RPM International Inc. (NYSE:RPM) stock fell Thursday after the company reported worse-than-expected second-quarter fiscal 2026 results.
Details
The company reported record sales of $1.91 billion, up 3.5% year over year (Y/Y) and missing the $1.928 billion estimate.
Sales reflected a 0.5% organic decline, 3.4% growth from acquisitions, and a 0.6% boost from foreign currency translation.
Sales hit a record, fueled by acquisitions and engineered solutions for high-performance buildings, though weaker DIY demand moderated growth.
Several construction segments saw slowing momentum later in the quarter, as longer project lead times, partly due to the extended government shutdown, impacted activity.
Adjusted EBIT declined 11.2% Y/Y to $226.6 million in the quarter due to growth investments, lower fixed-cost absorption from reduced volumes, and temporary inefficiencies from plant and warehouse consolidations.
Adjusted diluted EPS was $1.20, a decrease of 13.7% Y/Y, missing the consensus of $1.42.
Operating cash flow was $583.2 million, and capital expenditure was $111.8 million in the first six months of fiscal 2026.
As of November 30, 2025, total debt stood at $2.52 billion, while liquidity came in at $1.10 billion.
The company returned $168.7 million to shareholders via dividends and share repurchases …