RPM International Inc. Posts Record Q1 2026 Results, Beats Estimates

RPM International Inc. has announced its financial results for the first quarter of fiscal 2026, showcasing record sales and earnings. The company’s performance highlights its strategic focus on growth and operational improvements, setting a promising tone for the upcoming quarters.

RPM Achieves Record Revenue and Adjusted EPS Despite Cost Pressures

RPM International Inc. (NYSE: RPM) has delivered a robust performance in the first quarter of fiscal 2026, recording sales of $2.11 billion, a 7.4% increase compared to the previous year. The company’s net income stood at $227.6 million, with diluted earnings per share (EPS) matching last year’s figure at $1.77. However, the adjusted diluted EPS reached a new high of $1.88, slightly surpassing the expected $1.87. This was primarily driven by strategic acquisitions and a focus on providing comprehensive solutions for high-performance buildings.

Comparing the actual results to expectations, RPM’s revenue of $2.11 billion exceeded the anticipated $2.04 billion, reflecting the company’s ability to navigate a challenging economic landscape. The growth was largely supported by a 3.0% organic increase, 3.8% from acquisitions, and a 0.6% benefit from foreign currency translation. Geographically, Europe led the sales surge with a 20.7% increase, while North America saw a 5.9% rise.

The company’s adjusted EBIT also set a new record at $337.8 million, marking a 2.9% increase from the prior year. This achievement was attributed to the successful integration of acquired businesses and operational improvements under the MAP 2025 initiative. Despite facing cost inflation and higher SG&A expenses, RPM managed to maintain a strong financial performance through strategic growth investments and a focus on efficient operations.

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RPM Targets Continued Growth Through Acquisitions and Efficiency Gains

Looking ahead, RPM International Inc. remains optimistic about its growth trajectory for the remainder of fiscal 2026. The company anticipates mid-single-digit sales and adjusted EBIT growth for the second quarter, with consumer sales expected to outpace other segments due to recent acquisitions. This positive outlook is supported by RPM’s competitive strengths in the non-residential construction markets and ongoing growth investments across its businesses.

For the full fiscal year, RPM expects sales to increase toward the higher end of the previously announced low-to-mid-single-digit range. Adjusted EBIT is projected to grow toward the lower end of the high-single-to-low-double-digit range. The company is focusing on mitigating tariff-related inflation through strategic measures, including price adjustments and efficiency improvements from its streamlined three-segment structure.

CEO Frank C. Sullivan emphasized the company’s commitment to growth, stating that RPM will continue to leverage its strengths and invest in high-potential areas. Despite the challenging macroeconomic environment, RPM aims to achieve record sales and adjusted EBIT for both the second quarter and the full fiscal year, underscoring its strategic focus on long-term growth and operational excellence.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.