Overview

• US specialty coatings maker's fiscal Q4 sales rose 7.2%, beating analyst expectations

• Adjusted diluted EPS for fiscal Q4 increased 9.9%, beating analyst expectations

• Company authorized $700 mln increase to share repurchase program

Outlook

• RPM sees fiscal 2027 sales rising 3% to 7%

• Company expects fiscal 2027 adjusted EBITDA to grow 5% to 10%

• RPM anticipates continued strength in high-performance building and infrastructure projects

Result Drivers

• ENGINEERED SOLUTIONS & INFRASTRUCTURE - Increased sales of engineered solutions for high-performance buildings and infrastructure projects drove record Q4 sales, per CEO Frank C. Sullivan

• ACQUISITIONS & PRICING - Acquisitions and pricing actions to offset inflation contributed to sales growth across segments

• OPERATIONAL IMPROVEMENTS - Higher adjusted EBIT was driven by volume growth, improved fixed-cost leverage, and operational improvements from the MAP program

Company press release: ID:nBw42SP0ca

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$2.23 bln	$2.18 bln (14 Analysts)
Q4 Adjusted EPS	Beat	$1.89	$1.85 (15 Analysts)
Q4 EPS		$1.73
Q4 Net Income		$221.22 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for RPM International Inc is $127.88, about 26% above its July 21 closing price of $101.53

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 22 - Akzo Nobel beats profit estimates as price rises offset higher raw-material costs

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• July 21 - 3M boosts annual profit forecast driven by resilient industrial unit

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