RPM International Inc. (RPM) Q1 2026 Financial Results Summary
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RPM International Inc. (RPM) Q1 2026 Financial Results Summary
Release Date: October 1, 2025
RPM International Inc. (NYSE: RPM), a global leader in specialty coatings, sealants, and building materials, has reported its financial results for the first quarter of fiscal 2026, ending August 31, 2025. The company has achieved record sales and other key metrics, reflecting a strong performance amidst a challenging macroeconomic environment.
Key Highlights
- Sales and Revenue
- Record first-quarter sales of $2.11 billion, an increase of 7.4% compared to $1.97 billion in the prior year.
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Growth was driven by high-performance building systems and maintenance repairs as well as strategic acquisitions.
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Net Income and Earnings Per Share
- First-quarter net income of $227.6 million, almost unchanged with a decrease of 0.0% from $227.7 million year-over-year.
- Diluted EPS remained at $1.77, unchanged from the same quarter last year.
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Adjusted diluted EPS reached a record $1.88, reflecting an increase of 2.2% from $1.84 in the prior year.
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Earnings Before Interest and Taxes (EBIT)
- Record EBIT of $314.0 million, up 3.3% compared to $303.9 million a year ago.
- Record adjusted EBIT amounted to $337.8 million, an increase of 2.9% from $328.3 million year-over-year.
Business Segments Performance
- Construction Products Group (CPG)
- Net Sales: $881.4 million, a 6.5% increase from $828.0 million.
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Adjusted EBIT increased to $169.1 million, a growth of 3.1% compared to $164.0 million.
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Performance Coatings Group (PCG)
- Net Sales: $538.5 million, representing a significant 9.9% rise from $490.0 million.
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Adjusted EBIT surged to $87.0 million, an 11.0% increase from $78.3 million.
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Consumer Group
- Net Sales: $693.8 million, marking a 6.6% rise from $650.8 million.
- Adjusted EBIT rose to $119.9 million, up 2.9% from $116.5 million.
Financial Position
- Cash provided by operating activities amounted to $237.5 million, driven by profitability growth, though offset by strategic inventory purchases.
- Capital expenditures grew to $62.5 million from $50.7 million, attributed to expansion investments including a new facility in Malaysia.
Shareholder Returns
- RPM returned $82.0 million to shareholders through dividends and share repurchases, marking an increase of 7.4% compared to the previous year.
- The company issued cash dividends of $64.5 million, up from $58.9 million, and conducted share repurchases amounting to $17.5 million.
Outlook for Fiscal 2026
- For Q2, RPM anticipates mid-single-digit sales and adjusted EBIT growth over the prior year.
- The full-year outlook predicts consolidated sales to approach the higher end of previous guidance, while adjusted EBIT is expected towards the lower end of high-single- to low-double-digit growth.
Closing Notes
- RPM remains focused on leveraging its competitive strengths in the non-residential construction market and addressing inflationary pressures through strategic measures.
- The CEO, Frank C. Sullivan, emphasized the importance of growth investments to secure future success.
In conclusion, RPM International Inc. has demonstrated resilience and robust growth in its first-quarter results, with solid sales figures and effective management strategies that bodes well for the future.
