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Fiscal 2026 Second-Quarter Results January 8, 2026
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Forward-Looking Statements & Regulation G 2Fiscal 2026 Second-Quarter Results | January 8, 2026 This presentation includes forward-looking statements relating to our business. These forward -looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global and regional markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the viability of banks and other financial institutions; (b) the prices, supply and availability of raw materials, including assorted pigments, resins, solven ts, and other natural gas- and oil- based materials; packaging, including plastic and metal containers; and transportation services, including fuel surcharges; ( c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our fore ign operations; (g) changes in global trade policies, including the adoption or expansion of tariffs and trade barriers; (h) the effect of non -currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory facto rs; (i) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (j) the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, and the risks of failing to meet any other objectives of our i mprovement plans; (k) risks related to the adequacy of our contingent liability reserves; (l) risks relating to a public health crisis similar to the Covid pandemic ; (m) risks related to acts of war similar to the Russian invasion of Ukraine; (n) risks related to the transition or physical impacts of climate change and oth er natural disasters or meeting sustainability-related voluntary goals or regulatory requirements; (o) risks related to our or our third parties' use of technol ogy including artificial intelligence, data breaches and data privacy violations; (p) the shift to remote work and online purchasing and the impact that has on resi dential and commercial real estate construction; and (q) other risks detailed in our filings with the Securities and Exchange Commission, including the r isk factors set forth in our Form 10-K for the year ended May 31, 2025, as the same may be updated from time to time. We do not undertake any obligation to public ly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the filing date of this prese ntation. This presentation includes certain company data that do not directly conform to generally accepted accounting principles, or GAAP, and certain company data that has been restated for improved clarity, understanding and comparability, or pro forma. All non-GAAP data in this presentation are indicated by footnote. Tables reconciling such data with GAAP measures are available through our website, www.rpminc.com under Investor Information/Presentations.
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3Fiscal 2026 Second-Quarter Results | January 8, 2026 Slower Sales Growth Weighs on Margins Demand slowed as quarter progressed, compounded by government shutdown KEY POINTS $226.6M Q2 ADJUSTED EBIT ¹ -11.2% FROM PY (1) EBIT, adjusted EBIT, and adjusted EPS are non-GAAP financial measures. Refer to Appendix for reconciliations between GAAP and non-GAAP measures. $1.91B Q2 RECORD REVENUE +3.5% FROM PY $1.20 Q2 ADJUSTED EPS¹ -13.7% FROM PY Implementing optimization actions to align with market conditions, while investing in highest growth opportunities 3.0% 5.4% -1.5% -6.0% -6% -3% 0% 3% 6% Q1-26 Sep Oct Nov FY26 Organic Sales Growth Government shutdown begins
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Combining Optimization Actions and Focused Growth Investments 4Fiscal 2026 Second-Quarter Results | January 8, 2026 Focused Growth Investments High-Performance Buildings Business Intelligence Product Innovation Turnkey solutions Enhancing systems Targeted marketing Data-enabled insights Advanced technologies Solutions for high growth markets $5 $20 $75 $100 $0 $25 $50 $75 $100 Q3-26 Q4-26 FY27 Total Optimization Benefits ($s in millions) • Additional details on cost to implement will be available in April 2026
