RPM Narrows Fiscal 2027 Sales and Ebitda Outlook
First-quarter sales reached a record $2.22 billion, up 4.8%, as Performance Coatings and Consumer growth offset a Construction Products stall.
RPM International Inc. (RPM), a specialty coatings, sealants and building materials company, reported record first-quarter sales of $2.22 billion for the three months ended August 31, 2026, up 4.8% from a year earlier.
The growth rate slowed from the 7.2% increase recorded in the fiscal 2026 fourth quarter. Organic sales rose 3.1%, acquisitions net of divestitures added 1.6%, and foreign currency translation contributed 0.1%.
Net income attributable to stockholders was $256.4 million, or $2.01 a share. Adjusted diluted earnings were a record $1.98 a share, and adjusted EBITDA was a record $405.5 million.
Chairman and CEO Frank C. Sullivan said organic growth in Performance Coatings and Consumer, together with manufacturing, procurement and SG&A efficiencies, overcame raw-material inflation and a temporary slowdown in Construction Products.
Construction Products Group sales were $859.2 million, up 0.8%. Organic sales in the segment declined 1.7%; acquisitions net of divestitures added 2.5%. Delayed sales in healthcare and education markets and supplier raw-material availability issues weighed on the group, with the Kalzip acquisition and pricing offsetting those headwinds. Adjusted EBITDA in Construction Products fell 9.7% to $166.2 million, attributed to lower fixed-cost absorption, raw-material inflation from supply shortages, a $4.4 million increase in bad-debt expense tied to a customer bankruptcy, and a $6.3 million warranty charge at a small European business under review for closure. SG&A optimization partially offset those items.
Performance Coatings Group sales were a record $629.7 million, up 10.2%, including 7.9% organic growth, a 1.8% increase from acquisitions, and a 0.5% foreign-currency benefit. Engineered solutions for high-performance buildings, energy and infrastructure projects, including in emerging markets, and food coatings and ingredients were particularly strong. Adjusted EBITDA in the segment rose 18.2% to $121.1 million.
Consumer Group sales were a record $726.7 million, up 5.3%, including 5.2% organic growth. Adjusted EBITDA was $146.6 million. Income before taxes included a $10.8 million gain on the sale of a facility closed under the MAP 2025 program, excluded from adjusted EBITDA.
Effective June 1, 2026, RPM moved certain Latin America businesses generating about $143 million in annual revenue from Construction Products and Consumer into Performance Coatings. The recast had no impact on consolidated results.
Cash provided by operating activities was $263.9 million in the first three months of fiscal 2027, compared with $237.5 million a year earlier. Capital expenditures were $58.5 million. The company returned $90.5 million to stockholders through dividends and share repurchases. Total debt was $2.41 billion as of August 31, 2026, and total liquidity was $1.21 billion.
RPM acquired Volteco, an Italy-based supplier of below-grade waterproofing solutions, for Construction Products. Volteco had calendar 2025 sales of €28 million.
For the fiscal 2027 second quarter, the company projects consolidated sales and adjusted EBITDA to increase in the low- to mid-single-digit range. Construction Products sales are expected to rise in the low-single-digit range, Performance Coatings in the mid- to high-single-digit range, and Consumer in the low- to mid-single-digit range. Sullivan said Performance Coatings is expected to lead growth, Consumer to continue stabilizing, and Construction Products demand to remain soft, with MAP benefits and selling-price increases helping offset gross-margin pressure from inflation and start-up costs at new facilities. The company anticipates Construction Products will return to positive organic growth by year-end.
For full-year fiscal 2027, RPM now projects consolidated sales and adjusted EBITDA to increase in the mid-single-digit range versus prior-year records. The previous outlook was 3% to 7% sales growth and 5% to 10% adjusted EBITDA growth.