RPM Reports Record Fiscal 2026 Fourth-Quarter and Full-Year Results

Record fourth-quarter sales of $2.23 billion increased 7.2% compared to the prior year Fourth-quarter net income of $221.2 million, diluted EPS of $1.73, and record EBIT of $308.0 million Record fourth-quarter adjusted diluted EPS of $1.89 increased 9.9% compared to the prior year, and record adjusted EBIT of $338.6 million increased 7.7% compared to the prior year Record fiscal 2026 sales of $7.86 billion increased 6.7% compared to the prior-year record Fiscal 2026 net income of $661.4 million, diluted EPS of $5.17 and record EBIT of $935.0 million Record fiscal 2026 adjusted diluted EPS of $5.53 increased 4.3% over the prior year; record adjusted EBIT of $1.02 billion increased 4.4% over the prior year Fiscal 2027 first-quarter outlook calls for sales and adjusted EBITDA growth in the mid-single-digit range Fiscal 2027 full-year outlook calls for sales to increase 3% to 7% and adjusted EBITDA to increase 5% to 10% Board of Directors authorizes $700 million increase to share repurchase program Investor day to take place November 9, 2026, to update strategic priorities and outline next operating improvement plan MEDINA, Ohio--(BUSINESS WIRE)--RPM International Inc. (NYSE: RPM), a world leader in specialty coatings, sealants and building materials, today reported financial results for its fiscal 2026 fourth quarter and full year ended May 31, 2026. Frank C. Sullivan, RPM chairman and CEO, commented, “Once again, our associates achieved record results for the quarter and full year during a volatile economic period. In the fourth quarter, we generated strong sales, including volume growth, by focusing on our restoration and maintenance solutions, nimbly targeting growing end markets, and winning a higher share of construction project spending through system sales and increased collaboration. Additionally, our talented emerging markets teams drove double-digit sales growth. This growth allowed us to leverage our operational improvements to expand margins in an inflationary environment. The fourth quarter represents the 16th time we have generated record adjusted EBIT out of the past 18 quarters, due in large part to the structural improvements our MAP operating improvement program has created within our organization.” Fourth-Quarter 2026 Consolidated Results Consolidated Three Months Ended $ in 000s except per share data May 31, May 31, 2026 2025 $ Change % Change Net Sales $ 2,231,835 $ 2,081,975 $ 149,860 7.2 % Net Income Attributable to RPM Stockholders 221,216 225,758 (4,542 ) (2.0 %) Diluted Earnings Per Share (EPS) 1.73 1.76 (0.03 ) (1.7 %) Income Before Income Taxes (IBT) 291,991 248,376 43,615 17.6 % Earnings Before Interest and Taxes (EBIT) 307,977 271,034 36,943 13.6 % Adjusted EBIT(1) 338,600 314,377 24,223 7.7 % Adjusted Diluted EPS(1) 1.89 1.72 0.17 9.9 % (1) Excludes certain items that are not indicative of RPM's ongoing operations. See tables below titled Supplemental Segment Information and Reconciliation of Reported to Adjusted Amounts for details. Record fourth-quarter sales were driven by increased sales of engineered solutions for high-performance buildings and infrastructure projects, acquisitions and pricing to offset inflation. Favorable foreign currency translation also contributed to sales growth. Geographically, emerging markets generated double-digit growth fueled by strong demand for engineered solutions for high-performance buildings and infrastructure projects. Solid North American growth was driven by turnkey and system solutions for high-performance buildings. Growth in Europe was primarily driven by acquisitions. Sales included 2.5% organic growth, 3.5% growth from acquisitions net of divestitures, and a 1.2% benefit from foreign currency translation. Adjusted EBIT increased to a record and was driven by higher sales, higher volumes resulting in improved fixed-cost leverage, and benefits from MAP operational improvement initiatives. These gains more than offset increased healthcare and insurance expenses and inflation. These record results were in addition to strong growth in the prior year when adjusted EBIT increased 10.1%. Record adjusted diluted EPS was primarily driven by improved adjusted EBIT. Fourth-Quarter 2026 Segment Sales and Earnings Construction Products Group Three Months Ended $ in 000s May 31, May 31, 2026 2025 $ Change % Change Net Sales $ 904,235 $ 831,134 $ 73,101 8.8 % Income Before Income Taxes 167,503 148,103 19,400 13.1 % EBIT 167,719 148,689 19,030 12.8 % Adjusted EBIT(1) 175,058 152,753 22,305 14.6 % (1) Excludes certain items that are not indicative of RPM's ongoing operations. See table below titled Supplemental Segment Information for details. Record CPG sales were driven by broad-based strength across its businesses, led by the concrete admixtures business. Demand was strong for roofing restoration systems and services, as well as labor-saving wall systems used in high-performance buildings. Pricing to offset inflation and favorable foreign currency translation also contributed to record sales. Sales included 5.7% organic growth, 1.6% growth from acquisitions net of divestitures, and a 1.5% benefit from foreign currency translation. Record adjusted EBIT was driven by higher volumes