On this page of StockholderLetter.com we present the latest annual shareholder letter from RPM INTERNATIONAL INC/DE/ — ticker symbol RPM. Reading current and past RPM letters to shareholders can bring important insights into the investment thesis.

 •  8/22/2024 Letter Continued (Full PDF)
 •  8/23/2023 RPM Stockholder Letter
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 •  RPM Benford's Law Stock Score = 85

RPM Shareholder/Stockholder Letter Transcript:

STANDING STRONG
2 0 2 4 S U M M A RY A N N UA L R E P O RT

To the Associates, Customers
and Shareholders of RPM:
Throughout RPM   s 77-year history, we have experienced
many economic cycles. Throughout every peak and trough,
and at all times in between, the strength and dedication of
our associates have never wavered. This was once again
demonstrated in 2024, as our associates thrived in the
face of multiple market headwinds to deliver growth
and make significant progress toward our MAP (Margin
Achievement Plan) 2025 goals. In fiscal year 2024, like the
prior seven decades, we continued Standing Strong.
Driven by our ability to capture growth in a mixed
economic environment and the execution of our MAP 2025
initiatives, our associates generated annual records in
revenue, adjusted EBIT and cash flow from operations, with
cash flow far exceeding any previous year. Importantly,
the improvements we are making through MAP 2025 are
structural and sustainable, which allow us to build on our
prior successes and generate long-term value.
Standing Strong not only captures the spirit of our
associates, but also the performance of our products and
services. Our offerings extend asset life and enable more
resilient and sustainable buildings. These benefits are
becoming increasingly important to our customers and end
users as they look to prevent risk from extreme weather
events, invest in restoration and maintenance to extend
asset life, and reduce energy consumption.
In addition, Standing Strong aligns with our core values
of Transparency, Trust and Respect and our multiyear
commitments to sustainability goals. We are Building a
Better World by investing in our people and communities
and improving our processes to make them more
efficient. You can learn more about our recent successes
and progress toward our sustainability goals by visiting
sustainability.rpminc.com.
Contents
Cover
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RPM 2024 SUMMARY ANNUAL REPORT
CEO Letter
Financial Highlights
Company Overview
Segment Overview
Built on a Strong Foundation
Standing Behind Our
Products and Our People
As we look ahead, the end of fiscal 2025 will mark
the official conclusion of our MAP 2025 initiative;
however, the progress we are making will not end
there. Our efforts will continue and will make us a
stronger organization, no matter where we are in an
economic cycle. A year from now, we will be able
to report that we are still Standing Strong, after
another year of profitable growth, despite continuing
economic volatility and geopolitical uncertainty.
Thank you to our associates, who embody our core
values and deliver for our customers every day.
Thank you to our customers; you are the reason we
exist and we value our partnership. Thank you to our
shareholders; we value your support and consistently
work to reward you for the trust you have placed
in us.
Frank C. Sullivan
Chair & Chief Executive Officer
August 22, 2024
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Building Momentum
for a Strong Future
Board of Directors and Officers
Shareholder Information
Financial Statements
Our Family of Brands

