RPM International delivered a solid QQ2 2025 with record adjusted EBIT and adjusted EPS across multiple segments, despite a challenging macro backdrop and weather-related headwinds. The quarter featured revenue of $1.846 billion, gross margin of 41.4%, and an adjusted EBIT margin of 13.8% — a Q2 record — supported by MAP 2025 initiatives, including SG&A streamlining and facility consolidations. Management highlighted that a $4.4 million bad-debt charge from a consumer customer weighed on results in the Consumer group, contributing to a GAAP net income of $183.2 million and GAAP EPS of -$1.78, while adjusted EPS reached $1.39, up 13.9% year over year. The company reaffirmed full-year guidance for low-single-digit net sales growth and 6%–10% adjusted EBIT growth, with performance reinforced by MAP 2025 benefits and ongoing cost discipline.
The management team emphasized positive organic volume growth across all four segments, led by Construction Products Group (CPG) and Performance Coatings Group (PCG), with Consumer and Specialty Products Group (SPG) stabilizing after prior weakness. MAP 2025 remains a cornerstone of RPM’s strategy, delivering structural cost reductions, SG&A efficiency, and capital-project-driven savings that have expanded margins and cash flow. The quarter also showcased meaningful progress on capital allocation and balance-sheet strength, including debt reduction of $226 million, dividend increase, and continued opportunistic buybacks, while reiterating a potential for accretive M&A given the balance sheet strength.
Looking ahead, management cautioned that Q3 will still be seasonally weak and weather headwinds (and FX) will weigh on the near term. However, management expects a return to stronger sales and earnings growth in Q4 as the MAP benefits accumulate and new product launches contribute to growth. The investment thesis rests on continued MAP 2025 execution, meaningful line-of-business diversification (with services and higher-margin offerings expanding the mix), and disciplined capital deployment in NA, Europe, and Latin America.