Revenue growth has swung from -2.1% in 2025Q1 to 4.8% in 2027Q1 alongside record $349.0M quarterly operating income and a 15.8% operating margin, though the recurring Q3 trough (5.0% operating margin on $1.6B revenue) suggests the structural earnings ceiling may be materially lower than the current run-rate implies.
RPM International Inc. (RPM) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | May'26 | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Sales/Revenue | 7.97B | 7.86B | 7.37B | 7.34B | 7.26B | 6.71B | 6.11B | 5.51B | 5.56B | 5.32B | 4.96B | 4.81B | 4.59B | 4.38B | 4.08B | 3.78B | 3.38B | 3.41B | 3.37B | 3.64B | 3.34B | 3.01B | 2.56B | 2.34B | 2.08B | 1.99B | 2.01B | 1.95B | 1.71B | 1.62B | 1.35B |
| Revenue Growth % | 5.96% | 6.66% | 0.51% | 1.09% | 8.18% | 9.85% | 10.88% | -1.03% | 4.56% | 7.33% | 3% | 4.77% | 4.99% | 7.3% | 7.97% | 11.7% | -0.9% | 1.32% | -7.56% | 9.14% | 10.98% | 17.71% | 9.15% | 12.39% | 4.9% | -1.08% | 2.74% | 14.13% | 6% | 19.61% | 18.84% |
| Cost of Goods Sold | 4.69B | 4.61B | 4.32B | 4.32B | 4.51B | 4.3B | 3.7B | 3.4B | 3.3B | 3.14B | 2.79B | 2.73B | 2.65B | 2.5B | 2.38B | 2.24B | 1.98B | 1.98B | 2.02B | 2.15B | 1.98B | 1.76B | 1.45B | 1.28B | 1.13B | 1.07B | 1.13B | 1.02B | 865M | 834.9M | 701.3M |
| COGS % of Revenue | - | 58.56% | 58.62% | 58.9% | 62.13% | 64.11% | 60.59% | 61.7% | 59.35% | 59.01% | 56.32% | 56.64% | 57.75% | 57.14% | 58.25% | 59.17% | 58.58% | 57.94% | 59.83% | 58.87% | 59.25% | 58.54% | 56.7% | 54.51% | 54.18% | 54.07% | 56.17% | 52.22% | 50.52% | 51.69% | 51.93% |
| Gross Profit | 3.28B | 3.26B | 3.05B | 3.01B | 2.75B | 2.41B | 2.41B | 2.11B | 2.26B | 2.18B | 2.17B | 2.09B | 1.94B | 1.88B | 1.7B | 1.54B | 1.4B | 1.44B | 1.35B | 1.5B | 1.36B | 1.25B | 1.11B | 1.07B | 954.55M | 912.22M | 879.98M | 933.64M | 847.2M | 780.4M | 649.2M |
| Gross Margin % | 41.17% | 41.44% | 41.38% | 41.1% | 37.87% | 35.89% | 39.41% | 38.3% | 40.65% | 40.99% | 43.68% | 43.36% | 42.25% | 42.86% | 41.75% | 40.83% | 41.42% | 42.06% | 40.17% | 41.13% | 40.75% | 41.46% | 43.3% | 45.49% | 45.82% | 45.93% | 43.83% | 47.78% | 49.48% | 48.31% | 48.07% |
| Gross Profit Growth % | - | 6.81% | 1.19% | 9.7% | 14.13% | 0.04% | 14.11% | -6.75% | 3.7% | 0.72% | 3.77% | 7.5% | 3.5% | 10.16% | 10.4% | 10.09% | -2.4% | 6.08% | -9.71% | 10.15% | 9.07% | 12.73% | 3.88% | 11.59% | 4.64% | 3.66% | -5.75% | 10.2% | 8.56% | 20.21% | 22.68% |
| Operating Expenses | 2.28B | 2.33B | 2.14B | 2.13B | 1.96B | 1.78B | 1.68B | 1.55B | 1.77B | 1.65B | 1.64B | 1.52B | 1.45B | 1.39B | 1.31B | 1.16B | 1.06B | 1.11B | 1.1B | 1.13B | 1.02B | 938.3M | 829.45M | 818.64M | 739.99M | 717.63M | 713.28M | 758.12M | 654.8M | 594.2M | 480.9M |