2024 Highlights
   Achieved record annual revenue (+1.1% vs. 2023)
and record adjusted EBIT (+11.9% vs. 2023),
including 10 consecutive quarters of record adjusted
EBIT, despite challenging market conditions
   Increased cash flow from operating activities by
$545 million to a record $1.12 billion
   Raised our cash dividend by nearly 10%, our
50th consecutive annual cash dividend increase,
and returned $287 million to shareholders through
dividends and repurchases
   Reduced debt by $557 million
   Generated over $160 million of run-rate
benefits from MAP-related initiatives
   Opened the RPM Innovation Center of
Excellence, RPM   s first shared R&D resource
   Published our 2023 sustainability report,
which documents the progress we are making
toward our 2025 sustainability goals
Board Farewell
As we reflect on the past year, we would like to
honor two respected members of our Board of
Directors, Kirkland B. Andrews and John M. Ballbach,
who are stepping down after six years of dedicated
service. Both joined our board in the summer of
2018, bringing with them a wealth of experience
and expertise that has been instrumental in shaping
RPM   s strategic direction.
Kirk Andrews has been a valuable asset to our board,
leveraging his deep knowledge of capital markets
and financial disciplines to support RPM   s strategies.
His insights have contributed to optimizing our
capital structure and enhancing shareholder value.
Kirk has recently embarked on an exciting new
chapter in his career, assuming the role of Senior Vice
President and CFO at Consolidated Edison. This new
role has presented additional time commitments and
conflicts, leading to the decision to step down from
our board.
John Ballbach   s extensive career experience,
including decades of rising leadership roles in the
coatings industry, his highly successful tenure as
CEO of VWR International and his involvement
in numerous private equity firms, has provided
invaluable guidance to our board. His strategic
vision, industry insights and guidance on areas of
commercial and operational excellence have been
Kirkland B. Andrews
John M. Ballbach
pivotal in navigating RPM through various market
challenges and opportunities. John   s decision to not
stand for re-election in October is driven by current
personal and professional commitments that demand
his time and attention.
We are grateful for the dedication, wisdom and
leadership that both Kirk and John have brought to
RPM over the past six years. During this time, RPM   s
market capitalization rose from $6.6 billion to
$15 billion. This is a testament to their role with RPM   s
board and leadership team in driving greater operating
efficiency and positioning RPM for an exciting future.
Forward-Looking Statements
This Annual Report includes forward-looking statements relating to our business. These forward-looking statements, or other statements made by us, are made based on our
expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors, which are difficult to predict and, in many instances, are beyond our
control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include, but
are not limited to, those detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Form 10-K for the year ended May 31, 2024, as
the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or
circumstances that arise after the date hereof.
RPM 2024 SUMMARY ANNUAL REPORT 1

FINANCIAL
HIGHLIGHTS
In fiscal year 2024, we generated annual records in revenue, adjusted EBIT and cash flow from
operations, with cash flow far exceeding any previous year. These milestones reflect our associates   
dedication to capturing growth and executing our MAP 2025 initiatives.
588.4
7.26
7.34
502.6
6.71
491.5
6.11
4.94
4.30
478.7
4.16
3.66
5.51
3.07
304.4
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   23
   24
   20
SALES
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   22
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   23
ADJUSTED
DILUTED EPS
CONSOLIDATED
NET INCOME
($ in billions)
   21
($ in millions)
1,122.3
941.6
12.8
12.8
841.6
784.6
11.6
11.3
708.4
766.2
10.6
620.3
577.1
549.9
178.7
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   21
   22
   23
   24
ADJUSTED EBIT
($ in millions)
   20
   21
   22
   23
   24
   20
   21
   22
   23
ADJUSTED
EBIT MARGIN
CASH FLOW FROM
OPERATING ACTIVITIES
(in percent)
($ in millions)
   24
STANDING STRONG
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RPM associates participating in the October 2023 Better Conversations Every Day Leadership Development Class.
Financial Footnote
Adjusted EBIT excludes restructuring charges and other items not indicative of ongoing operations of $80.8 million, $83.0 million, $6.1 million, $75.2 million and $121.3 million
in Fiscal 2024, Fiscal 2023, Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. Adjusted diluted EPS excludes per share restructuring charges and other items not indicative
of ongoing operations of $0.38, $0.58, ($0.13), $0.29 and $0.73 in Fiscal 2024, Fiscal 2023, Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. EBIT, adjusted EBIT and adjusted
diluted EPS are non-GAAP financial measures. See our Annual Report on Form 10-K accompanying this report and our Current Reports on Form 8-K for more information.
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RPM 2024 SUMMARY ANNUAL REPORT




 8/22/2024 Letter Continued (Full PDF)