RPM Reports Record Q1 2026 Sales and Adjusted EPS Growth

RPM (RPM.US) announced record financial results for its fiscal 2026 first quarter, ending August 31, 2025. The company reported record first-quarter sales of $2.11 billion, an increase of 7.4% compared to the prior year. Adjusted diluted EPS reached a record $1.88, an increase of 2.2% over the prior-year record, and surpassed analyst estimates of $1.87.

Strong Sales Performance Driven by Strategic Focus and Acquisitions

Record first-quarter sales were primarily fueled by a strategic focus on systems and turnkey solutions for high-performance buildings, alongside strong repair and maintenance demand. Acquisitions played a significant role, contributing 3.8% to sales growth, while organic sales increased by 3.0%.

Geographically, Europe demonstrated robust sales growth of 20.7%, benefiting from acquisitions and favorable foreign exchange rates. North America sales increased by 5.9%, driven by demand for turnkey solutions.

Segment-Specific Highlights and Operational Efficiency

The Construction Products Group (CPG) achieved record sales of $881.4 million, up 6.5%, propelled by roofing solutions for high-performance buildings and infrastructure projects. The Performance Coatings Group (PCG) also reported record sales of $538.5 million, a 9.9% increase, driven by strong demand for flooring solutions and protective coatings.

The Consumer Group's sales reached a record $693.8 million, growing 6.6%, largely due to successful integration of acquisitions, which offset softness in DIY markets. Across all segments, adjusted EBIT benefited from MAP 2025 operational improvements, which helped mitigate cost inflation and increased SG&A; expenses.

Positive Fiscal Year 2026 Outlook

Management provided an optimistic outlook for both the fiscal 2026 second quarter and the full fiscal year, anticipating record sales and adjusted EBIT. For the second quarter, consolidated sales are projected to increase in the mid-single-digit percentage range, with adjusted EBIT also expected to rise in the mid-single-digit range compared to prior-year record results.

For the full fiscal year 2026, RPM expects consolidated sales to increase toward the higher end of the previously announced low-to mid-single-digit growth range. Consolidated adjusted EBIT is forecasted to increase toward the lower end of the previously announced high-single- to low-double-digit percentage growth range, reflecting continued growth investments.