Question · Q1 2026
Aleksey V. Yefremov questioned RPM's growth algorithms, asking if the current year's guidance (single-digit sales, high single-digit EBIT) reflects a normal year or temporary challenges, and if higher incremental margins are expected in a more typical growth environment, also inquiring about Consumer pricing intentions.
Answer
Frank Sullivan, Chairman and CEO, stated that the current year is not normal due to tariff uncertainty, raw material costs, stalled capital investment, and SG&A inflation. He believes that in a normal environment, 7% revenue growth should yield mid-teens earnings growth, and RPM's strategy is to outperform when markets improve. He confirmed that price increases enacted at the end of Q1 will benefit the Consumer Group in Q2.