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RPM International Stock Up on Q3 Earnings & Sales Beat, Both Up Y/Y
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Key Takeaways
RPM reported Q3 EPS of 57 cents, beating estimates by 54.1%, with sales up 8.9% YoY.
It benefited from strong demand in high-performance buildings, acquisition contributions & currency tailwinds.
Margins expanded on MAP initiatives and efficiencies despite inflation and weak DIY demand.
RPM International Inc. (RPM - Free Report) reported excellent third-quarter fiscal 2026 (ended Feb. 28, 2026) results, with quarterly earnings and net sales topping the Zacks Consensus Estimate and increasing on a year-over-year basis.
The quarterly results were driven by increased demand for engineered solutions for high-performance buildings, contributions from acquisitions and favorable foreign currency translation. Besides, favorable comparisons from last year’s growth, which was affected by harsh weather conditions, also led to year-over-year growth in the financial performance. These tailwinds were somewhat offset by soft DIY demand during the fiscal quarter.
On the other hand, RPM’s expense optimization actions and supply-chain efficiencies under the MAP operational improvement initiatives aided the bottom line despite elevated inflationary pressures.
Looking ahead, management expects sales and adjusted EBIT growth in the upcoming quarter even if geopolitical uncertainties add to the costs and complexity of the operating environment. RPM aims at disciplined investments in areas demonstrating strong returns and long-term growth potential, including high-performance buildings, business intelligence and innovation.
Following the release, RPM stock surged 10.7% during today’s pre-market trading hours, reflecting investors’ optimism.
Inside RPM International’s Headlines
The company’s adjusted earnings per share (EPS) of 57 cents topped the Zacks Consensus Estimate of 37 cents by 54.1%. In the year-ago quarter, RPM reported an adjusted EPS of 35 cents.
Net sales of $1.61 billion also surpassed the consensus mark of $1.55 billion by 3.9% and grew 8.9% year over year. Net sales increased 3% organically during the quarter year over year. Acquisitions and favorable foreign currency translation aided sales by 3.5% and 2.4%, respectively.
RPM International Inc. Price, Consensus and EPS Surprise
Geographically, sales climbed 20.1% in Europe (17% of the fiscal third quarter’s total sales) compared with a year ago, driven by mergers and acquisitions and favorable foreign exchange. North American (74% of total sales) sales increased 6.3% thanks to elevated demand for high-performance building solutions and acquisitions. Sales in Latin America (4% of total sales) were up 6.8% year over year
Moreover, the markets in Africa and the Middle East (2% of total sales) elevated the growth in all emerging markets because of high-performance building and infrastructure projects, along with favorable foreign currency translation. The metric in the Asia Pacific (3% of total sales) also grew 16.1% year over year.
RPM’s Operational Discussion
Selling, general and administrative expenses, as a percentage of net sales, contracted 80 basis points (bps) to 33.2% from 34% reported a year ago.
Adjusted EBIT grew 48.8% year over year to $116.4 million. Adjusted EBIT margin expanded 190 bps to 7.2%.
Segmental Details of RPM International
Construction Products Group: In the reported quarter, the segment’s net sales increased 10.5% from a year ago to $546.7 million, owing to 6.9% organic sales growth, a 0.2% contribution from buyouts (net of divestitures) and 3.4% favorable foreign currency translation.
Adjusted EBIT of $30.3 million surged 178.8% year over year, and adjusted EBIT margin expanded 330 bps to 5.5%.
Performance Coatings Group: The segment’s net sales grew 8.4% year over year to $496.8 million. Sales were up 5.1% organically, 0.9% driven by acquisitions and 2.4% aided by favorable foreign currency translation.
Adjusted EBIT was up 20% on a year-over-year basis to $66.8 million and adjusted EBIT margin increased 130 bps to 13.4%.
Consumer Group: Net sales in the segment increased 7.9% year over year to $564.5 million. Organic sales declined 2.4%, while favorable foreign currency translation aided sales by 1.3%. Also, the acquisition contributed 9% to sales growth.
The segment’s adjusted EBIT was up 15% from the prior-year level to $58.5 million and the adjusted EBIT margin expanded 70 bps to 10.4%.
