$RPM · RPM INTERNATIONAL INC/DE/

RPM International reported Q1 FY2027 results with record net sales of $2.22B (+4.8% YoY), GAAP diluted EPS of $2.01, and adjusted diluted EPS of $1.98 (+5.3% YoY). Adjusted EBITDA hit a record $405.5M (+4.5% YoY). However, the company lowered its full-year FY2027 outlook: consolidated sales growth is now "mid-single-digit" (vs prior 3%-7%) and adjusted EBITDA growth is now "mid-single-digit" (vs prior 5%-10%). CPG was the weak spot with adjusted EBITDA down 9.7% YoY.

Extended-hours trading shows RPM at $94.85, down 0.47% from the regular close of $95.30. The full-year guidance cut — EBITDA growth now "mid-single-digit" vs prior 5%-10% — is the likely driver of the negative after-hours reaction.

Record Q1 results paired with a full-year guidance cut creates a tension: near-term execution is strong, but the back-half outlook is deteriorating on inflation and CPG weakness.

RPM's mixed results reflect bifurcation in specialty coatings: PCG and Consumer delivered solid organic growth (7.9% and 5.2%), while CPG lagged on project delays and raw material availability — a pattern seen across construction-exposed industrials.

Raw material inflation and supply shortages pressured CPG margins; a $6.3M warranty charge at a small European business under review for closure signals potential additional exit costs. CPG organic sales declined 1.7% with soft healthcare/education end markets.