RPM International (RPM) Stock Forecast & Price Target

RPM International is supported by a favorable mix of infrastructure exposure, industrial demand, and repair-and-maintenance end markets, with roughly 20% exposure to infrastructure and about 65% of sales tied to industrial-focused categories. Its Construction Products and Performance Coatings businesses are showing strong momentum from data centers, energy, and building restoration, while pricing actions have helped offset roughly 60% of COGS inflation and preserve price/cost neutrality. Management’s ongoing SG&A investments, a healthy M&A pipeline, and the announced $100MM cost savings program, including about $75M of FY27 benefit, should further expand margins and strengthen growth once consumer demand stabilizes.

RPM International is pressured by worsening inflation, FIFO accounting drag, and startup costs that are weighing on the FY27 outlook even as management expects pricing actions and $75M of FY27 SG&A savings to help support its EBITDA guide. The company also faces structural concerns from a somewhat bloated acquisition-driven overhead base, heavy U.S. exposure of about 75%, and customer concentration risks, including Home Depot at 10% of consolidated sales and the top 10 customers at 24%. Consumer sales rose 7% yr/yr to $765MM, but organic sales were down 0.8% and volumes fell about 2.5%, while FQ1/FY27/FY28 EBITDA estimates were cut to $285M/$1.295B/$1.4B from $305M/$1.325B/$1.415B.