Question · Q1 2026
Lucas Spellman, on behalf of Joshua David Spector, questioned RPM's cost scaling for higher sales and incremental margin uplift, asking where current cost investments are directed and how future volume leverage should be viewed, also seeking an updated outlook on raw material inflation and net gross costs.
Answer
Frank Sullivan, Chairman and CEO, clarified that while SG&A was reduced during MAP initiatives, current investments are reallocating personnel expense reductions into sales and marketing, driving G&A efficiencies through ERP consolidation and shared service centers, and focusing on e-commerce best practices. He noted Q1 material inflation was 1%, anticipating 2-3% in Q2, disproportionately affecting the consumer segment.