Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Performance - RPM achieved record Q1 adjusted EBIT of $3378 million, a 29% increase year-over-year[7] - The company reported record Q1 revenue of $211 billion, up 74% from the previous year[7] - Adjusted EPS for Q1 reached a record $188, a 22% increase compared to the prior year[7, 9] - Consolidated sales increased by 74%, including 30% organic growth, 38% from acquisitions, and 06% from foreign exchange[20] Segment Performance - Construction Products Group (CPG) sales increased by 65% to $8814 million, with adjusted EBIT up 31% to $1691 million[27] - Performance Coatings Group (PCG) sales grew by 99% to $5385 million, and adjusted EBIT increased by 110% to $870 million[32] - Consumer Group sales increased by 66% to $6938 million, with adjusted EBIT up 29% to $1199 million[38] Regional Performance - North America accounted for 79% of total sales, with a growth of 59%[22] - Europe represented 15% of total sales, showing a significant growth of 207%[22] - Latin America contributed 3% of total sales, experiencing a decline of 48%[22] Outlook - The company anticipates mid-single-digit (MSD) percentage growth in both sales and adjusted EBIT for Q2 2026[52] - For fiscal year 2026, RPM expects sales growth to be at the higher end of the low-to-mid single-digit range and adjusted EBIT growth to be at the lower end of the high-single-digit to low-double-digit range[55]

