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The multinational company creates materials such as sealants and coatings used in construction work. Its consumer brands include Gator, Kwik Seal, and Roto-Rooter.

This year's Fortune 500 marks the 66th running of the list.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Q3 2025

Q2 2025

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RPM International (RPM): Company Profile, Stock Price, News, Rankings

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RPM International

rpm international

Good day, and welcome to the RPM International Fiscal Third Quarter twenty twenty five Earnings Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Matt Schlarb, Vice President of Investor Relations and Sustainability.

Thank you, Nick, and welcome to RPM International's conference call for the fiscal twenty twenty five third quarter. Today's call is being recorded. Joining today's call are Frank Sullivan, RPM's Chair and CEO Rusty Gordon, Vice President and Chief Financial Officer and Michael LaRoche, Vice President, Controller and Chief Accounting Officer. This call is also being webcast and can be accessed live or replayed on the RPM website at www.rpminc.com. Comments made on this call may include forward looking statements based on current expectations that involve risks and uncertainties, which could cause actual results to be materially different.

For more information on these risks and uncertainties, please review RPM's reports filed with the SEC. During this conference call, references may be made to non GAAP financial measures. To assist you in understanding these non GAAP terms, RPM has posted reconciliations to the most directly comparable GAAP financial measures on the RPM website. Also, please note that our comments will be on an as adjusted basis and all comparisons are to the third quarter of fiscal twenty twenty four unless otherwise indicated. We have provided a supplemental slide presentation to support our comments on this call.

It can be accessed in the Presentations and Webcast section of the RPM website at www.rpminc.com. Now I'd like to turn the call over to Frank.

Thanks, Matt. I'll begin today's call with a high level review of our third quarter results and what we're currently seeing in our markets. Then Mike LaRoche will cover the financials in more detail for the quarter. Next, Matt will provide an update on our balance sheet and some of the activity in our European market. And finally, Rusty Gordon will conclude our prepared remarks with our outlook for the fourth quarter, after which we'll take your questions.

An overview of our third quarter results is on Slide three. During our most recent earnings call in January, I discussed how each of our segments generated solid organic growth in the second quarter, but how The U. S. Was experiencing a real winner for the first time in a couple of years, which will impact our third quarter. As the third quarter progressed, weather conditions deteriorated further, including in the Southern and Western portions of The United States, Two geographies that typically have outdoor construction and project activity during the winter months.

The South experienced unseasonably cold temperatures right up through the March and the West was disrupted not only by weather, but by wildfires. The third quarter is also our seasonal slowest quarter, so the financial impact of business changes gets magnified both positively and negatively. This was certainly true this year as the weather related headwinds and softness in some specialty OEM markets more than offset our MAP 2025 and SG and A improvements in the quarter. During the quarter, our businesses made good progress improving working capital efficiency, a key component of our MAP 2025 program by continuing to demonstrate disciplined production levels to reduce inventories, which temporarily put pressure on margins, but resulted in our second best ever third quarter operating cash flow in our company's history. All of this resulted in our twenty five third quarter profitability being closer to that in fiscal twenty twenty three rather than the last year when we had much more favorable weather conditions and huge year over year gains in sales and earnings.

By taking a more granular look at the segments over the past three years on Slide four, you can see that third quarter adjusted EBIT has increased at three of our four segments compared to two years ago when demand conditions were similar to today. This is evidence that our MAP 20 20 five initiatives and SG and A streamlining are making a positive impact on our financial performance even in a challenging demand environment with lower fixed cost utilization. On Slide five, you can see some of the positive factors impacting our fourth quarter. Across RPM, we continue to implement our MAP 2025 initiatives and this will continue into our fiscal twenty twenty six New Year, which begins on June 1 as we identify new opportunities for improvement. The financial impact of these improvements will become more evident as our volumes recover.

Overall, we remain focused on the things within our control, implementing improvements across our businesses and outgrowing our markets. We are also leveraging the fact that the primary function of many of our products and services is extending asset life. This value proposition becomes even more important to end users during times of economic uncertainty when budgets are tight. This repair and maintenance focus also helps us insulate our businesses from economic volatility and the impact it has on new construction. The impact of tariffs on inflation is dynamic, but we can tell you what we know.

