- RPM reported Q3 2025 revenue of $1.477 billion, a 3.0% year-over-year decline, with gross margin of 38.4% and EBITDA margin of 7.54% (adjusted EBITDA of $111.3 million). Net income was $52.0 million, with EPS (diluted) of $0.40. The quarter was characterized by unfavorable weather in North America and currency headwinds, amplifying the seasonally weak third quarter. Management framed the results within the MAP 2025 program, noting improving working capital efficiency and record operating cash flow (OCF) for a third quarter, despite margin pressure from under-absorption and plant-startup costs.
- Management remains optimistic about a return to profitable growth in Q4 (guidance: flat consolidated sales with modest EBITDA growth) driven by Performance Coatings and Construction Products, ongoing MAP 2025 benefits, and improved collaboration across segments. The firm anticipates tariff-driven raw material inflation to moderate through mitigations (pricing, alternative sourcing, SKU rationalization) and expects MAP 2025 to deliver material savings in 2026 (roughly $100 million). The Pink Stuff acquisition, expected to close late Q4 2025 or early Q1 2026, is viewed as a meaningful strategic expansion into grocery, drugstore, and e-commerce channels, broadening RPM’s consumer cleaning footprint.
- The near-term outlook remains tempered by macro uncertainty (GDP-no-growth environment), tariff dynamics, and weather-driven variability, but RPM’s diversified portfolio, backlog strength in PCG/CPG, and ongoing European MAP execution position the company to outperform in a challenging cycle. Investors should monitor raw-material costs, tariff developments, and the pace of integration and cost savings from MAP 2025 and Pink Stuff synergies.