Core Insights - RPM International Inc. reported disappointing second-quarter fiscal 2026 results, with earnings and net sales missing consensus estimates and showing a year-over-year decline in earnings [1][5]. Financial Performance - Adjusted earnings per share (EPS) for the quarter was $1.20, missing the Zacks Consensus Estimate of $1.41 by 14.9%, and down from $1.39 in the same quarter last year [5][10]. - Net sales reached $1.91 billion, which was 1% below the consensus estimate of $1.93 billion but represented a 3.5% increase year over year [5][10]. Sales Growth and Challenges - Year-over-year sales growth was driven by acquisitions and high-performance building solutions, although momentum slowed due to softening DIY demand and delays in construction activity from an extended government shutdown [2][6]. - All segments reported positive sales growth, but higher costs from growth investments and facility consolidations pressured margins [3][10]. Segment Performance - Construction Products Group: Net sales increased 2.4% to $737.4 million, with adjusted EBIT down 10.9% to $98.6 million [11]. - Performance Coatings Group: Net sales grew 4.4% to $533.8 million, with adjusted EBIT down 0.3% to $82.8 million [12]. - Consumer Group: Net sales rose 4.1% to $638.7 million, but adjusted EBIT fell 6.2% to $90 million [13]. Operational Metrics - Selling, general and administrative expenses as a percentage of net sales increased to 28.8% from 28.7% year-over-year [8]. - Adjusted EBIT decreased 11.2% year over year to $226.6 million, with the adjusted EBIT margin contracting 190 basis points to 11.9% [8][10]. Balance Sheet and Liquidity - Total liquidity at the end of the fiscal second quarter was $1.1 billion, up from $969.1 million at the end of fiscal 2025, including cash and cash equivalents of $316.6 million [14]. Future Outlook - Management anticipates margin improvement as the MAP 3.0 initiative gains traction, with consolidated sales projected to increase at a mid-single-digit rate in Q3 and adjusted EBIT expected to grow in the mid- to high-single-digit range year over year [4][15]. - For Q4, the company expects delayed projects to convert into activity, with consolidated sales anticipated to increase toward the mid-single-digit range compared to prior-year results [16].