RPM Reports Record Fiscal 2026 First-Quarter Results

MEDINA, Ohio--( BUSINESS WIRE)--RPM International Inc. (NYSE: RPM), a world leader in specialty coatings, sealants and building materials, today reported record financial results for its fiscal 2026 first quarter ended August 31, 2025.

Frank C. Sullivan, RPM chairman and CEO commented, “Our associates’ focused pivot to growth was evident during the quarter with organic sales up solidly in a challenging macro environment. We leveraged our ability to provide turnkey solutions and systems to high-performance buildings and benefited from our focus on repair and maintenance. The successful integration of strategic business acquisitions also played an important role in achieving record sales. Adjusted EBIT was a record as the strong top-line growth and MAP 2025 operational improvement benefits more than offset the impact of SG&A growth investments, higher healthcare expenses and increased inflation. I am proud of our ability to generate record adjusted EBIT in 14 out of the last 15 quarters.”

First-Quarter 2026 Consolidated Results

2025

2024

2,113,743

1,968,789

144,954

7.4

227,605

227,692

(87

)

(0.0

1.77

0.0

298,047

290,451

7,596

2.6

313,969

303,859

10,110

3.3

337,792

328,342

9,450

2.9

1.88

1.84

0.04

2.2

Record first-quarter sales were driven by systems and turnkey solutions to serve high-performance buildings as well as a focus on repair and maintenance. Acquisitions also played a meaningful role in generating the record results.

Geographically, Europe led sales growth with an increase of 20.7%, driven by acquisitions and favorable foreign exchange. North America sales increased 5.9%, driven by demand for systems and turnkey solutions. Sales were mixed in emerging markets, with Africa / Middle East leading growth, driven by infrastructure and high-performance building projects.

Sales included 3.0% organic growth, 3.8% growth from acquisitions, and a 0.6% benefit from foreign currency translation.

Adjusted EBIT was a record, driven by sales and volume growth, which leveraged MAP 2025 operational improvements, and the successful integration of acquired businesses. This was partially offset by cost inflation and higher SG&A, which included an increase in healthcare and M&A expenses. Growth investments also contributed to higher SG&A.

Adjusted diluted EPS was a record and was driven by the improvement in adjusted EBIT, partially offset by higher interest expense resulting from debt being used to finance acquisitions.

First-Quarter 2026 Segment Sales and Earnings

2025

2024

881,446

828,006

53,440

6.5

163,376

161,095

2,281

1.4

163,941

161,563

2,378

1.5

169,121

164,003

5,118

3.1

Record CPG sales were driven by systems and turnkey roofing solutions serving high-performance buildings and infrastructure projects, partially offset by soft market conditions in Europe and in the disaster restoration business due to reduced storm activity compared to the prior year.

Sales included 5.4% organic growth, 0.5% growth from acquisitions, and a 0.6% benefit from foreign currency translation.

Adjusted EBIT was a record, and the increase was driven by higher sales and MAP 2025 benefits, partially offset by SG&A growth investments and temporary inefficiencies from plant consolidations as production was being transferred. This adjusted EBIT growth was in addition to strong growth in the prior-year.

2025

2024

538,478

489,960

48,518

9.9

82,679

77,119

5,560

7.2

82,064

76,511

5,553

7.3

86,995

78,341

8,654

11.0

Record PCG sales were driven by broad-based strength including turnkey flooring solutions serving high-performance buildings, protective coatings and specialty OEM coatings. Acquisitions also contributed to the sales increase.

Sales included 6.7% organic growth, a 2.5% increase from acquisitions, and a 0.7% benefit from foreign currency translation.

Adjusted EBIT increased to a record, driven by higher sales and MAP 2025 operational improvement initiatives, partially offset by growth investments and unfavorable mix.

2025

2024

693,819

650,823

42,996

6.6

108,761

106,429

2,332

2.2

108,976

106,906

2,070

1.9

119,851

116,478

3,373

2.9

The Consumer Group’s record sales were driven by the successful integration of acquisitions, partially offset by softness in DIY markets and product rationalization.

Sales included a 2.9% organic decline, 9.1% growth from acquisitions, and a 0.4% benefit from foreign currency translation.

Adjusted EBIT growth was driven by acquired businesses with accretive margins and MAP 2025 benefits, which were partially offset by cost inflation, reduced fixed-cost utilization from lower volumes, temporary inefficiencies from plant consolidations and increased marketing expenses.