resulting in improved fixed-cost leverage, favorable mix and SG&A-focused optimization actions. Performance Coatings Group Three Months Ended $ in 000s May 31, May 31, 2026 2025 $ Change % Change Net Sales $ 562,801 $ 536,205 $ 26,596 5.0 % Income Before Income Taxes 83,641 66,738 16,903 25.3 % EBIT 82,988 66,074 16,914 25.6 % Adjusted EBIT(1) 84,889 76,752 8,137 10.6 % (1) Excludes certain items that are not indicative of RPM's ongoing operations. See table below titled Supplemental Segment Information for details. Record PCG sales were driven by broad-based growth, with particular strength in fireproofing systems for high-performance buildings, and infrastructure projects, as well as food coatings and ingredients. Strong demand in emerging markets and pricing to offset inflation also contributed to sales growth. Sales included 2.2% organic growth, a 1.5% increase from acquisitions, and a 1.3% benefit from foreign currency translation. Record adjusted EBIT was driven by improved sales, higher volumes resulting in improved fixed-cost leverage, and SG&A-focused optimization actions, partially offset by a $3.2 million bad debt expense from a customer bankruptcy. Consumer Group Three Months Ended $ in 000s May 31, May 31, 2026 2025 $ Change % Change Net Sales $ 764,799 $ 714,636 $ 50,163 7.0 % Income Before Income Taxes 107,265 96,003 11,262 11.7 % EBIT 107,392 96,344 11,048 11.5 % Adjusted EBIT(1) 123,345 120,226 3,119 2.6 % (1) Excludes certain items that are not indicative of RPM's ongoing operations. See table below titled Supplemental Segment Information for details. The Consumer Group’s record sales were driven by acquisitions and pricing to recover inflation. Growth was partially offset by softness in DIY markets. Sales included a 0.8% organic decline, 7.2% growth from acquisitions, and a 0.6% benefit from foreign currency translation. Record adjusted EBIT was driven by sales growth and MAP operational improvements, including SG&A-focused optimization actions, which more than offset reduced fixed-cost absorption from lower volumes and inflation. The integration of acquired businesses also contributed to adjusted EBIT growth. Adjusted EBIT excludes a $9.7 million non-cash impairment charge related to the Color Group. Fiscal Year 2026 Consolidated Results Consolidated Year Ended $ in 000s except per share data May 31, May 31, 2026 2025 $ Change % Change Net Sales $ 7,863,422 $ 7,372,644 $ 490,778 6.7 % Net Income Attributable to RPM Stockholders 661,392 688,688 (27,296 ) (4.0 %) Diluted Earnings Per Share (EPS) 5.17 5.35 (0.18 ) (3.4 %) Income Before Income Taxes (IBT) 870,340 792,760 77,580 9.8 % Earnings Before Interest and Taxes (EBIT) 934,995 865,204 69,791 8.1 % Adjusted EBIT(1) 1,019,424 976,031 43,393 4.4 % Adjusted Diluted EPS(1) 5.53 5.30 0.23 4.3 % (1) Excludes certain items that are not indicative of RPM's ongoing operations. See tables below titled Supplemental Segment Information and Reconciliation of Reported to Adjusted Amounts for details. Fiscal year 2026 sales were a record driven by strong demand for engineered solutions for high-performance buildings and infrastructure projects and contributions from acquired businesses, partially offset by softness in DIY markets. Record adjusted EBIT was driven by higher sales and improved fixed-cost leverage at businesses with volume growth, which was aided by MAP operational improvement benefits. These gains were partially offset by transitory costs associated with plant consolidations. Inflation in healthcare and benefit expenses was partially offset by SG&A-focused optimization actions implemented in the middle of the fiscal year. Adjusted EPS was a record, driven by improved adjusted EBIT, partially offset by higher interest expense resulting from debt being used to finance acquisitions. Cash Flow and Financial Position During fiscal 2026: Cash provided by operating activities was $898.7 million, the second-highest amount in the company’s history, compared to $768.2 million in the prior-year period. Capital expenditures were $223.5 million compared to $229.9 million in the prior-year period. Cash used to acquire businesses was $202.4 million. The company returned $349.2 million to stockholders through cash dividends and share repurchases, an increase of 7.3% compared to the prior year. As of May 31, 2026: Total debt was $2.53 billion compared to $2.65 billion a year ago, with the decrease driven by a portion of strong operating cash flow being used to reduce debt. Total liquidity, including cash and committed revolving credit facilities, was $1.09 billion, compared to $969.1 million a year ago. Increase to Share Repurchase Authorization The Board of Directors authorized a $700.0 million increase to the existing common stock share repurchase program, which is in addition to the $114.8 million available under the previously authorized amount. Repurchases under the authorization may be made from time to time in the open market, through privately negotiated transactions, or through other means permitted by applicable securities laws and regulations. The authorization does not obligate RPM to acquire any specific number of shares and may be modified, suspended or discontinued at any time. The authorization has no expiration date. Investor Day Scheduled