For the most part, RPM manufacturers products in the countries or regions in which they are sold. RPM has limited cross border procurement and sales, so tariffs will not play as large a role in our cost structure as it might for some other companies. Furthermore, while our sales which do cross borders is limited, most of this activity takes place in North America between The United States, Canada and Mexico, which are still following the USMCA agreement, which currently is exempt from the most recent tariff impact. We anticipate that raw material inflation, which was previously assumed to be in the low single digits will now be increasing in the mid single digits as a result of the impact of recently announced tariffs and duties. Areas include resins, shellac, solvents and in particular packaging and metal packaging, which impacts our consumer segment the most.

Looking into segments in our construction focused businesses, the Construction Products and Performance Coatings Group are benefiting from our turnkey service model in roofing and flooring. From acquisitions, improved collaboration between operating segments and our passive fire protection businesses and selling wall systems and building envelope systems to high performance buildings in areas like data centers. In our Specialty Products Group end markets remain challenged. However, our businesses continue to gain share in areas like custom wood coatings and specialty food coatings that help mitigate the impact of current market pressures. These will provide upside as demand recovers.

In our Consumer segment, we have launched multiple new products this spring to drive growth. This includes the Mean Green Refillable in the household cleaners category. This patent pending product contains two chambers, one with cleaning concentrate and the other with water and the two mix when sprayed. The water is simply refilled when it runs out and the user gets the equivalent of four standard bottles of cleaner in one, which reduces waste and provides the user superior value. We're proud to announce that this product was recently awarded the best concentrate in the cleaners category of the twenty twenty five House Clean Awards from Better Homes and Gardens.

The Consumer Group also launched a number of new products like Rust Oleum Low Odor, a water based aerosol paint that has the durability to be used both indoors and on outdoor projects. Turning to Slide six, in addition to organic growth that we are generating in Cleaners through innovations like the Mean Green recent introduction, we announced a definitive agreement to acquire the Pink Stuff to expand our offerings in the cleaning space. RPM has operated in this category for more than a decade with brands including Crud Cutter, Mean Green, Wink and Concrobium. The addition of the Pink Stuff will broaden our product offerings and strengthen our position in several sales channels including e commerce, grocery and drugstores and importantly opens RPM and principally our Rust Oleum Group to a market in North America in excess of $12,000,000,000 The Pink Stuff is a global leader in household cleaning products led by their high performance cleaning paste. Calendar '20 '20 '4 sales were approximately £150,000,000 Pink Stuff operates globally and in The U.

S. Europe being their largest market. Over the past several years, this disruptive brand has been one of the fastest growing cleaning products categories in The U. S. Household cleaning space.

We are well positioned to support future growth of the Pink Stuff in The U. S. And elsewhere by leveraging our consumer segments expertise in category management and innovation as well as our global operational footprint, which has been strengthened by our MAP initiatives over the last couple of years. We expect the transaction to close late in the fourth quarter of fiscal twenty twenty five or early in the first quarter of fiscal twenty twenty six. During this time of heightened economic uncertainty, we are focused on the things within our control such as completing our MAP 2025 program and leveraging our competitive strengths, including the ability of our products and services to extend asset life to deliver value to customers and outgrow our markets.

I'll now turn the call over to Michael Roche to provide details on our third quarter financials.

Thanks Frank. On Slide seven, consolidated sales declined 3% versus the prior year record with unfavorable weather conditions and foreign currency translation as the biggest drivers. Adjusted EBIT declined by $31,900,000 driven by lower production volumes, including working capital efficiency initiatives that resulted in lower fixed cost absorption. FX and temporary inefficiencies from plant consolidations and startups contributed to the profitability decline. We also faced challenging comparisons as adjusted EBIT increased 31.3% in the prior year period, which was a third quarter record.

Non operating expenses increased driven by higher M and A expenses as well as increased employee compensation. These pressures more than offset MAP twenty twenty five benefits and SG and A streamlining. Turning next to geographic results on Slide eight. Sales declines in North America were primarily driven by weather, while in Europe, generated from sales and marketing initiatives such as improved digital marketing and collaboration were offset by FX. Africa and Middle East sales were down slightly after growing 22.9% in the prior year.

FX was the primary driver for sales decline in Latin America and Asia Pacific, and they also faced challenging prior year comparisons. Next, moving to the segments on Slide nine. Construction Products Group sales declined versus a record prior year level as it was impacted by unfavorable weather, particularly in the Southern And Western U. S. FX also pressured sales.

