RPM International to Report Q3 Earnings: Here’s What You Must Know – April 6, 2026
Key Takeaways
- RPM’s adjusted EPS estimate for Q3 edged lower recently, while net sales are still expected to rise YoY.
- RPM expects Q3 sales growth across CPG, PCG and Consumer, supported by demand trends and recent acquisitions.
- RPM expects MAP initiatives to support margins, contributing to year-over-year growth in adjusted EBIT.
RPM International Inc. (RPM – Free Report) is slated to report its third-quarter fiscal 2026 results on April 8, before the opening bell.
In the last reported quarter, RPM’s adjusted earnings per share (EPS) missed the Zacks Consensus Estimate by 14.9% and declined 13.7% year over year. Meanwhile, net sales also missed the consensus estimate by 1%, but increased 3.5% year over year.
The company’s earnings topped analysts’ expectations in two of the trailing four quarters and missed on the remaining two occasions, with the negative average surprise being 9.9%.
How Are Estimates Placed for RPM Stock?
The Zacks Consensus Estimate for the fiscal third quarter’s adjusted EPS has declined in the past 30 days to 37 cents per share from 39 cents. The revised estimated figure indicates 5.7% growth from the year-ago figure of 35 cents per share.
The consensus mark for net sales is pegged at $1.55 billion, indicating 5.3% year-over-year growth.
Factors Likely to Shape RPM’s Q3 Results
Net Sales
RPM International’s fiscal third-quarter net sales are likely to have increased year over year, driven by solid demand for engineered solutions used in high-performance buildings and continued contributions from maintenance and repair activities. Growth is also expected to have been supported by targeted investments and a stable backlog, particularly within construction-related businesses. Acquisitions and system-based offerings are likely to have further supported revenue growth during the quarter.
Management expects consolidated net sales to increase at a mid-single-digit rate year over year in the fiscal third quarter. By segment, the Consumer segment is anticipated to post moderately higher sales growth than the Construction Products Group (CPG) and Performance Coatings Group (PCG) segments, driven by recent acquisitions.
Our model predicts CPG sales (which contributed 38.6% to the second quarter of fiscal 2026 net sales) to grow 3.6% year over year to $517.5 million. We expect net sales in the Consumer Group (33.4%) and PCG (27.9%) segments to increase year over year by 6.8% and 4.4%, respectively.
As part of its ongoing strategic actions, the company continues to realign its business structure and invest in growth areas such as high-performance building systems and innovation. These efforts are expected to have supported collaboration across segments and drive long-term revenue growth.
However, some challenges are likely to have persisted during the quarter. Soft DIY demand, longer construction project lead times and volatility in demand trends remain concerns. Uncertainty around the timing of project conversions and continued macro pressure might have impacted overall momentum.
Margins & Earnings
In the fiscal third quarter, RPM’s bottom line is expected to have benefited from SG&A optimization actions and ongoing cost discipline initiatives. Early benefits from structural realignment actions are likely to have supported profitability, along with improved volume trends and better fixed cost absorption compared with the prior quarter.
The company also continues to benefit from MAP initiatives and focused growth investments, which are expected to have aided operating performance over time. Additionally, improving raw material trends, excluding tariff-related impacts, is likely to have provided some support.
The company expects adjusted EBIT to be up year over year in the mid to high-single-digit percentage range. Our model predicts the metric to be up 7.6% year over year to $84.2 million.
What Our Model Indicates for RPM
Our proven model does not conclusively predict an earnings beat for RPM International this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Earnings ESP: The company’s earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: RPM currently carries a Zacks Rank of 4 (Sell).
Stocks With the Favorable Combinations
According to our model, the following companies in the broader Basic Materials sector possess the right combination of elements to post an earnings beat in the upcoming quarter.
Equinox Gold (EQX – Free Report) has an Earnings ESP of +12.50% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinox Gold reported better-than-expected earnings in two of the trailing four quarters and missed on the remaining two occasions, the average surprise being 89.2%. Earnings for Equinox Gold’s to-be-reported quarter are expected to grow 412.5% year over year.
Albemarle Corporation (ALB – Free Report) currently has an Earnings ESP of +97.57% and a Zacks Rank of 3.
The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 57.8%. Earnings for Albemarle’s to-be-reported quarter are expected to grow 533.3% year over year.
CF Industries (CF – Free Report) currently has an Earnings ESP of +23.26% and a Zacks Rank of 3.
The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 13.2%. Earnings for CF Industries’ to-be-reported quarter are expected to grow 16.2% year over year.
