RPM International Inc. reported financial results for its fiscal 2026 second quarter ended Nov. 30, 2025.

RPM reported record second-quarter sales of $1.91 billion, an increase of 3.5% over the prior year, as well as second-quarter net income of $161.2 million.

RPM’s second-quarter adjusted diluted EPS of $1.20 is a decrease of 13.7% compared to the prior-year record, and adjusted EBIT of $226.6 million is a decrease of 11.2% compared to the prior-year record.

During the first six months of fiscal 2026, cash provided by operating activities was $583.2 million, the second-highest amount in the company’s history, compared to $527.5 million in the prior-year period, with the increase driven by improved working capital efficiency.

Fiscal 2026 third-quarter outlook calls for mid-single-digit sales growth and adjusted EBIT to increase mid- to high-single digits. Fiscal 2026 fourth-quarter outlook calls for mid-single-digit sales growth and adjusted EBIT to increase low- to high-single-digits.

“In the second quarter, sales came in at the lower end of our expectations,” says Frank C. Sullivan, RPM chairman and CEO. “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,” adds Sullivan.

In response to current market conditions, the company is implementing actions that, once fully in place, will generate annual benefits of approximately $100 million. 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.

As of Nov. 30, 2025, total debt was $2.52 billion compared to $2.03 billion a year ago, with the $494 million increase driven by debt used to finance acquisitions.

“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,” Sullivan concludes.