RPM International Inc. (RPM) Q2 2026 Financial Results Summary
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RPM International Inc. (RPM) Q2 2026 Financial Results Summary
Release Date: January 8, 2026
RPM International Inc. (NYSE: RPM) reported its financial results for the fiscal 2026 second quarter ending November 30, 2025, showcasing a mix of growth and challenges reflected in the company’s performance metrics.
Financial Highlights
- Net Sales:
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Achieved a record of $1.91 billion, an increase of 3.5% compared to $1.85 billion in Q2 2025.
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Net Income:
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Recorded net income of $161.2 million, which is a 12.0% decrease from $183.2 million from the same quarter last year.
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Earnings Per Share (EPS):
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Diluted EPS stood at $1.26, down 11.3% from $1.42 a year ago.
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Earnings Before Interest and Taxes (EBIT):
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EBIT reached $229.0 million, a modest growth of 0.6% over $227.6 million in the same quarter of the previous year.
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Adjusted Earnings:
- Adjusted diluted EPS was $1.20, representing a 13.7% decrease from $1.39 in Q2 2025.
- Adjusted EBIT was $226.6 million, reflecting an 11.2% decline compared to $255.1 million in the same quarter last year.
Segment Performance
- Construction Products Group (CPG):
- Net Sales: $737.4 million, up 2.4% from $720.5 million a year ago.
- Income Before Income Taxes: Decreased 12.3% to $94.6 million.
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Adjusted EBIT: Down 10.9% to $98.6 million.
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Performance Coatings Group (PCG):
- Net Sales: Grew 4.4% to $533.8 million from $511.2 million.
- Income Before Income Taxes: Increased 1.7%.
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Adjusted EBIT: Slightly down by 0.3% at $82.8 million.
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Consumer Group:
- Net Sales: Increased by 4.1% to $638.7 million from $613.6 million.
- Income Before Income Taxes: Up significantly by 16.7% to $100.7 million.
- Adjusted EBIT: Decreased by 6.2% to $90 million.
Strategic Actions
- Cost Optimization Initiatives:
- The company is implementing SG&A-focused optimization actions expected to save approximately $100 million annually once fully implemented. Initial benefits of $5 million are projected in Q3 2026.
Cash Flow and Financial Position
- Cash Flow from Operations:
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Generated $583.2 million during the first half of fiscal 2026, an increase from $527.5 million in the prior year’s first half.
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Capital Expenditures:
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Expenditures rose to $111.8 million compared to $100.7 million year-over-year.
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Return to Stockholders:
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Returned $168.7 million to stockholders through cash dividends and repurchases, which represents a 5.8% increase compared to the previous year.
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Dividends and Share Repurchases:
- Cash dividends amounted to $133.7 million.
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Share repurchases totaled $35 million.
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Debt Position:
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Total debt rose to $2.52 billion, up from $2.03 billion a year ago due to acquisitions financing.
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Liquidity:
- Total liquidity decreased to $1.10 billion from $1.50 billion due to acquisition-related financing.
Future Outlook
- Q3 2026 Outlook:
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Expected mid-single-digit sales growth and adjusted EBIT to increase in the mid- to high-single-digit percentage range compared to the prior year.
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Q4 2026 Outlook:
- Anticipates mid-single-digit sales growth and adjusted EBIT to increase low- to high-single-digits compared to prior-year results.
The results indicate RPM’s ongoing challenges, particularly in consumer sentiment and demand, while strategic actions are in place to optimize operations and foster growth in the coming quarters.
