RPM International reports record fourth-quarter sales of $2.23 billion
The specialty coatings manufacturer saw fourth-quarter adjusted diluted EPS rise 9.9% to $1.89.
RPM International (RPM), the specialty coatings manufacturer, reported record fourth-quarter sales of $2.23 billion.
The results marked a period of record-setting growth for the company, though the pace of profit expansion showed signs of moderation compared to the previous year.
Fourth-quarter sales rose 7.2% year-over-year. Adjusted EBIT for the period increased 7.7% to a record $338.6 million. This growth rate represented a deceleration from the 10.1% adjusted EBIT increase the company reported in the fourth quarter of the prior year.
Growth was led by the Construction Products Group, which saw sales rise 8.8% and adjusted EBIT increase 14.6%. The Performance Coatings Group also contributed to the result, with sales increasing 5.0% and adjusted EBIT rising 10.6%.
The Consumer Group experienced the weakest performance among the segments. While sales grew 7.0% due to pricing and acquisitions, organic sales declined 0.8% and adjusted EBIT rose 2.6%. The company also reported a $9.7 million non-cash impairment charge related to the Color Group within the Consumer Group segment.
For the full fiscal 2026, sales reached a record $7.86 billion, up 6.7% year-over-year, while adjusted EBIT increased 4.4% to $1.02 billion. Operating cash flow for the year rose to $898.7 million from $768.2 million in the prior year, and total debt decreased to $2.53 billion from $2.65 billion.
RPM is transitioning its primary profit and loss measure from adjusted EBIT to adjusted EBITDA starting in fiscal 2027. For the first quarter of fiscal 2027, the company projects consolidated sales and adjusted EBITDA growth in the mid-single-digit range. Full-year fiscal 2027 guidance projects sales growth of 3% to 7% and adjusted EBITDA growth of 5% to 10%.
The Board of Directors authorized a new $700 million increase to the share repurchase program.