Lower volumes and the impact of temporary inefficiencies from plant consolidations reduced fixed cost absorption during the quarter. This was partially offset by SG and A streamlining actions. CPG also faced challenging comparisons to the prior year when adjusted EBIT increased 69.8%. On Slide 10, Performance Coatings Group sales declined slightly against challenging prior year comparisons when organic sales increased 9.2% to a record level. Growth was led by the fiberglass reinforced plastics businesses, which saw strong sales in the data center construction market.

Adjusted EBIT declined versus a record prior year as lower production volumes resulted in reduced fixed cost utilization. FX and plant startup costs also reduced profitability. The Performance Coatings Group faced challenging comparisons as adjusted EBIT grew 45.1% from the prior year. Moving to Slide 11. Specialty Products Group sales declined as specialty OEM markets were weak and lower remediation activity reduced demand for the disaster restoration business.

Partially offsetting these declines, our Food Coatings and Additives business continued its strong performance aided by a prior acquisition. Lower volumes resulted in reduced fixed cost absorption and adjusted EBIT. Additionally, several growth investments, including the Rettin and Innovation Centers of Excellence impacted SPG's financial results, but benefited all RPM segments. MAP 2025 improvements in SG and A streamlining actions helped offset the profitability decline. On Slide 12, the Consumer Group generated slightly positive organic growth aided by new product introductions and market share gains in areas like cleaners.

The Consumer Group also faced challenging comparisons versus the prior year when adjusted EBIT increased 34.6%. Consumer demonstrated good discipline in working capital efficiency by limiting production to reduce inventory levels. Lower production levels had a temporary negative P and L impact, but served to structurally improve cash flow. The Consumer Group also experienced material inflation in areas including packaging and solvents, which put pressure on profitability. Now I'll turn the call over to Matt, who will cover the balance sheet and cash flow and provide more details on recent activities in Europe.

Thank you, Mike. On Slide 13, our steady improvement in working capital efficiency continued in the third quarter, driven by inventory reductions, particularly at our Consumer segment, as Mike just mentioned. Working capital as a percentage of sales improved by 70 basis points and approached our goal of 20%. As you see when our 10 Q is filed, our average days of inventory or DIO declined by eight days year to date. This improvement in working capital led to the second strongest third quarter operating cash flow generation in the company's history at $91,500,000 During the quarter, we returned to $83,100,000 in cash to shareholders through dividend and share repurchases.

We also have increased our year to date CapEx by nearly $21,000,000 driven by several growth projects, including the Residence Center of Excellence in Belgium, a new distribution center also in Belgium and a new production facility in India. The consolidation of eight plants through our MAP 2025 program also contributed to the higher CapEx. Liquidity remains strong at $1,210,000,000 Turning next to Slide 14. I wanted to highlight the progress we have made over the past several years in Europe. Across the continent, we focused on implementing MAP initiatives to increase collaboration, improve efficiency and outgrow our markets.

In our Construction Products Group, our teams have taken a system selling approach, focusing on higher value add products and services. Multiple small acquisitions in Europe have aided this strategy. In line with our Building a Better World program, we're also selling more products that advance sustainability, like Nudura insulated concrete forms that improve energy efficiency and weather resiliency. In our Performance Coatings Group, we are seeing momentum from improved collaboration among segments in our passive fighter protection businesses and the implementation of CS168 commercial excellence programs that are starting to show benefits. The acquisition of TMPC that we discussed last quarter serving as a platform to accelerate sales of fiberglass reinforced products on the continent.

In Specialty Products Group, we recently celebrated the opening of the Resin Center of Excellence and they have begun production of materials for other RPM companies and third parties. We have also consolidated facilities to help improve efficiencies. Finally, the Consumer Group has had success in implementing targeted marketing campaigns to DIYers and contractors alike and those businesses continue to grow. As we've gotten better data to analyze SKU profitability, we've rationalized lower margin SKUs, which has enabled us to consolidate production. We are also making investments in efficiency like the new centralized distribution center in Belgium.

We have not completed implementing MAP in Europe, but the work we have done positions us to better leverage the growth investments we have made and will make in the region. Now I'd like to turn the call over to Rusty to cover the outlook.

