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RPM International (RPM) Margin Improvement Reinforces Bullish Earnings Narratives

Simply Wall St · 4d ago

RPM International Q2 2026 Earnings Snapshot

RPM International (RPM) has just posted another solid quarter, with Q1 2026 revenue of US$2.1 billion and basic EPS of US$1.78 setting the tone for its latest Q2 2026 update, backed by trailing twelve month revenue of US$7.5 billion and EPS of US$5.38. The company has seen revenue move from US$2.0 billion and EPS of US$1.41 in Q4 2024 to US$2.1 billion and EPS of US$1.78 in Q1 2026, while net income on a trailing basis sits at US$686.0 million. With trailing net margins running at 9.1% compared to 8.4% a year earlier, investors will be focused on how RPM is converting sales into profit and what that means for the durability of its earnings profile.

See our full analysis for RPM International.

With the quarterly scorecard on the table, the next step is to see how these results line up against the widely held narratives about RPM’s growth, risk, and profitability, and where the fresh numbers start to challenge those storylines.

See what the community is saying about RPM International

NYSE:RPM Earnings & Revenue History as at Jan 2026
NYSE:RPM Earnings & Revenue History as at Jan 2026

Margins Backed By 9.1% Net Profit

  • On a trailing basis, RPM earned US$686.0 million on US$7.5b of revenue, which works out to a 9.1% net profit margin compared with 8.4% a year earlier.
  • Analysts who take a more optimistic view often point to these higher margins and what they see as high quality earnings. The latest 12% earnings growth over the year supports that perspective. At the same time, risks such as higher input costs and tariff and supply chain pressures could make it harder to keep margins around 9.1% if pricing power or cost savings slow.

EPS Trend Around US$5.38 LTM

  • Over the last twelve months, basic EPS sits at US$5.38, with recent quarters ranging from US$0.41 in Q3 2025 to around US$1.78 in Q1 2026, indicating that most of the earnings contribution comes from the stronger quarters.
  • The consensus narrative highlights expansion into turnkey solutions, sustainability focused products and efficiency programs such as MAP 2025 as supports for long term earnings growth. However, the step down to US$0.41 EPS in Q3 2025 versus the US$1.78 range in Q1 2025 and Q1 2026 shows that seasonality or mix can create variability. Investors may therefore want to compare these planned growth drivers with the actual pattern of quarterly EPS when assessing how smooth that earnings path appears.
🐂 RPM International Bull Case

P/E Of 19.9x Versus Debt Load

  • RPM trades on a trailing P/E of 19.9x, below the peer average of 21x and the wider US Chemicals industry at 25x. The current share price of US$106.61 is below both a DCF fair value estimate of US$153.16 and an analyst consensus price target of US$130.14, and the stock offers a 2.03% dividend yield.
  • More cautious investors focus on the company’s high debt level and higher net interest expense as key risks. These concerns sit alongside the lower P/E and the gap to both DCF fair value and analyst targets. A more bearish stance often centers on whether that leverage and any integration challenges from recent acquisitions will matter more for future earnings and cash flow than the 12% trailing earnings growth and the improved 9.1% margin suggest.
🐻 RPM International Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for RPM International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a couple of minutes to test your own view against RPM’s figures and shape that into your own story: Do it your way.

A great starting point for your RPM International research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

RPM’s Q3 2025 EPS declined to US$0.41, and the focus on high debt and interest costs raises questions about consistency and balance sheet strength.

If that combination of earnings volatility and leverage makes you uneasy, check out our solid balance sheet and fundamentals stocks screener (1941 results) to find companies with sturdier financial foundations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.