RPM International (RPM) Fiscal Q1 2027 Earnings Call: Record EPS, Guidance Narrowed

Source Tradingkey

Key Takeaways

  • RPM International delivered record fiscal first-quarter sales, adjusted EBITDA and adjusted diluted EPS. Adjusted EPS rose 5.3% year over year to $1.98.
  • Gross margin declined 100 basis points as raw material inflation outpaced pricing and MAP benefits. SG&A optimization kept the adjusted EBITDA margin consistent with the prior-year quarter.
  • Consumer organic sales grew 5.2%, supported by shelf-space gains, new products, pricing and improving performance from The Pink Stuff.
  • Performance Coatings Group posted record results, helped by demand from high-performance buildings, energy and infrastructure projects. Emerging-market revenue grew more than 20%.
  • Construction Products Group organic sales declined due to weakness in education and healthcare, polyurethane-related product shortages and a smaller project backlog.
  • Management narrowed fiscal 2027 guidance to mid-single-digit growth for both sales and adjusted EBITDA, citing higher inflation and uncertainty over the timing of a Construction Products recovery.

Core Financial Data

MetricFiscal Q1 2027 resultYear-over-year change or context
Adjusted diluted EPS$1.98Up 5.3%; first-quarter record
SalesRecord first-quarter levelIncreased year over year
Adjusted EBITDARecord first-quarter levelIncreased year over year
Adjusted EBITDA marginNot quantifiedConsistent with the prior-year quarter
Gross marginNot quantifiedDown 100 basis points
Consumer organic sales—Up 5.2%
Emerging-market revenue—Up more than 20%
Working-capital efficiency—Improved 150 basis points
Share repurchases and dividends$90.5 millionUp 10.2%
Total debt—Declined by $263 million

Business and Operating Performance

Performance Coatings Group

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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