RPM

RPM International is a diversified specialty-chemicals maker — paints, sealants, roofing, coatings and repair products under brands like Rust-Oleum, DAP, Tremco and Carboline — selling across four segments in roughly 163 countries, with ~30% of sales international. That breadth across construction, industrial, specialty and consumer end markets gives the business resilience: FY2025 net sales of $7.37B were roughly flat (+0.5%) against a soft construction backdrop, yet net income rose 17.0% to $689M and diluted EPS climbed 17.3% to $5.35. The company is converting a stagnant top line into real bottom-line growth through margin and operating-efficiency gains — gross margin is a healthy 41.4% and return on equity an impressive 23.9%.

The earnings quality is supported by a steady, improving track record: net income has risen from $479M in FY2023 to $588M in FY2024 to $689M in FY2025, even as revenue plateaued. Capital returns are reliable and growing — $256M in dividends (up 10.2%) and $70M of buybacks — reflecting the consistent free-cash-flow profile of this maintenance-and-repair-weighted portfolio, where demand is more recurring than new-construction cyclicals. The balance sheet is sound with $2.89B of equity, modest cash of $302M and manageable leverage.