By Nicholas G. Miller
RPM International reported lower second-quarter profit, citing the impact of the government shutdown, and said that it would implement cost-savings initiatives.
The coatings, sealants and building materials company posted net income of $161.2 million, or $1.26 a share, down from $183.2 million, or $1.42 a share, the year before.
Adjusted earnings were $1.20 a share. Analysts polled by FactSet expected $1.41 a share.
Sales rose 3.5% to $1.91 billion, driven by the impact of recent acquisitions. Wall Street expected $1.93 billion.
"The prolonged government shutdown contributed to the trend of longer lead times on construction projects and further pressured already negative consumer sentiment," said Chief Executive Frank Sullivan. "As a result, sales growth turned negative as the quarter progressed, and earnings declined as we were unable to fully leverage growth investments and overcome temporary margin headwinds from plant and warehouse facility consolidations.
RPM said that given the slow demand environment, it would implement cost-saving initiatives worth around $100 million annually.
The company guided for mid-single-digit sales growth for both the fiscal third and fourth quarters.
Write to Nicholas G. Miller at nicholas.miller@wsj.com.
(END) Dow Jones Newswires
January 08, 2026 07:07 ET (12:07 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
