RPM International Narrows Full-Year Sales Outlook as Quarterly Revenue Meets Street Views

09:10 AM EDT, 10/06/2026 (MT Newswires) -- RPM International (RPM) tightened its full-year sales outlook on Tuesday after the specialty coatings manufacturer reported fiscal first-quarter revenue in line with market estimates, while earnings topped expectations. The company now anticipates sales to rise by a mid-single-digit in fiscal 2027, compared with its previous guidance for growth of 3% to 7%. The current consensus on FactSet is for sales to increase by 5.5%. For the three months through August, RPM's sales improved 4.8% year over year to $2.22 billion, meeting the Street's view. Adjusted earnings advanced to $1.98 per share from $1.88, surpassing the average analyst estimate of $1.95. "The resilience of our associates and business model was on full display in the first quarter as we generated another quarter of record sales," Chief Executive Frank Sullivan said in a statement. In a client note emailed in August, UBS Securities said higher raw material costs could pressure results in both the August and November quarters. By segment, revenue in the construction products group edged up 0.8% to $859.2 million, but was below the company's expectations amid a slowdown in the healthcare and education markets, while certain products were impacted by supplier raw material availability issues. "Solid organic growth in our performance coatings group and consumer group, and a focus on manufacturing, procurement and (selling, general and administrative) efficiencies overcame multiple challenges, including raw material inflation and a temporary slowdown in our construction products group," according to Sullivan. The performance coatings segment recorded sales of $629.7 million, up from $571.6 million in the prior-year quarter, amid broad-based growth. The consumer division recorded a gain of 5.3% in revenue to $726.7 million. All three businesses benefited from the company's pricing actions to offset inflation, it said. RPM expects price hikes to counter persistent inflation and more challenging comparisons in the second half, according to Sullivan. For the ongoing quarter, RPM forecasts sales to increase in the low- to mid-single-digit range from the prior-year result. The Street is looking for sales to rise by 6.2%. "Segment trends in the second quarter are expected to be similar to those in the first with the (performance coatings group) segment leading growth," Sullivan said. "Continued stabilization in the consumer group is also anticipated, while (construction products group) demand remains soft." The company expects the construction products business to "return to positive organic growth by the end of the year," the CEO added. In July, rival Sherwin-Williams (SHW) lifted its full-year outlook after logging stronger-than-expected second-quarter results. In the same month, PPG Industries (PPG) reiterated its 2026 adjusted EPS guidance.