A month has gone by since the last earnings report for RPM International (RPM Quick QuoteRPM - Free Report) . Shares have added about 10.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RPM International due for a pullback? Well, first let's take a quick look at its latest 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 Q1 Earnings Beat Estimates on Coatings & Consumer Strength

RPM International reported mixed results for the first quarter of fiscal 2027, with adjusted earnings topping the Zacks Consensus Estimate but net sales missing the same. Both metrics increased on a year-over-year basis.

The quarterly performance was driven by strong demand for engineered solutions for high-performance buildings, energy and infrastructure projects, particularly in emerging markets. Shelf-space gains, new product introductions, acquisitions, favorable pricing and operational improvements supported growth. These tailwinds were partly offset by raw material inflation, supply shortages and sluggish demand in education and healthcare construction markets.

RPM's Q1 Earnings and Sales Performance

The company reported adjusted earnings per share of $1.98, topping the Zacks Consensus Estimate of $1.95 by 1.5%. In the prior-year quarter, RPM reported adjusted earnings of $1.88 per share.

Net sales of $2.216 billion missed the consensus mark of $2.218 billion by 0.1% but increased 4.8% year over year. Organic sales rose 3.1%, while acquisitions net of divestitures and favorable foreign currency translation contributed 1.6% and 0.1%, respectively.

Geographically, North American sales, representing 77% of total sales, increased 2.6% year over year. European sales rose 5.9%, primarily benefiting from acquisitions. Sales in Latin America, Africa/Middle East/other foreign markets and Asia-Pacific increased 23.1%, 26.8% and 38.4%, respectively, supported by demand for engineered solutions for high-performance buildings and infrastructure projects.

RPM International's Cost and Margin Trends

Selling, general and administrative expenses declined to $559.8 million from $573.5 million in the prior-year quarter. Gross margin contracted 100 basis points (bps) to 41.3%, primarily reflecting raw material inflation that outpaced pricing and operational benefits.

Adjusted EBITDA increased 4.5% year over year to a first-quarter record of $405.5 million. However, adjusted EBITDA margin slipped 10 bps to 18.3%. Higher sales and MAP-related savings helped offset inflation, warranty expenses and bad debt provisions. Net income attributable to RPM stockholders increased 12.6% to $256.4 million. Reported earnings per share rose 13.6% to $2.01 from $1.77 a year ago.

RPM's Segmental Performance in Q1

Construction Products Group: Net sales increased 0.8% year over year to $859.2 million. Acquisitions net of divestitures contributed 2.5%, while organic sales declined 1.7%. The Kalzip acquisition and pricing actions helped offset slower healthcare and education demand and raw material-related product shortages.

Adjusted EBITDA declined 9.7% to $166.2 million, while the margin contracted 230 bps to 19.3%. Lower volumes, inflation, a $4.4 million bad debt expense and a $6.3 million warranty charge weighed on profitability.

Performance Coatings Group: Net sales grew 10.2% year over year to $629.7 million, including 7.9% organic growth. Acquisitions and favorable foreign currency translation contributed 1.8% and 0.5%, respectively. Growth benefited from infrastructure, energy, high-performance building projects and food coatings.

Adjusted EBITDA rose 18.2% to $121.1 million, with the margin expanding 130 bps to 19.2%. Higher volumes, improved fixed-cost absorption and SG&A optimization supported profitability.

Consumer Group: Net sales increased 5.3% year over year to $726.7 million, supported by 5.2% organic growth. Shelf-space gains, new products and pricing aided performance despite sluggish retail traffic and housing turnover.

Adjusted EBITDA improved 5.5% to $146.6 million, while the margin expanded 10 bps to 20.2%. Higher volumes and operational efficiencies supported results.

RPM International's Cash Flow and Financial Position

At the fiscal first-quarter end, total liquidity was $1.21 billion compared with $933.4 million a year ago. Total debt declined to $2.41 billion from $2.67 billion, reflecting debt repayments supported by strong operating cash flow.

Cash provided by operating activities increased to $263.9 million from $237.5 million. Capital expenditures declined to $58.5 million from $62.5 million. RPM returned $90.5 million to its shareholders through dividends and repurchases, up 10.2% year over year.

RPM's Q2 Outlook

For the second quarter of fiscal 2027, RPM expects consolidated sales and adjusted EBITDA to increase in the low- to mid-single-digit range year over year.

Construction Products sales are expected to grow in the low-single-digit range, Performance Coatings in the mid- to high-single-digit range and Consumer sales in the low- to mid-single-digit range. Inflation, sluggish end markets and new facility start-up costs remain headwinds.

RPM International's Revised FY27 Outlook

For fiscal 2027, RPM narrowed its consolidated sales growth outlook to the mid-single-digit range from the previous projection of 3-7%.

Adjusted EBITDA growth is now expected in the mid-single-digit range, down from the earlier forecast of 5-10%. Management raised second-quarter raw material inflation expectations to 9-11% from 6-8%, with third-quarter inflation projected at 7-9%.

The company expects pricing actions and $75 million in previously announced SG&A-focused savings to help offset cost pressures. Construction Products is anticipated to return to positive organic growth toward the fiscal year-end.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, RPM International has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade 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 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.

Performance of an Industry Player

RPM International is part of the Zacks Chemical - Specialty industry. Over the past month, H. B. Fuller (FUL Quick QuoteFUL - Free Report) , a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended August 2026 more than a month ago.

H. B. Fuller reported revenues of $938.17 million in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $1.52 for the same period compares with $1.26 a year ago.

H. B. Fuller is expected to post earnings of $1.38 per share for the current quarter, representing a year-over-year change of +7.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for H. B. Fuller. Also, the stock has a VGM Score of C.