Core Viewpoint - RPM International reported second-quarter earnings that fell short of analyst expectations due to slowing demand and operational challenges, resulting in a more than 3% decline in shares intraday [1] Financial Performance - The company posted adjusted earnings of $1.20 per share for the fiscal second quarter ended November 30, 2025, missing the consensus estimate of $1.43 [2] - Revenue totaled $1.91 billion, below the expected $1.94 billion, but still representing a 3.5% increase from the prior year [2] - Adjusted EBIT declined 11.2% year over year to $226.6 million, impacted by growth investments, lower fixed-cost absorption, and temporary inefficiencies from facility consolidation [4] Operational Challenges - RPM cited the prolonged government shutdown as a factor contributing to longer construction project lead times and weakened consumer sentiment [2] Cost Optimization Initiatives - The company announced SG&A-focused cost optimization initiatives expected to generate approximately $100 million in annual savings once fully implemented [3] - RPM anticipates realizing about $5 million in savings in the third quarter of fiscal 2026, an additional $20 million in the fourth quarter, and the remaining $75 million in fiscal 2027 [3] Future Outlook - For the third quarter of fiscal 2026, RPM forecasts consolidated sales growth in the mid-single-digit percentage range and adjusted EBIT growth in the mid- to high-single-digit range compared to the prior year [4]