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5Fiscal 2026 Second-Quarter Results | January 8, 2026 Fiscal 2026 Second-Quarter Financial Results | Consolidated Sales growth offset by growth investments and underabsorption ($ in millions, except per share amounts) Q2 2026 Q2 2025 % Change Sales $1,909.9 $1,845.3 +3.5% EBIT1 $229.0 $227.6 +0.6% Adjusted EBIT1 $226.6 $255.1 -11.2% Adjusted EBIT Margin1 11.9% 13.8% -190 bps Net Income $161.2 $183.2 -12.0% Diluted EPS $1.26 $1.42 -11.3% Adjusted Diluted EPS1 $1.20 $1.39 -13.7% (1) EBIT, Adjusted EBIT, Adjusted EBIT Margin and Adjusted Diluted EPS are non-GAAP financial measures. Refer to Appendix for reconciliations between GAAP and non-GAAP measures. KEY POINTS • Sales growth driven by acquisitions and engineered solutions for high-performance buildings, partially offset by soft DIY demand • Construction project lead times extended as the quarter progressed, due in part to government shutdown • Sales included a 0.5% organic decline, a 3.4% increase from acquisitions and a 0.6% tailwind from F/X • Growth investments, reduced fixed-cost absorption from lower volumes and temporary inefficiencies from plant consolidations more than offset MAP 2025 improvements • Increased healthcare and M&A expenses also contributed to adjusted EBIT decline • Net interest expense increased due to higher debt levels resulting from recent acquisitions
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Sales Growth in USD by Region | Q2-26 NORTH AMERICA 76% of total sales +1.9% LATIN AMERICA 4% of total sales -0.2% AFRICA/MIDDLE EAST/ OTHER FOREIGN 2% of total sales +5.2% EUROPE 16% of total sales +13.9% ASIA/PACIFIC 2% of total sales -3.5% Fiscal 2026 Second-Quarter Results | January 8, 2026 6 KEY POINTS • Europe growth driven by M&A and F/X • North America growth driven by M&A and high-performance building solutions, partially offset by soft demand in DIY and Canada • Emerging markets led by Africa / Middle East where results were driven by high-performance building and infrastructure projects
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7Fiscal 2026 Second-Quarter Results | January 8, 2026 Fiscal 2026 Second-Quarter Financial Results Record sales, but growth slowed as project lead times lengthened (1) EBIT, Adjusted EBIT, and Adjusted EBIT Margin are non-GAAP financial measures. Refer to Appendix for reconciliations between GAAP and non-GAAP measures. • Record sales driven by strength in engineered solutions for high- performance buildings, although project lead times lengthened later in the quarter, due in part to the government shutdown • Disaster restoration business declined because of reduced storm activity compared to prior year • Adjusted EBIT declined as SG&A growth investments, temporary inefficiencies from plant consolidations, and lower-fixed cost absorption at businesses with volume declines more than offset MAP 2025 benefits ($ in millions, except margins) Q2 2026 Q2 2025 % Change Sales $737.4 $720.5 +2.4% EBIT1 $95.5 $108.7 -12.2% Adjusted EBIT1 $98.6 $110.8 -10.9% Adjusted EBIT Margin1 13.4% 15.4% -200 bps CONSTRUCTION PRODUCTS GROUP Sales Components • Organic +0.8% • Acquisitions +0.5% • F/X +1.1%
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PERFORMANCE COATINGS GROUP 8Fiscal 2026 Second-Quarter Results | January 8, 2026 Fiscal 2026 Second-Quarter Financial Results Solid organic growth offset by growth investments and unfavorable mix ($ in millions, except margins) Q2 2026 Q2 2025 % Change Sales $533.8 $511.2 +4.4% EBIT1 $80.8 $79.7 +1.3% Adjusted EBIT1 $82.8 $83.1 -0.3% Adjusted EBIT Margin1 15.5% 16.3% -80 bps • Record sales driven by broad-based growth across its businesses • Acquisitions also contributed to sales increase • Adjusted EBIT growth was approximately flat as the higher sales and MAP 2025 operational improvement initiatives were offset by SG&A growth investments and unfavorable mix Sales Components • Organic +2.7% • Acquisitions +1.1% • F/X +0.6% (1) EBIT, Adjusted EBIT, and Adjusted EBIT Margin are non-GAAP financial measures. Refer to Appendix for reconciliations between GAAP and non-GAAP measures.
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9Fiscal 2026 Second-Quarter Results | January 8, 2026 Fiscal 2026 Second-Quarter Financial Results Lower volumes from soft DIY markets weighed on profitability ($ in millions, except margins) Q2 2026 Q2 2025 % Change Sales $638.7 $613.6 +4.1% EBIT1 $100.7 $86.6 +16.3% Adjusted EBIT1 $90.0 $95.9 -6.2% Adjusted EBIT Margin1 14.1% 15.6% -150 bps • Record sales driven by acquisitions and increased pricing to recover inflation, partially offset by DIY softness, product rationalization and delayed sales due to software system implementations and a shared distribution center integration • Adjusted EBIT declined as lower volumes, a plant consolidation and start-up of a shared distribution center all reduced earnings and more than offset MAP 2025 benefits • Lower demand at the Color Group also pressured profitability • Adjusted EBIT excludes $12.7 million gain on reversal of earnout liability associated with Star Brands Group (The Pink Stuff) as aggressive targets are unlikely to be met CONSUMER GROUP Sales Components • Organic -4.7% • Acquisitions +8.7% • F/X +0.1% (1) EBIT, Adjusted EBIT, and Adjusted EBIT Margin are non-GAAP financial measures. Refer to Appendix for reconciliations between GAAP and non-GAAP measures.
