RPM International (RPM) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter sales of $2.11 billion, up 7.4% year-over-year, with all segments growing sales and adjusted EBIT; net income was $227.6 million and diluted EPS was $1.77.

• Adjusted EBIT reached $337.8 million, up 2.9%, and adjusted EPS set a record at $1.88, up 2.2% year-over-year.

• Growth was driven by organic sales, successful M&A integration, and investments in sales, marketing, and operational efficiency.

• Focus on turnkey solutions, system selling, and expansion into new product categories and channels supported growth.

Financial highlights

• Net sales increased 7.4% year-over-year to $2.11 billion, with 3.0% organic growth, 3.8% from acquisitions, and 0.6% from FX.

• Adjusted EBIT rose 2.9% to $337.8 million; adjusted EBIT margin declined 70 bps to 16.0% due to cost inflation and plant consolidation inefficiencies.

• Adjusted EPS reached $1.88, driven by EBIT improvement but partially offset by higher interest expense from acquisition financing.

• SG&A expenses increased due to higher healthcare costs, M&A expenses, and growth investments.

• Gross margin was 42.3%, slightly down from 42.5% year-over-year.

Outlook and guidance

• Second quarter outlook: mid-single-digit sales and adjusted EBIT growth expected, with Consumer segment growth outpacing others due to acquisitions.

• Full-year sales anticipated at the high end of low- to mid-single-digit growth range; adjusted EBIT to grow toward the lower end of high-single- to low-double-digit range.

• Persistent economic uncertainty, inflationary pressures, and tariff-related headwinds expected to continue.

• Additional restructuring charges of approximately $13.9 million anticipated as MAP 2025 projects are completed.