Question · Q1 2026
Lucas Spellman, on behalf of Josh Spector, asked about RPM International's cost scaling and volume leverage, specifically regarding SG&A growth and incremental margin uplift, and later about the updated outlook for raw material inflation and net gross costs for the balance of the year.
Answer
Frank Sullivan, Chairman and CEO, clarified that while SG&A was reduced by 150 basis points during MAP initiatives, savings from G&A efficiencies (ERP consolidation, offshoring) are now being reallocated to sales, marketing, and e-commerce to drive growth. He stated that Q1 material inflation was about 1% consolidated, anticipating 2%-3% in Q2, disproportionately affecting the consumer segment.