RPM International Targets Another Record Year, Raises Dividend for 53rd Straight Year

Key Points

• RPM International delivered record fiscal 2026 results, with $7.9 billion in revenue, adjusted EBIT up 4.4% to $1.019 billion, and adjusted EPS up 4.3% to $5.53. The company expects another record year in fiscal 2027, supported by strong first-quarter sales and earnings growth.
• The board raised the annual dividend 5.6% to $2.28 per share, marking RPM’s 53rd consecutive year of dividend increases and reinforcing its Dividend King status.
• RPM is pursuing additional growth through acquisitions, new manufacturing capacity and efficiency initiatives, including opportunities in waterproofing and data-center construction. Management expects fiscal 2027 operating improvements of $75 million and plans to present a long-term strategy through 2030 at its November investor day.

RPM International NYSE: RPM shareholders elected 12 directors, approved executive compensation on an advisory basis and ratified Deloitte & Touche LLP as the company’s independent registered public accounting firm for fiscal 2027 at the company’s 2026 annual meeting.

Approximately 114 million shares, or about 89% of outstanding shares, were represented by proxy at the meeting. The 12 director nominees received support from an average of about 98% of shares voting, according to a preliminary proxy tabulation. Shareholders also approved the company’s Say-on-Pay proposal with approximately 93% of voting shares in favor, while Deloitte’s appointment was supported by approximately 99% of shares voting.

Record Fiscal 2026 Results

Chairman and Chief Executive Officer Frank Sullivan said fiscal 2026 produced record results despite what he described as volatility in the company’s markets. RPM reported fiscal-year revenue of $7.9 billion, while adjusted EBIT rose 4.4% to a record $1.019 billion. Adjusted diluted earnings per share increased 4.3% to a record $5.53.

Cash provided by operating activities rose 17% to $899 million, Sullivan said, representing the company’s second-highest annual operating cash flow.

North America accounted for 77% of the company’s fiscal 2026 revenue, while Europe represented 15%. Sales in Southern Hemisphere and developing markets totaled nearly $600 million, or 8% of consolidated revenue, up from less than 5% several years ago, according to Sullivan.

RPM said it continues to invest in expansion through acquisitions and manufacturing capacity. The company completed the acquisition of Kalzip, a Germany-based producer of specialty aluminum and metal roofing, during the summer. Sullivan said the business complements Tremco Roofing’s North American operations and that RPM intends to bring Kalzip technology to the U.S. market.

He also highlighted the prior-year acquisition of Ready Seal by RPM’s Rust-Oleum subsidiary, saying distribution of its wood stain and protective products has continued to expand across North America. In addition, RPM plans to open a manufacturing facility in Mumbai, India, this year, following the opening of a facility in Malaysia during the past year.

Efficiency Programs and Fiscal 2027 Outlook

RPM’s operating-improvement initiatives, launched in 2018, remain in place. Sullivan said the company’s focus on selling, general and administrative expense efficiencies is expected to deliver $75 million of improvements in fiscal 2027.

The company’s Green Belt programs have delivered more than $50 million during its MAP periods, with an additional $25 million of projects in the pipeline, he said. RPM is expanding those improvement efforts into other functional areas.

RPM plans to hold an investor day in Maple Shade, New Jersey, on Nov. 9 to discuss a new long-term strategic plan extending through 2030.

For the first quarter of fiscal 2027, which ended in August, Sullivan said sales rose 4.8% to an all-time record. Adjusted EBITDA increased 4.5% to a record level, while diluted earnings per share grew 5.3% to $1.98. The company expects another record year for sales and earnings in fiscal 2027.

Dividend Raised for 53rd Consecutive Year

RPM’s board voted to increase the annual cash dividend to $2.28 per share, or $0.57 quarterly. The increase represents a 5.6% rise from the prior dividend and marks the company’s 53rd consecutive annual dividend increase.

Sullivan said the company is among fewer than 40 of more than 5,000 U.S. public companies that have increased their cash dividends for at least as long.

Waterproofing and Data Center Opportunities

During the shareholder question-and-answer session, RPM discussed its Volteco acquisition. The Italy-based waterproofing company operates throughout Europe and its products have been used in Venice, Sullivan said. Tremco had been Volteco’s sole U.S. distributor during the past several years.

RPM sees an opportunity to expand Volteco’s below-grade waterproofing systems in U.S. construction markets through Tremco and believes it can double the size of the business by continuing growth in Europe and introducing its product lines more broadly in the U.S.

Sullivan also said RPM’s Euclid Chemical, Tremco, Carboline and Stonhard businesses are on track to supply more than $100 million on an annualized basis of products to data centers being built globally. He said the company expects data centers to remain a growth area in coming years.

Board Changes

Newly elected directors Jeffrey D. Rowe and Thomas C. Gentile III joined the board. Rowe is executive vice president and chief operating officer of Archer-Daniels-Midland Co. and formerly served as chief executive officer of Saint-Gobain Group. Gentile is chairman, president and chief executive officer of Hexcel Corp. and previously served as president and CEO of Spirit AeroSystems.

RPM also recognized the retirements of directors Bruce A. Carbonari and William B. Summers Jr. Carbonari joined the board in 2002, while Summers joined in 2004. Sullivan said that during their tenures, RPM’s annual sales rose from $1.9 billion to $7.9 billion, quarterly dividends increased by more than 330%, and market capitalization grew from roughly $2 billion to $14 billion.

About RPM International (NYSE:RPM)

RPM International Inc is a multinational manufacturer of specialty coatings, sealants, building materials and related products. The company serves the construction, industrial, automotive, marine and consumer markets through a portfolio of businesses that develop products for protecting, repairing, maintaining and enhancing surfaces and structures.

Its brands and businesses include Rust-Oleum consumer and industrial coatings, DAP caulks and sealants, Tremco and Euclid Chemical construction products, Carboline protective coatings, Stonhard seamless flooring systems and Flowcrete flooring products.

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