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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $1.91 bln | $1.93 bln (14 Analysts) |
Q2 Adjusted EPS | Miss | $1.20 | $1.41 (16 Analysts) |
Q2 EPS | $1.26 | ||
Q2 Net Income | $161.21 mln |
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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