| OpEx % of Revenue | - | 29.69% | 29.08% | 29.06% | 26.96% | 26.5% | 27.49% | 28.23% | 31.74% | 31.07% | 33.08% | 31.6% | 31.62% | 31.76% | 32.1% | 30.6% | 31.23% | 32.4% | 32.55% | 30.89% | 30.58% | 31.19% | 32.45% | 34.96% | 35.52% | 36.13% | 35.53% | 38.8% | 38.24% | 36.79% | 35.61% |
| Selling, General & Admin | 2.28B | 2.29B | 2.04B | 2.04B | 1.96B | 1.7B | 1.6B | 1.48B | 1.6B | 1.5B | 1.64B | 1.47B | 1.4B | 1.34B | 1.25B | 1.11B | 1.02B | 1.06B | 1.06B | 1.09B | 986.18M | 906M | 800.54M | 818.64M | 739.99M | 717.63M | 713.28M | 678.97M | 592.7M | 537.2M | 429.8M |
| SG&A % of Revenue | - | 29.15% | 27.65% | 27.77% | 26.96% | 25.3% | 26.22% | 26.84% | 28.68% | 28.16% | 33.15% | 30.62% | 30.38% | 30.52% | 30.75% | 29.39% | 30.02% | 31.19% | 31.36% | 29.79% | 29.54% | 30.12% | 31.32% | 34.96% | 35.52% | 36.13% | 35.53% | 34.75% | 34.62% | 33.26% | 31.83% |
| Research & Development | 0 | 0 | 94.7M | 92.2M | 0 | 80.5M | 77.6M | 76.5M | 71.6M | 69.7M | 64.9M | 61.5M | 56.7M | 54.6M | 49.3M | 45.4M | 40.9M | 41.3M | 40.1M | 40.2M | 34.7M | 32.3M | 28.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 1.28% | 1.26% | - | 1.2% | 1.27% | 1.39% | 1.29% | 1.31% | 1.31% | 1.28% | 1.23% | 1.25% | 1.21% | 1.2% | 1.21% | 1.21% | 1.19% | 1.1% | 1.04% | 1.07% | 1.13% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 42.61M | 11.1M | 1.9M | 0 | 0 | 0 | 0 | 98.53M | 85.26M | -68.5M | -14.5M | 0 | 0 | 5.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 79.15M | 62.1M | 57M | 51.1M |
| Operating Income | 995.45M | 923.48M | 906.34M | 883.26M | 781.62M | 630.01M | 728.09M | 554.43M | 495.73M | 527.77M | 525.77M | 566.07M | 503.23M | 485.64M | 393.48M | 386.55M | 344.8M | 329.49M | 256.58M | 373.02M | 339.57M | 309.07M | 277.11M | 217.62M | 47.85M | 154.12M | 101.49M | 71.76M | 159.7M | 149.5M | 135.7M |
| Operating Margin % | 12.5% | 11.74% | 12.29% | 12.04% | 10.77% | 9.39% | 11.92% | 10.07% | 8.91% | 9.92% | 10.6% | 11.76% | 10.95% | 11.1% | 9.65% | 10.23% | 10.2% | 9.65% | 7.62% | 10.24% | 10.17% | 10.27% | 10.84% | 9.29% | 2.3% | 7.76% | 5.05% | 3.67% | 9.33% | 9.26% | 10.05% |
| Operating Income Growth % | - | 1.89% | 2.61% | 13% | 24.07% | -13.47% | 31.32% | 11.84% | -6.07% | 0.38% | -7.12% | 12.49% | 3.62% | 23.42% | 1.79% | 12.11% | 4.64% | 28.42% | -31.21% | 9.85% | 9.87% | 11.53% | 27.34% | 354.76% | -68.95% | 51.87% | 41.42% | -55.07% | 6.82% | 10.17% | 13.18% |
| EBITDA | 1.31B | 981.88M | 1.1B | 1.05B | 936.57M | 783.09M | 874.95M | 711.27M | 637.47M | 656.27M | 642.54M | 677.11M | 602.4M | 575.71M | 477.23M | 460.25M | 417.55M | 413.75M | 341.73M | 458.38M | 421.18M | 383.37M | 343.1M | 280.89M | 106.53M | 210.98M | 182.98M | 150.91M | 221.8M | 206.5M | 186.8M |
