A maker of specialty paints, coatings, sealants, and construction products sold under well-known brands like Rust-Oleum, DAP, Tremco, Carboline, and Stonhard. Homeowners reach for Rust-Oleum spray paint and DAP caulk, while builders use its roofing, flooring, and corrosion-control systems worldwide. Founded in 1947 as Republic Powdered Metals in a Cleveland garage—the source of the "RPM" initials—it grew through acquisitions. A favorite tale: Rust-Oleum was born in 1921 when a sea captain noticed spilled fish oil stopped rust on his ship's decks.
10-K · Fiscal year ended May 31, 2026 · SEC filing ↗
RPM's FY2026 net income fell 4% to $661M as a higher tax rate erased acquisition-driven revenue gains, while organic growth returned to 2%.
returned after a year of decline, but it wasn't enough to lift the . rose 6.7% to $7.86 billion and held at 41.4%, yet net income fell to $662.5 million as the normalized to 23.9% from a one-time-benefit-depressed 12.9% a year ago. The company's core industrial businesses are expanding, but the Consumer continues to shrink organically, and the balance sheet is absorbing a wave of recent acquisitions.
Key takeaways
fell 4.0% to $662.5 million, as a $43.9 million non-cash deferred tax benefit recorded in fiscal 2025 did not repeat, pushing the back up to 23.9% from 12.9%.
Consolidated rose 6.7% to $7.86 billion, with of 2.0%, acquisitions contributing 3.6%, and favorable foreign exchange adding 1.1%.
was flat at 41.4%, as pricing and MAP 2025 savings offset cost inflation, tariff impacts, and temporary inefficiencies from plant consolidations.
Section summaries
Business
RPM operates three segments—CPG, PCG, and Consumer—selling specialty coatings, sealants, and construction products globally.
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The company realigned into three reportable segments in fiscal 2026: Construction Products Group (CPG, ~39% of sales), Performance Coatings Group (PCG, ~27%), and Consumer (~34%).
The Consumer 's organic sales declined 2.6%, continuing a multi-year pattern of reduced DIY takeaway and product rationalization, with all of the segment's 6.4% reported growth coming from acquisitions.
improved to $899 million from $768 million, aided by stronger collections, while the company deployed $202 million on acquisitions and $223 million on .
A new $24.4 million restructuring program focused on SG&A optimization was launched, adding to the final $18.2 million in charges from the now-concluded MAP 2025 plan.
What changed
returned to 2.0% after a 0.9% decline in fiscal 2025, led by the Construction Products Group and Performance Coatings Group, which both grew 6.8%.
The normalized to 23.9% from the prior year's 12.9%, which had been depressed by a $43.9 million non-cash adjustment; this was the primary driver of the decline despite higher .
The Consumer 's organic decline accelerated to 2.6% from 1.7% in fiscal 2025, as DIY market softness and product rationalization continued to erode the segment's base business.
decreased to $2.13 billion from $2.64 billion, but $400 million in notes maturing in March 2027 were reclassified to , creating a near-term refinancing need.
The company recorded a $9.7 million on long-lived assets in the Consumer 's Color Group due to market softness, a new development after prior filings had flagged the unit's as a potential risk.
What to watch
Consumer organic sales in Q1 FY2027, to see if the 2.6% annual decline represents a trough or if DIY market softness and product rationalization continue to erode the segment's base as it enters a seasonally stronger period.
trajectory in Q1 FY2027, to determine whether the 41.4% annual level can be sustained or extended as tariff-driven cost inflation persists and the remaining MAP 2025 plant consolidation inefficiencies are resolved.
Refinancing of the $400 million in 3.75% notes maturing in March 2027, to see if the new interest rate materially increases from the $28.0 million quarterly level reported in Q2 FY2026.
Integration and performance of acquired businesses, particularly the Star Brands Group where a $12.7 million earn-out gain boosted prior-year income, to see if underlying profitability emerges once acquisition-related adjustments fade.
CPG generated $3.1B in , providing construction sealants, roofing systems, concrete , building envelope solutions, and restoration equipment under brands like Tremco, Euclid, and Dryvit.
PCG generated $2.1B in , offering high-performance polymer flooring, corrosion-control coatings, FRP structures, and specialty industrial products under brands such as Stonhard, Carboline, and Fibergrate.
Consumer generated $2.7B in , marketing DIY and professional paints, caulks, sealants, cleaners, and woodcare products under brands including Rust-Oleum, DAP, and Zinsser.
International markets accounted for approximately 31% of total sales, with manufacturing in 22 countries and products sold in about 167 countries and territories.
