Silke Kueck's questions to RPM International Inc (RPM) leadership • Q1 2025
Question
Silke Kueck, on for Jeff Zekauskas, suggested the Q2 EBIT margin outlook seemed conservative and questioned the underlying SG&A assumptions. She also asked about the annual run-rate of MAP-related charges and sought clarification on the potential accrual for the Rust-Oleum litigation.
Answer
Frank Sullivan, Chair and CEO, affirmed that the margin dynamics and SG&A discipline from Q1 would continue into Q2, and that any volume upside would lead to better-than-guided results. On the litigation, he stated the accrual range is from $0.5 million to the original $190 million verdict, but the company feels strongly about a significantly different outcome on appeal, given the case relates to a $2 million product line and is a contractual IP dispute, not a product liability issue.