RPM International (RPM) Q1 2027 earnings summary

Executive summary

• Record Q1 FY27 net sales of $2,215.6M, up 4.8% YoY; adjusted EBITDA reached $405.5M, up 4.5%, and adjusted diluted EPS was $1.98, up 5.3%.

• PCG and Consumer growth, acquisitions and MAP benefits offset CPG softness amid sluggish end markets, inflation and supplier constraints.

• Net income attributable to stockholders was $256.4M; diluted EPS was $2.01 versus $1.77.

• Operating cash flow increased to $263.9M from $237.5M, supported by improved working-capital efficiency.

Financial highlights

• Sales growth comprised 3.1% organic growth, 1.6% from acquisitions net of divestitures and a 0.1% FX benefit.

• Gross profit was $914.0M versus $893.2M; gross margin fell 100 bps to 41.3% as inflation outpaced pricing and MAP benefits.

• Adjusted EBITDA rose to $405.5M from $388.0M; higher sales, MAP improvements and lower healthcare costs helped offset inflation, warranty and bad-debt costs.

• SG&A declined $13.8M YoY to 25.3% of sales from 27.1%.

• Reported results included a $10.8M Consumer property-sale gain and a $4.9M contingent earnout fair-value gain.

Outlook and guidance

• FY27 sales and adjusted EBITDA growth are each expected in the mid-single digits; previous guidance was 3%–7% for sales and 5%–10% for adjusted EBITDA.

• Q2 consolidated sales and adjusted EBITDA are each expected to grow low- to mid-single digits; CPG sales low-single digits, PCG mid- to high-single digits and Consumer low- to mid-single digits.

• Q2 raw-material inflation is expected at 9%–11%, up from 6%–8%; Q3 inflation is expected at 7%–9%.

• Pricing, MAP benefits and previously announced $75M SG&A savings are expected to offset inflation; CPG is expected to return to positive organic growth toward year-end.

• FY27 tailwinds include infrastructure and energy markets and resilient repair and maintenance demand; inflation and tougher H2 comparisons remain risks.