RPM International reported fiscal 2026 second-quarter net sales of $1.91 billion, a 3.5% increase from $1.85 billion a year earlier. Adjusted diluted EPS came in at $1.20, missing the consensus estimate of $1.42. Net income attributable to shareholders declined 12% to $161.2 million, with adjusted EBIT falling 11.2% to $226.6 million. Organic sales contracted by 0.5%, while acquisitions added 3.4% and favorable currency translation contributed 0.6%. Europe led geographic growth with a 13.9% sales increase, followed by North America at 1.9% and emerging markets driven by Africa/Middle East projects.

RPM attributed the earnings miss to weaker construction demand, longer project lead times during the government shutdown and temporary inefficiencies from plant and warehouse consolidations. Volume declines in DIY and disaster restoration businesses further pressured margins. In response, management has launched SG&A optimization actions expected to yield $100 million in annual savings—$5 million in Q3, $20 million in Q4 and $75 million in fiscal 2027—while preserving targeted growth investments.

RPM’s Tremco Construction Products Group signed a definitive agreement to acquire Kalzip GmbH, a German specialist in metal roofing and façade systems with €75 million in 2024 net sales and over 1.2 billion square feet of installed aluminum solutions. The deal, slated to close in Q4 of fiscal 2026, enhances RPM’s footprint in Europe and India and creates opportunities to integrate Kalzip’s high-performance systems into North American markets, reinforcing RPM’s end-to-end building envelope strategy.