| EBITDA Margin % | 16.42% | 12.49% | 14.92% | 14.38% | 12.91% | 11.67% | 14.33% | 12.92% | 11.46% | 12.33% | 12.96% | 14.07% | 13.11% | 13.15% | 11.7% | 12.18% | 12.35% | 12.12% | 10.15% | 12.58% | 12.61% | 12.74% | 13.42% | 12% | 5.11% | 10.62% | 9.11% | 7.72% | 12.95% | 12.78% | 13.83% |
| EBITDA Growth % | 17.51% | -10.75% | 4.33% | 12.59% | 19.6% | -10.5% | 23.01% | 11.58% | -2.86% | 2.14% | -5.11% | 12.4% | 4.64% | 20.64% | 3.69% | 10.23% | 0.92% | 21.07% | -25.45% | 8.83% | 9.86% | 11.74% | 22.15% | 163.68% | -49.51% | 15.3% | 21.25% | -31.96% | 7.41% | 10.55% | 14.95% |
| D&A (Non-Cash Add-back) | 312.38M | 0 | 193.84M | 171.25M | 154.95M | 153.07M | 146.86M | 156.84M | 141.74M | 128.5M | 116.77M | 111.04M | 99.18M | 90.07M | 83.74M | 73.7M | 72.75M | 84.25M | 85.14M | 85.37M | 81.61M | 74.3M | 65.99M | 63.28M | 58.67M | 56.86M | 81.49M | 79.15M | 62.1M | 57M | 51.1M |
| EBIT | 1.06B | 981.88M | 889.3M | 905.81M | 768.4M | 691.46M | 750.46M | 508.77M | 442.24M | 521.6M | 341.29M | 575.15M | 540.87M | 505.44M | 256.74M | 400.33M | 360.48M | 327.73M | 235.33M | 99.32M | 365.57M | -74.63M | 204.11M | 246.56M | 214.56M | 194.59M | 166.69M | 175.52M | 192.38M | 186.2M | 168.3M |
| Net Interest Income | -81.15M | -111.54M | -83.21M | -97.02M | -111.53M | -80.83M | -79.1M | -95.69M | -97.51M | -99.54M | -92.33M | -85.71M | -79.31M | -74.62M | -73.03M | -67.01M | -60.37M | -55.24M | -48.52M | -46.96M | -47.03M | -41.34M | -35.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 26.6M | 0 | 13.34M | 20.95M | 7.48M | 3.82M | 2.92M | 5.31M | 4.88M | 5M | 4.62M | 5.97M | 8.3M | 6.33M | 6.81M | 5.03M | 5.06M | 4.04M | 5.93M | 13.3M | 11M | 6.5M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 107.75M | 111.54M | 96.54M | 117.97M | 119.02M | 84.66M | 82.02M | 101M | 102.39M | 104.55M | 96.95M | 91.68M | 87.61M | 80.95M | 79.85M | 72.05M | 65.43M | 59.27M | 54.46M | 60.26M | 58.03M | 47.84M | 40.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -86.1M | -53.14M | -113.58M | -95.42M | -132.24M | -23.21M | -59.65M | -146.66M | -155.88M | -110.72M | -281.44M | -82.61M | -49.97M | -61.15M | -216.59M | -58.26M | -49.74M | -61.04M | -75.72M | -333.96M | -32.03M | -431.54M | -113.38M | -28.95M | -166.71M | -40.46M | -65.2M | -103.76M | -32.78M | -36.7M | -32.6M |
| Pretax Income | 909.35M | 870.34M | 792.76M | 787.84M | 649.38M | 606.8M | 668.44M | 407.76M | 339.85M | 417.05M | 244.33M | 483.47M | 453.25M | 424.49M | 176.89M | 328.29M | 295.05M | 268.45M | 180.87M | 39.05M | 307.54M | -122.47M | 163.73M | 217.62M | 47.85M | 154.12M | 101.49M | 71.76M | 159.7M | 149.5M | 135.7M |
| Pretax Margin % | 11.42% | 11.07% | 10.75% | 10.74% | 8.95% | 9.05% | 10.95% | 7.4% | 6.11% | 7.84% | 4.93% | 10.04% | 9.87% | 9.7% | 4.34% | 8.69% | 8.72% | 7.87% | 5.37% | 1.07% | 9.21% | -4.07% | 6.41% | 9.29% | 2.3% | 7.76% | 5.05% | 3.67% | 9.33% | 9.26% | 10.05% |
