjusted EBIT for the Consumer Segment was $122.47 million, above the average estimate of $115.06 million [4] - Adjusted EBIT for the Specialty Products Group (SPG) was $11.38 million, slightly below the average estimate of $11.81 million [4] - Adjusted EBIT for the Performance Coatings Group (PCG) was $57.77 million, in line with the average estimate of $57.67 million [4] - Adjusted EBIT for the Construction Products Group (CPG) reached $158.11 million, exceeding the average estimate of $143.07 million [4] - Adjusted EBIT for Corporate/Other was -$35.35 million, slightly better than the average estimate of -$35.57 million [4] Stock Performance - RPM International's shares have returned +3.6% over the past month, compared to the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Consolidated sales increased by 3.7% to a record in Q4, driven by systems and turnkey solutions for high-performance buildings and acquisitions [17] - Adjusted EBIT increased by 10.1% to a record level, benefiting from volume growth and MAP 2025 initiatives [17] - Adjusted EPS reached a record, supported by improved adjusted EBIT [17] - Record annual sales, adjusted EBIT, and adjusted EPS achieved for each year since the MAP 2025 program began [9][10] Business Line Data and Key Metrics Changes - **Construction Products Group**: Sales increased to a record, driven by systems and turnkey roofing solutions, with record adjusted EBIT achieved [19] - **Performance Coatings Group**: Achieved record sales led by turnkey flooring solutions and M&A, with record adjusted EBIT due to higher volumes [20] - **Specialty Products Group**: Sales improved as specialty OEM showed signs of stabilization, but demand was soft in fluorescent pigments and disaster restoration [21] - **Consumer Group**: Sales declined modestly due to continued DIY softness, but adjusted EBIT increased to a record driven by MAP 2025 benefits [21] Market Data and Key Metrics Changes - Growth was led by Europe, with sales benefiting from Performance Coatings and M&A [18] - North America saw sales growth driven by system and turnkey solutions for high-performance buildings [18] - Emerging market sales were mixed, with Latin America growing (excluding FX), while Asia experienced a decline due to soft economic conditions [18] Company Strategy and Development Direction - The company is focused on realizing the full power of RPM by building on efficiencies and accelerating growth through strategic capital allocation [11] - A new three-segment operating structure was implemented to achieve operational efficiencies and enhance collaboration [13] - Investments are being made in high-growth opportunities, including technical sales force expansion and marketing [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continuing positive momentum into fiscal 2026 despite ongoing tariff uncertainties [15] - The company anticipates low to mid-single-digit sales growth and high single to low double-digit adjusted EBIT growth in fiscal 2026 [27] - Challenges include elevated interest rates impacting home sales and DIY activities, as well as inflationary pressures from tariffs [28][29] Other Important Information - The company completed the largest year of acquisitions in its history during fiscal 2025, with a strong balance sheet and liquidity [10][24] - Operating cash flow for fiscal 2025 was $768.2 million, the second highest in the company's history [22] - The company expects to benefit from the One Beautiful Bill Act, which includes provisions for accelerated depreciation and R&D expensing [61][62] Q&A Session Summary Question: What underlying demand or organic growth is expected this year? - Management anticipates the ability to generate 2 to 3 points of organic growth on a consolidated basis for the year, with challenges related to tariff issues and consumer DIY business dynamics [34][35] Question: Does the new three-segment structure enable more productivity cost savings? - Yes, the new structure is expected to generate $15 million in expense reductions and improve operational synergies [36][37] Question: What incremental savings from MAP 2025 are expected in 2026? - MAP 2025 benefits in fiscal 2026 are expected to be about $70 million, with additional savings from the consolidation of segments [44] Question: How is the M&A pipeline looking for 2026? - The company has a strong balance sheet and expects to continue its acquisition growth strategy, taking advantage of lower M&A valuations [48] Question: What is the outlook for raw material inflation? - Inflation is expected to be in the 1% to 2% range for Q1, heavily weighted towards consumer products, with tariff impacts contributing to a negative 4% to 5% hit in fiscal 2026 [81][82] Question: How is the health of project backlogs in Construction and Performance Coatings? - Backlogs for these businesses are strong, but the company faces challenging comparisons due to strong prior years [71]