What RPM International Inc. told the SEC could break it.

RPM's Consumer segment has substantial customer concentration — ten key customers (Ace Hardware, Amazon, Do It Best, Hardlines Distribution, Home Depot, Lowe's, Menards, Orgill, W.W. Grainger, Walmart) were ~65% of Consumer-segment sales and ~22% of consolidated net sales in fiscal 2025.

“On a consolidated basis, sales to these customers across all of our reportable segments accounted for approximately 22%, 24% and 25% of our consolidated net sales for the fiscal years ended May 31, 2025, 2024 and 2023, respectively.”

Changes in international trade duties, tariffs and sanctions could materially raise RPM's raw-material costs; tariff-related impacts (with labor inflation) pressured fiscal 2025 gross margin and are expected to continue into fiscal 2026 if not offset by price increases.

“Additionally, changes in international trade duties, tariffs, sanctions and other aspects of international trade policy, both in the United States and abroad, could materially impact the cost of raw materials. Any increased costs associated with tariffs, duties or other trade policies that is not offset by an increase in our prices could have a material adverse effect on our business, financial condition, results of operations or cash flows.”

RPM manages raw-material supply via contracts and multiple sources, but sole-source suppliers, raw-material unavailability or price increases it cannot pass through could materially affect its coatings/sealants production and results.

“Cost and adequate supply of raw materials is managed by establishing contracts, procuring from multiple sources, and identifying alternative materials or technology; however, sole source suppliers, the unavailability of raw materials or increased prices of raw materials that we are unable to pass along to our customers could have a material adverse effect on our business, financial condition, results of operations or cashflows.”