| Income Tax | 219.17M | 207.86M | 102.43M | 198.4M | 169.65M | 114.33M | 164.94M | 102.68M | 72.16M | 77.79M | 59.66M | 126.01M | 224.93M | 118.5M | 67.04M | 94.53M | 91.89M | 87.33M | 61.25M | -8.65M | 99.25M | -46.27M | 58.7M | 75.73M | 12.53M | 52.57M | 38.53M | 30.77M | 65.1M | 61.7M | 57.4M |
| Effective Tax Rate % | 24.1% | 23.88% | 12.92% | 25.18% | 26.12% | 18.84% | 24.68% | 25.18% | 21.23% | 18.65% | 24.42% | 26.06% | 49.62% | 27.92% | 37.9% | 28.79% | 31.14% | 32.53% | 33.87% | -22.16% | 32.27% | 37.78% | 35.85% | 34.8% | 26.18% | 34.11% | 37.96% | 42.88% | 40.76% | 41.27% | 42.3% |
| Net Income | 690.14M | 661.39M | 688.69M | 588.4M | 478.69M | 491.48M | 502.64M | 304.38M | 266.56M | 337.77M | 181.82M | 354.73M | 239.48M | 291.66M | 98.6M | 215.94M | 189.06M | 180.04M | 119.62M | 47.71M | 208.29M | -76.2M | 105.03M | 141.89M | 35.33M | 101.55M | 62.96M | 40.99M | 94.6M | 87.8M | 78.3M |
| Net Margin % | 8.66% | 8.41% | 9.34% | 8.02% | 6.6% | 7.33% | 8.23% | 5.53% | 4.79% | 6.35% | 3.67% | 7.37% | 5.21% | 6.66% | 2.42% | 5.72% | 5.59% | 5.28% | 3.55% | 1.31% | 6.24% | -2.53% | 4.11% | 6.06% | 1.7% | 5.11% | 3.14% | 2.1% | 5.53% | 5.44% | 5.8% |
| Net Income Growth % | 0.22% | -3.96% | 17.04% | 22.92% | -2.6% | -2.22% | 65.13% | 14.19% | -21.08% | 85.77% | -48.74% | 48.12% | -17.89% | 195.79% | -54.34% | 14.22% | 5.01% | 50.51% | 150.72% | -77.09% | 373.33% | -172.55% | -25.97% | 301.64% | -65.21% | 61.3% | 53.59% | -56.67% | 7.74% | 12.13% | 13.64% |
| Net Income (Continuing) | 690.18M | 662.48M | 690.33M | 589.44M | 479.73M | 492.47M | 503.5M | 305.08M | 267.69M | 339.26M | 184.67M | 357.46M | 228.33M | 305.98M | 109.85M | 233.76M | 203.17M | 181.13M | 119.62M | 47.71M | 208.29M | -76.2M | 105.03M | 141.89M | 35.33M | 101.55M | 62.96M | 40.99M | 94.55M | 87.8M | 78.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.51M | 1.57M | 1.43M | 1.34M | 2.16M | 1.4M | 1.96M | 2.22M | 2.65M | 2.77M | 2.64M | 2.41M | 2.07M | 195.75M | 154.07M | 130.33M | 124.2M | 81.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.42 | 5.17 | 5.35 | 4.56 | 3.72 | 3.79 | 3.87 | 2.34 | 1.98 | 2.46 | 1.36 | 2.63 | 1.78 | 2.18 | 0.74 | 1.65 | 1.45 | 1.39 | 0.93 | 0.39 | 1.64 | -0.65 | 0.86 | 1.16 | 0.30 | 0.97 | 0.62 | 0.38 | 0.86 | 0.84 | 0.76 |
| EPS Growth % | 1.12% | -3.36% | 17.32% | 22.58% | -1.85% | -2.07% | 65.38% | 18.18% | -19.51% | 80.88% | -48.29% | 47.75% | -18.35% | 194.59% | -55.15% | 13.79% | 4.32% | 49.46% | 138.46% | -76.22% | 352.31% | -175.58% | -25.86% | 286.67% | -69.07% | 56.45% | 63.16% | -55.81% | 2.38% | 10.53% | 10.14% |
| EPS (Basic) | - | 5.19 | 5.38 | 4.58 | 3.74 | 3.81 | 3.89 | 2.35 | 2.04 | 2.57 | 1.37 | 2.70 | 1.81 | 2.20 | 0.75 | 1.65 | 1.46 | 1.40 | 0.95 | 0.40 | 1.76 | -0.65 | 0.90 | 1.23 | 0.31 | 0.97 | 0.62 | 0.38 | 0.87 | 0.89 | 0.81 |
