RPM International’s Global Revenue Dependence

Overview of RPM International’s Performance in the Quarter Ending May 2025

RPM International (RPM) is a specialty chemicals company with a significant global footprint. Understanding its performance in international markets is crucial for evaluating its financial resilience and growth potential. As the global economy becomes increasingly interconnected, companies like RPM must navigate complex international dynamics to maintain stability and drive growth.

For investors, assessing how much a company relies on overseas markets is essential. This provides insight into the durability of its earnings, its ability to capitalize on different economic cycles, and its overall growth capabilities. While international expansion can offer protection against local economic downturns and opportunities in rapidly growing economies, it also introduces challenges such as currency fluctuations, geopolitical risks, and varying market behaviors.

Breakdown of RPM’s International Revenue

In the quarter ending May 2025, RPM reported total revenue of $2.08 billion, reflecting a 3.7% increase. The breakdown of international revenues offers valuable insights into the company’s performance across different regions.

• Latin America: Contributed $72.56 million, or 3.49% of total revenue. This was below the consensus estimate of $82.03 million, resulting in a -11.54% surprise. In the previous quarter, Latin America contributed $66.44 million (4.50%), and in the same quarter of the previous year, it contributed $77.49 million (3.86%).

• Europe: Generated $302.71 million, or 14.54% of total revenue. This exceeded the analyst estimate of $281.2 million by 7.65%. In comparison, Europe contributed $224.29 million (15.19%) in the previous quarter and $263.4 million (13.12%) in the year-ago quarter.

• Canada: Accounted for $148.82 million, or 7.15% of total revenue. This surpassed the expected $140.91 million by 5.61%. Canada contributed $87.1 million (5.90%) in the previous quarter and $143.8 million (7.16%) in the same quarter last year.

• Asia Pacific: Delivered $37.9 million, or 1.82% of total revenue. This fell short of the projected $45.52 million by 16.74%. Asia Pacific contributed $37.72 million (2.55%) in the previous quarter and $42.17 million (2.10%) in the year-ago quarter.

• Other Foreign: Generated $26.5 million, or 1.27% of total revenue. This was below the estimated $30.08 million by 11.89%. Other Foreign contributed $24.42 million (1.65%) in the previous quarter and $26.03 million (1.30%) in the year-ago quarter.

Forecasted International Revenue for RPM

Wall Street analysts project that RPM’s total revenue for the current fiscal quarter will reach $2.06 billion, an increase of 4.5% from the same quarter last year. The expected contributions from international markets are as follows:

• Latin America: Expected to contribute 4% ($81.36 million)
• Europe: Expected to contribute 13.6% ($278.71 million)
• Canada: Expected to contribute 6.4% ($131.33 million)
• Asia Pacific: Expected to contribute 2.2% ($45.92 million)
• Other Foreign: Expected to contribute 1.5% ($30.54 million)

For the full year, RPM’s total revenue is forecasted to reach $7.67 billion, a 4% increase from the previous year. The expected regional contributions include:

• Latin America: 4.2% ($325.38 million)
• Europe: 14.5% ($1.11 billion)
• Canada: 6.9% ($528.43 million)
• Asia Pacific: 2.4% ($182.51 million)
• Other Foreign: 1.6% ($121.25 million)

Evaluating RPM’s Future Trajectory

RPM International operates in a highly competitive and dynamic global environment. Its reliance on international markets presents both opportunities and risks. Tracking these trends is essential for accurately predicting the company’s future performance.

Analysts closely monitor global factors that could impact RPM’s operations, including economic conditions, currency movements, and geopolitical developments. These elements play a critical role in shaping earnings forecasts and stock performance.

Zacks Investment Research emphasizes the importance of earnings forecasts in influencing stock prices. Empirical studies have shown that positive earnings predictions often lead to increased stock prices. The Zacks Rank, which evaluates earnings estimate revisions, has demonstrated strong performance in predicting near-term price movements.

Currently, RPM holds a Zacks Rank #3 (Hold), indicating that it is expected to follow the broader market’s movements in the near term. Investors should continue to monitor RPM’s international revenue trends and other key metrics to make informed decisions about its long-term prospects.