RPM · RPM International Inc.

RPM International Inc. delivered record third-quarter fiscal 2026 results with net sales reaching $1.61 billion, up 8.9% from the prior year, fueled by 3.0% organic growth from engineered solutions for high-performance buildings and a rebound from government shutdown impacts, alongside 3.5% from acquisitions and 2.4% favorable foreign currency translation. Despite soft DIY demand partially offsetting gains, all segments posted sales increases: Construction Products Group led with 10.5% growth to $546.7 million, driven by North American roofing, wall systems, and concrete admixtures; Performance Coatings grew 8.4% to $496.8 million on protective coatings and emerging market infrastructure; Consumer Group rose 7.9% to $564.5 million via acquisitions and pricing, countering DIY weakness. Adjusted EBIT hit a record $116.4 million, up 48.8%, benefiting from higher volumes, fixed-cost leverage, and MAP operational initiatives including $22.1 million in SG&A optimization charges excluded from adjusted figures. This drove record adjusted diluted EPS of $0.57, up 62.9%. Geographically, Europe surged 20.1% with M&A and FX tailwinds, North America 6.3% on building solutions, and emerging markets led by Africa/Middle East infrastructure. Cash flow remained robust with $656.7 million from operations in the first nine months, second-highest ever, supporting $255.3 million returned to shareholders, up 5.2%. Balance sheet shows total debt at $2.56 billion post-acquisition financing, with liquidity at $1.02 billion; revolving credit extended to 2031. Management reaffirmed Q4 guidance for mid-single-digit sales and low- to high-single-digit adjusted EBIT growth amid tougher comps and Middle East uncertainties, emphasizing controllable factors like outgrowing markets and efficiency. Post-quarter, Kalzip acquisition closed March 31, 2026, bolstering CPG with €75 million prior-year revenue.