RPM International (NYSE:RPM) Issues Earnings Results

RPM International (NYSE:RPM) released its earnings results on Wednesday. The specialty chemicals company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.20, FiscalAI reports. The company had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.55 billion. RPM International had a net margin of 8.63% and a return on equity of 22.55%. The firm’s quarterly revenue was up 8.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.35 EPS.

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

• Record results: Consolidated sales rose nearly 9% and the company reported a nearly 50% increase in adjusted EBIT with record adjusted EPS, marking record adjusted EBIT in 15 of the last 17 quarters.
• Geopolitical and raw-material headwinds: The Middle East conflict has created supply disruptions and higher input costs; RPM now expects ~1%–2% raw-material inflation in Q4 FY26 rising to mid‑to‑high single digits in Q1 FY27 and is implementing targeted price increases to offset costs.
• Operational savings underway: Continuous-improvement programs (Greenbelt >600 trained, >$50M saved with $30M pipeline) plus SG&A optimization delivered ~$5M in Q3, with an expected ~ $20M P&L benefit in Q4 and ~$75M targeted for FY27.
• Consumer segment challenges: DIY demand remains weak (organic consumer sales down for four quarters), leadership changes and plant consolidations caused temporary inefficiencies (>$6M in Q3), and the segment faces tougher comps and pricing sensitivity.
• Strong liquidity and M&A: Year‑to‑date operating cash flow was $656.7M (second highest on record), liquidity of $1.02B, $255.3M returned to shareholders YTD, and the closed Kalzip acquisition (~EUR75M sales) is expected to be margin‑accretive.

RPM International Trading Up 2.2%

Shares of NYSE:RPM opened at $111.06 on Friday. RPM International has a 52 week low of $92.92 and a 52 week high of $129.12. The company’s 50 day moving average is $107.04 and its two-hundred day moving average is $108.34. The company has a current ratio of 2.28, a quick ratio of 1.45 and a debt-to-equity ratio of 0.81. The company has a market cap of $14.22 billion, a PE ratio of 21.40, a P/E/G ratio of 2.64 and a beta of 1.10.

RPM International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th will be given a $0.54 dividend. The ex-dividend date of this dividend is Thursday, April 16th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 1.9%. RPM International’s dividend payout ratio is currently 41.62%.

Insider Activity at RPM International

In other RPM International news, VP Timothy R. Kinser sold 3,441 shares of the stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $110.31, for a total value of $379,576.71. Following the sale, the vice president directly owned 21,248 shares of the company’s stock, valued at approximately $2,343,866.88. This represents a 13.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On RPM International

Large investors have recently modified their holdings of the company. Gamco Investors INC. ET AL purchased a new position in shares of RPM International in the 2nd quarter valued at $402,000. Gabelli Funds LLC purchased a new position in shares of RPM International in the 2nd quarter valued at $1,534,000. California State Teachers Retirement System grew its position in shares of RPM International by 21.7% in the 2nd quarter. California State Teachers Retirement System now owns 355,934 shares of the specialty chemicals company’s stock valued at $39,096,000 after buying an additional 63,532 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of RPM International by 0.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 339,258 shares of the specialty chemicals company’s stock valued at $37,260,000 after buying an additional 888 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S grew its position in shares of 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 last quarter. 80.95% of the stock is owned by hedge funds and other institutional investors.

RPM International News Roundup

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

• Positive Sentiment: Record Q3 results: RPM reported $0.57 EPS vs. $0.37 consensus and $1.61B revenue (vs. $1.55B est.), with record adjusted EBIT, margin improvement and 8.9% YoY revenue growth — the operational beat and margin upside are the primary catalysts for the rally. Business Wire: Q3 Results
• Positive Sentiment: Strong market reaction and momentum: coverage highlights a >10–15% post‑earnings surge and renewed technical support, attracting institutional buyers and re-rating speculation. MarketBeat: Blowout Quarter Sparks Rally
• Positive Sentiment: Analyst price-target lift from Morgan Stanley: MS raised its target to $121 (equal‑weight), signaling modest analyst confidence that supports upside narrative. TickerReport / Benzinga
• Neutral Sentiment: Bank of America keeps a Buy rating but trims its target from $128 to $125 — still implies upside but is a modest pullback in expectations. Benzinga: BofA Target Change
• Neutral Sentiment: Company actions and disclosures: RPM posted its earnings slide deck and call transcript and announced leadership changes in its Consumer group — useful for longer‑term diligence but not immediate catalysts. Q3 Slide Deck Leadership Release
• Negative Sentiment: Valuation concerns and cautious commentary: several analysts and commentators (Seeking Alpha, TipRanks) argue RPM may still be fully valued despite quality results — they note the multiple and that further operational progress or guidance upgrades are needed to justify higher targets. Seeking Alpha: Self-Help Needs More TipRanks: Rising Risks

Analysts Set New Price Targets

RPM has been the topic of a number of research reports. Zacks Research lowered shares of RPM International from a “hold” rating to a “strong sell” rating in a report on Friday, January 23rd. Citigroup reduced their target price on shares of RPM International from $136.00 to $127.00 and set a “buy” rating on the stock in a report on Thursday, December 18th. UBS Group reduced their target price on shares of RPM International from $119.00 to $108.00 and set a “neutral” rating on the stock in a report on Thursday, April 2nd. BMO Capital Markets reduced their target price on shares of RPM International from $152.00 to $149.00 and set an “outperform” rating on the stock in a report on Thursday, January 8th. Finally, JPMorgan Chase & Co. raised shares of RPM International from a “neutral” rating to an “overweight” rating and dropped their price objective for the company from $117.00 to $115.00 in a research report on Friday, January 9th. Ten investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $125.75.

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.