RPM International (NYSE:RPM) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

RPM International (NYSE:RPM) issued its earnings results on Tuesday. The specialty chemicals company reported $1.98 EPS for the quarter, topping the consensus estimate of $1.95 by $0.03, FiscalAI reports. The company had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.22 billion. RPM International had a return on equity of 22.45% and a net margin of 8.41%.The business’s revenue was up 4.8% on a year-over-year basis. During the same quarter last year, the firm earned $1.88 EPS.

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 Up 3.2%

NYSE RPM opened at $98.34 on Wednesday. The company has a market capitalization of $12.55 billion, a price-to-earnings ratio of 19.06, a PEG ratio of 1.95 and a beta of 1.05. The stock’s 50 day moving average is $105.51 and its two-hundred day moving average is $104.59. The company has a current ratio of 1.68, a quick ratio of 1.16 and a debt-to-equity ratio of 0.64. RPM International has a 1-year low of $92.92 and a 1-year high of $121.78.

Key Stories Impacting RPM International

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

• Positive Sentiment: Quarterly earnings beat estimates: RPM reported adjusted EPS of $1.98, up from $1.88 a year earlier and ahead of the $1.95 analyst consensus. Revenue increased 4.8% year over year to approximately $2.22 billion. RPM Reports Record Fiscal 2027 First-Quarter Results
• Positive Sentiment: Profitability reached a record: Adjusted EBITDA was reported at $405.5 million, supported by growth in emerging markets and strong performance from the Performance Coatings group. The earnings beat and improved EPS helped reinforce the case for RPM’s ongoing cost controls and share repurchases. RPM International Q1 2027 Earnings
• Positive Sentiment: Fiscal 2027 growth expectations remain supportive: Management maintained a sales-growth outlook for the year, while investors viewed the quarter as evidence that operational improvements can offset parts of the softer construction and do-it-yourself markets. RPM International Sees Sales Growth in Fiscal 2027
• Neutral Sentiment: Analyst valuation remains favorable but estimates are mixed: Wells Fargo kept an “overweight” rating but lowered its price target from $135 to $130, reflecting some caution despite the earnings beat. The broader analyst targets cited in the reports remain materially above the current trading level.
• Negative Sentiment: Housing and raw-material risks remain overhangs: RPM’s CEO warned that housing turnover is at a 40-year low and is unlikely to improve soon. Management also expects roughly 5%–6% raw-material inflation in the first quarter, with price-cost pressures potentially negative during the first half of the year. These factors could limit margins and demand in construction-related businesses. RPM CEO Sounds Housing Alarm

Wall Street Analyst Weigh In

RPM has been the subject of a number of recent analyst reports. Wall Street Zen lowered shares of RPM International from a “buy” rating to a “hold” rating in a research report on Saturday, August 22nd. Morgan Stanley dropped their target price on shares of RPM International from $117.00 to $114.00 and set an “equal weight” rating on the stock in a report on Monday, September 28th. Royal Bank Of Canada boosted their target price on RPM International from $126.00 to $128.00 and gave the stock an “outperform” rating in a research report on Thursday, July 23rd. BMO Capital Markets upped their price target on shares of RPM International from $143.00 to $151.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of RPM International in a research report on Friday, July 24th. Twelve research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, RPM International presently has a consensus rating of “Moderate Buy” and an average target price of $125.85.

RPM International Company Profile

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.