RPM International Inc.

What they do

Through its subsidiaries, RPM manufactures, markets and sells specialty paints, infrastructure rehab and repair products, protective coatings, roofing systems, sealants and adhesives for the construction, industrial, specialty and consumer markets. Brands include Rust-Oleum, DAP, Carboline, Stonhard, Tremco, Euclid, Nudura and The Pink Stuff, among others. As of May 31, 2026, products were marketed in approximately 167 countries and territories with manufacturing at approximately 120 locations; about 31% of sales come from international markets.

Revenue drivers

• Construction Products Group (CPG) — Approximately 39% of consolidated net sales; includes sealants and adhesives, coatings and chemicals, roofing systems, concrete admixture and repair, building envelope solutions, firestopping and flooring systems. Fiscal 2026 segment net sales were $2.17 billion for the nine months ended February 28, 2026, and $546.7 million in the third quarter.
• Performance Coatings Group (PCG) — Approximately 27% of consolidated net sales; includes high-performance flooring systems, corrosion control and fireproofing coatings, infrastructure repair systems and fiberglass-reinforced plastic structures. Nine-month fiscal 2026 segment net sales were $1.57 billion, with $496.8 million in the third quarter.
• Consumer — The remaining share of consolidated net sales, covering consumer-facing specialty products including Rust-Oleum, DAP and The Pink Stuff brands. Nine-month fiscal 2026 segment net sales were $1.90 billion, with $564.5 million in the third quarter.
• Geographic mix — Approximately 31% of sales are generated in international markets through exports and direct foreign sales; management cited double-digit sales growth in emerging markets and a 1.2% foreign-currency translation benefit in the fiscal 2026 fourth quarter.

Recent performance

Fiscal 2026 fourth-quarter net sales were a record $2.23 billion, up 7.2% from $2.08 billion a year earlier, composed of 2.5% organic growth, 3.5% from acquisitions net of divestitures and a 1.2% currency benefit. Fourth-quarter net income attributable to RPM stockholders was $221.2 million and diluted EPS was $1.73, down from $225.8 million and $1.76, while EBIT rose 13.6% to $308.0 million. Adjusted diluted EPS of $1.89 increased 9.9% and adjusted EBIT of $338.6 million increased 7.7%. Full fiscal 2026 net sales were a record $7.86 billion, up 6.7%, with net income of $661.4 million, diluted EPS of $5.17, EBIT of $935.0 million and adjusted diluted EPS of $5.53, up 4.3%.

Strategy

RPM realigned from four reportable segments to three — CPG, PCG and Consumer — effective June 1, 2025, moving Legend Brands into CPG, the Industrial Coatings and Food groups into PCG, and the Color Group into Consumer. Management credits structural improvements from its MAP operating improvement program for margin expansion and for generating record adjusted EBIT in 16 of the past 18 quarters. The board authorized a $700 million increase to the share repurchase program, and an investor day is planned for November 9, 2026 to update strategic priorities and outline the next operating improvement plan. The company points to maintaining and restoration solutions, system sales for construction projects and emerging-market growth as priorities.

Risks

• Goodwill impairment — RPM carries substantial goodwill tested at the reporting unit level and applied the quantitative impairment test in the fourth quarters of fiscal 2026, 2025 and 2024, meaning unfavorable changes in discount rates, terminal growth or projected margins could trigger write-downs.
• Inflation and cost pressure — The company cites pricing taken to offset inflation and relies on higher volumes for fixed-cost leverage, so cost increases or an inability to price could compress margins.
• International and currency exposure — About 31% of sales are generated internationally through exports and direct foreign sales, exposing results to foreign currency translation and conditions in the roughly 167 countries and territories where products are sold.
• Segment realignment execution — The fiscal 2026 shift from four reporting segments to three changed how resources are allocated and performance is analyzed, and historical segment results were recast, creating execution and comparability risk.

Outlook

For fiscal 2027, management calls for first-quarter sales and adjusted EBITDA growth in the mid-single-digit range. The full-year fiscal 2027 outlook is for sales to increase 3% to 7% and adjusted EBITDA to increase 5% to 10%. The company also plans an investor day on November 9, 2026 to update strategic priorities and outline its next operating improvement plan.