RPM (NYSE: RPM) posts record quarter as adjusted EBITDA hits $405.5 million

What happened

RPM International Inc. (NYSE: RPM) said fiscal 2027 first-quarter sales rose 4.8% to $2.22 billion, a record for the period. Net income was $256.4 million and diluted EPS was $2.01. Adjusted diluted EPS was a record $1.98, and adjusted EBITDA was a record $405.5 million.

The company said it moved certain Latin America businesses into Performance Coatings Group on June 1, 2026. Results now reflect that structure for current and prior periods. RPM also said it acquired Volteco, an Italy-based supplier of below-grade waterproofing solutions, for Construction Products Group.

Key numbers

Metric	Latest	Change	Source
First-quarter sales	$2.22 billion	from $2.11 billion, +4.8%	SEC 8-K
Net income	$256.4 million	from $227.6 million, +12.6%	SEC 8-K
Diluted EPS	$2.01	from $1.77, +13.6%	SEC 8-K
Adjusted diluted EPS	$1.98	from $1.88, +5.3%	SEC 8-K
Adjusted EBITDA	$405.5 million	from $388.0 million, +4.5%	SEC 8-K
Cash provided by operating activities	$263.9 million	from $237.5 million, +11.1%	SEC 8-K

Read more: RPM International (RPM) stock analysis and investment case

Why it matters

OptimistFi's case is that RPM's niche formulations and repair and maintenance exposure can keep pricing and cash conversion ahead of construction and raw-material cycles. This quarter supports that view. Operating cash flow improved by $26.4 million to $263.9 million, and the company returned $90.5 million to stockholders through dividends and share repurchases.

Total debt fell to $2.41 billion from $2.67 billion a year ago, while total liquidity rose to $1.21 billion from $933.4 million. Performance Coatings Group sales rose 10.2% to $629.7 million and Consumer Group sales rose 5.3% to $726.7 million. Both gained from pricing and higher volumes.

The weak spot was Construction Products Group. Sales rose only 0.8% and adjusted EBITDA fell 9.7%. The company also cited raw-material inflation, a $4.4 million bad-debt expense tied to a customer bankruptcy, and a $6.3 million warranty charge at a small European business under review for closure.

Full-year guidance still calls for sales and adjusted EBITDA to increase in the mid-single-digit range, after prior outlooks of 3% to 7% sales growth and 5% to 10% adjusted EBITDA growth.

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What's next

RPM said it will hold an investor day on November 9, 2026, at its Stonhard facility in New Jersey. The presentation will be provided before the event, and a public webcast will start at about 12:00 p.m. ET.

The second-quarter outlook calls for sales and adjusted EBITDA to increase in the low- to mid-single-digit range. A stronger case would show that range holding while CPG improves. A weaker read would be another soft quarter in Construction Products Group.

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