Slides
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Fiscal 2026 Fourth-Quarter and Full Year Results July 22, 2026
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Forward-Looking Statements & Regulation G 2Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 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 (inc luding those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materia lly from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global and regional markets and general economi c conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the viability of banks and oth er financial institutions; (b) the prices, supply and availability of raw materials, including assorted pigments, resins, solvents, 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 foreign operations; (g) changes in global trade policies, includin g 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, includi ng those relating to domestic and international political, social, economic and regulatory factors; ( 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 improvement 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 recent conflict with Iran and th e Russian invasion of Ukraine; (n) risks related to the transition or physical impacts of climate change and other natural disasters or meeting sustainability -related voluntary goals or regulatory requirements; (o) risks related to our or our third parties' use of technology including artificial intelligence, data breach es and data privacy violations; (p) the shift to remote work and online purchasing and the impact that has on residential and commercial real estate construction; and (q) oth er risks detailed in our filings with the Securities and Exchange Commission, including the risk 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 publicly update or revise any forward -looking statements to reflect future events, information or circumstances that arise after the filing date of this presentation. 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/Present ations.
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3Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Growth in All Segments Leads to Record Q4 Results Focus on competitive strengths and efficiency initiatives drives broad-based growth FINANCIAL HIGHLIGHTS $338.6M Q4 RECORD ADJUSTED EBIT ¹ +7.7% 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. $2.23B Q4 RECORD REVENUE +7.2% FROM PY $1.89 Q4 RECORD ADJUSTED EPS¹ +9.9% FROM PY Record consolidated adjusted EBIT¹ in 16 out of the last 18 quarters 8.8% 5.0% 7.0% 7.2% 14.6% 10.6% 2.6% 7.7% 0% 6% 12% 18% CPG PCG Consumer Consolidated RECORD Q4 ✓ ✓ Q4-26 YoY Growth SALES ADJ. EBIT¹ ✓ ✓✓✓✓ ✓ 15.2% Q4 RECORD ADJUSTED EBIT MARGIN¹
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Procurement Actions and Pricing Mitigate Inflationary Pressures NORTH AMERICA 77% of FY26 total sales • Tightness in specific raw materials • Medium inflation LATIN AMERICA 4% of FY26 total sales • Good supply availability • Medium inflation AFRICA/MIDDLE EAST/ OTHER FOREIGN 2% of FY26 total sales • Sporadic supply tightness • Highest inflation EUROPE 15% of FY26 total sales • Good supply availability • Medium inflation ASIA/PACIFIC 2% of FY26 total sales • Good supply availability • Higher inflation Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 4 RPM RAW MATERIAL OVERVIEW • Generally good supply availability globally • Tightness in some propylene oxide derived products and MDI due to supplier issues • Spot prices have declined from peak • Expecting 5% to 6% raw material inflation in Q1 • Expecting 6% to 8% raw material inflation in Q2 • Situation remains dynamic RPM ACTIONS • Price vs. inflation dollars positive in Q4 • Price vs. inflation dollars expected to be neutral in Q1 • Expect to recover gross margin percentage later in FY27, assuming stable raw material costs
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5Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Operational Improvements Continue to Drive Record Results Previously announced $75 million in FY27 SG&A-focused benefits remains on track Investor Day planned for Nov. 9, 2026, to discuss strategic priorities and details on next operating improvement plan 620 Trained Green Belts $30 million of Green Belt Projects in pipeline EXPANDING methodology to administrative functions Continuing to implement operational improvements New class of Green Belts
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$446.9 $841.6 $0 $200 $400 $600 $800 $1,000 4 Years Prior to MAP 2025 (FY19-FY22) Since MAP 2025 (FY23-FY26) Average Annual Cash Provided by Operating Activities 6Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Structural Improvements to Operating Cash FlowIn millions
