Coatings maker RPM International Q1 profit beats on organic growth, pricing
RPM•RPM International’s fiscal first-quarter sales rose 4.8% to $2.22 billion, in line with expectations, while adjusted EPS increased 5.3% to $1.98, above the $1.94 estimate. The company expects second-quarter sales and adjusted EBITDA to rise at a low- to mid-single-digit rate year over year.
1. Quarterly results
RPM International reported fiscal first-quarter sales of $2.22 billion, up 4.8% year over year and in line with analyst expectations. Adjusted EPS rose 5.3% to $1.98, beating the $1.94 estimate; net income was $256.36 million.
2. Growth drivers
The company said organic growth in its Performance Coatings and Consumer segments, pricing actions to offset inflation, and operational efficiencies supported results. Revenue in emerging markets increased more than 20%, which the company attributed to demand for engineered solutions and expansion of its Platform model. MAP operational improvement initiatives and SG&A optimization contributed to record adjusted EBITDA.
3. Company outlook
RPM expects second-quarter sales and adjusted EBITDA to increase at a low- to mid-single-digit rate compared with a year earlier. For fiscal 2027, it expects both measures to rise at a mid-single-digit rate. The company expects Performance Coatings to lead second-quarter growth, while Consumer segment demand remains soft.
