RPM International (NYSE:RPM) Releases Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Key Points

• Beat estimates / record quarter: RPM reported $0.57 adjusted EPS versus $0.37 expected and $1.61B in revenue (vs. $1.55B est.), with adjusted EBIT up roughly 50% and record adjusted EPS/EBIT.
• Rising cost headwinds and consumer weakness: Management warned of raw‑material inflation rising to mid‑to‑high single digits in Q1 FY27 due to Middle East supply disruptions and said the Consumer segment faces weak DIY demand (organic sales down four quarters) and temporary inefficiencies.
• Strong cash position & shareholder returns: YTD operating cash flow was $656.7M with $1.02B liquidity, $255.3M returned to shareholders YTD, a $0.54 quarterly dividend (2.0% yield), plus targeted cost‑savings and a margin‑accretive Kalzip acquisition.

RPM International (NYSE:RPM - Get Free Report) issued its earnings results on Wednesday. The specialty chemicals company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.37 by $0.20, FiscalAI reports. The firm had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.55 billion. RPM International had a net margin of 8.79% and a return on equity of 22.49%. The firm's revenue for the quarter was up 8.9% compared to the same quarter last year. During the same period last year, the firm posted $0.35 earnings per share.

Here are the key takeaways from RPM International's conference call:

• Record results: Consolidated sales rose nearly 9% and the company reported a nearly 50% increase in adjusted EBIT with record adjusted EPS, marking record adjusted EBIT in 15 of the last 17 quarters.
• Geopolitical and raw-material headwinds: The Middle East conflict has created supply disruptions and higher input costs; RPM now expects ~1%–2% raw-material inflation in Q4 FY26 rising to mid‑to‑high single digits in Q1 FY27 and is implementing targeted price increases to offset costs.
• Operational savings underway: Continuous-improvement programs (Greenbelt >600 trained, >$50M saved with $30M pipeline) plus SG&A optimization delivered ~$5M in Q3, with an expected ~ $20M P&L benefit in Q4 and ~$75M targeted for FY27.
• Consumer segment challenges: DIY demand remains weak (organic consumer sales down for four quarters), leadership changes and plant consolidations caused temporary inefficiencies (>$6M in Q3), and the segment faces tougher comps and pricing sensitivity.
• Strong liquidity and M&A: Year‑to‑date operating cash flow was $656.7M (second highest on record), liquidity of $1.02B, $255.3M returned to shareholders YTD, and the closed Kalzip acquisition (~EUR75M sales) is expected to be margin‑accretive.

RPM International Stock Performance

NYSE:RPM opened at $108.69 on Thursday. RPM International has a 52-week low of $92.92 and a 52-week high of $129.12. The company has a market cap of $13.92 billion, a price-to-earnings ratio of 20.94, a PEG ratio of 2.38 and a beta of 1.10. The firm's 50-day moving average is $106.97 and its 200-day moving average is $108.32. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.45 and a current ratio of 2.22.

RPM International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Thursday, April 16th will be given a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Thursday, April 16th. RPM International's payout ratio is currently 41.62%.

Insider Buying and Selling

In other news, VP Timothy R. Kinser sold 3,441 shares of the company's stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $110.31, for a total value of $379,576.71. Following the sale, the vice president directly owned 21,248 shares in the company, valued at approximately $2,343,866.88. This represents a 13.94% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 1.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On RPM International

