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RPM International reported record sales and adjusted earnings for the first quarter of fiscal 2027, even as it cited a temporary slowdown in Construction Products. For the quarter ended August 31, 2026, sales rose 4.8% year over year to $2.22 billion, adjusted diluted EPS increased 5.3% to $1.98, and adjusted EBITDA reached a record $405.5 million, up 4.5%. The sharper slowdown behind the original headline was reported in fiscal Q2 2026; subsequent quarters improved.
What RPM reported in its latest quarter
RPM International’s fiscal year ends May 31. Its fiscal Q1 2027 ran through August 31, 2026, and the company released results on October 6. RPM reported consolidated sales of $2.22 billion, up 4.8% year over year, adjusted diluted EPS of $1.98, up 5.3%, and record adjusted EBITDA of $405.5 million, up 4.5%. These are company-reported figures, not independent estimates. RPM’s October 6 results release attributes performance to organic growth in Performance Coatings and Consumer, alongside manufacturing, procurement, and selling, general and administrative efficiencies.
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The company also identified constraints: raw-material inflation and what it described as a temporary slowdown in Construction Products. That is evidence about RPM’s own business and management’s assessment; it does not quantify a broader construction-market slowdown.
How RPM’s outlook changed
In the October 6 release, RPM forecast low- to mid-single-digit growth in sales and adjusted EBITDA for fiscal Q2 2027, and mid-single-digit growth in both measures for the full fiscal year. These are growth outlooks, not reported results. The October outlook followed a wider range issued in July: sales growth of 3% to 7% and adjusted EBITDA growth of 5% to 10%. The July figures were an earlier forecast, not a revised description of results already achieved. RPM’s July 22 fiscal 2026 release also reported the year’s results.
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Fiscal 2026 ended with record sales
For the fiscal year ended May 31, 2026, RPM reported record sales of $7.86 billion, up 6.7%, and adjusted diluted EPS of $5.53, up 4.3%. The company’s annual results provide context for the current growth outlook, but adjusted EPS should not be confused with GAAP earnings per share. The company’s release presents its fiscal-year figures and outlook on their stated bases. Read RPM’s fiscal 2026 results.
When the construction slowdown was most pronounced
The slowdown framing was clearest in fiscal Q2 2026, the quarter reported January 8. RPM said organic sales declined 0.5%. Adjusted EBIT fell 11.2% to $226.6 million, and adjusted diluted EPS fell 13.7% to $1.20. The sales figure is organic growth, which excludes the effects of acquisitions and currency; it should not be read as a 0.5% decline in total consolidated sales. RPM’s Q2 release gives the company’s figures and explanation.
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RPM attributed slower growth partly to longer lead times on construction projects, the prolonged federal government shutdown, and soft do-it-yourself demand. Chairman and CEO Frank C. Sullivan said: “The prolonged government shutdown contributed to the trend of longer lead times on construction projects and further pressured already negative consumer sentiment.” This is management’s explanation of the company’s experience, not an independently measured estimate of construction activity or proof that any one factor caused the quarter’s results.
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In January 2026, RPM also estimated that optimization actions would deliver $100 million in annual benefits. That was a management estimate at the time, not a guaranteed or confirmed realized saving. The Q2 release describes the actions and the estimate.
Results strengthened after Q2
RPM’s Q3 fiscal 2026 results, released April 8, showed a marked improvement: record sales of $1.61 billion, up 8.9%, and adjusted diluted EPS of $0.57, up 62.9%. The company cited high-performance-building solutions, acquisitions, favorable currency, and a rebound from the federal shutdown, partly offset by soft DIY demand. Because acquisitions and currency contributed, the 8.9% increase in total sales is not the same measure as organic growth. See RPM’s Q3 results release.
The full-year results released in July and the latest Q1 fiscal 2027 report continued the stronger reported-sales trend. The timeline matters: construction-related weakness was visible in Q2 fiscal 2026, improved in subsequent results, and appeared again in the latest release as a temporary Construction Products slowdown—not as a claim that every RPM business or the whole construction market was contracting.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read the earnings figures
- Consolidated sales are total reported revenue. Growth can include contributions from acquisitions and currency effects.
- Organic sales exclude acquisitions and currency effects, making them a different comparison from total sales growth.
- Adjusted EPS, EBIT, and EBITDA are non-GAAP measures. They are useful for comparing the company’s stated adjusted performance, but are not interchangeable with GAAP net income, operating income, or diluted EPS.
- Management explanations describe the company’s view of demand, project timing, and operating conditions. They do not substitute for independent market-wide construction data.
RPM’s figures and explanations here are company-reported. The available information does not establish an independent statistic quantifying a general construction slowdown.
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