RPM International Inc. (RPM) Business Profile

What it does

RPM International is a specialty chemicals company whose subsidiaries make and sell products used to build, protect, repair and maintain structures and surfaces. Its range includes paints, protective coatings, roofing systems, sealants, adhesives and concrete repair products. The company also provides services such as roofing repairs, building maintenance and flooring installation.

Its construction customers include contractors, manufacturers and institutions that use products to seal buildings, repair concrete and protect roofs. Industrial customers buy products such as corrosion-control coatings, fireproofing and flooring systems. Consumers and professionals use RPM’s paints, caulks, cleaners and other products for home improvement and repair.

RPM organizes its businesses into the Construction Products Group, the Performance Coatings Group and the Consumer segment. Its brands include Tremco and Euclid in construction, Carboline and Stonhard in performance coatings, and Rust-Oleum, DAP and Zinsser in consumer products. Some offerings combine products and services: for example, RPM can supply roofing materials and apply them as part of a project.

RPM’s predecessor was founded in 1947. The company is headquartered in Medina, Ohio, and Frank C. Sullivan is its chair and chief executive officer. RPM employed 17,546 people as of May 31, 2026.

How it makes money

RPM earns revenue by selling specialty products through its subsidiaries and, in some businesses, providing related construction and installation services. Its construction and performance coatings businesses sell products directly to contractors, distributors and end users; the consumer business sells to retailers and through distributors.

For the fiscal year ended May 31, 2026, RPM recorded net sales of $7.9 billion.

The Construction Products Group sells products for roofs, building exteriors, waterproofing, concrete and flooring. It also performs roofing repairs, restoration and building maintenance. The Performance Coatings Group sells industrial flooring, protective and fireproofing coatings, infrastructure repair systems and other specialized products. Its flooring businesses can provide both products and installation. The Consumer segment sells paints, primers, caulks, sealants, cleaners and woodcare products for professional and do-it-yourself use.

Maintenance and restoration are important uses for RPM’s products. The company also sells into new construction and residential home improvement. Its roofing offerings cover restoration, re-covering and new construction, while its flooring products serve both new buildings and repair projects. RPM also receives license fees and royalties from international agreements.

Pricing is one way RPM responds to changes in input costs. The company said its construction and performance coatings businesses implemented price increases where necessary during the fiscal fourth quarter. It expects further price increases, including in Consumer, to recover the gross margin percentage lost in the first quarter of fiscal 2027. Consolidated gross profit margin was 41.4% of net sales for fiscal 2026.

Customers and how it sells

RPM sells to contractors, distributors, manufacturers and end users, including industrial facilities, public institutions and other commercial customers. Construction products also reach concrete and cement producers. Performance coatings customers include facilities and contractors that use protective coatings, flooring and fireproofing.

The Consumer segment serves professional users and do-it-yourself customers, mainly for residential applications. It sells directly to mass merchandisers, home improvement centers, hardware stores, residential construction suppliers, paint stores and craft shops, as well as through distributors.

No individual customer accounted for more than 10% of consolidated net sales in fiscal 2026. RPM nevertheless has some large customers, particularly in Consumer: its largest customer represented 20% of Consumer segment net sales for fiscal 2026.

As of May 31, 2026, RPM’s subsidiaries marketed products in approximately 167 countries and territories and operated manufacturing facilities in approximately 120 locations. Approximately 31% of sales are generated in international markets through exports and direct foreign sales. Construction products account for the majority of RPM’s international sales; Consumer manufacturing and distribution are primarily in North America, with a few locations in Europe and Latin America.

Suppliers and costs

RPM buys raw materials from a number of suppliers. Many are petroleum-based derivatives, minerals or metals, and packaging is also a material cost. Raw materials are generally available from several producers under normal market conditions, although shortages can occur. RPM uses alternative material sources and long-term contracts where possible to reduce exposure to cost volatility.

The company said a supplier plant fire caused tightness in propylene oxide-derived materials in North America, while MDI supplies were also tight because of supplier issues. It said its procurement team had found additional sources, limiting the impact. RPM also said tariffs had indirectly raised steel and packaging costs in its Consumer business.