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7Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Fiscal 2026 Fourth-Quarter Financial Results | Consolidated Margin expansion in an inflationary environment ($ in millions, except per share amounts) Q4 2026 Q4 2025 % Change Sales $2,231.8 $2,082.0 +7.2% EBIT1 $308.0 $271.0 +13.6% Adjusted EBIT1 $338.6 $314.4 +7.7% Adjusted EBIT Margin1 15.2% 15.1% +10 bps Net Income $221.2 $225.8 -2.0% Diluted EPS $1.73 $1.76 -1.7% Adjusted Diluted EPS1 $1.89 $1.72 +9.9% (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 • Record sales driven by engineered solutions for high- performance buildings and infrastructure projects, M&A and positive pricing to offset inflation • Sales included a 2.5% organic increase, a 3.5% increase from acquisitions net of divestitures, and a 1.2% tailwind from F/X • Record adjusted EBIT with volume growth and operational efficiency improvements driving improved fixed-cost utilization, which offset higher healthcare and insurance expenses and inflation • Adjusted EBIT growth was in addition to strong growth in the prior year, when adjusted EBIT increased 10.1% • Record adjusted EPS driven by adjusted EBIT growth
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Sales Growth in USD by Region | Q4-26 NORTH AMERICA 77% of Q4 total sales +5.1% LATIN AMERICA 4% of Q4 total sales +18.9% AFRICA/MIDDLE EAST/ OTHER FOREIGN 1% of Q4 total sales +14.5% EUROPE 15% of Q4 total sales +11.1% ASIA/PACIFIC 3% of Q4 total sales +39.4% Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 8 KEY POINTS • Double-digit growth in emerging markets, driven by strong demand for engineered solutions for high- performance building and infrastructure projects • Solid North American growth driven by turnkey and system solutions for high-performance buildings • European growth driven by M&A • Markets outside of the US generally aided by F/X TOTAL RPM +7.2%
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9Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Fiscal 2026 Fourth-Quarter Financial Results Broad-based growth leads to record results (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 broad-based strength led by the concrete admixtures business • Strong demand for roofing restoration systems and service, as well as labor- saving wall systems for high-performance buildings, including data centers • Pricing to offset inflation and F/X also contributed to growth • Record adjusted EBIT driven by higher volumes resulting in improved fixed- cost leverage, favorable mix and SG&A-focused optimization actions ($ in millions, except margins) Q4 2026 Q4 2025 % Change Sales $904.2 $831.1 +8.8% EBIT1 $167.7 $148.7 +12.8% Adjusted EBIT1 $175.1 $152.8 +14.6% Adjusted EBIT Margin1 19.4% 18.4% +100 bps CONSTRUCTION PRODUCTS GROUP Sales Components • Organic +5.7% • Acquisitions / divestitures +1.6% • F/X +1.5%
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PERFORMANCE COATINGS GROUP 10Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Fiscal 2026 Fourth-Quarter Financial Results Record results driven by fireproofing and food coatings and ingredients ($ in millions, except margins) Q4 2026 Q4 2025 % Change Sales $562.8 $536.2 +5.0% EBIT1 $83.0 $66.1 +25.6% Adjusted EBIT1 $84.9 $76.8 +10.6% Adjusted EBIT Margin1 15.1% 14.3% +80 bps • Record sales driven by broad-based strength across its businesses, particularly in fireproofing systems for high-performance buildings, including data centers and food coatings & ingredients • Strong demand in emerging markets and pricing to offset inflation also contributed to sales growth • Record adjusted EBIT was driven by higher sales, increased volumes resulting in improved fixed cost leverage, and SG&A-focused optimization actions, partially offset by a $3.2 million bad debt expense from a customer bankruptcy Sales Components • Organic +2.2% • Acquisitions +1.5% • F/X +1.3% (1) EBIT, Adjusted EBIT, and Adjusted EBIT Margin are non-GAAP financial measures. Refer to Appendix for reconciliations between GAAP and non-GAAP measures.
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11Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Fiscal 2026 Fourth-Quarter Financial Results Record results driven by M&A and operational improvement benefits ($ in millions, except margins) Q4 2026 Q4 2025 % Change Sales $764.8 $714.6 +7.0% EBIT1 $107.4 $96.3 +11.5% Adjusted EBIT1 $123.3 $120.2 +2.6% Adjusted EBIT Margin1 16.1% 16.8% -70 bps • Record sales driven by acquisitions and increased pricing to recover inflation, partially offset by soft DIY markets • Record adjusted EBIT driven by the sales growth and MAP operational improvements, including SG&A-focused optimization actions, which more than offset reduced fixed-cost absorption from lower volumes and inflation • The integration of acquired businesses also contributed to adjusted EBIT growth • Adjusted EBIT excludes a $9.7 million non-cash impairment charge related to the Color Group CONSUMER GROUP Sales Components • Organic -0.8% • Acquisitions +7.2% • 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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12Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Working Capital Efficiency and Record Earnings Enable Strong Cash Flow Cash Flow and Balance Sheet Update • Structural working capital efficiency and margin improvements enabled by MAP resulted in FY26 operating cash flow being 2nd highest in company history • Returned $349.2 million to shareholders through share repurchases and dividends in FY26, up 7.3% vs. prior year • $700 million increase to authorized share repurchase program • FY26 capex of $223.5 million down $6.4 million vs. prior year • $202.4 million used for M&A in FY26, including closing of Kalzip in Q4 • Liquidity of $1.09 billion at end of FY26 $768.2 $898.7 $0 $300 $600 $900 $1,200 FY25 FY26 Cash Provided by Operating Activities In millions 2nd highest in company history
