RPM International (NYSE:RPM) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

RPM International (NYSE:RPM) posted its quarterly earnings results on Tuesday. The specialty chemicals company reported $1.98 EPS for the quarter, topping analysts’ consensus estimates of $1.95 by $0.03, FiscalAI reports. RPM International had a return on equity of 22.03% and a net margin of 8.66%.The business had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.22 billion. During the same period last year, the firm earned $1.88 earnings per share. The company’s revenue for the quarter was up 4.8% compared to the same quarter last year.

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

• RPM reported record first-quarter sales, adjusted EBITDA, and EPS, with adjusted diluted EPS up 5.3% to $1.98. Performance Coatings and Consumer growth, along with SG&A savings, offset inflation and other cost pressures.
• Construction Products Group performance weakened as organic sales declined amid softness in education and healthcare markets, polyurethane-related product shortages, lower fixed-cost absorption, and higher warranty and bad-debt expenses. Management expects sequential improvement, but a fuller recovery may not occur until the second half of the fiscal year.
• Raw-material inflation expectations increased to 9%-11% for the second quarter, up from the prior 6%-8% estimate, with additional pressure from oil, freight, and geopolitical disruptions. Pricing and surcharges should offset costs on a dollar basis, but gross-margin pressure is expected to persist in fiscal 2027.
• Strong cash generation improved working-capital efficiency, reduced total debt by $263 million, and supported $90.5 million of dividends and share repurchases. Management indicated that buybacks should continue at current or potentially higher levels, supported by leverage below 2x EBITDA and substantial liquidity.
• Emerging-market revenue grew more than 20%, driven by demand for engineered solutions in high-performance buildings and infrastructure. Management expects the Platform Group structure to remain a key growth driver and said improved integration capabilities could support additional small- to medium-sized acquisitions in these markets.

RPM International Stock Down 0.2%

RPM stock opened at $98.09 on Thursday. RPM International has a 12-month low of $92.92 and a 12-month high of $121.78. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.57. The company has a market cap of $12.51 billion, a price-to-earnings ratio of 18.16, a PEG ratio of 2.02 and a beta of 1.05. The company has a 50 day moving average of $105.30 and a two-hundred day moving average of $104.61.

Analyst Ratings Changes

A number of analysts have weighed in on RPM shares. Wells Fargo & Company dropped their target price on shares of RPM International from $135.00 to $130.00 and set an “overweight” rating on the stock in a report on Monday. Citigroup reduced their price target on RPM International from $128.00 to $116.00 and set a “buy” rating for the company in a research report on Wednesday. KeyCorp initiated coverage on shares of RPM International in a report on Friday, September 11th. They issued an “overweight” rating and a $123.00 price objective for the company. Morgan Stanley dropped their target price on RPM International from $117.00 to $114.00 and set an “equal weight” rating on the stock in a report on Monday, September 28th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of RPM International in a report on Friday, July 24th. Twelve investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, RPM International presently has a consensus rating of “Moderate Buy” and an average target price of $124.15.

Key Headlines Impacting RPM International

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

• Positive Sentiment: RPM reported quarterly earnings of $1.98 per share, above the $1.95 analyst consensus and up from $1.88 a year earlier. Revenue increased 4.8% year over year to $2.22 billion, in line with expectations. RPM Reports Record Fiscal 2027 First-Quarter Results
• Positive Sentiment: Management highlighted record results, adjusted EBITDA of approximately $405.5 million, growth in emerging markets and improving free cash flow. Ongoing buybacks and RPM’s long record of dividend increases provide additional support for investors focused on capital returns. RPM International’s Dividend King Status Just Got Stronger
• Positive Sentiment: UBS, Citigroup and RBC all retained bullish ratings—buy or outperform—even after lowering their price targets. Their revised targets of $116 to $128 remain materially above the recent share price, suggesting analysts still see meaningful upside. Analyst Target Updates
• Neutral Sentiment: The quarterly sales improvement was solid but broadly matched expectations, so the earnings report may provide only a modest catalyst unless RPM can sustain stronger growth and margin performance.
• Negative Sentiment: RPM’s CEO warned that housing turnover is at a 40-year low and is unlikely to improve soon. Weak housing activity could pressure demand for coatings, sealants and other construction-related products. RPM CEO Sounds Housing Alarm
• Negative Sentiment: Although analysts remain positive, UBS, Citigroup and RBC each reduced their price targets, signaling more cautious expectations for RPM’s near-term growth or valuation.

About RPM International

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.