RPM(RPM) - 2026 Q1 - Quarterly Results

Executive Summary Key Highlights 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] - 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] CEO Commentary 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] - Leveraged ability to provide turnkey solutions and systems to high-performance buildings and benefited from a focus on repair and maintenance[3] - 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] First-Quarter 2026 Consolidated Results Financial Performance Overview 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] - 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] - Adjusted diluted EPS increased due to improved adjusted EBIT, partially offset by higher interest expense from acquisition financing[9] Geographic Sales Performance 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] - North America sales increased by 5.9%, driven by demand for systems and turnkey solutions[7] - Emerging markets had mixed sales, with Africa/Middle East leading growth due to infrastructure and high-performance building projects[7] First-Quarter 2026 Segment Sales and Earnings Construction Products Group (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] - 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] Performance Coatings Group (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] - 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] Consumer Group 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] - Record sales were driven by successful integration of acquisitions, partially offset by softness in DIY markets and product rationalization[17] Cash Flow and Financial Position In the first three months of fiscal 2