RPM International reported $7.9 billion in fiscal 2026 revenue and raised its annual dividend to $2.28 per share. First-quarter sales hit a record $2.22 billion, but inflation and project delays narrowed the full-year outlook.
RPM generated $899 million in operating cash flow during fiscal 2026, its second-highest annual total, as it set out its plans for the year ahead.
Revenue reached $7.9 billion. Adjusted EBIT rose 4.4% to $1.019 billion, while adjusted earnings per share climbed 4.3% to $5.53. Chairman and CEO Frank Sullivan said RPM achieved the records despite market volatility.
RPM returned $90.5 million to shareholders through dividends and share repurchases in the first quarter of fiscal 2027, 10.2% more than a year earlier.
The board raised the annual dividend 5.6% to $2.28 per share, extending RPM's run of annual increases to 53 consecutive years. The quarterly dividend is $0.57 per share, payable Oct. 30 to shareholders of record on Oct. 20. RPM is among the Dividend Kings, though that history alone does not establish the stock's yield or future returns. A shorter dividend-increase record has also drawn attention in other payout coverage. RPM's 53-year history is unusually long.
The dividend is one part of RPM's fiscal 2027 case.
RPM expects $75 million in operating improvements during fiscal 2027 from initiatives launched in 2018. Its Green Belt programs have generated more than $50 million during its MAP periods, with another $25 million of projects in the pipeline. The company is pursuing acquisitions and adding manufacturing capacity. It is also working on efficiency, while pointing to waterproofing and data-center construction as growth opportunities.
RPM raised its expected cost inflation for the second quarter of fiscal 2027 to 9-11%, from a previous estimate of 6-8%, and forecast 7-9% for the third quarter. Higher raw-material costs and weakness in some construction markets are among the pressures cited.
RPM completed its acquisition of Kalzip, a Germany-based maker of specialty aluminum and metal roofing, during the summer. It also expanded North American distribution of Ready Seal wood stain and protective products. A manufacturing facility is due to open in Mumbai this year, following the opening of a facility in Malaysia last year.
RPM sees room to expand Volteco's below-grade waterproofing systems in U.S. construction. It believes it can double the Italy-based business by growing in Europe and the United States.
Data centers are another target. Euclid Chemical and Tremco are on track to supply products worth more than $100 million annually to data centers globally. Carboline and Stonhard are also part of that projection. It is a stated growth opportunity, not a guarantee of revenue beyond the company's current projection. RPM plans to present its long-term strategy through 2030 at an investor day on Nov. 9.
For the quarter ended Aug. 31, RPM reported record first-quarter fiscal 2027 sales of $2.22 billion. Net income was $256.4 million. Adjusted diluted earnings per share came to $1.98, and adjusted EBITDA reached $405.5 million. Year over year, sales rose 4.8%; adjusted EPS increased 5.3%, while adjusted EBITDA grew 4.5%.
After the quarter, RPM narrowed its full-year outlook to mid-single-digit growth in consolidated sales and adjusted EBITDA. Its previous ranges were 3 to 7% for sales and 5 to 10% for adjusted EBITDA. Management cited inflationary pressure and project delays. The investor-call transcript details the revised outlook. RPM still expects both measures to grow in fiscal 2027, with the tighter forecast reflecting the pressures it expects to navigate.
Shareholders backed the board and executive pay at the annual meeting. About 114 million shares, or roughly 89% of shares outstanding, were represented by proxy. The 12 director nominees received an average of about 98% support among shares voting. Say-on-Pay won about 93% support, and Deloitte & Touche LLP's appointment as auditor for fiscal 2027 received about 99% support. Jeffrey D. Rowe and Thomas C. Gentile III joined the board. Retiring directors Bruce A. Carbonari and William B. Summers Jr. were recognized for their service.
RPM's portfolio includes coatings and sealants. Building materials make up another part of the business. North America contributed 77% of fiscal 2026 revenue, while Europe accounted for 15%. Southern Hemisphere and developing markets generated nearly $600 million, or 8%, up from less than 5% several years ago.
