The narrowed full-year guidance (from 3%-7% sales growth to 'mid-single-digit' and from 5%-10% adjusted EBITDA growth to 'mid-single-digit') is the key takeaway — it signals management expects persistent headwinds in CPG and inflation. Monitor the November 9 investor day for details on the next operational improvement plan (MAP 3.0) and whether CPG returns to positive organic growth as guided.
Price Chart
Executive Summary
RPM reported record fiscal Q1 2027 sales of $2.22B (+4.8% YoY) and record adjusted diluted EPS of $1.98 (+5.3% YoY), both slightly above consensus. However, the Construction Products Group segment saw a 1.7% organic sales decline and a 9.7% drop in adjusted EBITDA due to healthcare/education market slowdown and raw material issues. Full-year guidance was narrowed: sales growth revised from 3%-7% to 'mid-single-digit' and adjusted EBITDA growth from 5%-10% to 'mid-single-digit', signaling a more cautious outlook.
Key Financial Metrics
Key Facts
- Record Q1 sales of $2.216B, up 4.8% YoY
- Record adjusted diluted EPS of $1.98, up 5.3% YoY
- Record adjusted EBITDA of $405.5M, up 4.5% YoY
- GAAP diluted EPS of $2.01 vs $1.77 YoY
- CPG segment sales grew only 0.8% with a 1.7% organic decline; adjusted EBITDA fell 9.7%
- PCG segment sales up 10.2% with 7.9% organic growth; adjusted EBITDA up 18.2%
- Consumer segment sales up 5.3% with 5.2% organic growth; adjusted EBITDA up 5.5%
- Full-year FY2027 guidance narrowed: sales growth revised from 3%-7% to mid-single-digit; adjusted EBITDA growth from 5%-10% to mid-single-digit
- Operating cash flow of $263.9M, up from $237.5M YoY
- Total debt reduced to $2.41B from $2.67B a year ago
- Company returned $90.5M to shareholders via dividends and buybacks, up 10.2% YoY
- Volteco acquisition completed for CPG (Italy-based waterproofing, ~$28M annual sales)
- Investor day scheduled for November 9, 2026
Financial Impact
Record revenue and adjusted EPS slightly above consensus, but full-year guidance narrowed and CPG segment weakness are headwinds. Net income rose 12.6% YoY to $256.4M.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Construction Products Group | $859.2M | +0.8% |
| Performance Coatings Group | $629.6M | +10.2% |
| Consumer Group | $726.7M | +5.3% |
Risk Factors
- CPG segment organic sales declined 1.7% with adjusted EBITDA down 9.7%, driven by healthcare/education market slowdown and raw material supply issues
- Full-year FY2027 guidance narrowed, implying lower growth expectations than previously communicated
- Raw material inflation and warranty expenses from a small European business under review for closure
- Bad debt expense from a customer bankruptcy in CPG ($4.4M increase)
- Higher inflation and start-up costs at new facilities expected to pressure gross margins in near term
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-414916 |
| Document: d80757dex992.htm | 0001193125-26-414916 |
| Document: d80757d8k.htm | 0001193125-26-414916 |
| Document: 0001193125-26-414916-index-headers.html | 0001193125-26-414916 |
| Document: 0001193125-26-414916-index.html | 0001193125-26-414916 |
| Document: 0001193125-26-414916.txt | 0001193125-26-414916 |
| 8-K Data (Synthetic) | 0001193125-26-414916 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G/A | $97.76 | awaiting T+60 | — | $98.41 (+0.66%) |
Oct 16, 2026 11d ago | Institutional Cluster | $99.48 | awaiting T+60 | — | $98.41 (−1.08%) |
Oct 13, 2026 14d ago | 3 | $97.95 | awaiting T+60 | — | $98.41 (+0.47%) |
Oct 13, 2026 14d ago | 8-K | $97.95 | awaiting T+60 | — | $98.41 (+0.47%) |
Oct 6, 2026 21d ago | 8-K | $98.31 | awaiting T+60 | — | $98.41 (+0.10%) |
Jul 22, 2026 13w ago | 8-K | $107.43 $100.09 | ▼ −6.83% | ▼ −10.09% | $98.41 (−8.40%) |
Jun 17, 2026 18w ago | Institutional Cluster | $107.02 $100.21 | ▼ −6.36% | ▼ −9.51% | $98.41 (−8.05%) |
Jun 2, 2026 21w ago | 8-K | $103.41 $105.63 | ▲ +2.15% | ▼ −0.09% | $98.41 (−4.84%) |
Apr 8, 2026 28w ago | 8-K | $108.74 $111.62 | ▲ +2.65% | ▼ −7.53% | $98.41 (−9.50%) |
Mar 5, 2026 33w ago | 8-K | $101.67 $104.62 | ▲ +2.90% | ▼ −9.88% | $98.41 (−3.21%) |
US Market Status
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