Cash Flow and Financial Position

During the first three months of fiscal 2026:

As of August 31, 2025:

Business Outlook

Sullivan said, “Our pivot to growth will continue in the second quarter as we leverage our competitive strengths in non-residential construction markets and benefit from growth investments in several of our businesses. While tariff-related inflation remains a challenge, we are working to mitigate these headwinds through a series of measures, including price increases late in the first quarter. We will also begin realizing more efficiency benefits from our streamlined three-segment structure in the second quarter.”

He concluded, “For the full year, we are increasing our growth investments in areas with the highest potential. While these investments will increase SG&A, we anticipate they will help accelerate our growth in what remains a challenging macro environment. Taking all of this into account, we expect to achieve record sales and adjusted EBIT in both the second quarter and for the full fiscal year.”

The company expects the following in the fiscal 2026 second quarter:

The company expects the following in full-year fiscal 2026:

Earnings Webcast and Conference Call Information

Management will host a conference call to discuss these results beginning at 10:00 a.m. ET today. The call can be accessed via webcast at www.RPMinc.com/Investors/Presentations-Webcasts or by dialing 1-844-481-2915 or 1-412-317-0708 for international callers and asking to join the RPM International call. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode.

For those unable to listen to the live call, a replay will be available from October 1, 2025, until October 8, 2025. The replay can be accessed by dialing 1-877-344-7529 or 1-412-317-0088 for international callers. The access code is 7196093. The call also will be available for replay and as a written transcript via the RPM website at www.RPMinc.com.

About RPM

RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across three reportable segments: consumer, construction products, and performance coatings. RPM has a diverse portfolio of market-leading brands, including Rust-Oleum, DAP, The Pink Stuff, Zinsser, Varathane, DayGlo, Legend Brands, Stonhard, Carboline, Tremco and Dryvit. From homes and workplaces to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and professionals alike to help build a better world. The company employs approximately 17,800 individuals worldwide. Visit www.RPMinc.com to learn more.

For more information, contact Matt Schlarb, Vice President – Investor Relations & Sustainability, at 330-220-6064 or mschlarb@rpminc.com.

Use of Non-GAAP Financial Information

To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) in this earnings release, we use EBIT, adjusted EBIT and adjusted earnings per share, which are all non-GAAP financial measures. EBIT is defined as earnings (loss) before interest and taxes, with adjusted EBIT and adjusted earnings per share provided for the purpose of adjusting for one-off items impacting revenues and/or expenses that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest income (expense), net is essentially related to corporate functions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. See the financial statement section of this earnings release for a reconciliation of EBIT and adjusted EBIT to income before income taxes, and adjusted earnings per share to earnings per share. We have not provided a reconciliation of our second-quarter fiscal 2026 or full-year fiscal 2026 adjusted EBIT guidance because material terms that impact such measure are not in our control and/or cannot be reasonably predicted, and therefore a reconciliation of such measure is not available without unreasonable effort.

Forward-Looking Statements

This press release 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 (including those specified below), 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 (a) global and regional markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the viability of banks and other financial institutions; (b) the prices, supply and availability of raw materials, including assorted pigments, resins, solvents, and other natural gas- and oil-based materials; packaging, including plastic and metal containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) changes in global trade policies, including the adoption or expansion of tariffs and trade barriers; (h) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (i) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (j) the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, and the risks of failing to meet any other objectives of our improvement plans; (k) risks related to the adequacy of our contingent liability reserves; (l) risks relating to a public health crisis similar to the Covid pandemic; (m) risks related to acts of war similar to the Russian invasion of Ukraine; (n) risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; (o) risks related to our or our third parties' use of technology including artificial intelligence, data breaches and data privacy violations; (p) the shift to remote work and online purchasing and the impact that has on residential and commercial real estate construction; and (q) other risks 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, 2025, 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 filing date of this press release.