| Three Months Ended | November 30, 2025 | November 30, 2024 | Six Months Ended | November 30, 2025 | November 30, 2024 |
|---|---|---|---|---|---|
| Net Sales | $1,909,895 | $1,845,318 | $4,023,638 | $3,814,107 | |
| Cost of Sales | $1,129,728 | $1,080,774 | $2,350,255 | $2,212,890 | |
| Gross Profit | $780,167 | $764,544 | $1,673,383 | $1,601,217 | |
| Selling, General & Administrative Expenses | $549,465 | $529,836 | $1,122,999 | $1,055,982 | |
| Restructuring Expense | $4,531 | $7,557 | $13,345 | $14,759 | |
| Interest Expense | $28,005 | $23,177 | $57,331 | $47,611 | |
| Investment (Income), Net | ($10,026) | ($8,526) | ($23,430) | ($19,552) | |
| Other (Income), Net | ($2,803) | ($482) | ($5,904) | ($1,016) | |
| Income Before Income Taxes | $210,995 | $212,982 | $509,042 | $503,433 | |
| Provision for Income Taxes | $49,521 | $29,532 | $119,728 | $91,429 | |
| Net Income | $161,474 | $183,450 | $389,314 | $412,004 | |
| Less: Net Income Attributable to Noncontrolling Interests | $267 | $246 | $502 | $1,108 | |
| Net Income Attributable to RPM International Inc. Stockholders | $161,207 | $183,204 | $388,812 | $410,896 | |
| Earnings per share of common stock attributable to RPM International Inc. Stockholders: Basic | $1.26 | $1.43 | $3.04 | $3.21 | |
| Diluted | $1.26 | $1.42 | $3.03 | $3.19 | |
| Average shares of common stock outstanding – basic | 127,129 | 127,658 | 127,206 | 127,675 | |
| Average shares of common stock outstanding – diluted | 127,649 | 128,344 | 127,799 | 128,392 |
| November 30, 2025 | November 30, 2024 | May 31, 2025 | |||
|---|---|---|---|---|---|
| Assets | Current Assets | Cash and cash equivalents | $316,592 | $268,683 | $302,137 |
| Trade accounts receivable | $1,370,136 | $1,343,207 | $1,551,953 | ||
| Allowance for doubtful accounts | ($39,612) | ($52,671) | ($42,844) | ||
| Net trade accounts receivable | $1,330,524 | $1,290,536 | $1,509,109 | ||
| Inventories | $1,083,420 | $995,262 | $1,036,475 | ||
| Prepaid expenses and other current assets | $390,636 | $326,155 | $322,577 | ||
| Total current assets | $3,121,172 | $2,880,636 | $3,170,298 | ||
| Property, Plant and Equipment, at Cost | $2,826,384 | $2,615,862 | $2,738,373 | ||
| Allowance for depreciation | ($1,328,094) | ($1,238,798) | ($1,264,974) | ||
| Property, plant and equipment, net | $1,498,290 | $1,377,064 | $1,473,399 | ||
| Other Assets | Goodwill | $1,664,720 | $1,341,129 | $1,617,626 | |
| Other intangible assets, net of amortization | $825,801 | $512,568 | $780,826 | ||
| Operating lease right-of-use assets | $404,650 | $353,706 | $370,399 | ||
| Deferred income taxes | $152,794 | $35,945 | $147,436 | ||
| Other | $202,813 | $182,022 | $215,965 | ||
| Total other assets | $3,250,778 | $2,425,370 | $3,132,252 | ||
| Total Assets | $7,870,240 | $6,683,070 | $7,775,949 | ||
| Liabilities and Stockholders’ Equity | Current Liabilities | Accounts payable | $741,172 | $672,921 | $755,889 |
| Current portion of long-term debt | $8,287 | $6,060 | $7,691 | ||
| Accrued compensation and benefits | $230,480 | $213,999 | $287,398 | ||
| Accrued losses | $32,517 | $35,126 | $36,701 | ||
| Other accrued liabilities | $393,870 | $365,781 | $379,768 | ||
| Total current liabilities | $1,406,326 | $1,293,887 | $1,467,447 | ||
| Long-Term Liabilities | Long-term debt, less current maturities | $2,511,588 | $2,019,846 | $2,638,922 | |
| Operating lease liabilities | $348,248 | $304,517 | $317,334 | ||
| Other long-term liabilities | $242,297 | $244,891 | $241,117 | ||
| Deferred income taxes | $230,968 | $102,279 | $224,347 | ||
| Total long-term liabilities | $3,333,101 | $2,671,533 | $3,421,720 | ||
| Total liabilities | $4,739,427 | $3,965,420 | $4,889,167 | ||
| Stockholders’ Equity | Preferred stock; none issued | — | — | — | |
| Common stock (outstanding 128,076; 128,568; 128,269) | $1,281 | $1,286 | $1,283 | ||
| Paid-in capital | $1,192,372 | $1,164,301 | $1,177,796 | ||
| Treasury stock, at cost | ($991,176) | ($915,818) | ($953,856) | ||
| Accumulated other comprehensive (loss) | ($521,915) | ($580,763) | ($533,631) | ||
| Retained earnings | $3,448,857 | $3,047,021 | $3,193,764 | ||
| Total RPM International Inc. stockholders’ equity | $3,129,419 | $2,716,027 | $2,885,356 | ||
| Noncontrolling interest | $1,394 | $1,623 | $1,426 | ||
| Total equity | $3,130,813 | $2,717,650 | $2,886,782 | ||
| Total Liabilities and Stockholders’ Equity | $7,870,240 | $6,683,070 | $7,775,949 |