RPM International reported first quarter fiscal 2027 results that beat earnings expectations whilst revenue matched analyst estimates. Shares fell 0.84% in pre-market trading. The specialty coatings and building materials provider posted adjusted earnings per share of $1.98, exceeding the analyst consensus of $1.95 by $0.03. Revenue reached $2.22 billion, matching expectations and representing a 4.8% increase from $2.11 billion in the prior year period. Adjusted EBITDA rose 4.5% to a record $405.5 million. Performance Coatings Group led segment growth with sales up 10.2% to $629.7 million. For full fiscal year 2027, RPM projects both sales and adjusted EBITDA to increase in the mid-single-digit range.

RPM International reported record first-quarter fiscal 2027 results, with sales reaching $2.22 billion, up 4.8% year-over-year. The Ohio-based specialty coatings and building materials company posted net income of $256.4 million and diluted earnings per share of $2.01. Record adjusted diluted EPS of $1.98 increased 5.3%, whilst record adjusted EBITDA of $405.5 million rose 4.5% compared to the prior year. Growth was driven by solid organic performance in the Performance Coatings Group and Consumer Group, alongside manufacturing and procurement efficiencies. The company generated strong operating cash flow of $263.9 million, up from $237.5 million in the prior-year period. RPM returned $90.5 million to shareholders through dividends and share repurchases. For fiscal 2027's second quarter, RPM projects sales and adjusted EBITDA to increase in the low- to mid-single-digit range. Full-year guidance anticipates mid-single-digit growth in both metrics.

RPM International Q1 earnings call highlights. October 6, 2026 Key points. * RPM reported record first-quarter sales, adjusted EBITDA and EPS, with adjusted diluted EPS rising 5.3% year over year to $1.98. Performance Coatings and Consumer offset weakness in Construction Products, while cost savings helped preserve EBITDA margins despite inflation. * Segment performance diverged: Performance Coatings and Consumer posted record results, but Construction Products faced weaker organic demand, supplier-related shortages and higher costs. RPM expects Construction Products to improve sequentially and return to positive organic growth later in the fiscal year. * RPM raised its inflation expectations and narrowed full-year guidance to mid-single-digit sales and adjusted EBITDA growth. The company now expects second-quarter raw-material inflation of 9% to 11% and plans to rely on pricing, freight surcharges and $75 million in SG&A savings to offset pressure. * Five stocks we like better than RPM International. RPM International NYSE: RPM reported record first-quarter sales, adjusted EBITDA and adjusted earnings per share for fiscal 2027, as growth in its Performance Coatings and Consumer segments offset temporary weakness in Construction Products. Adjusted diluted EPS rose 5.3% year over year to a first-quarter record of $1.98, according to Vice President, Controller and Chief Accounting Officer Michael Laroche. The company said higher sales and benefits from its MAP operational improvement program, including SG&A optimization, more than offset raw-material inflation, warranty costs and bad-debt expense. Chairman and CEO Frank Sullivan said the results reflected the company's "balanced business model" amid sluggish end markets and operating headwinds. Gross margin declined 100 basis points because the rate of raw-material inflation exceeded pricing and MAP benefits, but RPM held its adjusted EBITDA margin consistent with the prior-year quarter by reducing SG&A as a percentage of sales. Segment performance diverged. Construction Products Group sales increased due to the Kalzip acquisition, but organic sales declined as education and healthcare markets slowed. Those two markets account for more than one-quarter of the segment's end-market exposure, Laroche said. The segment also faced finished-product shortages stemming from supplier constraints involving polyurethane raw materials. Construction Products adjusted EBITDA declined as reduced volume hurt fixed-cost absorption, while inflation, bad debt and warranty costs added pressure. Sullivan said the polyurethane supply shortage has been resolved from a production standpoint, although RPM is still rebuilding inventory in the second quarter and working through delayed projects. The company expects Construction Products to improve sequentially in the second quarter and return to positive organic growth later in the fiscal year. However, Sullivan said the recovery in its roofing-related businesses will be weighted toward spring because of the seasonal nature of roofing work. Discover more Premium