Institutional investors have recently added to or reduced their stakes in the company. Lazard Asset Management LLC grew its position in RPM International by 5.8% during the 2nd quarter. Lazard Asset Management LLC now owns 1,685 shares of the specialty chemicals company's stock worth $184,000 after acquiring an additional 93 shares during the last quarter. Los Angeles Capital Management LLC bought a new position in RPM International in the 4th quarter valued at $60,000. BI Asset Management Fondsmaeglerselskab A S boosted its stake in RPM International by 5.2% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 12,031 shares of the specialty chemicals company's stock worth $1,321,000 after purchasing an additional 594 shares in the last quarter. Resources Management Corp CT ADV grew its holdings in shares of RPM International by 21,566.7% during the fourth quarter. Resources Management Corp CT ADV now owns 650 shares of the specialty chemicals company's stock worth $68,000 after purchasing an additional 647 shares during the last quarter. Finally, Azimuth Capital Investment Management LLC grew its holdings in shares of RPM International by 10.7% during the fourth quarter. Azimuth Capital Investment Management LLC now owns 6,700 shares of the specialty chemicals company's stock worth $697,000 after purchasing an additional 650 shares during the last quarter. 80.95% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

RPM has been the subject of several recent analyst reports. Robert W. Baird raised shares of RPM International from a "neutral" rating to an "outperform" rating and set a $125.00 target price on the stock in a research note on Wednesday, March 4th. BMO Capital Markets dropped their price target on RPM International from $152.00 to $149.00 and set an "outperform" rating on the stock in a research report on Thursday, January 8th. Citigroup reduced their price objective on RPM International from $136.00 to $127.00 and set a "buy" rating for the company in a research note on Thursday, December 18th. Deutsche Bank Aktiengesellschaft decreased their price objective on RPM International from $138.00 to $126.00 and set a "buy" rating for the company in a research report on Monday, January 12th. Finally, JPMorgan Chase & Co. upgraded RPM International from a "neutral" rating to an "overweight" rating and dropped their target price for the company from $117.00 to $115.00 in a report on Friday, January 9th. Eleven analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, RPM International has an average rating of "Moderate Buy" and a consensus price target of $126.00.

Key Headlines Impacting RPM International

Here are the key news stories impacting RPM International this week:

• Positive Sentiment: Record Q3 results: RPM reported $1.61B in revenue and $0.57 adjusted EPS (well above estimates), with adjusted EBIT and EPS surging year-over-year — the official press release outlines the quarterly highlights. RPM Reports Record Fiscal 2026 Third-Quarter Results
• Positive Sentiment: Market reaction & outlook: Multiple outlets report the company beat revenue and profit expectations and provided an upbeat commentary on demand—driving the stock rally. Management reaffirmed guidance for mid‑single‑digit revenue and earnings growth. RPM International shares jump nearly 10% after earnings beat and upbeat outlook
• Positive Sentiment: Operational drivers: Management cited MAP initiatives, price realization, acquisitions and favorable FX as drivers of organic growth, margin expansion and record adjusted EBIT — supporting higher profitability. RPM International surges as earnings beat estimates on sales growth
• Neutral Sentiment: Capital returns and positioning: RPM remains a steady dividend payer with ongoing modest buybacks; analysts and institutions have been accumulating shares, which underpins investor confidence but doesn’t guarantee a breakout above long-term moving averages. RPM International is a Buy: Stock Surges After Earnings Beat
• Neutral Sentiment: Leadership update: RPM announced leadership changes in its Consumer Group — operationally relevant but typically neutral unless coupled with additional strategic commentary. RPM International Announces Leadership Changes Within Its Consumer Group
• Negative Sentiment: Rising risks flagged: Some analysts caution that despite record results, risks are mounting (macro sensitivity, integration risks from acquisitions, and cautious guidance could cap near-term upside). Read the analysis balancing the strong quarter against these risks. RPM International Balances Record Earnings With Rising Risks

RPM International Company Profile

RPM International Inc is a global holding company whose subsidiaries specialize in the manufacture and marketing of high-performance coatings, sealants, building materials, and specialty chemicals. Through its two principal operating segments—Performance Coatings and Industrial Coatings—RPM serves a diverse range of end markets, including construction, consumer products, industrial maintenance, and specialty applications.

The company's Performance Coatings segment offers a broad portfolio of architectural coatings, waterproofing systems, and specialty building products used by contractors, builders, and homeowners.