• Record second-quarter sales were driven by acquisitions and engineered solutions for high-performance buildings, partially offset by soft DIY demand.
• RPM said adjusted EBIT and adjusted diluted EPS declined compared to the prior year as the company worked through plant and warehouse facility consolidation inefficiencies and lower fixed-cost absorption.
• The company said it is implementing SG&A-focused optimization actions it expects to generate approximately $100 million in annual benefits once fully implemented.
• RPM’s outlook called for mid-single-digit sales growth in the fiscal 2026 third and fourth quarters with adjusted EBIT expected to increase.

RPM International Inc. reported financial results for its fiscal 2026 second quarter ended Nov. 30, 2025. RPM said second-quarter net sales increased 3.5% year over year to $1.91 billion, while net income attributable to RPM stockholders totaled $161.2 million and diluted EPS was $1.26. The company reported EBIT of $229.0 million and adjusted EBIT of $226.6 million.

RPM Chairman and CEO Frank C. Sullivan said, “In the second quarter, sales came in at the lower end of our expectations. The prolonged government shutdown contributed to the trend of longer lead times on construction projects and further pressured already negative consumer sentiment. 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. Given the slower demand environment, we have moved quickly to put in place SG&A-focused optimization actions that will save approximately $100 million annually once fully implemented, while continuing focused growth investments in our highest potential opportunities.” 

RPM said the SG&A-focused optimization actions are expected to generate annual benefits of approximately $100 million once fully in place, with about $5 million expected in the fiscal 2026 third quarter, an incremental $20 million in the fiscal 2026 fourth quarter and an incremental $75 million in fiscal 2027. RPM said additional details on implementation costs will be available in April 2026.

RPM said record second-quarter sales were driven by acquisitions and engineered solutions for high-performance buildings, partially offset by soft DIY demand. The company said growth in several construction businesses slowed as the quarter progressed as project lead times became longer, due in part to the extended government shutdown.

By region, RPM said Europe led sales growth, up 13.9%, driven by acquisitions and favorable foreign exchange. The company said North America sales increased 1.9%, driven by acquisitions and high-performance building solutions in the United States, partially offset by softness in Canada. RPM said emerging markets were led by Africa / Middle East, supported by high-performance building and infrastructure projects. RPM said sales included a 0.5% organic decline, 3.4% growth from acquisitions and a 0.6% benefit from foreign currency translation.

RPM reported segment results across Construction Products Group, Performance Coatings Group and Consumer Group. In Construction Products Group, RPM said record sales were driven by roofing solutions serving high-performance buildings, partially offset by weaker sales in the disaster restoration business due to reduced storm activity compared to the prior year. In Performance Coatings Group, RPM said record sales reflected broad-based growth across its businesses with acquisitions also contributing. In Consumer Group, RPM said record sales were driven by acquisitions and pricing to recover inflation, partially offset by softness in DIY markets, product rationalization and delayed sales related to systems implementations and distribution center integration.

RPM said adjusted EBIT declined as growth investments, reduced fixed-cost absorption from lower volumes and temporary inefficiencies from plant and warehouse facility consolidations more than offset MAP 2025 operational improvements. The company also cited increased healthcare and acquisition expenses as contributing factors. RPM said the adjusted diluted EPS decline was primarily driven by lower adjusted EBIT along with higher interest expense tied to debt used to finance acquisitions. 

Read the full results here.