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10Fiscal 2026 Second-Quarter Results | January 8, 2026 Strong Operating Cash Flow Driven by Working Capital Efficiency Q2-26 Update • Q2-26 cash flow from operations of $345.7 million, 2nd highest in company history, and up $66.3 million from prior year due to improved working capital efficiency • Reduced debt by $126.7 million in 1H-26 in addition to returning $168.7 million to shareholders through dividends & share repurchases, and $161.6 million spent on M&A • Increased dividend for 52nd consecutive year • Q2-26 capex of $49.3 million was similar to prior year and included growth investments • Liquidity of $1.10 billion at end of Q2-26 $279.4 $345.7 $150 $200 $250 $300 $350 Q2-25 Q2-26 Cash Provided by Operating Activities In Millions 2nd highest Q2 in company history
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11Fiscal 2026 Second-Quarter Results | January 8, 2026 Strong Balance Sheet Enables Strategic M&A • Signed agreement to acquire Kalzip, a German-based leader in metal-based roofs and facades • Strengthens CPG’s building envelope systems • Aligns with CPG’s strategy to offer solutions that enhance efficiency, durability and aesthetics • Expected to close in fiscal Q4-26, subject to customary closing conditions • Existing management team expected to remain with business • Calendar year 2024 net sales of approximately €75 million
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12Fiscal 2026 Second-Quarter Results | January 8, 2026 Outlook Q3-26 Q3-26 OUTLOOK (YOY) SALES | Consolidated +MSD % SALES | By Segment Consumer growth moderately above CPG and PCG due to M&A ADJUSTED EBIT | Consolidated +MSD % to +HSD % MSD = Mid-Single-Digit | HSD = High-Single-Digit Expected Trends in Q3-26 (+) SG&A-focused optimization actions (+) High-performance buildings / infrastructure (+) Benefits from growth investments (+) Resilient repair and maintenance demand (+) Acquired businesses (+) Pricing to recover inflation (-) Economic uncertainty (-) Longer construction project lead times (-) Inflation (-) Weak consumer confidence and DIY demand (-) Temporary inefficiencies from plant consolidations (-) Increased interest expense (-) Higher healthcare and M&A deal expenses
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13Fiscal 2026 Second-Quarter Results | January 8, 2026 Outlook Q4-26 Q4-26 OUTLOOK (YOY) SALES | Consolidated +MSD % range ADJUSTED EBIT | Consolidated +LSD % to +HSD% range LSD = Low-Single-Digit | MSD = Mid-Single-Digit | HSD = High-Single-Digit Expected Trends in Q4-26 (+) SG&A-focused optimization actions (+) Pricing to recover inflation (+) High-performance buildings / infrastructure (+) Resilient repair and maintenance demand (+) Acquired businesses (+) Emerging markets growth (+) Solid pipeline of construction projects (-) Economic uncertainty (-) Weak consumer confidence and DIY demand (-) Inflation (-) Temporary inefficiencies from plant consolidations (-) Increased interest expense (-) Higher healthcare and M&A deal expenses
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Appendix Reconciliation of Non-GAAP to GAAP Measures
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15Fiscal 2026 Second-Quarter Results | January 8, 2026 Consolidated Statements of Income: Three Months NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. ($ in thousands, except per share and percent data) (Unaudited) November 30, 2025 % November 30, 2024 % % Change Net Sales 1,909,895$ 1,845,318$ 3.5 Cost of Sales 1,129,728 59.2 1,080,774 58.6 Gross Profit 780,167 40.8 764,544 41.4 SG&A 549,465 28.8 529,836 28.7 Restructuring Expense 4,531 0.2 7,557 0.4 Other (Income), Net (2,803) (0.2) (482) 0.0 EBIT** (non-GAAP measure) 228,974 12.0 227,633 12.3 0.6 Interest Expense 28,005 1.5 23,177 1.3 Investment (Income), Net (10,026) (0.5) (8,526) (0.5) Income Before Taxes 210,995 11.0 212,982 11.5 Provision for Income Taxes 49,521 2.6 29,532 1.6 Net Income 161,474 8.4 183,450 9.9 (12.0) Less: Net Income Attributable to Noncontrolling Interests 267 0.0 246 0.0 Net Income Attributable to RPM Stockholders 161,207$ 8.4 183,204$ 9.9 (12.0) Diluted EPS 1.26$ 1.42$ (11.3) Three Months Ended
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16Fiscal 2026 Second-Quarter Results | January 8, 2026 Consolidated Statements of Income: Six Months NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. ($ in thousands, except per share and percent data) (Unaudited) November 30, 2025 % November 30, 2024 % % Change Net Sales 4,023,638$ 3,814,107$ 5.5 Cost of Sales 2,350,255 58.4 2,212,890 58.0 Gross Profit 1,673,383 41.6 1,601,217 42.0 SG&A 1,122,999 27.9 1,055,982 27.7 Restructuring Expense 13,345 0.3 14,759 0.4 Other (Income), Net (5,904) (0.1) (1,016) 0.0 EBIT** (non-GAAP measure) 542,943 13.5 531,492 13.9 2.2 Interest Expense 57,331 1.4 47,611 1.2 Investment (Income), Net (23,430) (0.6) (19,552) (0.5) Income Before Taxes 509,042 12.7 503,433 13.2 Provision for Income Taxes 119,728 3.0 91,429 2.4 Net Income 389,314 9.7 412,004 10.8 (5.5) Less: Net Income Attributable to Noncontrolling Interests 502 0.0 1,108 0.0 Net Income Attributable to RPM Stockholders 388,812$ 9.7 410,896$ 10.8 (5.4) Diluted EPS 3.03$ 3.19$ (5.0) Six Months Ended
