Question · Q1 2026
Arun Shankar Viswanathan asked for clarification on the $90-95 million unmitigated impact from tariffs, including its calculation and mitigation actions, and inquired about RPM's M&A activity, appetite for higher leverage, and focus areas for future acquisitions.
Answer
Frank Sullivan, Chairman and CEO, explained that tariff mitigation strategies include sharing costs with suppliers, passing on price, and shifting production (e.g., The Pink Stuff paste from the UK to the US), with about half of the impact mitigated. He noted RPM spent $600 million in the last five months on Consumer acquisitions (ReadySeal, The Pink Stuff) and smaller strategic acquisitions in the Construction Products Group. With a debt-to-EBITDA ratio of 1.8x, RPM has ample dry powder, and deal flow is currently 2-3 multiple turns below peak due to less private equity activity.