RPM International Reports Decline in Revenue and Profitability for Third Quarter

RPM International Inc. reported its financial results for the third quarter and nine months ended February 28, 2025, revealing a decline in both revenue and profitability compared to the previous fiscal period. For the third quarter, net sales totaled $1.48 billion, a decrease of 3.0% from $1.52 billion in the same quarter last year. The company’s net income for the quarter was $52.3 million, down from $61.5 million, resulting in diluted earnings per share of $0.40 compared to $0.47 in the prior year. For the nine-month period, RPM's net sales were $5.29 billion, slightly lower than $5.33 billion, while net income increased to $464.3 million from $408.6 million, reflecting a diluted earnings per share rise to $3.59 from $3.16.

The decline in quarterly revenue was attributed to unfavorable weather conditions that limited construction and restoration activities, particularly in the southern and western United States. Additionally, foreign currency translation negatively impacted sales figures. The company’s Consumer segment saw modest organic sales growth driven by new product introductions, but this was offset by unfavorable foreign exchange impacts. The Specialty Products Group (SPG) segment experienced a significant decline in demand, particularly in specialty OEM markets, which further contributed to the overall revenue drop.

In terms of operational developments, RPM International has been actively pursuing its Margin Achievement Plan 2025 (MAP 2025), a multi-year restructuring initiative aimed at improving margins and operational efficiency. The company incurred restructuring expenses of $3.5 million in the third quarter, down from $6.4 million in the same period last year. The total restructuring costs for the nine months reached $18.2 million, compared to $14.1 million in the prior year. The company anticipates incurring additional charges related to MAP 2025, with a focus on streamlining business processes and reducing working capital.

On the balance sheet, RPM reported total assets of $6.62 billion as of February 28, 2025, a slight increase from $6.59 billion at the end of the previous fiscal year. The company’s cash and cash equivalents stood at $241.9 million, up from $237.4 million. However, trade accounts receivable decreased significantly to $1.11 billion from $1.42 billion, reflecting changes in sales timing and collection efficiency. The company also reported a reduction in its long-term debt, which totaled $2.09 billion, compared to $1.99 billion in the prior period.

Looking ahead, RPM International remains cautious about the impact of inflationary pressures and market conditions on its operations. The company expects that the inflationary headwinds will continue to affect its results throughout the remainder of fiscal 2025 and into fiscal 2026. Additionally, RPM has announced plans to acquire Star Brands Group, the UK-based parent company of The Pink Stuff, which is expected to close in the upcoming quarters, further expanding its Consumer segment.