RPM International (RPM) Stock Forecast & Price Target

RPM International Inc. has reported notable growth in its consumer business in Europe/UK driven by new product introductions and enhanced marketing strategies, which have contributed to improved profitability in the region. The implementation of the MAP program has not only increased margins and streamlined operations but is also expected to provide further advantages through the MAP 2025 initiative. For FY2026, RPM anticipates a 5.7% year-over-year top-line growth and a 120 basis points margin expansion, reflecting a strong potential for revenue growth and the ability to exceed consensus profitability targets even amid challenging sales conditions.

RPM International Inc. is projected to face challenges due to softening economic conditions, particularly in its consumer and specialty product segments, as evidenced by year-over-year declines in these areas. Despite experiencing a slight EBIT improvement in the first fiscal quarter, guidance for the second quarter indicates a decline in earnings estimates, reflecting ongoing macroeconomic headwinds anticipated in the latter half of the fiscal year. Additionally, with approximately 75% of the company’s revenue exposure concentrated in the U.S., any further economic slowdown could significantly hinder RPM’s earnings potential, compounded by weaknesses in the housing market and consumer demand due to inflationary pressures.