RPM International Inc. has reported financial results for the second quarter of fiscal 2026, which ended November 30, 2025. Second-quarter performance reflected softer demand, with sales at the low end of expectations and earnings declining as sales growth turned negative later in the quarter amid project delays and margin headwinds.

Frank C. Sullivan, RPM chairman and CEO commented, “In the second quarter, sales came in at the lower end of our expectations. The prolonged government shutdown contributed to the trend of longer lead times on construction projects and further pressured already negative consumer sentiment. As a result, sales growth turned negative as the quarter progressed, and earnings declined as we were unable to fully leverage growth investments and overcome temporary margin headwinds from plant and warehouse facility consolidations. Given the slower demand environment, we have moved quickly to put in place SG&A-focused optimization actions that will save approximately $100 million annually once fully implemented, while continuing focused growth investments in our highest potential opportunities.”

Of the SG&A-focused optimization actions, approximately $5 million of the benefits are expected to be realized in the third quarter of fiscal 2026, an incremental $20 million in the fourth quarter of fiscal 2026 and an incremental $75 million in fiscal 2027. Additional details on the cost to implement these initiatives will be available in April 2026.

The company recorded second-quarter sales of $1.91 billion, an increase of 3.5% compared to the prior-year period. Second-quarter net income was $161.2 million compared to $183.2 billion in the same period in 2024. Net sales in the Construction Products Group were $747.4 million, compared to $720.5 million in the same period in 2024. This represents an increase of 2.4%. The company reports that sales in the Construction Products Group were driven by roofing solutions serving high-performance buildings, partially offset by weaker sales in the disaster restoration business due to reduced storm activity compared to the prior year. Sales in the Consumer group were $638.7 million for the quarter, compared to $613.6 million in the same period in 2024. This represents an increase of 4.1%. The Consumer Group’s sales were driven by acquisitions and pricing to recover inflation. Growth was partially offset by softness in DIY markets, product rationalization, and delayed sales related to software system implementations and a shared distribution center integration. RPM reports that this softness became more pronounced toward the end of the quarter.

Looking forward, Sullivan commented, “Driven by our targeted growth investments, we expect to outgrow underlying markets in the third quarter. However, market demand is expected to remain sluggish as consumer confidence is low and uncertainty in construction markets, including weather-related factors, persists.

“While visibility for the fourth quarter remains limited, we are controlling what we can and expect to benefit from activity related to previously deferred construction projects and are encouraged that our construction pipeline remains solid. We will also benefit from the implementation of optimization actions, which will serve as a tailwind to margins.”

For the fiscal 2026 third quarter, the company expects consolidated sales to increase in the mid-single-digit percentage range compared to prior-year results. Consolidated adjusted EBIT to increase in the mid- to high-single digit percentage range compared to prior-year results, and consumer sales growth to be moderately higher than the other two segments due to acquisitions.

For the fiscal 2026 fourth quarter, RPM expects consolidated sales to increase in the mid-single-digit range compared to prior-year record results. Consolidated adjusted EBIT to be up low- to high-single-digits compared to prior-year record results.

Learn more about RPM at www.rpminc.com.

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