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13Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Compelling Value Proposition from RPM Systems Tremco Wall System Tremco Roof System Stonhard Floor System Value to Building Owners • Guarantees of high performance • Simplified procurement • Improved construction times Value to RPM • More RPM products per project • Competitive advantage • Strong M&A pipeline
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14Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Q1-27 Outlook CURRENT Q1-27 OUTLOOK (YOY) SALES | Consolidated +MSD% range Construction Products Group +MSD% range Performance Coatings Group +MSD% range Consumer Group +MSD% range ADJUSTED EBITDA | Consolidated +MSD% range MSD = Mid-Single-Digit Expected Trends in Q1-27 (+) SG&A-focused optimization actions (+) Pricing to recover inflation (+) High-performance buildings & infrastructure (+) Resilient repair and maintenance demand (+) Solid pipeline of construction projects (-) Economic uncertainty (-) Inflation, including healthcare (-) Start-up costs at new shared facilities Note – primary measure of profit / loss transitioning to adjusted EBITDA
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15Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 FY27 Full-Year Outlook CURRENT FY-27 OUTLOOK (YOY) SALES | Consolidated +3% to +7% ADJUSTED EBITDA | Consolidated +5% to +10% Expected Trends in FY27 Note – primary measure of profit / loss transitioning to adjusted EBITDA (+) New MAP 3.0 program (+) Previously announced $75M SG&A-focused savings (+) Pricing to recover inflation (+) High-performance buildings & infrastructure (+) Resilient repair and maintenance demand (-) Economic uncertainty (-) Inflation, particularly in 1H-27 (-) Start-up costs at new shared facilities (-) More challenging comparisons in 2H-27
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Appendix Reconciliation of Non-GAAP to GAAP Measures
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17Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Consolidated Statements of Income: Three Months NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. ($ in thousands, except per share and percent data) (Unaudited) 2026 % 2025 % % Change Net Sales 2,231,835$ 2,081,975$ 7.2 Cost of Sales 1,281,809 57.4 1,200,204 57.6 Gross Profit 950,026 42.6 881,771 42.4 SG&A 635,259 28.5 592,845 28.5 Restructuring Expense 9,412 0.4 6,764 0.4 Goodwill Impairment - 0.0 11,352 0.5 Other (Income), Net (2,622) (0.1) (224) 0.0 EBIT** (non-GAAP measure) 307,977 13.8 271,034 13.0 13.6 Interest Expense 27,266 1.2 25,939 1.3 Investment (Income), Net (11,280) (0.5) (3,281) (0.2) Income Before Taxes 291,991 13.1 248,376 11.9 Provision for Income Taxes 70,436 3.2 22,367 1.1 Net Income 221,555 9.9 226,009 10.8 (2.0) Less: Net Income Attributable to Noncontrolling Interests 339 0.0 251 0.0 Net Income Attributable to RPM Stockholders 221,216$ 9.9 225,758$ 10.8 (2.0) Diluted EPS 1.73$ 1.76$ (1.7) Three Months Ended May 31,
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18Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Consolidated Statements of Income: Fiscal Year NOTE – Refer to “Non-GAAP Financial Measures” slide for definition of EBIT. ($ in thousands, except per share and percent data) (Unaudited) 2026 % 2025 % % Change Net Sales 7,863,422$ 7,372,644$ 6.7 Cost of Sales 4,605,197 58.6 4,322,166 58.6 Gross Profit 3,258,225 41.4 3,050,478 41.4 SG&A 2,292,130 29.1 2,150,537 29.2 Restructuring Expense 42,612 0.5 24,979 0.3 Goodwill Impairment - 0.0 11,352 0.2 Other (Income), Net (11,512) (0.1) (1,594) 0.0 EBIT** (non-GAAP measure) 934,995 11.9 865,204 11.7 8.1 Interest Expense 111,544 1.4 96,543 1.3 Investment (Income), Net (46,889) (0.6) (24,099) (0.4) Income Before Taxes 870,340 11.1 792,760 10.8 Provision for Income Taxes 207,857 2.7 102,433 1.5 Net Income 662,483 8.4 690,327 9.3 (4.0) Less: Net Income Attributable to Noncontrolling Interests 1,091 0.0 1,639 0.0 Net Income Attributable to RPM Stockholders 661,392$ 8.4 688,688$ 9.3 (4.0) Diluted EPS 5.17$ 5.35$ (3.4) Fiscal Year Ended May 31,
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19Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 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. ****Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, adjusted for items that management does not consider to be indicative of ongoing operations. Management uses Adjusted EBITDA, as defined, as a measure of operating performance, since interest (income) expense, net, relates to corporate functions, as opposed to segment operations. Additionally, adjusted EBITDA is an operating measure that provides investors with a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies.
