It has been about a month since the last earnings report for RPM International (RPM Quick QuoteRPM - Free Report) . Shares have lost about 6.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is RPM International due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for RPM International Inc. before we dive into how investors and analysts have reacted as of late.

RPM International Q1 Earnings & Sales Beat, Adjusted EBIT Up Y/Y

RPM International reported impressive first-quarter fiscal 2025 (ended Aug. 31, 2025) results, with earnings and net sales surpassing the Zacks Consensus Estimate and increasing year over year.

Inside RPM International’s Headlines

The company’s adjusted earnings per share (EPS) of $1.88 surpassed the Zacks Consensus Estimate of $1.87 by 0.5%. In the year-ago quarter, the company reported an adjusted EPS of $1.84.

Net sales of $2.11 billion also beat the consensus mark of $2.04 billion by 3.4% and increased 7.4% year over year.

Geographically, sales increased 5.9% in North America (accounting for around 79% of fiscal first-quarter total sales), driven by systems and turnkey solutions serving high-performance buildings. Sales in Europe (15% of total sales) increased 20.7% driven by M&A and favorable foreign exchange. The metric in Africa and the Middle East (1% of total sales) inched up 9.2%. Furthermore, the metric in the Asia Pacific (2% of total sales) also increased 0.1% year over year. 

However, sales in Latin America (3% of total sales) were down 4.8% year over year.

Net sales increased 3% organically during the quarter. Acquisitions and favorable foreign currency translation aided sales by 3.8% and 0.6%, respectively.

RPM International’s Operational Discussion

Selling, general and administrative expenses, as a percentage of net sales, increased 40 basis points (bps) to 27.1% from 26.7% reported a year ago.

Adjusted EBIT increased 2.9% year over year to $337.8 million. Adjusted EBIT margin contracted 70 bps to 16%.

Segmental Details of RPM International

Construction Products Group (CPG): In the reported quarter, the segment’s sales increased 6.3% from a year ago to $809.9 million, owing to a 5.4% organic sales growth, a 0.5% contribution from buyouts and 0.6% favorable foreign currency translation.

Adjusted EBIT of $169.1 million was up 3.1% year over year, but adjusted EBIT margin contracted 60 bps to 19.2%.

Performance Coatings Group (PCG): The segment’s sales inched up 9.9% year over year to $538.5 million. Sales were up 6.7% organically, 2.5% driven by acquisitions and 0.7% aided by favorable foreign currency translation.

Adjusted EBIT was up 11% on a year-over-year basis to $87 million and adjusted EBIT margin expanded 20 bps to 16.2%.

Consumer Group: Sales in the segment inched up 6.6% year over year to $693.8 million. Organic sales declined 2.9%, while favorable foreign currency translation aided sales by 0.4%. Also, the acquisition contributed 9.1% to sales growth.

The segment’s adjusted EBIT was up 2.9% from the prior-year level to $119.9 million, but the adjusted EBIT margin contracted 60 bps to 17.2%.

RPM International’s Balance Sheet

At the end of the fiscal first quarter 2026, RPM International had a total liquidity of $933.4 million compared with $969.1 million at the fiscal 2025-end. This includes cash and cash equivalents of $297.1 million compared with $302.1 million at fiscal 2025-end.

Long-term debt (excluding current maturities) at the fiscal first-quarter end was $2.66 billion compared with $2.64 billion at fiscal 2025-end.

RPM International's Q2 Fiscal 2026 Outlook

RPM International expects its pivot to growth to continue in the second quarter of fiscal 2026, supported by strength in non-residential construction markets and recent growth investments. Tariff-related inflation remains a challenge, but the company has implemented pricing actions and efficiency measures to help offset these cost pressures. The streamlined three-segment structure is also expected to enhance operational efficiency. For the fiscal second quarter, consolidated sales and adjusted EBIT are projected to increase in the mid-single-digit range from the prior-year period. The Consumer segment is expected to deliver moderately higher sales growth than the Performance Coatings and Construction Products segments, driven by recent acquisitions.

For fiscal 2026, RPM International plans to continue increasing growth investments in areas with strong potential, even as these initiatives add to SG&A expenses. The company expects these investments to accelerate sales momentum and strengthen its competitive position in a mixed demand environment. Consolidated sales are anticipated to increase toward the high end of the earlier low to mid-single-digit range, while adjusted EBIT is expected to rise toward the lower end of the high single to low double-digit range. Management expects both full-year sales and adjusted EBIT to reach record levels in fiscal 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, RPM International has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise RPM International has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.