RPM International (RPM) Q3 2026 earnings summary

Executive summary

• Achieved record third-quarter sales of $1.61 billion, up 8.9% year-over-year, with broad-based growth across all segments and net income of $51.4 million.

• Adjusted EBIT reached $116.4 million, up 48.8% year-over-year, and adjusted diluted EPS rose 62.9% to $0.57.

• Margin expansion was driven by volume growth, operational efficiencies, and SG&A-focused optimization actions.

• Growth was supported by M&A, favorable FX, and high-performance building solutions, partially offset by soft DIY demand.

• Navigated volatile economic and geopolitical conditions, particularly in the Middle East, with minimal supply disruptions.

Financial highlights

• Q3 sales were $1,607.9 million (+8.9% YoY); adjusted EBIT was $116.4 million (+48.8% YoY); adjusted EBIT margin was 7.2% (+190 bps YoY).

• Net income for the quarter was $51.4 million, with diluted EPS at $0.40; adjusted diluted EPS was $0.57 (+62.9% YoY).

• Nine-month sales were $5,631.6 million (+6.4% YoY); net income was $440.2 million; diluted EPS was $3.43.

• Operating cash flow for the nine months was $656.7 million, the second highest in company history.

• Gross margin for Q3 was 39.5% (vs. 38.4% prior year); capital expenditures for the nine months were $159.6 million.

Outlook and guidance

• Reaffirmed Q4 guidance for mid-single-digit sales growth and low- to high-single-digit adjusted EBIT growth year-over-year.

• Raw material inflation expected at 1%-2% in Q4, rising to mid- to high-single digits in Q1 fiscal 2027.

• SG&A optimization actions expected to deliver ~$20 million P&L benefit in Q4, with $75 million targeted for fiscal 2027.

• Additional restructuring charges of approximately $18.3 million are anticipated as MAP 2025 and 2026 restructuring actions continue.

• Management expects to deliver record results in Q4 despite challenging comparisons and geopolitical uncertainty.