RPM International (NYSE:RPM) Announces Quarterly Earnings Results

RPM International (NYSE:RPM) posted its earnings results on Wednesday. The specialty chemicals company reported $1.89 EPS for the quarter, topping the consensus estimate of $1.83 by $0.06, FiscalAI reports. RPM International had a return on equity of 22.45% and a net margin of 8.41%.The business had revenue of $2.23 billion during the quarter, compared to analysts’ expectations of $2.18 billion. During the same period in the previous year, the business earned $1.72 earnings per share. The firm’s revenue was up 7.2% on a year-over-year basis.

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

• RPM reported another record quarter, with consolidated sales up 7.2% and adjusted EBIT and adjusted EPS also hitting records. Management said all segments grew sales and EBIT, marking the 16th quarter of the last 18 with record adjusted EBIT.
• Construction Products Group and Performance Coatings Group continued to drive growth, supported by maintenance/restoration demand, data centers, infrastructure, and improved system selling. Management highlighted broad international strength, including double-digit growth across all international regions.
• RPM expects raw material inflation to remain elevated in the first half of fiscal 2027, with Q1 inflation projected at 5%-6% and Q2 potentially 6%-8%. The company said pricing actions are already in place to offset inflation dollar-for-dollar, with margin recovery expected later in the year if costs moderate.
• Management said its SG&A optimization actions are on track to deliver about $75 million of savings in fiscal 2027, building on roughly $20 million of benefit in Q4. RPM also said its Green Belt program is expanding and has already identified more than $30 million of additional savings opportunities.
• For fiscal 2027, RPM guided to sales growth of 3%-7% and adjusted EBITDA growth of 5%-10%, with consumer stabilization helping but visibility still limited. The company also noted continued capital deployment flexibility, including a $700 million increase to its share repurchase authorization and ongoing bolt-on M&A activity.

RPM International Price Performance

Shares of RPM stock traded up $2.05 during midday trading on Friday, reaching $106.82. 275,001 shares of the company were exchanged, compared to its average volume of 989,321. RPM International has a 12 month low of $92.92 and a 12 month high of $129.12. The company has a market cap of $13.63 billion, a P/E ratio of 20.70, a PEG ratio of 2.45 and a beta of 1.04. The company’s 50 day moving average price is $105.47 and its two-hundred day moving average price is $106.28. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.44 and a current ratio of 1.68.

RPM International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, July 14th will be given a $0.54 dividend. The ex-dividend date is Tuesday, July 14th. This represents a $2.16 annualized dividend and a yield of 2.0%. RPM International’s dividend payout ratio is 41.62%.

Analysts Set New Price Targets

Several research firms have recently issued reports on RPM. BMO Capital Markets lifted their target price on shares of RPM International from $143.00 to $151.00 and gave the company an “outperform” rating in a report on Thursday. Wall Street Zen lowered RPM International from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Weiss Ratings downgraded shares of RPM International from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, April 29th. Bank of America boosted their price objective on RPM International from $129.00 to $130.00 and gave the company a “buy” rating in a report on Thursday. Finally, UBS Group upgraded RPM International from a “neutral” rating to a “buy” rating and lifted their price target for the company from $118.00 to $130.00 in a research report on Wednesday, May 27th. Eleven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, RPM International has an average rating of “Moderate Buy” and a consensus target price of $127.58.

Hedge Funds Weigh In On RPM International

Several hedge funds have recently made changes to their positions in the business. Lazard Asset Management LLC raised its stake in shares of RPM International by 5.8% in the 2nd quarter. Lazard Asset Management LLC now owns 1,685 shares of the specialty chemicals company’s stock valued at $184,000 after acquiring an additional 93 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in RPM International in the 4th quarter valued at $60,000. BI Asset Management Fondsmaeglerselskab A S lifted its position in RPM International by 5.2% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 12,031 shares of the specialty chemicals company’s stock worth $1,321,000 after acquiring an additional 594 shares during the last quarter. Resources Management Corp CT ADV increased its stake in shares of RPM International by 21,566.7% in 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 period. Finally, Azimuth Capital Investment Management LLC lifted 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 buying an additional 650 shares during the last quarter. Institutional investors and hedge funds own 80.95% of the company’s stock.

Key Stories Impacting RPM International

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

• Positive Sentiment: RPM reported record Q4 earnings, with EPS of $1.89 and revenue of $2.23 billion both topping estimates, helping support the stock’s move higher. RPM International Expects Iran Conflict to Hit Costs Hardest Early in Fiscal 2027
• Positive Sentiment: The company expanded its buyback plan by $700 million, which investors often view as a sign management is confident in cash generation and valuation. Is RPM International (RPM) Undervalued As Record Earnings And A $700 Million Buyback Land?
• Positive Sentiment: Several analysts turned more constructive after the results, including Bank of America, BMO Capital Markets, and RBC, all of which raised price targets on RPM. Analyst Ratings and Price Target Updates
• Positive Sentiment: Commentary around strong construction and infrastructure demand suggests RPM may benefit from margin improvement and project-related spending going forward. RPM Stock Outlook Hinges on Infrastructure and Margin Gains
• Neutral Sentiment: Some analysts remain cautious, with Morgan Stanley trimming its target and keeping an equal-weight view, which suggests upside expectations are not unanimous.
• Neutral Sentiment: Broker commentary also noted that inflation and softer DIY demand remain headwinds, even though recent results were strong. Is RPM Stock a Buy Now or a Hold After Its Latest Earnings Beat?

About RPM International

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.