Thank you, Matt. Our fourth quarter outlook can be found on Slide 15. Frank already provided some of the reasons why we expect consolidated sales to be flat and return to modest earnings growth and margin expansion in the fourth quarter in what is a challenging macro environment. This growth is expected to be led by our Performance Coatings Group, which is benefiting from spending on high performance buildings, growth in passive fire protection, as well as its acquisition of TMPC, which is a seasonal business that generates most of its sales and profits in the fourth and first quarters. PCG also faces easier comparisons to the prior year.

In Construction Products Group, our teams have done a good job focusing on selling systems for high performance buildings and on repair and maintenance solutions in a challenging macro environment. However, they are facing challenging comparisons to the prior year when organic sales increased 6.6%. So sales are expected to be flat for the quarter. In consumer, the benefit of new product introductions is expected to be offset by more cautious consumer spending resulting in a low single digit sales decline. While consumer confidence has weakened recently, over time our products serving DIY customers have historically outperformed during times of economic stress as consumers look to extend the life of what they own rather than buying new.

Also, our guidance assumes no impact from the acquisition of the TeamStyle. Specialty Products Group is expected to have a low single digit sales decline as market share gains in certain businesses are offset by more than are being more than offset by sluggish demand in specialty OEM markets, which includes the impact of weak new home construction. Adjusted EBIT is expected to be up low single digits as many of the MAP 2025 improvements are masked by under absorption, including temporary inefficiencies as we consolidate plants. Foreign currency is also expected to be a headwind in the quarter, but less so than it was in the third quarter. This concludes our prepared comments.

We are now pleased to answer your questions.

We'll now begin the question and answer session. And your first question today will come from Kevin McCarthy with Vertical Research Partners. Please go ahead.

Thank you and good morning. Good morning, Frank. Obviously, lot of uncertainty increasing over the last week or so. So I was wondering if you could speak to what you have assumed in terms of macro growth and other key assumptions in formulating your guidance here for the fourth quarter. Do you anticipate positive or negative GDP growth, for example?

And any noticeable impact thus far in the early days on your order books?

Sure. First of all, from a manufacturing perspective, I would tell you we've been a low growth, no growth environment for eighteen months. It's not unique to RPM. And we do not see that changing either in this quarter or the foreseeable future. I think relative to our MAP initiatives, we're pretty well positioned to outperform in that environment.

As you heard from Rusty, we are pleased to be returning to profitable growth in Q4. So I think with the nasty weather behind us, particularly in comparison to a mild winter last year, our Q4 is going to look more like our Q2. Most of that is self help, some market share gains, some new product introductions. We're benefiting, as you can see throughout the year, again, the exception of the seasonal third quarter in our Construction Products Group and Performance Coatings Group by project selling and also those product categories where we're providing the labor, which has become more of a competitive advantage in a labor constrained market. So I think we feel good about the dynamics underlying RPM and what's otherwise a GDP no growth environment and we don't see that changing.

Very good. And as a follow-up, if I may, how much lower were your operating rates in the February? And is there a way to quantify the impact that that would have had on your operating margin?

I can provide a high level comment on that and Rusty can provide some more detail. But as we've talked about in the past and you can see in most of our quarters, Q1 of this year is a good one. We had lower sales, but nice leverage to our bottom line. We need unit volume to take advantage of the MAP initiatives that have been principally operating efficiency driven. And with the declines in Q3 year over year, we've had negative impacts.

We've also had some higher transition costs as we move production from plants that are being consolidated into new plants. Rusty, you want to add some

Sure. Yes. We as you heard, our organic growth was down 1.8%. There is slightly positive pricing. So most of that was volume decline.

And then you couple that with our initiative to reduce inventory, which inventory days were down about eight days on a year to date basis. That leads to reduced production and the under absorption of fixed costs.

And your next question today will come from Mike Sison with Wells Fargo. Please go ahead.

Hey, guys. If you think about the portfolio you have now, you have the maps and I understand industrial downturn that we've seen forever seems. How do you think the portfolio holds up if The U. S. Does go into a recession, a GDP type recession?

Sure. I think we're again in pretty good shape to outperform. Our Tremco roofing business is predominantly in reroofing and repair and maintenance. Our PureAir business is part of that. It's a couple of years old.

We've taken the last eighteen months to get certified. That is air handling, HVAC refurbishment business that we've been asked about for years because we're up on roofs. We've spent the last eighteen months getting certified throughout all 50 states. We have good momentum there. Interestingly enough, OE, so we're really competing against replacement of the major commercial HVAC providers.

Most of that equipment is Chinese made. And so we think we'll have some pickup there. And the other piece of that is we're pretty focused on some of the areas where we see continued strength. Data centers is a good example where stone hard flooring, carboline coatings and in particular fiber grade FRP grading are being specified. So I think we're in a pretty good position to continue the decent performance that you've seen of our Performance Coatings Group and Construction Products Group over the last year, putting aside the seasonal impact and weather impact of Q3.

Got it. And as a quick follow-up, just wanted your thoughts on the tariffs again. Do you think sort of this raw material inflation, is this going to be sort of a pure price increase or do you kind of see it as a tariff surcharge, meaning if they go away, they come back down? And then so how do you think about that and what you plan to do in terms of pricing to offset it?

Sure. It's a great question. Our companies have done a really good job on a pretty short notice basis. I assume all companies are doing this of identifying the impact of tariffs across RPM. I can tell you we did this in February with the China Ten Percent.

We updated in March with the impacts on China and then we've updated it most recently for the April 2 tariff announcements. Across RPM, the impact, the unmitigated impact as we sit here today, and that's important because obviously things can change, is about 3.2%. It will be larger in The United States at about 4.3%. And obviously, that's subject to change based on the increase or reduction of tariffs. And so we have done that work unit by unit.

I'll give you an example of that in a minute. The mitigating activities that we are looking at is a couple of things. One, Annex II that was announced as part of the April specific raw material categories exempted from those tariffs. Alternative sources, so in some cases, we're able to move production from a foreign country to The U. S.

Or from China to India. Vendor partnerships, at this point, we have certain solvent vendors that we would get imported who have eaten the tariffs for the time being. Product substitutions and then lastly price increases. We are in the process of addressing and or instituting price increases where necessary. So I think for the most part, we will offset all of that impact.

And in the grand scheme of things at this point, it's about $149,000,000 of raw material impact on a $2,500,000,000 spend. So not material to RPM, but we have a unit by unit way to address it. And then I'll provide one more example, which gives you a sense of the detail we get down to. We announced the Pink Stuff acquisition and we have done the analysis of their business. They export mostly intercompany about $35,000,000 from The UK to The U.

S. For example, about 13,000,000 or $14,000,000 of that is their iconic paste cleaner. And we have a plan where we can spend about $400 or $500,000 in an existing U. S. Consumer production facility in the next couple of months that will allow us to move production of U.

S. Sold pink stuff paste in The U. S. To being produced in The U. S.

There are six different categories in pink stuff where that applies. So that's just one example. And I appreciate the question, Michael, because that is exactly the type of analysis we have done across every one of RPMs 20 SBUs. I think we have a pretty good handle on the impact of this mitigating factors. We're on the lookout for changes and or reciprocal tariff increases.

And then the last comment I'll make is where we started, which is for the most part we produce products in the countries or regions in which we sell them. So we don't see this as being a significant impact on RPM.

Great. Thanks. Let's hope it warms up for

And your next question today will come from Mike Harrison of Seaport Research Partners. Please go ahead.

Hi, good morning. I was hoping, Frank, that you can maybe give us some thoughts on the near shoring trend that's been a nice contributor to some of the strength that you've been seeing in the CPG and PCG segments over the last few years. I'm just curious, have you seen that trend starting to slow a little bit? And I guess, your expectation be that this newest round of tariffs could potentially reinvigorate some of that nearshoring trend and drive some additional investment in U. S.

Sure. So in general, I think the answer is yes, both the Biden administration and now the Trump administration with tariffs have indicated their focus on and the importance of reshoring. And so we've been a beneficiary of that, particularly in the technology area and that's continuing. We serve broadly manufacturing. I'll tell you the one area where we see and anticipate things slowing down is auto.

And so that's the one area of spend where I think over time you might see some reshoring. But in the current moment, there seems to be some paralysis to try and understand what all this means for the auto industry. Aside from that, we don't see any change in the reshoring in technology in the announcements that you're hearing from the Intel's or the Apple's, the continuing build out of data centers, things like that, which we're in a pretty good position to be part of.

All right. Thank you. And then I wanted to ask specifically in the construction business. You referenced the unfavorable weather. And I just wanted to understand a little bit better, a lot of this activity just get pushed out of Q3 and into Q4?

Or are you seeing cases where there are longer delays or even some cancellations of projects? I think I'm just curious to understand why we wouldn't see some better demand or better numbers out of construction in the fourth quarter? Thank you.

So it starts with a seasonal comparison. We are weather impacted. People don't get on up on roofs when there's snow on them. And we saw snow this year in Florida and in Texas and The Carolinas and disruptions throughout the country and a challenging comparison when last year we had a very mild winter. So you'll recall last year in the third quarter Construction Products Group sales were up 4.3% and EBIT was up 70%.

So that's a big mountain to climb. We had to reverse this year weather wise. Most of those projects have been pushed off. And so we are starting to see some of that come back. But again, that winter weather worked its way right through March.

We are sitting here in Cleveland, Ohio. It is 26 degrees and there's snow on the ground. It must be opening day for the Cleveland Guardians, which it is. And so certainly that impacts us. Really a good backlog in our roofing business that continues.

And as we move from selling components to selling systems in the areas of construction that we've talked about, I think we're in a pretty good shape. So, backlog has not shrunk and our people are anxious to get back up on roofs and get back to work and start selling stuff.

And your next question today will come from Ghansham Panjabi with Baird. Please go ahead.

Good morning, Frank. Maybe you could just give us a bit of an update on the MAP progress plan specific to Europe. What's been done so far? What's left to do and maybe in terms of the outlook for 2026 in terms of flow through savings specific to that region?

Sure. In general, we're moving later than we would have anticipated mostly because of COVID disruptions in Europe. And so in the past year, we have initiated and completed, I want to say eight manufacturing facility closures and consolidations principally in Europe. And so that's moving very well. We are pulling together administrative areas around accounting and IT.

That's moving very well. Dave Denstedt, who is the President of our Performance Coatings Group, you may recall, moved his family a year and a half ago to Europe to really provide some senior leader oversight there. So that's helped kind of drive better coordination to get at these MAP savings that we got first in North America and now we're getting in Europe. MAP savings in Q3 in general were about $28,000,000 across all of RPM. Obviously that was offset by an equivalent amount of under absorption and some of the other challenges we faced in the quarter.

But we're making good progress there. I think we communicated in the last call that we anticipate obviously running through the finish line at 05/31/2025 of the MAP initiatives will have some bleed over into 2026. The impact on the MAP initiatives through MAP 2025 on fiscal twenty twenty six should be about $100,000,000

Okay, very helpful. And then just to clarify the previous comments on CPG and the backlogs. The backlogs you're referring to are just specific to the fact that 3Q came in below forecast just based on weather. Is that did I hear that correctly?

The backlogs are pretty good strong quote activity in Tremco roofing and reroofing projects in our WTI business, which is the contracting arm of Tremco. So historically, mostly roofing, maintenance repair and or general GC activity on major reroofing projects. It's starting to incorporate PureAir and as another category of kind of self supply. And so those activities are continuing. We are not seeing a slowdown in the backlog.

And I would anticipate, as I said, a return to profitable growth in Q4 and into the summer.

And then just finally, Frank, on the PinkStuff acquisitions, just remind us how big is cleaning products for you at this point? And what will it be as a percentage of sales following the Pink Stuff acquisition close?

You're relatively modest and all at Rust Oleum about $50,000,000 and Pink Stuff is call it $180,000,000 1 hundred and 90 million dollars about £150,000,000 and growing very nicely. So we'll be looking at a $225,000,000 category. Huge opportunities there, dollars 12,000,000,000, 15 billion market both in North America and Europe. Pink Stuff has really strong brand recognition and good trajectory in The UK. It's got nice growth through Continental Europe and it's been introduced in the last few years and growing in The U.

S. So it's got a nice growth profile. It has a margin profile at the gross margin and EBIT line that is higher than the RPM average. And we're pretty excited about both that and the fact that they have a very sophisticated social media online marketing initiative that we think will enhance not only our cleaner categories, but other parts of RPM's consumer group. So they have a great management team.

We're excited about their addition to RPM and it really makes us a bigger player in what's a huge new market for us.

And your next question today will come from John Roberts with Mizuho Group. Please go ahead.

Good morning. Hey, good morning. This is actually Fabian Jimenez on for John. Good morning.

So good morning. So checking back on your raw material comments, you're now guiding for up mid single digit percentage versus low single percentage. Are you thinking that tariffs will more than offset the decline in oil prices? And then again, could you share on which raw materials you're expecting to see the biggest tariff impacts? Thank you.

RPM International (RPM) Q3 2025 Earnings Call Transcript

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