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17Fiscal 2026 Second-Quarter Results | January 8, 2026 Non-GAAP Financial Measures The following are the non-GAAP financial measures used in this presentation: *Interest (Income) Expense, Net includes the combination of interest (income) expense and investment (income) expense, net. **EBIT is defined as earnings (loss) before interest and taxes. Management uses EBIT, as defined, as a measure of operating performance, since interest (income) expense, net, essentially relates to corporate functions, as opposed to segment operations. ***Adjusted EBIT is defined as earnings (loss) before interest and taxes, adjusted for items that management does not consider to be indicative of ongoing operations. Management uses Adjusted EBIT, as defined, as a measure of operating performance, since interest (income) expense, net, essentially relates to corporate functions, as opposed to segment operations. Tables reconciling this non-GAAP data with GAAP measures are available in the appendix of this presentation.
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18Fiscal 2026 Second-Quarter Results | January 8, 2026 Adjustments Detail a. Includes charges incurred related to headcount reductions and facility closures recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense totaled $4.5 million and $7.6 million for the quarters ended November 30, 2025 and November 30, 2024 respectively, and$13.3 million and $14.8 million for the six months ended November 30, 2025 and November 30, 2024 respectively. Other related expenses include inventory write-offs in connection with restructuring activities recorded in "Cost of Sales" and accelerated depreciation and amortization recorded within "Cost of Sales" or "Selling, General, & Administrative Expenses”("SG&A") depending on the nature of the expense. b. Includes expenses incurred as a result of our stated goals to consolidate over 75 ERP systems across the organization to one ERP platform per segment, as part of our overall MAP strategy as well as costs incurred for other decision support tools to facilitate our commercial initiatives related to MAP 2025 which have been incurred in all segments, as well as Corporate/Other, and have been recorded within "SG&A". c. Includes expenses incurred to consolidate accounting locations, costs incurred to implement technologies and processes to drive improved data analytics/decision making and cost incurred to implement new global manufacturing methodologies with the goal of improving operating efficiency incurred within all of our segments as well as Corporate/Other and recorded within "SG&A". All of this spend is in support of stated MAP goals with the most significant expense incurred within Corporate/Other. d. Amortization of inventory fair value adjustments related to acquisitions recorded in “Cost of Sales”. e. Fiscal 2026 reflects gains recorded in “SG&A” associated with the divestiture of a product line and a waterproofing services business within our CPG segment. Fiscal 2025 reflects gains recorded in “SG&A” associated with post-closing adjustments for the sale of the non-core furniture warranty business which was sold in fiscal 2023. f. The gain in the Consumer segment is related to the sale of three properties that were closed as part of the MAP 2025 program. The charges within the PCG segment relate to losses associated with preparing two facilities for sale. g. The fair value adjustment of the earn out liability associated with the Star Brands Group acquisition as management does not consider this gain to be reflective of the company’s core business operations. h. Investment returns include realized net gains and losses on sales of investments and unrealized net gains and losses on equity securities, which are adjusted due to their inherent volatility. Management does not consider these gains and losses, which cannot be predicted with any level of certainty, to be reflective of the company's core business operations. i. U.S. foreign tax credits recognized as a result of global cash redeployment and debt optimization projects, as well as other adjustments to our net deferred tax asset related to U.S. foreign tax credit carryforwards resulting from our reassessment of income tax positions following recent developments in U.S. income tax case law.
