Tue, Apr 8, 6:06 PM (19 days ago)
**RPM International Inc. (Ticker: RPM)** **Quarterly Financial Health and Performance:** RPM International Inc. reported a net sales decline of 3.0% for Q3 2025, with organic sales decreasing by 1.8%. The company's gross profit margin decreased to 38.4% from 39.9% in the previous year, primarily due to reduced fixed-cost absorption and inflationary pressures. Selling, General, and Administrative (SG&A) expenses decreased by $3.1 million but increased as a percentage of net sales. The company's effective income tax rate was (27.7%) for Q3 2025, reflecting adjustments to deferred income taxes. **Segment Performance:** - **Construction Products Group (CPG):** Experienced organic sales declines due to unfavorable weather conditions and foreign exchange translation. - **Performance Coatings Group (PCG):** Saw slight organic sales declines but benefited from strong growth in fiberglass reinforced plastic structures. - **Consumer Segment:** Generated modest organic sales growth driven by new product introductions and market share gains. - **Specialty Products Group (SPG):** Experienced organic sales declines due to lower demand in specialty OEM markets and disaster restoration business. **Cash Flow and Liquidity:** RPM generated $619.0 million in cash from operating activities for the first nine months of 2025, down from $941.1 million in the previous year. Cash used for investing activities increased by $151.8 million, primarily due to higher spending on business acquisitions. The company's available liquidity stood at $1.21 billion as of February 28, 2025. **Future Operations and Uncertainties:** RPM is focusing on its Margin Achievement Plan 2025 (MAP 2025) to improve margins through streamlining business processes and reducing working capital. The company faces uncertainties related to global economic conditions, raw material prices, and foreign exchange rates. RPM is also monitoring developments related to the Organization for Economic Co-operation and Development's Pillar Two framework, which aims to ensure a minimum tax rate of 15% on reported profits. **Stock Repurchase Program:** During Q3 2025, RPM repurchased 142,864 shares of its common stock at an average price of $122.49 per share, totaling approximately $17.5 million. The maximum dollar amount that may yet be repurchased under the program was approximately $209.8 million at February 28, 2025. **Legal and Environmental Matters:** RPM is involved in various legal proceedings and environmental matters, but management believes these will not have a material adverse effect on the company's financial condition or results of operations. The company is also monitoring the impact of climate change and sustainability-related regulatory requirements.