Executive Summary
RPM International reported a solid first quarter of fiscal 2026 (quarter ended August 31, 2025) with revenue of $2.1137 billion, up 5.26% year over year and up 43.15% quarter over quarter, signaling a seasonal rebound and favorable volume/mix in the early FY2026 frame. The company delivered a robust gross margin of 42.26%, contributing to an EBITDA of $319.7 million and an operating income of $319.7 million, yielding an EBITDA and operating margin of roughly 15.1%. Net income reached $227.6 million, with diluted EPS of $1.77 and basic EPS of $1.78. The quarter benefited from favorable product mix, disciplined cost management, and working-capital execution, supported by a strong balance sheet (total assets of $7.944 billion and total stockholders’ equity of $3.056 billion) and modest net debt (~$50.8 million). Liquidity was healthy, with cash and cash equivalents of $297.1 million and current liabilities of $1.414 billion, translating to a current ratio near 2.26x and quick/liquidity metrics in the mid-range for a diversified specialty chemicals business.
Management commentary, though not captured in this dataset, typically emphasizes product diversification, pricing discipline, and continued strength in maintenance, restoration, and renovation demand across professional contractors and DIY channels. The reported YoY improvements in revenue, gross profit, operating income, net income, and EPS reflect ongoing scale benefits, a favorable mix shift, and ongoing cost controls. The key questions for investors remain: (i) how sustainable the growth trajectory is into the next quarters given construction cyclicality, (ii) the trajectory of raw material costs and supply chain dynamics, and (iii) any potential accretive investments or acquisitions that could augment RPM’s footprint in coatings, sealants, and specialty flooring.
Key Performance Indicators
QoQ: 385.99% | YoY:16.93%
QoQ: 337.42% | YoY:26.02%
QoQ: 334.15% | YoY:26.24%
Key Insights
Revenue: $2,113.743 million; YoY +5.26%, QoQ +43.15%
Gross Profit: $893.216 million; YoY +7.54%, QoQ +57.40%
Operating Income: $319.682 million; YoY +16.93%, QoQ +385.99%
EBITDA: $319.682 million; margin ~15.12%
Net Income: $227.605 million; YoY +26.02%, QoQ +337.42%
EPS (Diluted): $1.77; Basic: $1.78; Weighted Avg Shares: ~127.28 million
Gross Margin: 42.26%; Operating Margin: 15.12%; Net Margin: 10.77%
Tax Rate: ~23.56% (Income Tax Expense $70.207 million on Pre-Tax Income $298.047 million)
Li...
Financial Highlights
Revenue: $2,113.743 million; YoY +5.26%, QoQ +43.15%
Gross Profit: $893.216 million; YoY +7.54%, QoQ +57.40%
Operating Income: $319.682 million; YoY +16.93%, QoQ +385.99%
EBITDA: $319.682 million; margin ~15.12%
Net Income: $227.605 million; YoY +26.02%, QoQ +337.42%
EPS (Diluted): $1.77; Basic: $1.78; Weighted Avg Shares: ~127.28 million
Gross Margin: 42.26%; Operating Margin: 15.12%; Net Margin: 10.77%
Tax Rate: ~23.56% (Income Tax Expense $70.207 million on Pre-Tax Income $298.047 million)
Liquidity: Cash & Equivalents $297.1 million; Total Current Assets $3.203 billion; Total Current Liabilities $1.414 billion; Current Ratio ~2.26x; Quick Ratio ~1.28x
Leverage: Total Debt $347.854 million; Net Debt ~$50.779 million; Debt/Assets ~4.4%; Interest Coverage ~10.9x (EBIT ~$319.7 million vs Interest Expense $29.3 million)
Balance Sheet Health: PP&E (net) $3.200 billion; Goodwill $1.657 billion; Intangibles $0.832 billion; Total Equity $3.056 billion; Working Capital ~$1.789 billion
Note: All figures are in USD and reflect the QQ1 2026 reported quarter (calendar year 2026, quarter 1).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.11B |
5.26% |
43.15% |
| Gross Profit |
893.22M |
7.54% |
57.40% |
| Operating Income |
319.68M |
16.93% |
385.99% |
| Net Income |
227.61M |
26.02% |
337.42% |
| EPS |
1.78 |
26.24% |
334.15% |
Management Commentary
No earnings call transcript was provided in the dataset. As a result, there are no management quotes, thematic takeaways, or transcript-driven insights to cite. If a transcript becomes available, the highlights could cover topics such as market demand resilience, pricing actions, raw material cost trajectory, and any commentary on end-market exposure (DIY vs professional construction), along with potential guidance updates.
Transcript data not provided in the input.
— N/A
Transcript data not provided in the input.
— N/A
Forward Guidance
No explicit forward guidance was included in the provided data. Given the Q1 2026 performance, the following qualitative outlook can be considered cautiously: (i) revenue growth should continue at a mid-single-digit pace in a still-delicate housing/construction cycle, supported by ongoing renovation activity and a diversified product portfolio; (ii) gross margins may stabilize in the low- to mid-40s due to favorable mix and ongoing cost containment, though raw material cost volatility remains a key risk; (iii) EBITDA and operating margins could benefit from overhead leverage as volumes scale and fixed costs absorb, provided there are no material input-cost shocks. Key factors for investors to monitor include raw material price volatility, currency movements (if RPM has international exposure beyond the U.S.), macro housing indicators, and any acquisitions or capacity additions that could alter the margin profile or geographic mix.