revenue growth
3–7 pct
FY 2027
official guidance
RPM INTERNATIONAL INC.
Last · NYSE$97.95-0.49 (-0.50%)close · yahoo · 17h ago
Market cap$12.49B127.5M sh
P/E · TTM18.1fwd 14.8 · eps 5.41
Beta1.04vs S&P 500
Div yield2.32%annual · TTM
52w range
$92.92$121.78
Volume1.5Msession
| Revenue | $2.2B |
|---|---|
| Operating income | $337.1M |
| Net income | $255.4M |
| Free cash flow | $205.4M |
| Operating margin | 15.2% |
| Net margin | 11.5% |
| Return on equity | 7.3% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution, but near-term margin and volume risks make this a wait-for-proof story.
Hold: RPM delivered a strong Q4, with sales up 7.2% and record adjusted EBIT and EPS, but fiscal 2027 guidance of 3%-7% sales growth and 5%-10% adjusted EBITDA growth is not sufficiently compelling against elevated raw-material inflation and persistent consumer weakness. The bull case is execution—pricing, $75 million of SG&A savings, restoration/infrastructure demand and share gains—while the key tension is that the low end of guidance implies volume declines and management has limited visibility beyond the next two to three months.
Themes
- Fiscal 2027 Guidance
- Raw Material Inflation
- Consumer Diy
- Construction Products
- Performance Coatings
- System Selling
Near term
Fiscal Q1 raw-material inflation is expected at 5%-6%, with Q2 potentially reaching 6%-8%; pricing is expected to offset costs on a dollar basis but not fully recover gross-margin percentage immediately.
A North American supplier fire is constraining propylene-oxide-derived materials, while MDI supplies remain tight; management expects temporary Q1 sales and cost pressure, particularly at Tremco Roofing.
Consumer unit volumes declined roughly 2%-4% in Q4 and remain dependent on an uncertain DIY stabilization; management described any pickup as sporadic rather than a robust rebound.
The $75 million of fiscal 2027 SG&A savings and roughly $10 million-$12 million of second-half benefits from plant and distribution actions are important offsets to inflation and startup costs.
Pricing announced for late summer should provide more benefit in Q2, but analysts' questioning indicates expectations for roughly dollar-neutral price/cost rather than immediate margin expansion.
Longer term
Construction Products and Performance Coatings are gaining share in concrete admixtures and benefiting from maintenance, restoration, infrastructure, energy and high-performance-building demand.
The system-selling model and ability to warrant complete wall and building systems appear differentiated, but data centers are only about 1%-2% of company sales and management characterized activity as broadly even, not accelerating.
Cash generation and balance-sheet flexibility support buybacks and disciplined bolt-on M&A; fiscal 2026 operating cash flow was $899 million, with $349 million returned through dividends and repurchases.
Management sees a path to meaningful margin expansion, but acknowledged that it requires renewed Consumer unit-volume growth, continued CPG/PCG strength and a more stable operating environment.
The emerging-markets platform is a credible structural growth lever, with management targeting a $1 billion-plus developing-world business, though execution and geopolitical volatility remain material risks.
Red flags
Fiscal 2027 guidance is highly dependent on stabilization in Consumer, where management admitted visibility is lowest and the low end of sales guidance implies volume declines.
Management called its second-half raw-material outlook a 'swag' and said it has little visibility six to nine months out; the guidance assumes inflation moderates despite renewed geopolitical and tariff risks.
Analysts pressed on the prior 16% operating-margin ambition, but management deferred details to the November Investor Day and tied meaningful improvement to several external conditions.
Underlying commercial construction remains weak, and datacenter exposure is too small to offset a broad downturn by itself.
Consumer earnings growth was supported by acquisitions and cost actions while organic unit volumes remained negative, raising questions about the durability of reported growth.
Forward outlook
ebitda
5–10 pct
FY 2027
official guidance
revenue growth
—
Q1 2027
official guidance
ebitda
—
Q1 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings
Reported · 12:45 PM UTC+2
Period
Sep 2026
EPS
$1.98Beat+1.54%
Est. revenue
—
Reported · 2:00 AM UTC+2
Period
Aug 2026
EPS
$1.98Beat+1.79%
Est. revenue
—
1:30 PM UTC+1
Period
Nov 2026
Est. EPS
$1.27
Est. revenue
2.0B
Earnings transcripts
Documents
FormReporting forFiledFlags