Coatings maker RPM International's Q2 revenue misses as government shutdown weighs

Overview

• Specialty coatings firm's fiscal Q2 revenue missed analyst expectations

• Adjusted EPS for fiscal Q2 missed analyst expectations

• Company implementing SG&A optimization actions for $100 mln annual savings

Outlook

• RPM expects fiscal 2026 Q3 sales to grow mid-single digits

• RPM anticipates fiscal 2026 Q3 adjusted EBIT to rise mid- to high-single digits

• Company forecasts fiscal 2026 Q4 sales growth in mid-single digits

Result Drivers

• GOVERNMENT SHUTDOWN - Prolonged government shutdown led to longer lead times on construction projects, negatively impacting sales growth

• ACQUISITIONS AND ENGINEERED SOLUTIONS - Record sales driven by acquisitions and engineered solutions for high-performance buildings, offset by soft DIY demand

• SG&A OPTIMIZATION - Co implementing SG&A-focused optimization actions expected to save $100 mln annually

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for RPM International Inc is $129.00, about 23.1% above its January 7 closing price of $104.82

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw8D4Jrba

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