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RPM International’s Volteco Acquisition — A Pivotal Expansion in Waterproofing!

RPM International Inc. reported record first-quarter sales, adjusted EBITDA, and adjusted EPS for fiscal 2027, driven by broad-based growth in its Performance Coatings Group and Consumer segments. Despite experiencing sluggish end markets and various temporary operational headwinds, the company’s balanced business model proved resilient. The Construction Products Group (CPG) faced a slowdown, particularly in education and healthcare markets that represent over a quarter of its exposure, as well as product shortages caused by raw material constraints in polyurethanes. While CPG sales increased due to the Kalzip acquisition, organic sales declined, and adjusted EBITDA decreased due to lower volumes, inflation, higher bad debt, and warranty expenses, partially offset by SG&A optimization. SG&A cost-reduction initiatives successfully counteracted gross margin pressure caused by raw material inflation, which outpaced pricing increases and market-based adjustments by about 100 basis points.