RPM NYSE Russell 1000 Earnings call

RPM International (RPM) · Q2 2026 results and valuation

Share price: $105.78 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 22 Jul 2026 and 8 Apr 2026

Net income up 331.9% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

+331.9%

Net income vs Q1 2026

Outlook given

Net income 221.8M vs 51.4M

Revenue +38.8%

Against the same quarter last year (Q2 2025) it is −2.3%, so the move on last quarter looks seasonal or timing-related rather than a trend.

2 · How management spoke

Cautious

Among the least upbeat of all company calls

Answers to analysts: upbeat, in line with the script.

Similar to last call.

3 · What stood out

Key theme

Adjusted EBIT reached a record as consolidated sales increased 7.2% and SG&A-focused optimization actions improved fixed cost utilization.

Valuation

Is RPM International undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-05-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 2.7% growth a year (3-year revenue growth), the model's fair value is $56.11 a share — the stock trades 89% above it. Today's price assumes 9.8% growth a year.

Current price

$105.78

close of 2026-11-11

Market implies growth of i

+9.8% for 10 yrs

Fair value / share

$56.11

Buy below

$42.09

Price vs fair value

Overvalued 89%

Price vs buy-below price

Overvalued 151%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Key theme

RPM reported low to mid-single-digit unit volume growth in CPG and PCG, which contributed to overall positive growth in the quarter.

Source quote
“As you would expect, we had kind of low to mid-single-digit unit volume growth in CPG and PCG and a 2%... We, overall, had positive growth in the quarter. The Consumer segment results were benefited by The Pink Stuff acquisition and the Ready Seal acquisition.”
Guidance

The company expects price increases in its consumer segment to recover the gross margin percentage lost in the first part of the fiscal year.

Source quote
“As we progress through the fiscal year, we anticipate that our price increases, including in our consumer segment, will recover the gross margin percentage lost in the first...”
Guidance

RPM expects sales to increase in the mid-single-digit range.

Source quote
“In total, we expect sales to increase in the mid-single-digit range.”
Figure

Revenue reached $1.09 billion this quarter, providing the company with financial flexibility and capital for deployment in acquisitions.

Source quote
“The quarter remained strong at $1.09 billion, which gives us financial flexibility and capital deployment, including in acquisitions where the pipeline...”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Cautious (was upbeat)

Answers to analysts Upbeat (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Again, it's volatile, but it does feel like after two years of a pretty steady single-digit negative declines in consumer takeaway and volume impact, that we're hitting bottom.”

“Although, as I mentioned earlier, we could see some raw material cost challenges and some revenue challenges in Q1 related to this raw material supply issue, which is temporary.”

“It's interesting to note that some of the underlying primary chemicals have not been as negatively impacted and as volatile as oil prices or gasoline prices.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-05-31)

Metric	Q2 2026period end 2026-05-31	Q1 2026period end 2026-02-28	Change	Q2 2025	YoY
Revenue	2.23B	1.61B	+38.8%	2.08B	+7.2%
Gross profit	950.0M	634.8M	+49.7%	881.8M	+7.7%
Operating income	292.0M	69.3M	+321.3%	248.4M	+17.6%
Net income	221.8M	51.4M	+331.9%	227.1M	−2.3%
EPS	1.74	0.40	+335.0%	1.76	−1.1%
P/E today 17.6	20.5	22.0	−1.5	21.3	−0.8

Topics

Most discussed now

RPM International has already implemented price increases to offset this inflation on a dollar basis, with additional price increases to…
RPM International is really poised to perform better than it has, and so I would not call what it is projecting here...
RPM International is definitely continuing to pick up share in that Euclid Chemical business.
RPM International's associates demonstrated their ability to adapt to increased global uncertainty, procure raw materials, continue…
Starting on slide three, RPM International generated another quarter of record results with each segment growing sales and adjusted EBIT.

Faded since Q1 2026

Fading Aided by the operational improvement initiatives RPM International put in place, it was able to leverage this growth to achieve a...
Fading RPM International successfully navigated these challenges by focusing on its competitive strengths, including turnkey and system solutions…
Fading All regions grew sales in most markets outside the U.S.
Fading Construction Products Group sales grew to a record with broad-based strength in North American businesses, including roofing solutions…

Latest announcements

Official filings, newest first.

2026-10-06 Results of operations · SEC 8-K
2026-07-22 Results of operations; Director or officer change; Other events · SEC 8-K
2026-06-02 Material agreement; Director or officer change · SEC 8-K
2026-04-23 Director or officer change; Other events · SEC 8-K
2026-04-08 Results of operations · SEC 8-K
2026-03-05 Material agreement · SEC 8-K
2026-01-08 Results of operations · SEC 8-K
2025-10-08 Director or officer change; Shareholder vote results; Other events · SEC 8-K