Patrick Cunningham's questions to RPM INTERNATIONAL INC/DE/ (RPM) leadership • Q1 2026
Question
Patrick Cunningham inquired about the impact of strategic inventory purchases on working capital this quarter, asking what was stocked up and why, and later about the expected shape of price realization in the Consumer Group versus other businesses.
Answer
Frank Sullivan, Chairman and CEO, explained that inventory was stocked up in construction products, particularly Tremco Sealants, due to the transition of the Toronto plant to U.S. facilities. Additionally, consumer new products and raw materials like epoxy were purchased ahead of tariff price increases. He anticipates Q2 price realization to be around 2% on a consolidated basis, with the Consumer Group benefiting from price increases related to packaging costs.