The company faces fragmented, competitive markets and believes it holds major positions in niche categories like consumer caulks, industrial corrosion control, polymer flooring, and FRP gratings.
Macroeconomic pressures, raw material costs, and operational execution risks threaten financial performance, while legal and regulatory exposures remain broad.
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Global economic downturns, high interest rates, and reduced construction activity could materially decrease demand for the company's products and pressure margins.
Fluctuations in raw material and energy costs, exacerbated by tariffs and trade policy changes, may not be fully passed to customers, harming profitability.
The company's significant $2.5 billion debt load could constrain cash flow, limit operational flexibility, and increase vulnerability to economic downturns.
Customer concentration in the Consumer poses a material risk, with the single largest customer representing 20% of that segment's fiscal 2026 .
Failure to execute ongoing restructuring initiatives like the Margin Achievement Plan 2025 could cause operational disruptions and unanticipated costs.
Extensive legal, environmental, and regulatory compliance obligations, including evolving data protection and sustainability requirements, expose the company to material liabilities and reputational harm.
As of May 31, 2026, the company occupied 20.3 million sq ft globally, with 17.1 million sq ft for manufacturing, assembly, and warehousing.
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Total occupied space is 20.3 million sq ft, of which 10.9 million sq ft is owned and 9.4 million sq ft is leased under operating leases.
The corporate headquarters and a subsidiary plant/offices are located on 180 owned acres in Medina, Ohio.
Principal owned facilities span 46 locations across multiple segments, with the largest being a 485,691 sq ft Euclid (CPG) plant in Cacapava, Brazil.
Principal leased facilities include 44 locations, led by a 943,564 sq ft Rust-Oleum (Consumer) site in Martinsburg, West Virginia.
Long-term leases may include rent increases tied to cost-of-living indexes, and many require the company to pay insurance, utilities, and property taxes.
Management believes all manufacturing plants and office facilities are well maintained and suitable for operations.
Environmental Matters Like other companies participating in similar lines of business, some of our subsidiaries are identified as a “potentially responsible party” under the federal Comprehensive Environmental Response, Compensation and Liability Act and similar local environmen…
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Environmental Matters
Like other companies participating in similar lines of business, some of our subsidiaries are identified as a “potentially responsible party” under the federal Comprehensive Environmental Response, Compensation and Liability Act and similar local environmental statutes or are participating in the cost of certain clean-up efforts or other remedial actions relating to environmental matters. Our share of such costs to date, however, has not been material and management believes that these environmental proceedings will not have a material adverse effect on our consolidated financial condition or results of operations. See “Item 1 — Business — Environmental Matters,” in this Annual Report on Form 10-K.
As permitted by Securities and Exchange Commission Rules and given the size of our operations, we have elected to adopt a quantitative disclosure threshold for environmental proceedings of $1.0 million. As of the date of this filing, we are not aware of any matters that exceed this threshold and meet the definition for disclosure.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risks are floating-rate debt and foreign currency exposure, with sensitivity quantified for interest rates but deemed immaterial for FX.
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A hypothetical 100-basis-point increase in interest rates would have raised by $9.2 million in fiscal 2026, up from $4.8 million in fiscal 2025.
At May 31, 2026, approximately 34.4% of the company's debt carried floating interest rates, tied to benchmarks including SOFR, ESTR, and CORRA.
Foreign sales and results are subject to currency fluctuations, and a strengthening U.S. dollar could adversely affect net revenues, , and foreign asset values.
A 10% change in foreign currency exchange rates would not have had a material impact on for fiscal 2026 or 2025.
The company does not use financial derivative instruments for trading or engage in foreign currency, commodity, or interest rate speculation.
RPM's FY2026 net sales rose 7% to $7.86B, but net income attributable to stockholders fell 4% to $661M amid restructuring and higher taxes.
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Total assets grew to $8.34B, driven by increases in , other intangibles, and trade following acquisitions like Ready Seal and Kalzip.
decreased to $2.13B from $2.64B, while the current portion surged to $408M due to the reclassification of $400M in 3.75% notes maturing in March 2027.
A new $24.4M restructuring action was launched in FY2026 focused on SG&A optimization, adding to the $18.2M in charges from the concluding MAP 2025 plan.
was $899M, up from $768M, while investing activities used $417M, primarily for $223M in and $202M in acquisitions.
The company recorded a $9.7M on long-lived assets in the Consumer 's Color Group due to market softness, but no .
A jury verdict of $110.8M against a Consumer subsidiary is under appeal; RPM has accrued a liability at the low end of a $0.5M–$152.5M estimated loss range.