RPM International beats first quarter earnings estimates

Investing.com -- On Tuesday, RPM International Inc. (NYSE: RPM) reported first quarter fiscal 2027 results that exceeded earnings expectations while revenue met analyst estimates.

Shares of the specialty coatings and building materials provider edged down 0.84% in pre-market trading following the announcement.

The company posted adjusted earnings per share of $1.98, beating the analyst consensus of $1.95 by $0.03. Revenue reached $2.22 billion, matching analyst expectations and representing a 4.8% increase from $2.11 billion in the prior year period.

Chairman and CEO Frank C. Sullivan attributed the results to solid organic growth and operational efficiencies that overcame raw material inflation and a temporary slowdown in the Construction Products Group.

The company’s adjusted EBITDA rose 4.5% to a record $405.5 million compared to $388.0 million last year. Revenue growth included 3.1% organic growth, 1.6% from acquisitions net of divestitures, and a 0.1% benefit from foreign currency translation.

By segment, Performance Coatings Group led with sales of $629.7 million, up 10.2% YoY, driven by strength in engineered solutions for high-performance buildings and infrastructure projects. Consumer Group sales increased 5.3% to $726.7 million, aided by shelf space wins and new product introductions.

Construction Products Group sales rose just 0.8% to $859.2 million, impacted by delayed sales in healthcare and education markets and supplier raw material availability issues.

"The resilience of our associates and business model was on full display in the first quarter as we generated another quarter of record sales and adjusted EBITDA," Sullivan said.

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

For the full fiscal year 2027, the company projects both sales and adjusted EBITDA to increase in the mid-single-digit range, narrowing from its previous outlook of 3% to 7% sales growth and 5% to 10% adjusted EBITDA growth.

Original Article

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