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Key Takeaways RPM enters fiscal 2027 with 3% to 7% sales growth outlook and favorable construction backlogs.RPM targets about $75M in SG&A savings to support 5% to 10% adjusted EBITDA growth.RPM faces DIY weakness, raw material inflation and customer concentration risks entering fiscal 2027. RPM International Inc. (RPM - Free Report) enters fiscal 2027 with operating momentum in construction-linked businesses and a still-muted consumer backdrop.

The stock story depends on whether demand for engineered systems, repair work and efficiency savings can keep offsetting do-it-yourself weakness and early-year inflation.

How RPM International Makes MoneyRPM manufactures high-performance coatings, sealants and specialty chemicals used mainly in maintenance and improvement applications. Its products were sold in nearly 167 countries and territories as of May 31, 2026.

Its mix spans Construction Products, Performance Coatings, Consumer and Specialty-related operations after portfolio changes moved units into the larger groups. Products include roofing systems, concrete repair, flooring, fireproofing, hobby paints, caulks, adhesives, wood stains and building-envelope solutions.

RPM Gains From Repair and Infrastructure DemandInfrastructure and repair work remain central to RPM’s fiscal 2027 setup. Construction Products Group sales rose 8.8% in the latest quarter, supported by concrete admixtures, roofing restoration systems and labor-saving wall systems.

Performance Coatings Group sales increased 5%, helped by fireproofing systems, infrastructure projects and emerging-market demand. Backlogs in both construction segments were favorable entering fiscal 2027, while full-year consolidated sales are expected to increase 3% to 7%.

RPM Uses Systems To Win More Project SpendRPM’s system-selling strategy gives it a way to capture more of each project. Integrated roofing, wall, flooring and building-envelope offerings can simplify procurement, reduce labor needs and shorten construction schedules.

That matters when customers are managing tight timelines and skilled-labor constraints. The strategy also differentiates RPM from broader coatings peers such as The Sherwin-Williams Company (SHW - Free Report) , a major paints and coatings company, by emphasizing bundled project solutions rather than stand-alone product volume alone.

RPM Expands With Deals and Efficiency ProgramsAcquisitions are adding capability and category exposure. Kalzip brings metal roofing and façade offerings to Construction Products, while The Pink Stuff and Ready Seal supported Consumer Group sales during soft do-it-yourself conditions.

Efficiency is the other lever. RPM expects previously announced actions to generate about $75 million of fiscal 2027 selling, general and administrative benefits, including about $25 million in the fiscal first quarter, while plant consolidation and MAP-driven process work support its 5% to 10% adjusted EBITDA growth outlook.

What Could Slow RPM InternationalCost pressure is the clearest near-term issue. Raw material inflation is expected to remain elevated in the first half of fiscal 2027, with price-cost likely somewhat negative before improving later in the year.

Consumer demand is another constraint. Organic sales in the Consumer Group declined 0.8% in the latest quarter, and unit volumes fell about 2% to 3%. Masco Corporation (MAS - Free Report) , which operates in branded home improvement and building products, offers a relevant comparison point for investors watching consumer repair and remodeling demand.

Customer concentration adds risk because large retail customers accounted for about 65% of Consumer segment sales in fiscal 2025 and 22% of consolidated sales. Weather, interest rates and broader economic conditions can also affect construction, roofing and exterior paint demand.

How RPM’s Ratings Fit This StoryThe bottom line is balanced. RPM has credible drivers in infrastructure, restoration, acquisitions and cost discipline, but the near-term signal is not aggressive because inflation and consumer softness still limit earnings visibility.

The stock currently carries a Zacks Rank #3 (Hold). Its VGM Score of D, Value Score of C, Growth Score of C and Momentum Score of F point to a mixed style profile, especially after the current fiscal-year earnings estimate moved 0.4% lower over the past four weeks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Those ratings fit a cautious stance. The Style Scores are designed to complement the Zacks Rank, and higher scores generally indicate more favorable value, growth or momentum characteristics. RPM’s current mix suggests investors may want more confirmation from estimate trends, margin recovery and consumer stabilization before taking a stronger view.

