$RPM · RPM INTERNATIONAL INC/DE/
RPM International filed its 10-Q for Q1 FY2027 (period ended August 31, 2026). Net sales grew 4.8% YoY to $2.216B, with organic growth of 3.1%. GAAP diluted EPS rose to $2.01 from $1.77. Gross margin compressed 100 bps to 41.3% due to inflation, particularly in the Consumer segment. PCG was the standout with 10.2% total growth, while CPG posted a 1.7% organic decline from healthcare/education softness and supplier constraints.
- Q1 FY2027 net sales rose 4.8% YoY to $2.216B, with organic growth of 3.1% and acquisition/divestiture adding 1.6%.
- GAAP diluted EPS was $2.01, up from $1.77 in the prior-year quarter.
- Gross margin contracted to 41.3% from 42.3% a year ago, driven by inflation in the Consumer segment.
- PCG segment led with 10.2% total sales growth (7.9% organic), driven by high-performance buildings and energy infrastructure.
- The company repurchased 196,274 shares under its buyback program; $792.4M remains authorized.
Stock up 2.59% to $97.77 in the regular session following the filing, suggesting investors are rewarding the broad-based organic growth across all three segments despite the gross margin compression.
RPM delivered broad-based organic growth and a 13.6% EPS jump, but the 100 bps gross margin decline signals inflation pressure that bears watching across the specialty-chemicals sector.
RPM's 4.8% consolidated growth and PCG's 7.9% organic expansion compare favorably to peers facing softer industrial demand. The margin squeeze mirrors broader specialty-chemicals inflation pressure, though RPM's pricing actions partially offset the impact.
CPG segment organic sales declined 1.7% due to slowdowns in healthcare and education markets plus supplier raw material availability issues. Gross margin erosion from inflation, particularly in Consumer, could persist if pricing actions lag cost increases.
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