Shares of RPM International Inc. (RPM) tumbled 6.59% in intraday trading on Tuesday after the specialty chemicals company reported fiscal third-quarter results that fell short of analysts' expectations. The significant drop highlights investors' concerns about the company's performance and outlook amid challenging market conditions.

For the quarter ended February 28, 2025, RPM reported adjusted earnings per share of $0.35, significantly below the consensus estimate of $0.49. Revenue came in at $1.48 billion, missing analyst projections of $1.51 billion. The company's net income declined 15% year-over-year to $52 million, while adjusted EBIT fell 29% to $78.2 million.

Frank C. Sullivan, RPM chairman and CEO, attributed the weak performance to unfavorable weather conditions that persisted throughout the quarter. "Unseasonably cold weather in the southern U.S. and wildfires in the west reduced demand in geographies that typically have more construction and outdoor project activity in winter months," Sullivan explained. The company also faced challenges from foreign currency translation and reduced production levels due to inventory management initiatives.

Looking ahead, RPM provided a cautious outlook for its fiscal 2025 fourth quarter, projecting flat sales compared to the prior year. The company expects adjusted EBIT to be up in the low-single-digit percentage range. However, management warned about the impact of tariffs, stating, "We are not immune, and we assume that raw material inflation will increase from low-single-digits to mid-single digits as a result of currently known tariffs."

The disappointing results and conservative guidance, coupled with concerns about the potential impact of tariffs on raw material costs, have clearly rattled investors. As RPM continues to navigate challenging market conditions and geopolitical uncertainties, the company's ability to implement its MAP 2025 initiatives and achieve operational improvements will be crucial in regaining investor confidence.