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19Fiscal 2026 Second-Quarter Results | January 8, 2026 Reconciliation of "Reported" to "Adjusted" EPS: Three Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): November 30, 2025 November 30, 2024 Reported Earnings per Diluted Share 1.26$ 1.42$ Restructuring and other related expense, net (a) 0.03 0.07 ERP consolidation plan (b) 0.03 0.02 Professional fees (c) 0.02 0.07 Inventory step-up costs (d) 0.01 - (Gain) on sale of closed facilities (f) (0.03) - (Gain) on acquisition earn-out fair value adjustment (g) (0.10) - Investment returns (h) (0.02) (0.02) Income tax adjustment (i) - (0.17) Adjusted Earnings per Diluted Share**** 1.20$ 1.39$ Three Months Ended NOTE: Refer to "Adjustments detail" slide for further information on adjustments outlined above ****Adjusted EPS is provided for the purpose of adjusting diluted earnings per share for items impacting earnings that are not considered by management to be indicative of ongoing operations.
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20Fiscal 2026 Second-Quarter Results | January 8, 2026 Reconciliation of "Reported" to "Adjusted" EPS: Six Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): November 30, 2025 November 30, 2024 Reported Earnings per Diluted Share 3.03$ 3.19$ Restructuring and other related expense, net (a) 0.10 0.13 ERP consolidation plan (b) 0.04 0.05 Professional fees (c) 0.04 0.13 Inventory step-up costs (d) 0.05 - (Gain) on sale of closed facilities (f) (0.03) - (Gain) on acquisition earn-out fair value adjustment (g) (0.10) - Investment returns (h) (0.05) (0.05) Income tax adjustment (i) - (0.22) Adjusted Earnings per Diluted Share**** 3.08$ 3.23$ Six Months Ended ****Adjusted EPS is provided for the purpose of adjusting diluted earnings per share for items impacting earnings that are not considered by management to be indicative of ongoing operations. NOTE: Refer to "Adjustments detail" slide for further information on adjustments outlined above
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21Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Net Income 161,474$ 183,450$ Provision for Income Taxes 49,521 29,532 Income Before Income Taxes 210,995 212,982 Interest Expense 28,005 23,177 Investment (Income), Net (10,026) (8,526) EBIT** (non-GAAP measure) 228,974 227,633 Restructuring and other related expense, net (a) 6,637 11,299 ERP consolidation plan (b) 4,440 4,005 Professional fees (c) 3,201 12,139 Inventory step-up costs (d) 827 - (Gain) on sale of assets and a business (e) (400) - (Gain) on sale of closed facilities (f) (4,340) - (Gain) on acquisition earn-out fair value adjustment (g) (12,707) - Adjusted EBIT*** (non-GAAP measure) 226,632$ 255,076$ Net Sales 1,909,895$ 1,845,318$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 11.9% 13.8% Three Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.
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22Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): RPM Consolidated: Six Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Net Income 389,314$ 412,004$ Provision for Income Taxes 119,728 91,429 Income Before Income Taxes 509,042 503,433 Interest Expense 57,331 47,611 Investment (Income), Net (23,430) (19,552) EBIT** (non-GAAP measure) 542,943 531,492 Restructuring and other related expense, net (a) 17,236 22,053 ERP consolidation plan (b) 7,406 8,949 Professional fees (c) 6,342 21,161 Inventory step-up costs (d) 7,944 - (Gain) on sale of assets and businesses (e) (400) (237) (Gain) on sale of closed facilities (f) (4,340) - (Gain) on acquisition earn-out fair value adjustment (g) (12,707) - Adjusted EBIT*** (non-GAAP measure) 564,424$ 583,418$ Net Sales 4,023,638$ 3,814,107$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 14.0% 15.3% Six Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.