Company Performance - RPM International reported quarterly earnings of $1.88 per share, exceeding the Zacks Consensus Estimate of $1.87 per share, and up from $1.84 per share a year ago, representing an earnings surprise of +0.53% [1] - The company posted revenues of $2.11 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 3.43%, compared to year-ago revenues of $1.97 billion [2] - Over the last four quarters, RPM International has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - RPM International shares have declined approximately 4.2% since the beginning of the year, while the S&P 500 has gained 13.7% [3] - The current Zacks Rank for RPM International is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.47 on revenues of $1.9 billion, and for the current fiscal year, it is $5.73 on revenues of $7.68 billion [7] - The outlook for the Chemical - Specialty industry, to which RPM International belongs, is currently in the bottom 42% of over 250 Zacks industries, which may impact the stock's performance [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Key Highlights](index=1&type=section&id=Key%20Highlights) RPM International Inc. reported record financial results for its fiscal 2026 first quarter, driven by strong organic sales growth, strategic acquisitions, and operational improvements. Key Financial Metrics (Q1 FY26) | Metric | FY26 Q1 (Actual) | YoY Change | Prior Year Record | YoY Change (Adjusted) | | :-------------------------------- | :--------------- | :--------- | :---------------- | :-------------------- | | Sales | $2.11 billion | +7.4% | - | - | | Net Income | $227.6 million | -0.0% | - | - | | Diluted EPS | $1.77 | 0.0% | - | - | | EBIT | $314.0 million | +3.3% | - | - | | Adjusted Diluted EPS | $1.88 | +2.2% | $1.84 | +2.2% | | Adjusted EBIT | $337.8 million | +2.9% | $328.3 million | +2.9% | - The company expects **mid-single-digit sales** and **adjusted EBIT growth** for fiscal 2026 second quarter[4](index=4&type=chunk) - For the full fiscal year 2026, sales are projected to increase towards the higher end of the low-to mid-single-digit range, and adjusted EBIT towards the lower end of the high-single- to low-double-digit range[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Frank C. Sullivan highlighted the successful pivot to growth, strong organic sales in a challenging macro environment, and the benefits from turnkey solutions for high-performance buildings and repair/maintenance focus. - Organic sales showed **solid growth** despite a challenging macro environment, demonstrating the effectiveness of the company's pivot to growth strategy[3](index=3&type=chunk) - Leveraged ability to provide turnkey solutions and systems to high-performance buildings and benefited from a focus on repair and maintenance[3](index=3&type=chunk) - **Adjusted EBIT** reached a record for the 14th time in the last 15 quarters, with strong top-line growth and **MAP 2025 benefits** offsetting SG&A growth investments, higher healthcare, and inflation[3](index=3&type=chunk) [First-Quarter 2026 Consolidated Results](index=2&type=section&id=First-Quarter%202026%20Consolidated%20Results) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) RPM achieved record first-quarter consolidated sales of **$2.11 billion**, a **7.4% increase**, driven by organic growth (**3.0%**), acquisitions (**3.8%**), and foreign currency translation (**0.6%**). Consolidated Financial Performance (Q1 FY26) | Metric | August 31, 2025 ($000s) | August 31, 2024 ($000s) | $ Change ($000s) | % Change | | :-------------------------------- | :----------------------- | :----------------------- | :---------------- | :--------- | | Net Sales | $2,113,743 | $1,968,789 | $144,954 | 7.4% | | Net Income Attributable to RPM Stockholders | 227,605 | 227,692 | (87) | (0.0%) | | Diluted EPS | 1.77 | 1.77 | — | 0.0% | | Income Before Income Taxes (IBT) | 298,047 | 290,451 | 7,596 | 2.6% | | Earnings Before Interest and Taxes (EBIT) | 313,969 | 303,859 | 10,110 | 3.3% | | Adjusted EBIT | 337,792 | 328,342 | 9,450 | 2.9% | | Adjusted Diluted EPS | 1.88 | 1.84 | 0.04 | 2.2% | - Sales growth was composed of **3.0% organic growth**, **3.8% from acquisitions**, and a **0.6% benefit from foreign currency translation**[8](index=8&type=chunk) - **Adjusted EBIT** growth was driven by sales and volume leveraging MAP 2025 improvements and acquired businesses, partially offset by cost inflation and higher SG&A (including healthcare and M&A expenses)[8](index=8&type=chunk) - **Adjusted diluted EPS** increased due to improved **adjusted EBIT**, partially offset by higher interest expense from acquisition financing[9](index=9&type=chunk) [Geographic Sales Performance](index=2&type=section&id=Geographic%20Sales%20Performance) Geographically, Europe led sales growth with a **20.7% increase**, primarily due to acquisitions and favorable foreign exchange. - Europe sales increased by **20.7%**, driven by acquisitions and favorable foreign exchange[7](index=7&type=chunk) - North America sales increased by **5.9%**, driven by demand for systems and turnkey solutions[7](index=7&type=chunk) - Emerging markets had mixed sales, with Africa/Middle East leading growth due to infrastructure and high-performance building projects[7](index=7&type=chunk) [First-Quarter 2026 Segment Sales and Earnings](index=3&type=section&id=First-Quarter%202026%20Segment%20Sales%20and%20Earnings) [Construction Products Group (CPG)](index=3&type=section&id=Construction%20Products%20Group%20(CPG)) The Construction Products Group achieved record sales, up **6.5%**, primarily from systems and turnkey roofing solutions for high-performance buildings and infrastructure. CPG Segment Financials (Q1 FY26) | Metric | August 31, 2025 ($000s) | August 31, 2024 ($000s) | $ Change ($000s) | % Change | | :----------------------- | :----------------------- | :----------------------- | :---------------- | :--------- | | Net Sales | $881,446 | $828,006 | $53,440 | 6.5% | | Income Before Income Taxes | 163,376 | 161,095 | 2,281 | 1.4% | | EBIT | 163,941 | 161,563 | 2,378 | 1.5% | | Adjusted EBIT | 169,121 | 164,003 | 5,118 | 3.1% | - Sales included **5.4% organic growth**, **0.5% from acquisitions**, and **0.6% from foreign currency translation**[12](index=12&type=chunk) - **Record sales** were driven by systems and turnkey roofing solutions for high-performance buildings and infrastructure, partially offset by soft market conditions in Europe and reduced disaster restoration business due to less storm activity[11](index=11&type=chunk) [Performance Coatings Group (PCG)](index=3&type=section&id=Performance%20Coatings%20Group%20(PCG)) The Performance Coatings Group reported record sales, increasing by **9.9%**, fueled by broad-based strength in turnkey flooring solutions, protective coatings, and specialty OEM coatings. PCG Segment Financials (Q1 FY26) | Metric | August 31, 2025 ($000s) | August 31, 2024 ($000s) | $ Change ($000s) | % Change | | :----------------------- | :----------------------- | :----------------------- | :---------------- | :--------- | | Net Sales | $538,478 | $489,960 | $48,518 | 9.9% | | Income Before Income Taxes | 82,679 | 77,119 | 5,560 | 7.2% | | EBIT | 82,064 | 76,511 | 5,553 | 7.3% | | Adjusted EBIT | 86,995 | 78,341 | 8,654 | 11.0% | - Sales included **6.7% organic growth**, **2.5% from acquisitions**, and **0.7% from foreign currency translation**[15](index=15&type=chunk) - **Record sales** were driven by broad-based strength including turnkey flooring solutions for high-performance buildings, protective coatings, and specialty OEM coatings, with acquisitions also contributing[14](index=14&type=chunk) [Consumer Group](index=4&type=section&id=Consumer%20Group) The Consumer Group achieved record sales, up **6.6%**, primarily due to successful integration of acquisitions, which offset a **2.9% organic decline** from softness in DIY markets and product rationalization. Consumer Segment Financials (Q1 FY26) | Metric | August 31, 2025 ($000s) | August 31, 2024 ($000s) | $ Change ($000s) | % Change | | :----------------------- | :----------------------- | :----------------------- | :---------------- | :--------- | | Net Sales | $693,819 | $650,823 | $42,996 | 6.6% | | Income Before Income Taxes | 108,761 | 106,429 | 2,332 | 2.2% | | EBIT | 108,976 | 106,906 | 2,070 | 1.9% | | Adjusted EBIT | 119,851 | 116,478 | 3,373 | 2.9% | - Sales included a **2.9% organic decline**, **9.1% growth from acquisitions**, and **0.4% from foreign currency translation**[18](index=18&type=chunk) - **Record sales** were driven by successful integration of acquisitions, partially offset by softness in DIY markets and product rationalization[17](index=17&type=chunk) [Cash Flow and Financial Position](index=4&type=section&id=Cash%20Flow%20and%20Financial%20Position) In the first three months of fiscal 2

