RPM International Inc. (RPM) Earnings Call Transcripts
RPM International Inc.'s Latest Earnings Call - Q3 FY2026
RPM International Inc. reported record results for its fiscal third quarter of 2026, with a nearly 9% increase in consolidated sales driven by engineered solutions and M&A. Adjusted EBIT rose by nearly 50%, marking record results in 15 of the last 17 quarters. Adjusted EPS also reached a record high. Despite geopolitical tensions in the Middle East affecting supply chains and raw material costs, RPM maintained strong performance across all segments. The company reaffirmed its sales guidance, expecting mid-single-digit revenue growth in the fourth quarter, aided by M&A. However, the outlook remains cautious due to potential raw material inflation and geopolitical uncertainties.
Reported metrics
| Metric | Value |
|---|---|
| Consolidated Sales | 9% increase (beat) |
| Adjusted EBIT | Nearly 50% increase (beat) |
| Adjusted EPS | Record high (beat) |
| Cash Flow from Operations | $656.7 million (positive) |
Guidance from management
RPM reaffirmed its sales guidance for the fourth quarter, expecting mid-single-digit revenue growth. Raw material inflation is anticipated to be 1% to 2% in Q4, increasing to mid- to high single digits in fiscal Q1 2027.
What management said
In the third quarter, it was about $5 million. When you strip out the impact of FX and acquisitions, our SG&A was relatively flat year-over-year in dollar terms. So there's really good action going on there. We would expect the positive impact to be about $20 million. As Rusty indicated, that number might net out to something less in the mid- to upper teens, depending on the impact of inflation in non-raw material ca...
Yes, Mike, it's Rusty here. In terms of the third quarter, it was a little more than $6 million that cost us in some of these facility consolidations. About 2/3 is in consumer. They have a lot going on in Europe between opening a new shared RPM distribution facility and also consolidating two plants into one and rationalizing some lower-margin products there. Probably the remaining 1/3 is mostly at our Construction P...
What analysts pressed on
Analysts expressed concerns about the impact of raw material inflation and geopolitical tensions on future performance. Questions focused on the variability of raw material costs and the company's pricing strategy to manage inflation.
Main topics on the call
- Record Financial Performance — RPM achieved record sales and adjusted EBIT in the third quarter, with sales increasing nearly 9% and adjusted EBIT rising by nearly 50%. This performance was driven by higher unit volumes and operational improvements.
- Impact of Middle East Conflict — The conflict in the Middle East has led to supply chain disruptions and increased raw material costs, particularly affecting the Middle East, Africa, and Asia Pacific regions, which account for 4% of RPM's revenues.
- Operational Efficiency Initiatives — RPM's Green Belt program and SG&A optimization actions contributed to significant cost savings, with $5 million saved in the third quarter and $50 million generated overall.
- Consumer Segment Challenges — The Consumer segment faced continued soft DIY demand, but M&A and pricing actions helped generate record sales. Leadership changes aim to reallocate assets towards growth opportunities.
Read the full RPM International Inc. transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About RPM International Inc.
RPM International Inc. (RPM) is a publicly listed company in the Chemicals industry, within the Materials sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 41 calls on record spanning January 8, 2020 to October 6, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 41 RPM International Inc. earnings call transcripts on record, spanning January 8, 2020 to October 6, 2026. Based on this history, RPM International Inc. reports quarterly. The most recent call on file is dated October 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.