RPM reports record fourth-quarter, full-year sales as adjusted earnings reach new highs

MEDINA, OH— RPM International Inc. reported record sales for its fiscal fourth quarter and full year, driven by demand for engineered solutions used in high-performance buildings and infrastructure projects, acquisitions and pricing actions to offset inflation.

The specialty coatings, sealants and building materials company said fourth-quarter net sales rose 7.2% to $2.23 billion for the period ended May 31, up from $2.08 billion a year earlier. Full-year net sales increased 6.7% to a record $7.86 billion.

Despite higher sales, fourth-quarter net income attributable to stockholders slipped 2% to $221.2 million, or $1.73 per diluted share, from $225.8 million, or $1.76 per share, in the prior-year quarter. For the full fiscal year, net income declined 4% to $661.4 million, or $5.17 per diluted share, compared with $688.7 million, or $5.35 per share, a year earlier.

Adjusted results improved. Fourth-quarter adjusted earnings before interest and taxes (EBIT) increased 7.7% to a record $338.6 million, while adjusted diluted earnings per share rose 9.9% to a record $1.89. For the full year, adjusted EBIT climbed 4.4% to a record $1.02 billion and adjusted diluted earnings per share increased 4.3% to a record $5.53.

Chairman and CEO Frank C. Sullivan said the company benefited from strong demand for restoration and maintenance solutions, increased collaboration on construction projects and growth in emerging markets during a volatile economic environment.

Sales growth in the quarter included 2.5% organic growth, 3.5% growth from acquisitions net of divestitures and a 1.2% benefit from foreign currency translation.

RPM’s Construction Products Group posted record quarterly sales of $904.2 million, up 8.8%, driven by strength in concrete admixtures, roofing restoration systems and wall systems for high-performance buildings. Adjusted EBIT for the segment increased 14.6% to a record $175.1 million.

The Performance Coatings Group reported record sales of $562.8 million, a 5% increase from a year earlier, supported by demand for fireproofing systems, infrastructure projects and food coatings and ingredients. Record adjusted EBIT rose 10.6% to $84.9 million despite a $3.2 million bad debt expense related to a customer bankruptcy.

The Consumer Group recorded record sales of $764.8 million, up 7%, primarily due to acquisitions and pricing, although the company said softness in do-it-yourself markets continued. Adjusted EBIT increased 2.6% to a record $123.3 million.

Operating cash flow totaled $898.7 million during fiscal 2026, compared with $768.2 million the previous year. RPM spent $223.5 million on capital expenditures and $202.4 million on acquisitions while returning $349.2 million to shareholders through dividends and share repurchases.

As of May 31, total debt stood at $2.53 billion, down from $2.65 billion a year earlier, while total liquidity increased to $1.09 billion from $969.1 million.

The company’s board authorized an additional $700 million for its common stock repurchase program, supplementing the $114.8 million remaining under the existing authorization.

Looking ahead, RPM said it expects first-quarter fiscal 2027 consolidated sales to increase in the mid-single-digit range from the prior year’s record results, with similar growth expected across its Construction Products, Performance Coatings and Consumer segments. The company also forecast mid-single-digit growth in consolidated adjusted EBITDA for the quarter.

For fiscal 2027, RPM expects consolidated sales growth of 3% to 7% and adjusted EBITDA growth of 5% to 10%.

The company also announced it will hold an investor day on Nov. 9 to discuss its strategic priorities, its next operational improvement plan and updates on key business initiatives. Starting in fiscal 2027, RPM said adjusted EBITDA will replace adjusted EBIT as its primary measure of operating performance to better align with industry peers and reflect profitability during periods of acquisition activity.