RPM International’s Balance Sheet
At the end of the fiscal third quarter, RPM International had a total liquidity of $1.02 billion compared with $969.1 million at the fiscal 2025-end. This includes cash and cash equivalents of $294.2 million compared with $302.1 million at fiscal 2025-end.
Long-term debt (excluding current maturities) as of Feb. 28, 2026, was $2.55 billion, down from $2.64 billion at fiscal 2025-end.
As of the first nine months of fiscal 2026, net cash provided by operating activities was $656.7 million, up from $619 million in the year-ago period. RPM also returned $255.3 million to stockholders through $202.8 million of dividends and $52.5 million of share repurchases during the first nine months of fiscal 2026.
RPM Reaffirms Q4 FY2026 Outlook
The company still expects net sales in the fourth quarter of fiscal 2026 to increase in the mid-single-digit range year over year. Also, the adjusted EBIT is projected to be up in low- to high-single-digits compared with the year-ago quarter.
RPM Stock’s Zacks Rank
Currently, RPM International carries a Zacks Rank #4 (Sell).
Here are some companies in the Basic Materials sector, which per our model, have the right combination of a positive Earnings ESP and a Zacks Rank of 1, 2 (Buy) or 3 (Hold), to post an earnings beat in the respective quarters to be reported.
Equinox Gold Corp. (EQX - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank of 1 at present.
Equinox Gold reported better-than-expected earnings in two of the last four quarters and missed on the remaining two occasions, the average surprise being 89.2%. Equinox Gold’s earnings for the first quarter of 2026 are expected to surge 412.5% from the prior year.
Teck Resources Limited (TECK - Free Report) currently has an Earnings ESP of +1.64% and a Zacks Rank of 2.
Teck Resources’ earnings for the first quarter of 2026 are expected to increase 88.1% year over year. Teck Resources reported better-than-expected earnings in each of the last four quarters, the average surprise being 54.3%.
Albemarle Corporation (ALB - Free Report) currently has an Earnings ESP of +97.57% and a Zacks Rank of 3.
Albemarle reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 57.8%. Albemarle’s earnings for the first quarter of 2026 are expected to increase year over year by a whopping 533.3%.
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RPM International Stock Up on Q3 Earnings & Sales Beat, Both Up Y/Y
Key Takeaways
RPM International Inc. (RPM - Free Report) reported excellent third-quarter fiscal 2026 (ended Feb. 28, 2026) results, with quarterly earnings and net sales topping the Zacks Consensus Estimate and increasing on a year-over-year basis.
The quarterly results were driven by increased demand for engineered solutions for high-performance buildings, contributions from acquisitions and favorable foreign currency translation. Besides, favorable comparisons from last year’s growth, which was affected by harsh weather conditions, also led to year-over-year growth in the financial performance. These tailwinds were somewhat offset by soft DIY demand during the fiscal quarter.
On the other hand, RPM’s expense optimization actions and supply-chain efficiencies under the MAP operational improvement initiatives aided the bottom line despite elevated inflationary pressures.
Looking ahead, management expects sales and adjusted EBIT growth in the upcoming quarter even if geopolitical uncertainties add to the costs and complexity of the operating environment. RPM aims at disciplined investments in areas demonstrating strong returns and long-term growth potential, including high-performance buildings, business intelligence and innovation.
Following the release, RPM stock surged 10.7% during today’s pre-market trading hours, reflecting investors’ optimism.
Inside RPM International’s Headlines
The company’s adjusted earnings per share (EPS) of 57 cents topped the Zacks Consensus Estimate of 37 cents by 54.1%. In the year-ago quarter, RPM reported an adjusted EPS of 35 cents.
Net sales of $1.61 billion also surpassed the consensus mark of $1.55 billion by 3.9% and grew 8.9% year over year. Net sales increased 3% organically during the quarter year over year. Acquisitions and favorable foreign currency translation aided sales by 3.5% and 2.4%, respectively.