RPM experienced modest inflation in some raw materials during fiscal 2026 and expects inflation associated with the Middle East conflict and tariffs to affect fiscal 2027 results. Its expenses also include manufacturing, distribution, selling and administrative costs. Fiscal 2026 gross margin was affected by cost inflation, lower production volumes in some businesses and temporary plant-consolidation inefficiencies; pricing and procurement, manufacturing and commercial savings offset those pressures.

Competitive position

RPM operates in competitive, fragmented markets. Its major products face local, regional, national and multinational competitors, but the company says no single competitor faces it across all its products. RPM does not name individual competitors. It says some competitors have greater financial resources and larger sales organizations.

In consumer home improvement, suppliers compete through brand recognition, customer service and new products. In industrial protective coatings, competitors offer a range of products and customized solutions. For construction products, RPM identifies quality assurance, on-the-job consultation and engineered products as ways competitors differentiate themselves.

RPM identifies Rust-Oleum, Carboline, DAP and Tremco among its significant trademarks. It says entry barriers in paints, coatings, adhesives and sealants include the time between product development and market acceptance, the importance of brand identity and the difficulty of establishing a reliable supplier reputation.

Our reading: RPM’s brands provide a meaningful competitive advantage in markets where recognition matters, although the company still faces competitors across its product lines. Our reading: Integrated building systems and warranties can help distinguish RPM’s offer, but their protection is less certain because customers can also choose other suppliers’ products and services.

Growth opportunities

RPM’s growth activities include selling products for maintenance and restoration, expanding its systems offerings and making acquisitions. Its building-envelope systems combine products from the foundation to the roof, including sealants, waterproofing, insulation and roofing. The company said it can warrant entire wall systems rather than sell only individual components.

Construction Products Group generated organic sales growth in fiscal 2026 from building and infrastructure systems, roofing solutions and concrete admixtures. Performance Coatings Group also generated organic growth, including from flooring, protective coatings and food industry coatings. Consumer organic sales declined because of soft do-it-yourself and European markets, product rationalization and weak Color Group demand; acquisitions offset those declines.

RPM is targeting data centers, energy and infrastructure projects as well as building restoration. The company said data centers represented about 1%-2% of its business. It also said its Construction Products Group acquired Kalzip, a metal roofing and facades business, in the fiscal fourth quarter.

For fiscal 2027, RPM expects sales to increase 3%-7% and adjusted EBITDA to increase 5%-10%. It expects SG&A-focused optimization actions to generate around $75 million in benefits during the year, partly offset by higher healthcare and benefit expenses. The company says economic uncertainty limits demand visibility, particularly in Consumer.

Structural risks

• Materials and supply: Raw material costs can be volatile, and supply interruptions could affect RPM’s ability to produce products. The company expects inflation associated with the Middle East conflict and tariffs to affect fiscal 2027 results.
• Demand and seasonality: Global and regional economic conditions can affect operations. Weather also influences demand, with RPM historically experiencing seasonally lower performance in its third fiscal quarter.
• Customer concentration: Although no individual customer exceeded 10% of consolidated net sales in fiscal 2026, RPM has large customers, particularly in Consumer. Its largest customer represented 20% of that segment’s net sales for the year.
• Acquisitions and restructuring: Acquisitions can bring integration difficulties, undisclosed liabilities and delays in realizing expected benefits. Operating improvement initiatives, including consolidation, may increase operational risks and expenses.
• Legal, environmental and warranty costs: RPM faces legal and warranty claims and environmental regulation. Environmental costs may exceed existing accruals, and actual warranty outcomes may differ from estimated liabilities.
• Debt and financing: Debt payments can reduce cash available for other purposes, while credit-facility covenants can restrict operational flexibility. Large debt maturities occurring close together could adversely affect short-term liquidity.

Bottom line

Our reading

Our reading: RPM combines branded consumer products with construction and industrial businesses that sell both materials and related services, including maintenance and restoration [item1]. That mix gives it several routes to demand, but its results remain exposed to raw material costs, construction conditions and consumer spending [item1, item7]. Its ability to recover inflation through pricing and carry out efficiency plans will matter alongside the integration of acquisitions [call_prepared, item1a].