Earnings call transcript: RPM International posts Q1 2026 EPS beat

RPM International delivered a solid first-quarter earnings report, surpassing market expectations with adjusted EPS at $1.98 despite a 1.54% beat. Revenue matched forecasts at $2.22 billion. Gross margins fell 100 basis points due to raw material inflation outpacing price increases. Management narrowed full-year sales and EBITDA guidance while raising its inflation outlook for the next quarter.

RPM's broad portfolio, led by Performance Coatings and Consumer Groups, overcame weakness in Construction Products. The company continues stock buybacks and dividend payments, returning $90.5 million to shareholders. CEO Frank Sullivan highlighted record sales and EBITDA, even as education and healthcare demand slowed and raw material shortages persisted.

The company sees some recovery later in the fiscal year. RPM shares traded 1.85% higher at $97.06 in premarket trading. Financially, RPM shows a GOOD overall health score of 2.94, with strong profitability. Debt decreased by $263 million, and the company offers a dividend yield of 2.27%, with a solid dividend track record.