RPM International Inc. Price, Consensus and EPS Surprise
RPM International Inc. price-consensus-eps-surprise-chart | RPM International Inc. Quote
Geographically, sales climbed 20.1% in Europe (17% of the fiscal third quarter’s total sales) compared with a year ago, driven by mergers and acquisitions and favorable foreign exchange. North American (74% of total sales) sales increased 6.3% thanks to elevated demand for high-performance building solutions and acquisitions. Sales in Latin America (4% of total sales) were up 6.8% year over year
Moreover, the markets in Africa and the Middle East (2% of total sales) elevated the growth in all emerging markets because of high-performance building and infrastructure projects, along with favorable foreign currency translation. The metric in the Asia Pacific (3% of total sales) also grew 16.1% year over year.
RPM’s Operational Discussion
Selling, general and administrative expenses, as a percentage of net sales, contracted 80 basis points (bps) to 33.2% from 34% reported a year ago.
Adjusted EBIT grew 48.8% year over year to $116.4 million. Adjusted EBIT margin expanded 190 bps to 7.2%.
Segmental Details of RPM International
Construction Products Group: In the reported quarter, the segment’s net sales increased 10.5% from a year ago to $546.7 million, owing to 6.9% organic sales growth, a 0.2% contribution from buyouts (net of divestitures) and 3.4% favorable foreign currency translation.
Adjusted EBIT of $30.3 million surged 178.8% year over year, and adjusted EBIT margin expanded 330 bps to 5.5%.
Performance Coatings Group: The segment’s net sales grew 8.4% year over year to $496.8 million. Sales were up 5.1% organically, 0.9% driven by acquisitions and 2.4% aided by favorable foreign currency translation.
Adjusted EBIT was up 20% on a year-over-year basis to $66.8 million and adjusted EBIT margin increased 130 bps to 13.4%.
Consumer Group: Net sales in the segment increased 7.9% year over year to $564.5 million. Organic sales declined 2.4%, while favorable foreign currency translation aided sales by 1.3%. Also, the acquisition contributed 9% to sales growth.
The segment’s adjusted EBIT was up 15% from the prior-year level to $58.5 million and the adjusted EBIT margin expanded 70 bps to 10.4%.
RPM International’s Balance Sheet
At the end of the fiscal third quarter, RPM International had a total liquidity of $1.02 billion compared with $969.1 million at the fiscal 2025-end. This includes cash and cash equivalents of $294.2 million compared with $302.1 million at fiscal 2025-end.
Long-term debt (excluding current maturities) as of Feb. 28, 2026, was $2.55 billion, down from $2.64 billion at fiscal 2025-end.
As of the first nine months of fiscal 2026, net cash provided by operating activities was $656.7 million, up from $619 million in the year-ago period. RPM also returned $255.3 million to stockholders through $202.8 million of dividends and $52.5 million of share repurchases during the first nine months of fiscal 2026.
RPM Reaffirms Q4 FY2026 Outlook
The company still expects net sales in the fourth quarter of fiscal 2026 to increase in the mid-single-digit range year over year. Also, the adjusted EBIT is projected to be up in low- to high-single-digits compared with the year-ago quarter.
RPM Stock’s Zacks Rank
Currently, RPM International carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks With the Favorable Combination
Here are some companies in the Basic Materials sector, which per our model, have the right combination of a positive Earnings ESP and a Zacks Rank of 1, 2 (Buy) or 3 (Hold), to post an earnings beat in the respective quarters to be reported.
Equinox Gold Corp. (EQX - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank of 1 at present.
Equinox Gold reported better-than-expected earnings in two of the last four quarters and missed on the remaining two occasions, the average surprise being 89.2%. Equinox Gold’s earnings for the first quarter of 2026 are expected to surge 412.5% from the prior year.
Teck Resources Limited (TECK - Free Report) currently has an Earnings ESP of +1.64% and a Zacks Rank of 2.
Teck Resources’ earnings for the first quarter of 2026 are expected to increase 88.1% year over year. Teck Resources reported better-than-expected earnings in each of the last four quarters, the average surprise being 54.3%.
Albemarle Corporation (ALB - Free Report) currently has an Earnings ESP of +97.57% and a Zacks Rank of 3.
Albemarle reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 57.8%. Albemarle’s earnings for the first quarter of 2026 are expected to increase year over year by a whopping 533.3%.