| Diluted Shares Outstanding | 127.24M | 127.55M | 128.2M | 128.34M | 128.82M | 129.58M | 128.93M | 129.97M | 134.33M | 137.17M | 135.16M | 136.72M | 134.89M | 132.29M | 129.8M | 128.72M | 128.07M | 127.73M | 128.25M | 130.54M | 128.71M | 116.84M | 126.36M | 122.32M | 117.76M | 104.42M | 102.2M | 107.22M | 109.94M | 104.52M | 103.03M |
| Basic Shares Outstanding | 126.74M | 127.05M | 127.57M | 127.77M | 127.51M | 127.95M | 128.33M | 128.47M | 130.55M | 131.18M | 130.66M | 129.38M | 129.93M | 129.44M | 128.96M | 128.13M | 127.4M | 127.05M | 126.37M | 120.15M | 118.18M | 116.84M | 116.9M | 115.78M | 115.29M | 104.42M | 102.2M | 107.22M | 108.67M | 98.65M | 96.67M |
| Dividend Payout Ratio | - | 41.08% | 37.11% | 39.41% | 44.69% | 41.59% | 38.74% | 60.81% | 68.06% | 49.58% | 86.21% | 40.69% | 56.86% | 43.11% | 119.31% | 51.94% | 57.43% | 58.56% | 85.14% | 189.98% | 39.42% | - | 65.63% | 44.86% | 167.4% | 51.61% | 80.38% | 126.61% | 53.33% | 49.54% | 50.7% |
Quick answers to the most common questions about buying RPM stock.
For fiscal year 2026, RPM International Inc. (RPM) reported total revenue of $7.86B. This represents a 482.3% increase compared to $1.35B in 1997.
RPM International Inc. (RPM) is profitable, generating $661.4M in net income for the fiscal year ending 2026 with a net profit margin of 8.4%.
RPM International Inc. (RPM) reported an operating income of $923.5M, resulting in an operating profit margin of 11.7%. This margin reflects the operational efficiency of the business before interest and taxes.
RPM International Inc. (RPM) generated $3.26B in gross profit for the year, representing a gross profit margin of 41.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Q3 seasonal earnings collapse exposure
Metrics are mathematically derived from official filings.
Growth Recovering from Contraction into Mid-Single Digits
Revenue growth has swung from -2.1% in 2025Q1 to 4.8% in 2027Q1, a notable reversal; according to reported filings, this suggests the DIY normalization drag may have largely burned off while industrial maintenance demand continues to support volume recovery.
The ten-quarter history shows a clear inflection: 2024Q4 and 2025Q1 posted negative revenue growth of -0.4% and -2.1%, while 2026Q1 through 2027Q1 all show positive growth ranging from 3.5% to 8.9%. The recovery appears to be driven by a combination of pricing recovery in specialty segments and stabilized consumer demand rather than any single breakout product line. However, with peer revenue growth flat to negative across SHW, PPG, AXTA, and HXL, RPM's positive trajectory appears relatively stronger than the sector, though 4.8% remains modest in absolute terms and does not appear to be accelerating beyond the 8.9% peak seen in 2026Q3.
