RPM International (RPM) Stock Forecast & Price Target

RPM International is well positioned by its exposure to infrastructure and non-residential construction, with about 20% of sales tied to infrastructure and growth in data centers, roofing restoration, and high-performance buildings helping offset softer DIY and Consumer demand. Its pricing power and product innovation have historically allowed it to pass through raw material inflation on roughly a 6-month lag, while recent SG&A savings initiatives, including a $100M annualized program and $75M expected in FY27, should support margin expansion toward 300 bps over the long term. Financially, management’s FY27 guide calls for sales up 3%–7% and EBITDA up 5%–10%, while recent performance showed Construction Products sales up 9% year over year and Performance Coatings sales up 5% year over year with record EBIT growth.

RPM International is viewed negatively because its acquisition-led strategy has left it with bloated overhead versus coatings peers and could dilute shareholders if it uses equity for a large deal. Earnings are also vulnerable to softer U.S. growth, given roughly 75% exposure, while energy weakness could pressure about $200M of industrial business and a stronger dollar could hurt its ~15% Europe exposure. Even with F2026 net debt/EBITDA improving to 1.8x and FCF of $675MM, customer concentration remains a risk, with Home Depot at 10% of sales and the top 10 customers at 24%.