RPM International Reports $1.91B Q2 Sales, Misses Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: Benzinga
- Disappointing Sales Performance: RPM International reported $1.91 billion in sales for Q2, a 3.5% year-over-year increase, yet fell short of the $1.928 billion estimate, indicating signs of weak market demand.
- Declining Profitability: Adjusted EBIT decreased by 11.2% year-over-year to $226.6 million, primarily due to growth investments and lower fixed-cost absorption, reflecting the company's profitability pressures in the current market environment.
- Shareholder Returns: In the first six months of fiscal 2026, the company returned $168.7 million to shareholders through dividends and share repurchases, demonstrating a commitment to shareholders despite declining earnings.
- Cautious Future Outlook: RPM anticipates mid-single-digit sales growth for Q3, and while market demand remains sluggish, management expresses optimism about future construction projects and plans to implement approximately $100 million in SG&A optimization measures to address market challenges.
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Analyst Views on RPM
Wall Street analysts forecast RPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RPM is 126.00 USD with a low forecast of 115.00 USD and a high forecast of 149.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 106.850
Low
115.00
Averages
126.00
High
149.00
Current: 106.850
Low
115.00
Averages
126.00
High
149.00
About RPM
RPM International Inc. owns subsidiaries that specialize in coatings, sealants, building materials and related services. The Company’s segments include Construction Products Group (CPG), Performance Coatings Group (PCG), and Consumer. The CPG segment products and services are sold throughout North America and also account for a significant portion of its international sales. Its products and services within this segment include construction sealants and adhesives, coatings and chemicals, roofing systems, roofing installation, and concrete admixture and repair products. The PCG segment offers products and services including high-performance flooring solutions, corrosion control and fireproofing coatings, infrastructure repair systems and fiberglass reinforced plastic structures. The Consumer segment manufactures and markets professional use and do-it-yourself products for a variety of mainly residential applications, including home improvement and personal leisure activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RPM (RPM) Q2 2026 Earnings Call Transcript
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Materials Companies Face EPS Downgrades, PKG Rated Lowest
- Earnings Downgrades: As earnings season approaches, analysts have broadly downgraded earnings expectations for materials companies, with Packaging Corporation of America (PKG) rated the lowest, indicating a lack of market confidence in its near-term performance.
- Rating Distribution: Among large-cap materials firms, FRPM International (RPM) and PPG Industries (PPG) received grades of D- and D respectively, suggesting a pessimistic outlook from analysts that could impact investor sentiment.
- Industry Trends: Overall, International Paper (IP) and POSCO Holdings (PKX) both received D grades, reflecting the challenges faced by the materials sector in the current economic climate, potentially leading to capital outflows.
- Market Performance: While the materials sector is expected to outperform the energy sector in 2026, the current earnings downgrades may affect short-term investment decisions, particularly among companies with weaker earnings momentum.
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