RPM International (RPM.N): Stabilization in Consumer and Inflation Easing into F2H27; Takeaways from Call & Management Callback

研报英文原文证据摘录

RPM International (RPM.N): Stabilization in Consumer and Inflation Easing into F2H27; Takeaways from Call & Management Callback

Action |

22 Jul 2026 16:00:00 ET │ 14 pages

RPM International (RPM.N)

Stabilization in Consumer and Inflation Easing into F2H27; Takeaways

from Call & Management Callback

CITI'S TAKE Buy

Short-Term View: Upside, expires 26-AUG-26

Our takeaways from the call: 1) While Consumer remains the segment with

Price (21 Jul 26 16:00) US$101.53 the least visibility, management expressed increasing confidence that the

Target price US$128.00 business is finally reaching a bottom after roughly two years of persistent

declines in consumer takeaway and volumes. Although recent trends Expected share price return 26.1%

suggest stabilization, management cautioned that renewed tariff Expected dividend yield 2.2%

pressures and elevated interest rates remain important risks. 2) Expected total return 28.3%

Management highlighted its track record of recovering cost inflation on a Market Cap US$12,958M

dollar-for-dollar basis, particularly during inflationary periods, and noted

that it typically retains those price increases even after raw material costs

normalize. RPM also indicated that additional pricing actions have already

been announced and are expected to take effect during July and August. Patrick CunninghamAC

3) Plant consolidation inefficiencies that weighed on FY26 results are +1-212-816-6684

expected to ease in FY27. Even after offsetting startup costs from new patrick.cunningham@citi.com

facilities, RPM expects a net year-over-year earnings benefit of

approximately $10-12 million, particularly realized in F2H27.

Stock Action — Our F1Q27E EBITDA estimate increases ~2% as we now model

consolidated organic revenue growth of ~4.8% (vs.