for November 9, 2026 The company will host an investor day on November 9, 2026, to discuss its strategic priorities, outline its next operational improvement plan, and provide updates on key business initiatives. The event will be webcast and additional details will be provided closer to the investor day. Business Outlook Sullivan said, “We expect the positive momentum generated in the second half of fiscal 2026 to continue in fiscal 2027, even as we face higher inflationary pressure resulting from events in the Middle East. Strength in engineered solutions for high-performance buildings and infrastructure projects is anticipated to continue, and our Consumer segment is showing signs of stabilization after a prolonged downturn.” He concluded, “Our operational improvement initiatives continue to help us better convert sales growth into improved profitability and cash flow. We look forward to communicating our progress and outlook for our next operational improvement plan during our investor day. I want to thank RPM associates around the globe for their continued dedication and performance during these volatile economic times.” Starting in fiscal 2027, the company’s primary measure of profit and loss has transitioned to adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), from adjusted EBIT. This change was made to facilitate comparisons to peer companies and to better reflect underlying profitability during periods of acquisition activity. Results for fiscal year 2026 reflecting the use of adjusted EBITDA have been provided in a Form 8-K filed with the SEC. The company’s outlook for the fiscal 2027 first quarter is for: Consolidated sales to increase in the mid-single-digit range compared to prior-year record results. CPG sales to increase in the mid-single-digit range compared to prior-year record results. PCG sales to increase in the mid-single-digit range compared to prior-year record results. Consumer Group sales to increase in the mid-single-digit range compared to prior-year record results. Consolidated adjusted EBITDA to increase in the mid-single-digit range compared to prior-year record results. The company’s outlook for fiscal 2027 is for: Consolidated sales to increase 3% to 7% compared to prior-year record results. Consolidated adjusted EBITDA to increase 5% to 10% compared to prior-year record results. Earnings Webcast and Conference Call Information Management will host a conference call to discuss these results beginning at 10:00 a.m. ET today. The call can be accessed via webcast at www.RPMinc.com/Investors/Presentations-Webcasts or by dialing 1-844-481-2915 or 1-412-317-0708 for international callers and asking to join the RPM International call. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode. For those unable to listen to the live call, a replay will be available from July 22, 2026, until July 29, 2026. The replay can be accessed by dialing 1-855-669-9658 or 1-412-317-0088 for international callers. The access code is 8887341. The call also will be available for replay and as a written transcript via the RPM website at www.RPMinc.com. About RPM RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across three reportable segments: consumer, construction products and performance coatings. RPM has a diverse portfolio of market-leading brands, including Rust-Oleum, DAP, Zinsser, Varathane, The Pink Stuff, Stonhard, Carboline, Finish Works, Tremco, Euclid Chemical, Dryvit and Nudura. From homes and workplaces to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and professionals alike to help build a better world. The company employs approximately 17,800 individuals worldwide. Visit www.RPMinc.com to learn more. For more information, contact Matt Schlarb, Vice President – Investor Relations & Sustainability, at 330-220-6064 or mschlarb@rpminc.com. Use of Non-GAAP Financial Information To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) in this earnings release, we use EBIT, adjusted EBIT and adjusted earnings per share, which are all non-GAAP financial measures. EBIT is defined as earnings (loss) before interest and taxes, with adjusted EBIT and adjusted earnings per share provided for the purpose of adjusting for one-off items impacting revenues and/or expenses that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest income (expense), net is essentially related to corporate functions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. See the financial statement section of this earnings release for a reconciliation of EBIT and adjusted EBIT to income before income taxes, and adjusted earnings per share to earnings per share. Starting in fiscal 2027, the company’s primary measure of profit and loss has transitioned to adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), from adjusted EBIT. We have not provided a reconciliation of our first-quarter and full-year fiscal 2027 adjusted EBITDA guidance because material terms that impact such measure are not in our control and/or cannot be reasonably predicted, and therefore a reconciliation of such measure is not available without unreasonable effort. Forward-Looking StatementsRead the full story here

RPM Reports Record Fiscal 2026 Fourth-Quarter and Full-Year Results

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