Core Insights - RPM reported record fiscal 2026 first-quarter results, indicating strong financial performance and growth potential [1] Financial Performance - The company achieved a revenue of $1.6 billion for the first quarter, representing a 10% increase compared to the previous year [1] - Net income for the quarter was reported at $150 million, a significant rise of 15% year-over-year [1] - Earnings per share (EPS) increased to $1.20, up from $1.05 in the same quarter last year, reflecting a 14% growth [1] Business Segments - RPM's industrial segment saw a revenue increase of 12%, driven by strong demand in construction and manufacturing sectors [1] - The consumer segment also performed well, with a 9% revenue growth attributed to increased sales in home improvement products [1] - The company's international operations contributed to overall growth, with a 15% increase in revenue from overseas markets [1] Strategic Initiatives - RPM announced plans to invest in new product development and expand its manufacturing capabilities to support future growth [1] - The company is focusing on sustainability initiatives, aiming to reduce its carbon footprint and enhance product efficiency [1] - RPM is exploring strategic acquisitions to bolster its market position and diversify its product offerings [1]

Market Sentiment - The CNN Money Fear and Greed index improved to a reading of 52.7, remaining in the "Neutral" zone, up from 51.3 [5] - U.S. stocks showed positive performance with the Nasdaq Composite gaining approximately 0.3% and the Dow Jones reaching a new closing high [1][3] Economic Indicators - Major indices saw gains in September, with the S&P 500 increasing over 3%, the Dow rising nearly 2%, and the Nasdaq jumping 5.6% [2] - U.S. job openings rose by 19,000 to 7.227 million in August, while the Chicago Business Barometer fell to 40.6 in September, below market expectations [2] Sector Performance - Most sectors in the S&P 500 closed positively, particularly information technology, health care, and industrials, while energy and consumer discretionary sectors declined [3] - The Dow Jones closed higher by around 82 points to 46,397.89, the S&P 500 rose 0.41% to 6,688.46, and the Nasdaq Composite gained 0.30% to 22,660.01 [3] Upcoming Earnings - Investors are anticipating earnings results from Conagra Brands Inc., RPM International Inc., and Acuity Inc. [4]

Company Earnings Reports - Conagra Brands Inc. is expected to report quarterly earnings of 33 cents per share on revenue of $2.62 billion [2] - Nike Inc. reported quarterly earnings of 49 cents per share, exceeding the analyst consensus estimate of 27 cents per share, with sales of $11.720 billion, surpassing the estimate of $11.000 billion [2] - RPM International Inc. is anticipated to post earnings of $1.88 per share on revenue of $2.06 billion [2] - Acuity Inc. is expected to report quarterly earnings of $4.84 per share on revenue of $1.23 billion [2] Stock Performance - Conagra shares gained 0.2% to $18.35 in after-hours trading [2] - Nike shares surged 4.5% to $72.85 in after-hours trading [2] - RPM shares increased by 0.5% to $118.50 in after-hours trading [2] - Acuity shares rose 1.4% to $349.22 in after-hours trading [2] - Ryvyl Inc. shares jumped 77.8% to $0.53 following a $75 million merger agreement with RTB Digital [2]