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23Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Income Before Income Taxes 94,565$ 107,848$ Add: Interest Expense, Net* 966 900 EBIT** (non-GAAP measure) 95,531 108,748 Restructuring and other related expense, net (a) 2,792 1,752 ERP consolidation plan (b) 511 108 Professional fees (c) 197 150 (Gain) on sale of assets and a business (e) (400) - Adjusted EBIT*** (non-GAAP measure) 98,631$ 110,758$ Net Sales 737,439$ 720,467$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 13.4% 15.4% Three Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.
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24Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): Construction Products Segment: Six Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Income Before Income Taxes 257,941$ 268,943$ Add: Interest Expense, Net* 1,531 1,368 EBIT** (non-GAAP measure) 259,472 270,311 Restructuring and other related expense, net (a) 7,087 3,952 ERP consolidation plan (b) 1,171 184 Professional fees (c) 422 314 (Gain) on sale of assets and a business (e) (400) - Adjusted EBIT*** (non-GAAP measure) 267,752$ 274,761$ Net Sales 1,618,885$ 1,548,473$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 16.5% 17.7% Six Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.
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25Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Income Before Income Taxes 81,699$ 80,326$ Add: Interest (Income), Net* (933) (633) EBIT** (non-GAAP measure) 80,766 79,693 Restructuring and other related expense, net (a) 824 2,652 ERP consolidation plan (b) 790 603 Professional fees (c) 376 137 Inventory step-up costs (d) 41 - Loss on sale of closed facilities (f) 32 - Adjusted EBIT*** (non-GAAP measure) 82,829$ 83,085$ Net Sales 533,806$ 511,231$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 15.5% 16.2% Three Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.
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26Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): Performance Coatings Segment: Six Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Income Before Income Taxes 164,378$ 157,445$ Add: Interest (Income), Net* (1,548) (1,241) EBIT** (non-GAAP measure) 162,830 156,204 Restructuring and other related expense, net (a) 4,848 3,504 ERP consolidation plan (b) 1,328 1,613 Professional fees (c) 745 342 Inventory step-up costs (d) 41 - (Gain) on sale of a business (e) - (237) Loss on sale of closed facilities (f) 32 - Adjusted EBIT*** (non-GAAP measure) 169,824$ 161,426$ Net Sales 1,072,284$ 1,001,191$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 15.8% 16.1% Six Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.
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27Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Income Before Income Taxes 100,669$ 86,256$ Add: Interest Expense, Net* 41 337 EBIT** (non-GAAP measure) 100,710 86,593 Restructuring and other related expense, net (a) 3,021 6,895 ERP consolidation plan (b) 1,664 1,671 Professional fees (c) 893 781 Inventory step-up costs (d) 786 - (Gain) on sale of closed facilities (f) (4,372) - (Gain) on acquisition earn-out fair value adjustment (g) (12,707) - Adjusted EBIT*** (non-GAAP measure) 89,995$ 95,940$ Net Sales 638,650$ 613,620$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 14.1% 15.6% Three Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.
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28Fiscal 2026 Second-Quarter Results | January 8, 2026 EBIT** (Non-GAAP Measure): Consumer Segment: Six Months ($ in thousands, except percent data) (Unaudited) November 30, 2025 November 30, 2024 Income Before Income Taxes 209,430$ 192,685$ Add: Interest Expense, Net* 256 814 EBIT** (non-GAAP measure) 209,686 193,499 Restructuring and other related expense, net (a) 5,301 14,597 ERP consolidation plan (b) 2,151 3,437 Professional fees (c) 1,884 885 Inventory step-up costs (d) 7,903 - (Gain) on sale of closed facilities (f) (4,372) - (Gain) on acquisition earn-out fair value adjustment (g) (12,707) - Adjusted EBIT*** (non-GAAP measure) 209,846$ 212,418$ Net Sales 1,332,469$ 1,264,443$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 15.7% 16.8% Six Months Ended NOTE – Refer to “Non-GAAP Financial Measures” slide for definitions of non-GAAP measures identified (*) in the table above and “Adjustments Detail” slide for further information on adjustments outlined above.