RPM International Inc
RPM
$105.30 0.29%
Exchange: NYSE | Sector: Basic Materials | Industry: Chemicals Specialty
Q1 2025
Published: Oct 2, 2024

Earnings Highlights

  • Revenue of $1.97B down 2.1% year-over-year
  • EPS of $1.77 increased by 13.4% from previous year
  • Gross margin of 42.5%
  • Net income of 227.69M
  • "“MAP 2025 initiatives and follow-on operating improvements have enabled us to achieve our 11th consecutive quarter of record adjusted EBIT. We’ve gained efficiencies in our conversion costs, and we have uncovered almost 80 million units of new capacity without additional capital.”" - Frank Sullivan
RPM
Company RPM

Executive Summary

RPM’s QQ1 FY2025 results reflect a disciplined, growth-oriented operating program (MAP 2025) that delivered a record first-quarter adjusted EBIT and solid cash flow despite a modest revenue contraction driven by FX headwinds and softer consumer end markets. Management highlighted the benefits of MAP 2025—particularly fixed-cost leverage, procurement optimization, and selective SG&A rationalization—which contributed to a 6.3% year-over-year increase in adjusted EBIT to $361.07 million and an all-time high adjusted EPS of $1.84 (GAAP EPS $1.78). Revenue declined 2.1% year over year to $1.9679 billion, with pricing modestly positive yet offset by currency effects and a slight organic revenue dip. RPM continued to generate strong cash flow, with operating cash flow of $248.1 million and free cash flow of $197.3 million, allowing another debt repayment of $75 million and a total debt reduction of $453 million over the prior 12 months. The company signaled durable upside through logistics and growth initiatives (data centers, high-performance buildings, infrastructure, and reshoring) and reiterated guidance for low-single-digit revenue growth and mid-single-digit to low-double-digit adjusted EBIT growth for FY2025. While Consumer and some OEM-focused segments remain challenged, RPM’s breadth across Construction Products Group (CPG) and Performance Coatings Group (PCG) has preserved margin expansion and earnings quality, supported by ongoing MAP 2025 benefits and improved working capital efficiency. The near-term outlook remains contingent on macro variables (FX, elections, port activity) and housing turnover, but RPM’s balance sheet and cash-generative profile position it to capitalize on mixed-cycle opportunities as rate relief potentially flows through the economy.

Key Performance Indicators

Revenue
Decreasing
1.97B
QoQ: -1.96% | YoY: -2.14%
Gross Profit
Increasing
836.67M
42.50% margin
QoQ: 0.73% | YoY: 0.97%
Operating Income
Increasing
310.53M
QoQ: 13.58% | YoY: 4.35%
Net Income
Increasing
227.69M
QoQ: 26.07% | YoY: 13.23%
EPS
Increasing
1.78
QoQ: 26.24% | YoY: 13.38%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 2,113.74 1.77 +5.3% View
Q3 2025 1,476.56 0.40 -3.1% View
Q2 2025 1,845.32 -1.77 +3.0% View
Q1 2025 1,968.79 1.77 -2.1% View
Q4 2024 2,008.16 1.40 -0.4% View