stock reports Performance Coatings Group posted record results, supported by broad-based demand for engineered solutions used in high-performance buildings, energy and infrastructure projects. Food coatings and ingredients also contributed. The segment's adjusted EBITDA and adjusted EBITDA margin reached records as stronger fixed-cost utilization and SG&A actions offset inflation. Consumer Group sales also reached a record, including 5.2% organic growth. RPM cited shelf-space gains, new products and pricing, as well as improved results for The Pink Stuff cleaning brand. The company also pointed to gains in abrasives, primers, retail automotive and Ready Seal exterior wood stains. Consumer adjusted EBITDA and margin increased as higher volume improved fixed-cost absorption. Sullivan said underlying consumer conditions remain challenging, citing sluggish retail traffic, weak housing turnover and higher interest rates. Still, he said RPM generated positive unit-volume growth in Consumer through market-share gains, new placements and product initiatives. Inflation outlook rises, guidance narrows. Chief Financial Officer Rusty Gordon said raw-material inflation expectations have increased since the company's July earnings call. RPM now expects second-quarter inflation of 9% to 11%, compared with its previous estimate of 6% to 8%. Third-quarter inflation is expected to be 7% to 9%. Higher polyurethane feedstock costs, sustained increases in oil and commodity prices, and elevated freight costs contributed to the revised outlook. RPM has implemented additional price increases across all segments and freight surcharges in some businesses. Sullivan said the company covered inflation on a dollar basis in the first quarter and expects to do "a little bit better" in the second quarter, although gross-margin pressure is expected for the year. For the fiscal second quarter, RPM expects consolidated sales and adjusted EBITDA to increase in the low- to mid-single-digit range. Segment sales are projected to rise in the low-single digits for Construction Products, mid- to high-single digits for Performance Coatings, and low- to mid-single digits for Consumer. RPM narrowed its full-year fiscal 2027 outlook to mid-single-digit sales growth, from a previous range of 3% to 7%. It now expects adjusted EBITDA growth in the mid-single digits, versus prior guidance for an increase of 5% to 10%. The company said MAP benefits, including $75 million in previously announced SG&A-focused savings, and incremental pricing are expected to offset persistent inflation. However, the outlook also incorporates startup costs at new shared facilities and more difficult comparisons in the second half. Cash flow, acquisitions and emerging markets. RPM said it generated strong cash flow from improved profitability and working-capital efficiency. Working capital improved by 150 basis points from the prior year. The company returned $90.5 million to shareholders through dividends and repurchases, up 10.2% year over year, while total debt declined by $263 million. The company completed the acquisition of Volteco in early October. Volteco, an Italy-based supplier of below-grade waterproofing solutions, generated calendar 2025 sales of €28 million and joined the Construction Products Group. Emerging-market revenue grew more than 20%, driven by demand for engineered solutions for high-performance buildings and infrastructure. Sullivan said the company's Platform Group structure, which coordinates operations across Africa, the Middle East, Asia-Pacific and now South America, has helped accelerate growth. He said the Southern Hemisphere developing world represented 8% of first-quarter consolidated sales, up from slightly less than 5% about five years ago. RPM plans to provide further details on MAP 2030, operational initiatives and longer-term financial goals at its Investor Day on Nov. 9 in Maple Shade, New Jersey. About RPM International (NYSE:RPM). RPM International Inc is a multinational manufacturer of specialty coatings, sealants, building materials and related products. The company serves the construction, industrial, automotive, marine and consumer markets through a portfolio of businesses that develop products for protecting, repairing, maintaining and enhancing surfaces and structures. Its brands and businesses include Rust-Oleum consumer and industrial coatings, DAP caulks and sealants, Tremco and Euclid Chemical construction products, Carboline protective coatings, Stonhard seamless flooring systems and Flowcrete flooring products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider RPM International, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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