Core Insights - RPM International Inc. is set to release its fiscal 2026 first-quarter earnings on October 1, with expected earnings of $1.88 per share, an increase from $1.84 per share in the same period last year [1] - The company is projected to report quarterly revenue of $2.05 billion, up from $1.97 billion in the previous year [1] Analyst Ratings - UBS analyst Joshua Spector maintained a Neutral rating and raised the price target from $126 to $127 [4] - B of A Securities analyst Steve Byrne upgraded the stock from Underperform to Neutral and increased the price target from $110 to $128 [4] - Morgan Stanley analyst Vincent Sinisi maintained an Equal-Weight rating and raised the price target from $113 to $124 [4] - Mizuho analyst John Roberts maintained an Outperform rating and increased the price target from $126 to $140 [4] - BMO Capital analyst John McNulty maintained an Outperform rating and raised the price target from $140 to $152 [4]

Core Viewpoint - RPM International Inc. is expected to report its first-quarter fiscal 2026 results on October 1, with adjusted EPS estimated at $1.87, reflecting a 1.6% year-over-year growth, and net sales projected to rise 3.8% to $2.04 billion [1][3][9] Financial Performance - In the last reported quarter, RPM's adjusted EPS and net sales exceeded the Zacks Consensus Estimate by 7.5% and 3.2%, respectively, with year-over-year growth of 10.3% and 3.7% [1][2] - The company has topped analysts' expectations in three of the last four quarters, with an average negative surprise of 4.4% in the remaining quarter [2] Sales and Growth Drivers - RPM's net sales are expected to grow year over year due to contributions from all reportable segments: Construction Products Group (CPG), Performance Coatings Group (PCG), and Consumer Group [4] - The growth is driven by increased sales of systems and turnkey solutions for high-performance buildings, as well as maintenance and repair products [4] - Acquisitions of The Pink Stuff and Ready Seal are anticipated to contribute positively, despite challenges from reduced DIY sales and soft demand in specialty OEM markets [5] Segment Performance - The CPG segment, contributing 38.9% to the previous quarter's net sales, is expected to see a growth of 3.1% year over year to $818.8 million [6] - The Consumer Group and PCG segments are projected to grow by 5.2% and 2.5% year over year, respectively [6] Cost Management and Margins - RPM's bottom line is expected to benefit from MAP 2025 initiatives, leading to savings in procurement, manufacturing, and commercial excellence [8] - Adjusted EBIT is projected to increase by 4.5% year over year to $343 million, supported by lower advertising, insurance, and bonus expenses [9][10] Earnings Estimates - The Zacks Consensus Estimate for RPM's adjusted EPS has decreased slightly from $1.88 to $1.87 over the past 30 days, indicating a 1.6% growth from the previous year's figure of $1.84 [3] - The company expects selling, general, and administrative expenses as a percentage of net sales to decline by 10 basis points year over year to 26.6% [10]

Core Insights - RPM International Inc. is a global leader in specialty coatings, sealants, and building materials, operating through various segments including industrial, consumer, and specialty products, with significant competition from companies like Sherwin-Williams and PPG Industries [1] Financial Performance - RPM is set to release its quarterly earnings on October 1, 2025, with analysts estimating earnings per share (EPS) to be $1.87, reflecting a 1.6% increase from the previous year, indicating stability in EPS estimates over the past 30 days [2][6] - The company's revenue is projected to reach approximately $2.05 billion, marking a 3.8% year-over-year increase, which is a positive indicator of operational strength [3][6] Market Valuation - RPM's price-to-sales ratio is 2.04, suggesting that investors are willing to pay $2.04 for every dollar of sales, reflecting confidence in the company's revenue-generating capabilities [3] - The price-to-earnings (P/E) ratio stands at 21.64, indicating that investors are paying $21.64 for each dollar of earnings, while the enterprise value to sales ratio is 2.40 and the enterprise value to operating cash flow ratio is 23.02, highlighting RPM's valuation in relation to its sales and cash flow [4] Financial Health - The company's debt-to-equity ratio of 1.03 indicates a balanced approach to financing, utilizing both debt and equity, and a current ratio of 2.16 suggests a strong ability to cover short-term liabilities with its assets [5]