RPM International Inc. (RPM)

In the past six months (August 2025 to February 2026), RPM International Inc. reported its Q2 fiscal 2026 earnings, with an EPS of $1.20, missing the consensus estimate of $1.41 (or $1.42), and revenue of $1.91 billion, falling short of analysts' expectations of $1.94 billion, leading to a 4.6% drop in shares. Despite this, the company achieved record consolidated sales, increasing 3.5% year-over-year, and December sales showed strong 12.1% growth with unit volume up 7%. Adjusted EBIT and EPS declined due to higher expenses and interest costs. Following the earnings report, several investment banks updated their ratings and adjusted price targets for RPM International stock around January 9, 2026. The company also announced a $100 million SG&A optimization program as part of a new long-term strategic plan. In January 2026, there was a significant increase in short interest, rising by 29.5% from December 31st to January 15th. Additionally, Timothy Kinser, Vice President of Operations, sold 3,441 shares of the company's common stock on January 21, 2026, for approximately $379,000. Over the past six months, RPM's stock price has seen a change of -2.64%. During the first six months of fiscal 2026, RPM returned $168.7 million to stockholders through cash dividends and share repurchases, a 5.8% increase from the prior year. The company also completed multiple small divestitures, generating $3.9 million in proceeds in the second fiscal quarter. Cash provided by operating activities reached $583.2 million in the first six months of fiscal 2026, marking the second-highest amount in the company's history. Capital expenditures for the same period were $111.8 million, driven by growth investments, including the purchase of a new Malaysian plant.

Demand for RPM International Inc.'s products and services exhibits seasonality. The Consumer Group's sales are typically influenced by the start of the spring season. The Construction Products and Performance Coatings Groups, being more internationally exposed, can experience demand fluctuations due to factors like jurisdictional shutdowns and factory closures. The company's strategic focus on repair and maintenance applications provides a degree of resilience across various economic cycles. However, overall consumer demand can be influenced by macroeconomic conditions, including interest rates and weather patterns. Weaker sales in the disaster restoration business in Q2 fiscal 2026 were attributed to reduced storm activity. While the Construction Products Group experienced robust growth in fiscal year 2024, partly due to its roofing system model, the Consumer Group faced challenging DIY end markets, leading to revenue declines despite overall margin improvements. There is also an increasing demand for eco-friendly products, particularly in Europe, which necessitates ongoing investment in low-VOC and bio-based formulations. The Performance Coatings Group has seen increased demand for turnkey flooring solutions.

RPM International Inc. is a multinational specialty chemical company that manufactures and sells coatings, sealants, building materials, and related services. The company operates in the specialty chemicals, coatings, sealants, and building materials sectors. RPM is structured into four main segments: Construction Products Group (CPG), Consumer Group, Performance Coatings Group (PCG), and Specialty Products Group (SPG), but a reorganization in July 2025 streamlined the company into three groups. Major products include construction sealants and adhesives, waterproofing solutions, roofing systems, concrete admixture and repair products, building envelope solutions, insulated cladding, flooring systems, high-performance flooring, corrosion control, fireproofing coatings, small-project paints, household cleaners, caulks, wood stains, marine coatings, and fluorescent pigments. RPM has a diverse portfolio of market-leading brands such as Kwik Seal, Tremco, Universal Sealants, Miracle Sealants, SEAL-KRETE, Touch 'n Foam, Zinsser, Rust-Oleum, DAP, Varathane, DayGlo, Legend Brands, Stonhard, Carboline, Dryvit, Euclid Chemical, The Pink Stuff, Ready Seal Inc., Mean Green, Krud Kutter, Concrobium, Moldex, and Testors.

RPM International Inc. has an extensive global presence, with its products sold in approximately 159 to 170 countries and territories worldwide. The company operates 118 to 121 manufacturing facilities across the globe. RPM has a growing presence in Europe, South America, Asia, and Africa, with North America representing its most substantial market. The Construction Products Group's products are sold to distributors, contractors, and end-users in approximately 130 countries and territories. The Consumer Group's manufacturing and distribution operations are primarily located in North America, with additional locations in Europe, Australia, South Africa, and South America.

In the past year, RPM International Inc. has maintained a strong brand reputation, built on its diverse portfolio of market-leading brands that are trusted by consumers and professionals globally. The company's "Building a Better World" initiative underscores its commitment to sustainability across its products, people, and processes. RPM's products are recognized for their ability to extend asset life and contribute to more resilient and sustainable buildings. The company's Construction Products Group, in particular, has seen record results driven by its "OneTremco strategy" and turnkey roofing system model. RPM's consistent financial performance, including record revenue, adjusted EBIT, and cash flow from operations in fiscal year 2024 (ended May 31, 2024), despite market challenges, further reinforces its positive reputation. The company is also a perennial favorite among BetterInvesting investment clubs, ranking in the top 200 most popular holdings. RPM has a long-standing history of increasing its cash dividend for 52 consecutive years, demonstrating financial stability and a positive outlook for investors. Strategic acquisitions, such as The Pink Stuff and Ready Seal Inc. in June 2025, highlight the company's focus on expansion and market diversification.

Institutional investors hold a significant portion of RPM International Inc.'s stock, ranging from approximately 51.72% to 85%. Institutional ownership is reported at 67.53% by one source. Major institutional owners include Vanguard Group Inc (holding 10.49% or 11% of shares), BlackRock, Inc. (8.931% or 11%), Aristotle Capital Management LLC (6.321% or 6.8%), and State Street Corp (5.053%). Individual investors own approximately 1.31% of the stock, while insiders hold about 1.22%. Frank Sullivan, the CEO, directly holds 0.8% of the total shares outstanding.