RPM Reports Record Q1 FY2027 Financial Results & Updates Full-Year Guidance

Financial Results Summary

RPM International Inc. reported record financial results for its fiscal 2027 first quarter ended August 31, 2026, driven by solid organic growth across its Performance Coatings Group (PCG) and Consumer Group, alongside ongoing operational efficiency programs.

• Net Sales: $2.22 billion, up 4.8% YoY (comprising 3.1% organic growth, 1.6% acquisition growth net of divestitures, and a 0.1% FX tailwind).
• Net Income Attributable to RPM: $256.4 million (+12.6% YoY).
• Diluted EPS: $2.01 vs. $1.77 in Q1 FY2026 (+13.6% YoY).
• Adjusted Diluted EPS: $1.98 vs. $1.88 in Q1 FY2026 (+5.3% YoY).
• Adjusted EBITDA: $405.5 million vs. $388.0 million (+4.5% YoY).

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Segment Performance

Note: Effective June 1, 2026, certain Latin American operations were reclassified into PCG from CPG and Consumer Group.

1. Performance Coatings Group (PCG):

   • Net Sales: $629.7 million (+10.2% YoY; 7.9% organic, 1.8% acquisitions, 0.5% FX).
   • Adjusted EBITDA: $121.1 million (+18.2% YoY), boosted by volume expansion, pricing to offset inflation, and SG&A optimization.

2. Consumer Group:

   • Net Sales: $726.7 million (+5.3% YoY; 5.2% organic, 0.3% acquisitions, -0.2% FX).
   • Adjusted EBITDA: $146.6 million (+5.5% YoY), supported by retail shelf-space expansion and product rollouts.

3. Construction Products Group (CPG):

   • Net Sales: $859.2 million (+0.8% YoY; -1.7% organic decline offset by 2.5% acquisition growth).
   • Adjusted EBITDA: $166.2 million (-9.7% YoY), pressured by reduced fixed-cost absorption, raw material availability bottlenecks, a $4.4 million customer bankruptcy bad debt expense, and a $6.3 million warranty charge at a European unit under closure review.

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Balance Sheet & Cash Flow Highlights

• Operating Cash Flow: $263.9 million for the quarter, compared to $237.5 million in the prior-year period.
• Capital Expenditures: $58.5 million vs. $62.5 million in Q1 FY2026.
• Total Debt: $2.41 billion, down from $2.67 billion a year ago.
• Total Liquidity: $1.21 billion (including cash and committed facilities), up from $933.4 million.
• Capital Returns: Returned $90.5 million to shareholders via dividends and share buybacks (+10.2% YoY).

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Guidance & Outlook

• Q2 FY2027:
  • Consolidated sales and Adjusted EBITDA projected to increase in the low- to mid-single-digit range.
  • CPG sales: low-single-digit growth.
  • PCG sales: mid- to high-single-digit growth.
  • Consumer Group sales: low- to mid-single-digit growth.
• Full-Year FY2027:
  • Consolidated sales growth updated to mid-single digits (revised from prior 3%–7% guidance).
  • Consolidated Adjusted EBITDA growth updated to mid-single digits (revised from prior 5%–10% guidance).