RPM International (NYSE:RPM) Posts Quarterly Earnings Results

RPM International (NYSE:RPM) released its quarterly earnings data on Thursday. The specialty chemicals company reported $1.20 EPS for the quarter, missing the consensus estimate of $1.41 by ($0.21), FiscalAI reports. RPM International had a net margin of 8.79% and a return on equity of 22.49%. The company had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.94 billion. During the same period last year, the company earned $1.39 EPS. The firm’s revenue for the quarter was up 3.5% on a year-over-year basis.

Here are the key takeaways from RPM International’s conference call:

• Achieved record consolidated sales (up 3.5%) driven by acquisitions and engineered solutions for high-performance buildings, with all segments generating positive sales growth despite momentum slowing late in the quarter.
• Adjusted EBIT and margins declined and adjusted EPS fell as higher SG&A from growth investments, M&A deal costs, healthcare inflation, temporary plant/warehouse consolidation inefficiencies, and higher interest expense more than offset top-line gains.
• Management announced SG&A optimization actions expected to deliver roughly $100 million of annual savings (benefits of $5M in Q3, $20M in Q4, and the remaining $75M in fiscal 2027), with implementation costs to be disclosed by April.
• Operating cash flow improved by $66.3M, enabling $127M of debt paydown, $169M returned to shareholders, liquidity of $1.1B, and a planned acquisition of German metal-roofing leader Kalzip (EUR150M) to strengthen high-performance building systems.
• Consumer Group weakness (soft DIY demand, software/system and European distribution transitions, and product rationalization) pressured volumes and margins, and management reversed a $12.7M Pink Stuff earnout liability (gain excluded from adjusted EBIT).

RPM International Price Performance

RPM International stock opened at $111.04 on Friday. RPM International has a 12-month low of $95.28 and a 12-month high of $129.12. The company has a current ratio of 2.22, a quick ratio of 1.51 and a debt-to-equity ratio of 0.80. The firm has a 50-day moving average price of $105.93 and a 200-day moving average price of $113.55. The firm has a market capitalization of $14.24 billion, a PE ratio of 21.39, a price-to-earnings-growth ratio of 1.97 and a beta of 1.11.

RPM International Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 30th. Stockholders of record on Friday, January 16th will be issued a $0.54 dividend. This represents a $2.16 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Friday, January 16th. RPM International’s dividend payout ratio (DPR) is 40.37%.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Bank of America upgraded RPM International from a “neutral” rating to a “buy” rating and raised their price target for the company from $126.00 to $129.00 in a report on Tuesday, October 14th. Citigroup lowered their target price on RPM International from $136.00 to $127.00 and set a “buy” rating for the company in a research report on Thursday, December 18th. BMO Capital Markets reduced their price target on shares of RPM International from $152.00 to $149.00 and set an “outperform” rating on the stock in a research report on Thursday. Mizuho set a $120.00 price objective on shares of RPM International in a research report on Thursday. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of RPM International in a research note on Monday, December 29th. Nine investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, RPM International has a consensus rating of “Moderate Buy” and a consensus target price of $126.82.

RPM International News Summary

Here are the key news stories impacting RPM International this week:

• Positive Sentiment: J.P. Morgan upgraded RPM from Neutral to Overweight, arguing near‑term headwinds create a discounted entry and assigning a $115 target — a clear vote of confidence that likely attracted buyers. JPMorgan Upgrades RPM to Overweight
• Positive Sentiment: Bank of America reiterated a Buy and highlighted upside from expected margin recovery and cost‑savings initiatives, supporting a higher‑conviction view among institutional investors. Maintaining Buy on RPM
• Positive Sentiment: RPM agreed to acquire Kalzip, expanding its Tremco building‑envelope capabilities into premium metal roofing/facade systems — a strategic tuck‑in that should lift long‑term organic growth and cross‑sell opportunities. RPM Strengthens Building Envelope Platform With Kalzip Acquisition
• Positive Sentiment: Analysts emphasize that margin headwinds are temporary and that restructuring/cost‑savings should drive upside, making the stock attractive to value‑oriented buyers ahead of recovery. Near-Term Earnings Headwinds Create Discounted Entry
• Neutral Sentiment: Company published the Q2 earnings call transcript and slide deck (detailed commentary on cost actions and segment performance), useful for investors assessing management’s roadmap. RPM Q2 2026 Earnings Call Transcript
• Neutral Sentiment: BusinessWire filed the formal Q2 results release — factual reporting of results and guidance commentary for investors doing due diligence. RPM Reports Fiscal 2026 Second-Quarter Results
• Negative Sentiment: RPM missed Q2 consensus: reported $1.20 EPS vs. $1.41 expected and $1.91B revenue vs. $1.94B expected; adjusted EBIT and margins were down as costs pressured profitability — the core reason for initial negative price reaction. RPM Q2 Earnings & Sales Miss Estimates
• Negative Sentiment: Shares initially dropped sharply (reports of a >5% slide) after the earnings miss and margin weakness, reflecting short‑term selling pressure from the surprise shortfall. RPM Shares Fall Over 5% As Earnings Miss
• Negative Sentiment: Management cited external factors (including consumer sentiment hits from a government shutdown) that contributed to lower profitability this quarter, underscoring near‑term demand risk. RPM 2Q Profit Falls After Government Shutdown Hurt Consumer Sentiment

Insiders Place Their Bets

In related news, Director Salvatore D. Fazzolari sold 375 shares of the stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $107.67, for a total value of $40,376.25. Following the sale, the director directly owned 21,578 shares of the company’s stock, valued at $2,323,303.26. This represents a 1.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On RPM International

Several hedge funds and other institutional investors have recently modified their holdings of RPM. Lazard Asset Management LLC increased its stake in RPM International by 5.8% in the second quarter. Lazard Asset Management LLC now owns 1,685 shares of the specialty chemicals company’s stock worth $184,000 after purchasing an additional 93 shares during the period. BI Asset Management Fondsmaeglerselskab A S boosted its position in RPM International by 5.2% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 12,031 shares of the specialty chemicals company’s stock valued at $1,321,000 after buying an additional 594 shares during the period. Ameriprise Financial Inc. grew its stake in RPM International by 0.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 339,258 shares of the specialty chemicals company’s stock worth $37,260,000 after acquiring an additional 888 shares in the last quarter. BOKF NA purchased a new position in shares of RPM International during the third quarter worth approximately $118,000. Finally, Captrust Financial Advisors raised its stake in shares of RPM International by 7.1% during the third quarter. Captrust Financial Advisors now owns 17,685 shares of the specialty chemicals company’s stock valued at $2,085,000 after acquiring an additional 1,166 shares in the last quarter. 80.95% of the stock is currently owned by hedge funds and other institutional investors.

RPM International Company Profile

RPM International Inc is a global holding company whose subsidiaries specialize in the manufacture and marketing of high-performance coatings, sealants, building materials, and specialty chemicals. Through its two principal operating segments—Performance Coatings and Industrial Coatings—RPM serves a diverse range of end markets, including construction, consumer products, industrial maintenance, and specialty applications.

The company’s Performance Coatings segment offers a broad portfolio of architectural coatings, waterproofing systems, and specialty building products used by contractors, builders, and homeowners.