RPM International Reports Record Q1 Revenue of $2.22 Billion

RPM International Inc reported record first-quarter fiscal 2027 results on October 6, 2026, with revenue increasing 4.8% year-over-year to $2.22 billion. Adjusted diluted earnings per share rose 5.3% to $1.98, surpassing analyst expectations. Growth in the Performance Coatings and Consumer groups offset weakness in the Construction Products Group, which suffered from market softness in the healthcare and education sectors.

Despite the record revenue, raw material inflation caused the company's gross margin to contract to 41.3%. In response, the company raised its near-term inflation outlook for the second quarter to between 9% and 11% and narrowed its full-year fiscal 2027 guidance for sales and adjusted EBITDA growth to the mid-single-digit range.

To address these pressures, the company is utilizing its Margin Achievement Plan to implement incremental pricing actions and optimize SG&A expenses. CEO Frank Sullivan expressed confidence that the company will meet or beat its 42% gross margin goal as it moves through the current inflation cycle.