RPM International (NYSE: RPM) reported second-quarter earnings that missed analyst expectations as slowing demand and short-term operational challenges weighed on results. Shares declined more than 3% intraday on Thursday.

The company posted adjusted earnings of $1.20 per share for the fiscal second quarter ended November 30, 2025, falling short of the $1.43 consensus estimate. Revenue totaled $1.91 billion, below analyst expectations of $1.94 billion, though still representing a 3.5% increase from the prior year.

RPM cited the prolonged government shutdown as a contributing factor, noting that it led to longer construction project lead times and added pressure to already weak consumer sentiment.

In response, the company announced SG&A-focused cost optimization initiatives expected to generate approximately $100 million in annual savings once fully implemented. RPM expects to realize about $5 million of savings in the third quarter of fiscal 2026, an additional $20 million in the fourth quarter, and the remaining $75 million in fiscal 2027.

Adjusted EBIT declined 11.2% year over year to $226.6 million, driven by continued growth investments, lower fixed-cost absorption due to reduced volumes, and temporary inefficiencies from facility consolidation efforts.

For the third quarter of fiscal 2026, RPM forecast consolidated sales growth in the mid-single-digit percentage range and adjusted EBIT growth in the mid- to high-single-digit range compared with the prior year.