Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported July 22, 2026 · Beat 4 of last 6 quarters
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RPM's record results and continued strength in construction-focused segments underscore the durability of maintenance and restoration demand, even as new construction remains soft. The company's exposure to data center construction, while small, is growing and contributes to its above-market growth. Management's focus on system selling and high-performance buildings positions RPM to benefit from the ongoing AI infrastructure buildout, though the direct impact remains modest.
RPM delivered record Q4 results with consolidated sales up 7.2% and record adjusted EBIT, driven by broad-based growth across all segments. Construction Products Group and Performance Coatings Group led with above-market growth, benefiting from system selling and focus on high-performance buildings and infrastructure. Consumer Group posted record sales despite soft DIY markets, aided by acquisitions and pricing. The company generated $899M in operating cash flow for FY26, returned $349M to shareholders, and closed the Kalzip acquisition. Management also noted a $9.7M impairment in Consumer and a $3.2M bad debt expense in PCG.
Management guided Q1 FY27 sales up mid-single digits and adjusted EBITDA up mid-single digits, with all segments growing mid-single digits. For the full year, they expect sales up 3%-7% and adjusted EBITDA up 5%-10%, with raw material inflation highest in the first half (5%-6% in Q1, 6%-8% in Q2) before moderating in the back half. They expect price increases to recover gross margin percentage lost in Q1, with price-cost turning more neutral in H2. SG&A savings of ~$75M will be partially offset by higher healthcare and benefit costs. Management also highlighted continued strength in construction-focused businesses (data centers, energy, infrastructure, restoration) and signs of stabilization in Consumer DIY markets. They plan to provide more detail on MAP 3.0 at an Investor Day on November 9, 2026.
“We have an administration that seems to not like stability. In that environment, I think we've proven that we can perform pretty well, particularly versus peers.”
on Volatility and performance
“We are definitely gaining share there's been big M&A by peers, there's been regulatory action in the space against peers. We are benefiting we're picking up distribution and we're finding growth where we can, whether it's the data center sector, which is growing.”
on Concrete admixtures share gains
Can you unpack the strength in CPG and PCG, especially from data centers, and how that plays out through fiscal 2027?
Backlogs remain strong across both segments. Management expects another volatile year due to geopolitical and tariff issues, but believes they can perform well versus peers. Data centers are a key growth area, though they represent only 1-2% of overall business.
How much lower were organic volumes in Consumer, and are there signs of stabilization in DIY?
Consumer volumes were down low single digits in the quarter, with DIY markets soft but showing signs of hitting bottom. The Pink Stuff and Ready Seal acquisitions contributed to growth. Management sees stabilization but no robust rebound.
On raw materials, is the second-half moderation sequential or year-over-year? Is guidance reflective of a $90+ oil environment?
Management expects year-over-year inflation to continue in H2 but at a more moderate pace. They noted that primary chemicals had declined when Middle East tensions eased, but have started to inch back up. They described their H2 outlook as a 'swag' given uncertainty.