Here are the extracted tables in HTML format:
CONSOLIDATED STATEMENTS OF INCOME IN THOUSANDS, EXCEPT PER SHARE DATA (Unaudited)
| Three Months Ended | ||
|---|---|---|
| August 31, 2025 | August 31, 2024 | |
| Net Sales | $2,113,743 | $1,968,789 |
| Cost of Sales | $1,220,527 | $1,132,116 |
| Gross Profit | $893,216 | $836,673 |
| Selling, General & Administrative | $573,534 | $526,146 |
| Expenses | ||
| Restructuring Expense | $8,814 | $7,202 |
| Interest Expense | $29,326 | $24,434 |
| Investment (Income), Net | $(13,404) | $(11,026) |
| Other (Income), Net | $(3,101) | $(534) |
| Income Before Income Taxes | $298,047 | $290,451 |
| Provision for Income Taxes | $70,207 | $61,897 |
| Net Income | $227,840 | $228,554 |
| Less: Net Income Attributable to | ||
| Noncontrolling Interests | $235 | $862 |
| Net Income Attributable to RPM | $227,605 | $227,692 |
| Earnings per share of common stock | ||
| attributable to RPM International Inc. | ||
| Stockholders: | ||
| Basic | $1.78 | $1.78 |
| Diluted | $1.77 | $1.77 |
| Average shares of common stock outstanding | ||
| – basic | 127,283 | 127,691 |
| Average shares of common stock outstanding | ||
| – diluted | 127,950 | 128,420 |
CONSOLIDATED BALANCE SHEETS IN THOUSANDS (Unaudited)
| August 31, 2025 | August 31, 2024 | May 31, 2025 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash and cash equivalents | $297,075 | $231,555 | $302,137 |
| Trade accounts receivable | $1,515,499 | $1,393,283 | $1,551,953 |
| Allowance for doubtful accounts | $(42,506) | $(49,106) | $(42,844) |
| Net trade accounts receivable | $1,472,993 | $1,344,177 | $1,509,109 |
| Inventories | $1,068,183 | $1,003,459 | $1,036,475 |
| Prepaid expenses and other current assets | $365,271 | $319,107 | $322,577 |
| Total current assets | $3,203,522 | $2,898,298 | $3,170,298 |
| Property, Plant and Equipment, at Cost | $2,805,421 | $2,568,792 | $2,738,373 |
| Allowance for depreciation | $(1,306,637) | $(1,219,084) | $(1,264,974) |
| Property, plant and equipment, net | $1,498,784 | $1,349,708 | $1,473,399 |
| Other Assets | |||
| Goodwill | $1,657,612 | $1,315,790 | $1,617,626 |
| Other intangible assets, net of amortization | $832,195 | $504,562 | $780,826 |
| Operating lease right-of-use assets | $394,831 | $365,972 | $370,399 |
| Deferred income taxes | $147,436 | $36,563 | $147,436 |
| Other | $210,165 | $178,982 | $215,965 |
| Total other assets | $3,242,239 | $2,401,869 | $3,132,252 |
| Total Assets | $7,944,545 | $6,649,875 | $7,775,949 |
| Liabilities and Stockholders’ Equity | |||
| Current Liabilities | |||
| Accounts payable | $762,013 | $693,519 | $755,889 |
| Current portion of long-term debt | $7,434 | $6,779 | $7,691 |
| Accrued compensation and benefits | $189,846 | $180,785 | $287,398 |
| Accrued losses | $30,749 | $32,440 | $36,701 |
| Other accrued liabilities | $424,834 | $369,060 | $379,768 |
| Total current liabilities | $1,414,876 | $1,282,583 | $1,467,447 |
| Long-Term Liabilities | |||
| Long-term debt, less current maturities | $2,661,990 | $2,045,387 | $2,638,922 |
| Operating lease liabilities | $340,420 | $316,064 | $317,334 |
| Other long-term liabilities | $243,524 | $234,368 | $241,117 |
| Deferred income taxes | $227,141 | $119,946 | $224,347 |
| Total long-term liabilities | $3,473,075 | $2,715,765 | $3,421,720 |
| Total liabilities | $4,887,951 | $3,998,348 | $4,889,167 |
| Stockholders’ Equity | |||
| Preferred stock; none issued | $— | $— | $— |
| Common stock (outstanding 128,219; | |||
| 128,702; 128,269) | $1,282 | $1,287 | $1,283 |
| Paid-in capital | $1,183,272 | $1,156,977 | $1,177,796 |
| Treasury stock, at cost | $(973,372) | $(897,686) | $(953,856) |
| Accumulated other comprehensive (loss) | $(512,832) | $(540,590) | $(533,631) |
| Retained earnings | $3,356,848 | $2,929,439 | $3,193,764 |
| Total RPM International Inc. stockholders’ | |||
| equity | $3,055,198 | $2,649,427 | $2,885,356 |
| Noncontrolling interest | $1,396 | $2,100 | $1,426 |
| Total equity | $3,056,594 | $2,651,527 | $2,886,782 |
| Total Liabilities and Stockholders’ Equity | $7,944,545 | $6,649,875 | $7,775,949 |