2025

2024

2,113,743

1,968,789

1,220,527

1,132,116

893,216

836,673

573,534

526,146

8,814

7,202

29,326

24,434

(13,404

)

(11,026

)

(3,101

)

(534

)

298,047

290,451

70,207

61,897

227,840

228,554

235

862

227,605

227,692

1.78

1.77

127,283

127,691

127,950

128,420

2025

2024

881,446

828,006

538,478

489,960

693,819

650,823

2,113,743

1,968,789

163,376

161,095

(565

)

(468

)

163,941

161,563

5,180

2,440

169,121

164,003

82,679

77,119

615

608

82,064

76,511

4,931

2,067

(237

)

86,995

78,341

108,761

106,429

(215

)

(477

)

108,976

106,906

3,758

9,572

7,117

119,851

116,478

(56,769

)

(54,192

)

(15,757

)

(13,071

)

(41,012

)

(41,121

)

2,837

10,641

(38,175

)

(30,480

)

298,047

290,451

(29,326

)

(24,434

)

13,404

11,026

313,969

303,859

16,706

24,720

7,117

(237

)

337,792

328,342

Reflects restructuring and other charges, which have been incurred in relation to our Margin Achievement Plan ("MAP 2025") as follows:

- Restructuring and other related expense, net: Includes charges incurred related to headcount reductions and facility closures recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled $8.8 million and $7.2 million for the period ended August 31, 2025 and August 31, 2024 respectively. Other related expenses include inventory write-offs in connection with restructuring activities recorded in "Cost of Sales", accelerated depreciation and amortization recorded within "Cost of Sales" or "Selling, General, & Administrative Expenses ("SG&A")" depending on the nature of the expense.

- ERP consolidation plan: Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP systems across the organization to one ERP platform per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been incurred in all segments, as well as Corporate/Other, and have been recorded within "SG&A".

- Professional fees: Includes expenses incurred to consolidate accounting locations, costs incurred to implement technologies and processes to drive improved data analytics/decision making and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments as well as Corporate/Other and recorded within "SG&A". All of this spend is in support of stated MAP goals with the most significant expense incurred within Corporate/Other.

Included below is a reconciliation of the TOTAL CONSOLIDATED MAP initiatives.

2025

2024

Restructuring and other related expense, net

10,599

10,754

ERP consolidation plan

2,966

4,944

Professional fees

3,141

9,022

MAP initiatives

16,706

24,720

2025

2024

1.77

0.10

0.15

0.04

(0.03

)

(0.03

)

(0.05

)

1.88

1.84

Reflects restructuring and other charges, which have been incurred in relation to our Margin Achievement Plan ("MAP 2025") as follows:

297,075

231,555

302,137

1,515,499

1,393,283

1,551,953

(42,506

)

(49,106

)

(42,844

)

1,472,993

1,344,177

1,509,109

1,068,183

1,003,459

1,036,475

365,271

319,107

322,577

3,203,522

2,898,298

3,170,298

2,805,421

2,568,792

2,738,373

(1,306,637

)

(1,219,084

)

(1,264,974

)

1,498,784

1,349,708

1,473,399

1,657,612

1,315,790

1,617,626

832,195

504,562

780,826

394,831

365,972

370,399

147,436

36,563

147,436

210,165

178,982

215,965

3,242,239

2,401,869

3,132,252

7,944,545

6,649,875

7,775,949

762,013

693,519

755,889

7,434

6,779

7,691

189,846

180,785

287,398

30,749

32,440

36,701

424,834

369,060

379,768

1,414,876

1,282,583

1,467,447

2,661,990

2,045,387

2,638,922

340,420

316,064

317,334

243,524

234,368

241,117

227,141

119,946

224,347

3,473,075

2,715,765

3,421,720

4,887,951

3,998,348

4,889,167

1,282

1,287

1,283

1,183,272

1,156,977

1,177,796

(973,372

)

(897,686

)

(953,856

)

(512,832

)

(540,590

)

(533,631

)

3,356,848

2,929,439

3,193,764

3,055,198

2,649,427

2,885,356

1,396

2,100

1,426

3,056,594

2,651,527

2,886,782

7,944,545

6,649,875

7,775,949

2025

2024

227,840

228,554

51,464

46,185

1,304

(4,646

)

5,475

6,226

(8,673

)

(5,971

)

(324

)

(70

)

49,331

78,011

(16,005

)

(43,991

)

(18,051

)

(37,620

)

7,810

52,152

(99,296

)

(116,792

)

(6,098

)

(123

)

42,733

46,144

237,510

248,059

(62,461

)

(50,742

)

(115,695

)

(6,223

)

(6,283

)

(11,394

)

1,525

4,188

523

(182,391

)

(64,081

)

35,000

37,807

(14,972

)

(131,809

)

(64,521

)

(58,892

)

(17,500

)

(17,500

)

(1,921

)

(15,396

)

(221

)

(162

)

(64,135

)

(185,952

)

3,954

(3,850

)

(5,062

)

(5,824

)

302,137

237,379

297,075

231,555