RPM International to Report Q1 Earnings: Here's What You Must Know

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]