RPM International Reports 12.6% Net Income Growth in Fiscal 2027 First Quarter

Net Income YoY

+12.6%

Key highlights

• Net sales grew 4.8% year-over-year to $2,216 million
• Net income attributable to stockholders rose 12.6% to $256.36 million
• Diluted earnings per share increased to $2.01 from $1.77 in the prior-year period
• Pretax income climbed to $337.05 million, up from $298.05 million
• Management projected full-year fiscal 2027 sales growth in the mid-single-digit range

How the Period Went

RPM International Inc. experienced a steady start to fiscal 2027, with net sales climbing to $2,216 million from $2,114 million in the same period last year. This 4.8% top-line expansion was accompanied by more pronounced growth in profitability, as net income reached $256.36 million, representing a 12.6% year-over-year increase. Diluted earnings per share followed a similar trajectory, rising to $2.01 from $1.77. These results reflect consistent demand across the company's diverse portfolio of high-performance coatings and building materials, maintaining a growth trend consistent with the $2.23 billion in sales reported in the preceding quarter ending May 2026.

Margins and Profitability

The company’s bottom-line performance was bolstered by a focus on operational efficiency and margin expansion. Gross profit improved to $913.96 million, up from $893.22 million in the prior-year quarter. Pretax income saw a sharp rise to $337.05 million compared to $298.05 million previously, driven by a combination of improved gross margins and a reduction in restructuring expenses. This operational leverage allowed RPM to convert its mid-single-digit revenue growth into double-digit earnings growth. Management has signaled that this focus on efficiency will continue, with expectations for full-year adjusted EBITDA to increase in the mid-single-digit range for the remainder of fiscal 2027.

Business Overview

Operating within the specialty chemicals industry, RPM International serves both industrial and consumer markets through four primary segments: Construction Products, Performance Coatings, Specialty Products, and Consumer. Its product suite includes well-known brands such as Rust-Oleum, DAP, and Tremco, which provide protective coatings, sealants, and roofing systems. The company caters to diverse end markets ranging from residential home improvement and commercial construction to heavy infrastructure and industrial maintenance. This broad market exposure provides a level of diversification, as demand for infrastructure-related coatings often offsets fluctuations in the more cyclical residential renovation market.

Financial Context and Outlook

RPM’s current financial standing reflects a period of relative valuation stability within the basic materials sector. With a market capitalization of approximately $12.44 billion, the company trades at a price-to-earnings ratio of 18.8x. Technical indicators show a Relative Strength Index of 39.7, positioning the stock near the lower end of its recent trading range following a quarter-over-quarter price decline of 12.27%. Looking ahead, the company has scheduled an Investor Day for November 9, 2026, to detail its long-term strategic objectives. For the second quarter of fiscal 2027, management anticipates sales and adjusted EBITDA growth in the low- to mid-single-digit range.

Up 1.1% since our story on 6 Oct: $97.41 when we broke it → $98.44 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$100.81
15 Sep	$100.60
16 Sep	$99.78
17 Sep	$99.18
18 Sep	$98.37
21 Sep	$99.01
22 Sep	$101.03
23 Sep	$100.06
24 Sep	$98.71
25 Sep	$100.44
28 Sep	$100.20
29 Sep	$99.97
30 Sep	$98.67
1 Oct	$99.22
2 Oct	$99.19
5 Oct	$95.30
6 Oct	$98.31
7 Oct	$98.33
8 Oct	$99.43
9 Oct	$97.73
12 Oct	$97.57
13 Oct	$98.44

RPM INTERNATIONAL INC/DE/ · financial snapshot

Share price	$97.41
Market cap	$12.4B
Revenue (annual)	$7.9B
P/E (TTM)	18.8×
1-month price change	-5.82%
Sector	Basic MaterialsSpecialty Chemicals

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.