Operating Leverage Amplified by Seasonal Revenue Swings
Operating margin collapsed from 15.8% in 2027Q1 to 5.0% in 2026Q3 as revenue fell from $2.2B to $1.6B, suggesting RPM's fixed cost base—particularly SG&A—exposes the P&L to disproportionately severe earnings compression during seasonal troughs.
SG&A remained relatively sticky at $500-575M across most quarters even as quarterly revenue swung between $1.5B and $2.2B, meaning the operating leverage is asymmetric: margins expand efficiently in strong quarters but contract sharply when volume falls. This is visible in the Q3 operating income figures of $81.1M and $65.8M versus $349.0M in 2027Q1—a 5x swing that far exceeds the revenue variation alone. The decentralized brand structure likely contributes to this fixed-cost rigidity; investors should monitor whether MAP-driven procurement consolidation can meaningfully lower the SG&A floor over time, though the data does not yet show a clear trend in that direction.
Stock-Based Compensation Rising Amid Volatile Margins
SBC has nearly doubled from $5.5M in 2025Q1 to $9.6M in 2027Q1, representing a growing share of reported earnings that warrants scrutiny; as disclosed in recent filings, the EPS beat of $2.01 versus $1.28 estimate may also reflect conservatism in prior consensus rather than a fundamental step-change in earnings power.
The rising SBC trajectory is notable given the relatively modest absolute earnings base—$256.4M in 2027Q1—and suggests that dilution pressure may be accelerating even as the company emphasizes decentralization and employee empowerment. More broadly, the reported net margin has been highly volatile, ranging from 3.2% in 2026Q3 to 11.6% in 2027Q1, which makes the sustainability of the EPS trajectory difficult to assess without normalizing for seasonal and non-recurring items. The gap between the $2.01 actual EPS and the $1.28 consensus estimate is large enough to raise the question of whether the beat reflects genuine operating leverage or simply that prior estimates were set during the weaker quarters and had not fully caught up to the improving revenue trajectory.
2027Q1 Marks the Strongest Earnings Quarter in History
2027Q1 delivered record EPS of $2.01 on $349.0M operating income and 15.8% operating margin, the highest in the ten-quarter period; based on RPM's reported results, this quarter appears to validate the convergence of pricing recovery, mix improvement, and cost discipline into a single high-water mark.
The 2027Q1 result stands out not only because of its absolute magnitude but because it reverses the pattern of deterioration seen through 2025Q3 and 2026Q3, where operating income had fallen as low as $65.8M. What makes this quarter particularly informative is that it achieved both higher revenue ($2.2B) and stronger gross margin (41.3%) simultaneously, whereas prior strong quarters appeared to rely more heavily on one or the other. The lasting significance will depend on whether subsequent quarters can sustain operating margins above 12% rather than reverting to the sub-10% levels that characterized the weaker periods; the maintained guidance despite the beat suggests management itself may not be extrapolating from this peak.
Seasonality and Maintained Guidance Raise Sustainability Questions
Q3 operating income collapsed to just $81.1M and $65.8M in consecutive years on roughly $1.6B revenue, and the company maintained rather than raised guidance despite a 57% EPS beat; this pattern suggests the structural earnings ceiling may be materially lower than the Q1/Q2 run-rate implies.
A short-seller would likely focus on the fact that RPM's strongest quarters—Q1 and Q2—are followed by predictable earnings destruction in Q3, with operating margins falling to 4.5-5.0% in seasonal troughs. If annualized on a quarterly basis, the difference between the Q1 operating income of $349.0M and the Q3 trough of $81.1M represents a swing that most mature industrial companies do not exhibit, raising questions about whether the consumer segment's seasonality is being adequately managed through cost structure. Additionally, the decision to maintain guidance rather than raise it after a substantial beat could imply that management sees limited upside beyond the current trajectory, or that input cost inflation and mix pressure are offsetting the favorable operating leverage. With U.S. concentration at roughly 75% of revenue and peer growth rates near zero, the durability of the current 4.8% growth rate warrants cautious interpretation.