RPM International's Blowout Quarter Sparks a 15% Rally RPM International NYSE: RPM reported record fiscal fourth-quarter results, with management saying each of its three segments increased sales and adjusted EBIT despite inflation, supply chain disruption and continued softness in do-it-yourself consumer markets.

Chairman and Chief Executive Officer Frank Sullivan said the company’s Construction Products Group and Performance Coatings Group continued to lead growth by focusing on maintenance and restoration, higher-growth end markets and “system selling,” an approach that combines multiple RPM products into broader engineered solutions. Sullivan said the quarter marked the 16th time in the past 18 quarters that RPM achieved record adjusted EBIT results.

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RPM International Thrives in Rate-Cut Driven Construction Rally“Our associates demonstrated their ability to adapt to increased global uncertainty, procure raw materials, continue implementing operational efficiency improvements, and serve customers with high-quality products and services,” Sullivan said.

Construction and coatings businesses lead growth Michael Laroche, vice president, controller and chief accounting officer, said consolidated sales rose 7.2% to a record, driven by engineered solutions for high-performance buildings and infrastructure projects, acquisitions and pricing actions intended to offset inflation. Adjusted EBIT and adjusted EPS also reached records, according to Laroche.

RPM International Pulls Back Critical Levels; Is It Time To Buy?Laroche said all international regions posted double-digit growth, led by emerging markets, while North American sales rose 5% on strength in turnkey and system solutions for high-performance buildings. Growth in Europe was driven by mergers and acquisitions, and foreign currency translation also helped sales in most countries outside the United States.

Within the Construction Products Group, Laroche said sales reached a record on broad-based strength, led by the concrete admixtures business. Demand was strongest in roofing and wall systems for high-performance buildings, including data centers and infrastructure projects. Volume growth and operational efficiencies helped lift adjusted EBIT to a record.

The Performance Coatings Group also posted record sales, with growth led by infrastructure project solutions, food coatings and ingredients, emerging markets, and fireproofing systems for high-performance buildings. Adjusted EBIT reached a record, though results were partly offset by a $3.2 million bad debt expense tied to a customer bankruptcy.

Consumer segment improves despite weak DIY demand RPM’s Consumer Group delivered record sales and higher adjusted EBIT, with results helped by acquisitions and pricing. Laroche said DIY end markets remained soft, while MAP operational improvements, including SG&A-focused optimization actions, more than offset lower fixed-cost absorption from reduced volumes and inflation. Adjusted EBIT excluded a $9.7 million non-cash impairment charge related to the Color Group.

During the question-and-answer portion of the call, Sullivan said Consumer unit volume in the quarter was down about 2% to 3%, while Construction Products and Performance Coatings saw low- to mid-single-digit unit volume growth. He said the Consumer segment benefited from The Pink Stuff and Ready Seal acquisitions, but DIY takeaway has been weak for roughly two years.

“It does feel like after two years of a pretty steady single-digit negative declines in consumer takeaway and volume impact, that we’re hitting bottom,” Sullivan said. He added that he did not yet see evidence of a “robust rebound.”

Raw material inflation remains a focus Management said raw material inflation and supply availability remain key considerations for fiscal 2027. Sullivan said RPM’s center-led procurement team helped the company secure supply and limit exposure to spot-price volatility. He said price-cost mix was slightly favorable in the fourth quarter, with businesses implementing price increases where needed.

For the first quarter of fiscal 2027, RPM expects raw material inflation of 5% to 6%, with pricing up by a similar dollar amount. For the second quarter, inflation could reach 6% to 8%, Sullivan said. The company expects price increases, including in Consumer, to recover gross margin percentage lost in the first quarter as the year progresses.

Sullivan said supply availability improved overall, but a fire at a supplier’s plant has caused tightness in propylene oxide-derived raw materials in North America. He also noted tight MDI supplies due to supplier issues. In response to an analyst question, Sullivan said the supplier fire would have some negative cost impact and could affect first-quarter sales growth in Tremco Roofing, but he described the issue as temporary.

Cash flow, buybacks and acquisitions Matt Schlarb, vice president of investor relations and sustainability, said RPM generated $899 million of operating cash flow in fiscal 2026, the second-highest amount in company history. The company returned $349 million to shareholders through dividends and share repurchases, up more than 7% from the prior year.

