RPM International Inc. (NYSE:RPM) reported fiscal 2026 first-quarter sales of $2.11 billion, up 7.4% from $1.97 billion a year earlier and above the $2.057 billion estimate.
Net income attributable to stockholders was $227.6 million, with diluted EPS flat at $1.77. Adjusted diluted EPS was $1.88, up 2.2% from $1.84 and in line with expectations. EBIT rose 3.3% to $314.0 million, and adjusted EBIT increased 2.9% to $337.8 million.
Construction Products Group sales rose 6.5% to $881.4 million, with adjusted EBIT up 3.1% to $169.1 million. Performance Coatings Group revenue grew 9.9% to $538.5 million, and adjusted EBIT climbed 11.0% to $87.0 million.
Consumer Group sales increased 6.6% to $693.8 million, while adjusted EBIT advanced 2.9% to $119.9 million.
Sales growth included 3.0% organic, 3.8% from acquisitions, and 0.6% from currency translation. Europe led with 20.7% growth, North America rose 5.9%, and emerging markets were mixed.
Operating cash flow was $237.5 million, compared with $248.1 million a year earlier. Capital expenditures increased to $62.5 million, and shareholder returns totaled $82.0 million.
Total debt stood at $2.67 billion, up from $2.05 billion last year, while liquidity was $933.4 million, down from $1.44 billion.
"Our associates' focused pivot to growth was evident during the quarter with organic sales up solidly in a challenging macro environment," Chairman and CEO Frank C. Sullivan said. "The successful integration of strategic business acquisitions also played an important role in achieving record sales."
Outlook
For the second quarter, RPM expects sales and adjusted EBIT growth in the mid-single-digit range, with consumer sales outpacing other segments.
For fiscal 2026, the company sees sales growth toward the higher end of its outlook and adjusted EBIT growth toward the lower end of its forecast range.
Sullivan said, "Our pivot to growth will continue in the second quarter as we leverage our competitive strengths in non-residential construction markets and benefit from growth investments in several of our businesses. While tariff-related inflation remains a challenge, we are working to mitigate these headwinds through a series of measures, including price increases late in the first quarter. We will also begin realizing more efficiency benefits from our streamlined three-segment structure in the second quarter."
He concluded, "For the full year, we are increasing our growth investments in areas with the highest potential. While these investments will increase SG&A, we anticipate they will help accelerate our growth in what remains a challenging macro environment. Taking all of this into account, we expect to achieve record sales and adjusted EBIT in both the second quarter and for the full fiscal year."
Price Action: RPM shares were trading lower by 2.46% to $114.98 premarket at last check Wednesday.
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