Financial Data and Key Metrics Changes - RPM International achieved record sales of nearly $7.4 billion for the fiscal year ended May 31, 2025, with adjusted EBIT up 3.7% from the prior year and adjusted earnings per share up 7.3% from the prior year of $5.30, resulting in a record EBIT margin of 13.2% [14][15][16] - The fiscal year concluded the MAP 2025 Operating Improvement Program, which resulted in a more than 500 basis point improvement in gross margins and a 260 basis point improvement in EBIT margins [15][16] Business Line Data and Key Metrics Changes - The Construction Products Group experienced a 4% unit volume growth, while the Performance Coatings Group saw an 8% unit volume growth [29] - Record results in sales and earnings were reported for the Construction Products and Performance Coatings businesses, with the Consumer Group also achieving record sales [29] Market Data and Key Metrics Changes - 78% of RPM's revenues are generated from core North American markets, with 14% from Europe and approximately $500 million from developing markets [20] - There is over $100 billion of growth potential identified for RPM's product lines, with significant opportunities in the Construction Products Group and Consumer Group [19][20] Company Strategy and Development Direction - RPM is pivoting to growth following the completion of the MAP 2025 initiative, focusing on embedding the learnings into the company culture and pursuing greater efficiency and growth opportunities [16][21] - The organizational structure has been streamlined to a three-group structure by merging the Specialty Products Group into the Performance Coatings Group, aiming for enhanced collaboration and efficiency [22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of turnkey offerings in roofing and flooring as a competitive advantage in labor-constrained construction markets [28] - The outlook for the second quarter is expected to mirror the first quarter, with continued outsized growth and improved leverage to the bottom line [30] Other Important Information - RPM's board of directors approved a regular quarterly cash dividend of $0.54 per share, marking the 52nd consecutive year of increased cash dividends [31] - Significant investments in growth were made, including $5.3 million in new sales hires and $3.2 million in higher advertising expenses [32] Q&A Session Summary Question: What caused the increase in SG&A expenses in the quarter? - The increase was attributed to extraordinary healthcare costs and deliberate investments in growth, including new sales hires and higher advertising expenses [32] Question: Does RPM have a foundation? - RPM does not currently have a foundation but engages in charitable programs and has contributed over $3.5 million to community causes [33] Question: How is RPM embracing system selling? - RPM has expanded its offerings to include comprehensive solutions for building systems, significantly increasing revenue per square foot in installations [34] Question: Is RPM benefiting from reshoring of manufacturing? - Yes, RPM is benefiting from reshoring, particularly in the Performance Coatings Group, which manufactures high-performance products for various industries [35]