Schlarb said RPM’s board authorized a $700 million increase to its share repurchase program, in addition to $115 million remaining under a prior authorization. Sullivan said during the Q&A that the company’s stronger balance sheet and improved cash generation give it more capital to deploy, including for acquisitions and potentially more opportunistic repurchases.

Capital expenditures totaled about $224 million for the year, slightly below the prior year. Schlarb cited investments including a shared European distribution center and a new operating facility in India. RPM also spent $202 million on acquisitions, including Kalzip, a metal roofing and facades company acquired by the Construction Products Group in the fourth quarter. Schlarb said RPM expects Kalzip to be margin accretive once fully integrated over the next couple of years.

Fiscal 2027 outlook calls for growth amid volatility Chief Financial Officer Russell Gordon said RPM expects first-quarter sales to rise in the mid-single-digit range, with all segments expected to grow at a similar pace. Adjusted EBITDA is also expected to increase in the mid-single-digit range.

For full-year fiscal 2027, RPM forecast sales growth of 3% to 7% and adjusted EBITDA growth of 5% to 10%. Gordon said the company expects Consumer end markets to stabilize, though he noted RPM has the least visibility in that segment. He said price-cost is expected to be somewhat negative in the first half of the year before becoming more neutral in the second half as additional pricing takes effect and inflation moderates.

RPM also expects previously announced SG&A optimization actions to generate about $75 million in benefits during fiscal 2027, partly offset by higher healthcare and benefits expenses. Sullivan said RPM has trained 620 associates through its Green Belt efficiency program, which has developed a pipeline of more than $30 million of additional savings. The company plans to provide more detail on its MAP 3.0 strategic plan at an investor day on Nov. 9.

Asked whether the fiscal 2027 outlook represented a new growth algorithm for RPM, Sullivan said the company could generate mid-single-digit revenue growth and double-digit earnings growth “in a period of stability.” However, he said the current environment remains volatile due to geopolitical developments, oil prices, trade flows, transportation costs and tariffs.

About RPM International (NYSE:RPM)RPM International Inc is a global holding company whose subsidiaries specialize in the manufacture and marketing of high-performance coatings, sealants, building materials, and specialty chemicals. Through its two principal operating segments—Performance Coatings and Industrial Coatings—RPM serves a diverse range of end markets, including construction, consumer products, industrial maintenance, and specialty applications.

The company's Performance Coatings segment offers a broad portfolio of architectural coatings, waterproofing systems, and specialty building products used by contractors, builders, and homeowners.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Analysts on Wall Street project that RPM International (RPM - Free Report) will announce quarterly earnings of $1.84 per share in its forthcoming report, representing an increase of 7% year over year. Revenues are projected to reach $2.19 billion, increasing 5% from the same quarter last year.

The consensus EPS estimate for the quarter has undergone a downward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some RPM International metrics that are commonly tracked and projected by analysts on Wall Street.

The consensus among analysts is that 'Net Sales- Construction Products Group/ CPG' will reach $891.00 million. The estimate suggests a change of +10% year over year.

The consensus estimate for 'Net Sales- Consumer Segment' stands at $751.41 million. The estimate indicates a change of +8.7% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Net Sales- Performance Coatings Group/ PCG' of $549.23 million. The estimate indicates a year-over-year change of +37.6%.

According to the collective judgment of analysts, 'Adjusted EBIT- Consumer Segment' should come in at $128.59 million. Compared to the present estimate, the company reported $122.47 million in the same quarter last year.

Analysts predict that the 'Adjusted EBIT- Performance Coatings Group/ PCG' will reach $76.55 million. Compared to the current estimate, the company reported $57.77 million in the same quarter of the previous year.

It is projected by analysts that the 'Adjusted EBIT- Construction Products Group/ CPG' will reach $173.82 million. The estimate compares to the year-ago value of $158.11 million.

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Shares of RPM International have demonstrated returns of -5.5% over the past month compared to the Zacks S&P 500 composite's -0.6% change. With a Zacks Rank #3 (Hold), RPM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .