RPM International Delivers Record-Breaking First Quarter Results Amidst Challenging Economic Environment
RPM International, a leading global company specializing in coatings, sealants, and building materials, has announced exceptional financial performance for the first quarter of 2025. Despite the uncertain economic climate, RPM's associates have successfully executed their strategies to drive growth and achieve record-breaking results.
At the company's recent conference call, Chairman and CEO Frank Sullivan expressed his gratitude to everyone who joined the event and extended sincere sympathy to those affected by Hurricane Helene. The devastation caused by the hurricane is heartbreaking, and RPM businesses are contributing to the initial response efforts. Legend Brands is providing disaster restoration equipment and products, while Tremco teams are helping customers with roofing and other issues.
Turning to the company's financial performance, Frank Sullivan highlighted that RPM associates have done an excellent job in controlling costs amidst a mixed economic environment. This includes executing their MAP 2025 initiatives and capturing growth opportunities where they exist, which has resulted in another quarter of record adjusted EBIT. The cash flow momentum built in fiscal '24 was sustained in the first quarter, enabling RPM to repay an additional $75 million in debt.
Over the past 12 months, RPM has repaid a total of $453 million in debt, and the resulting lower interest expense combined with adjusted EBIT growth led to adjusted EPS increasing by 12.2% to a record $1.84. This demonstrates the company's ability to adapt to challenging economic conditions and drive growth through targeted initiatives.
The Construction Products and Performance Coatings Group led growth by focusing on repair and maintenance businesses, as well as growing in new construction markets. Aided by RPM's entrepreneurial sales culture and broad portfolio of differentiated products and services for high-performance buildings, the company has successfully captured growth opportunities where they exist.
Despite a no-growth environment, both segments generated record EBIT margins, showcasing the impact of RPM's MAP 2025 initiatives and their ability to leverage operational improvements with growing volume. This achievement demonstrates RPM's commitment to innovation and its dedication to delivering exceptional results in challenging times."
