A month has gone by since the last earnings report for RPM International (RPM Quick QuoteRPM - Free Report) . Shares have lost about 8.6% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

RPM International Q3 Earnings & Sales Beat, Both Up Y/Y

RPM International 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.

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.

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.

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.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, RPM International has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, RPM International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.