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20Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 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 related to MAP 2025 totaled $1.9 million and $6.8 million for the quarters ended May 31, 2026 and May 31, 2025 respectively and $18.2 million and $25.0 million for the years ended May 31, 2026 and May 31, 2025 respectively. Other related expenses include inventory writeoffs 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 charges incurred related to headcount reductions and facility closures associated with the SG&A-focused optimization actions and other early-stage MAP 3.0 actions recorded in "Restructuring Expense" on the Consolidated Statements of Income. Restructuring Expense related to the 2026 restructuring action totaled $7.5 million for the quarter ended May 31, 2026 and $24.4 million for the year ended May 31, 2026. Other related expenses consist of higher executive departure costs, including accelerated stock compensation expense, that do not qualify as restructuring expense and are recorded within "SG&A," as well as inventory writeoffs in connection with restructuring activities recorded in "Cost of Sales” and accelerated depreciation recorded within "Cost of Sales" or “SG&A,” depending on the nature of the expense. C. Reflects $11.4 million of goodwill impairment recorded in “Goodwill Impairment” and $1.7 million of intangible asset impairment recorded in “SG&A.” Both charges are related to the Color Group reporting unit in our Consumer Segment due to the continued softness in OEM markets and underperformance in our growth initiatives with this reporting unit. D. Impairment charges related to property, plant and equipment in two asset groups within the Color Group reporting unit of our Consumer Segment due to reduced cash flow projections as a result of market softness. E. 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".
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21Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Adjustments Detail Continued F. 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 incurre d 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 exp ense incurred within Corporate/Other. G. Amortization of inventory fair value adjustments related to acquisitions recorded in “Cost of Sales”. H. Fiscal 2026 reflects gains recorded in “SG&A” associated with the divestiture of a product line and a waterproofing servic es 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. I. Net gain recognized related to the sale of certain properties within the PCG and Consumer Segments which were closed as pa rt of the MAP 2025 program. J. The fair value adjustment of the earn out liabilities associated with the Star Brands Group acquisition, as well as one ot her smaller acquisition, as management does not consider these gains to be reflective of the company’s core business operations. K. Represents incremental expense related to an adverse legal ruling from a case associated with a business that was divested in FY23. L. Environmental remediation costs related to a facility that has not been owned or operated for approximately 25 years. M. The adjustment for the three-month period and year ended May 31, 2025, includes incremental benefits of the U.S. deduction fo r foreign derived intangible income and the foreign tax rate differential associated with certain global capital structure initiatives completed in FY25. Additionally, the FY25 year-to-date adjustment includes adjustments to U.S. foreign tax credits recognized because of global cash redeployment and debt optimization projects, as wel l 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 developments in U.S. income tax case law. N. Investment returns include realized net gains and losses on sales of investments and unrealized net gains and losses on eq uity 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.
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22Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 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): 2026 2025 Reported Earnings per Diluted Share 1.73$ 1.76$ MAP 2025 restructuring and other related expense, net (a) 0.01 0.11 2026 restructuring and other related expense, net (b) 0.06 - Goodwill and intangible asset impairments (c) - 0.09 Property, plant and equipment impairment (d) 0.06 - ERP consolidation plan (e) 0.02 0.02 Professional fees (f) 0.05 0.03 Inventory step-up costs (g) - 0.02 (Gain) on sale of closed facilities, net (i) (0.01) - (Gain) on acquisition earn-out fair value adjustment (j) (0.01) - Legal contingency adjustment on a divested business (k) - 0.03 Environmental expense for a closed facility (l) 0.01 - Income tax adjustments (m) - (0.34) Investment returns (n) (0.03) - Adjusted Earnings per Diluted Share**** 1.89$ 1.72$ Three Months Ended May 31, 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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23Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 Reconciliation of "Reported" to "Adjusted" EPS: Fiscal Year (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax): 2026 2025 Reported Earnings per Diluted Share 5.17$ 5.35$ MAP 2025 restructuring and other related expense, net (a) 0.12 0.29 2026 restructuring and other related expense, net (b) 0.19 - Goodwill and intangible asset impairments (c) - 0.09 Property, plant and equipment impairment (d) 0.06 - ERP consolidation plan (e) 0.08 0.09 Professional fees (f) 0.10 0.18 Inventory step-up costs (g) 0.05 0.02 (Gain) on sale of closed facilities, net (i) (0.03) - (Gain) on acquisition earn-out fair value adjustments (j) (0.11) - Legal contingency adjustment on a divested business (k) - 0.04 Environmental expense for a closed facility (l) 0.01 - Income tax adjustments (m) - (0.74) Investment returns (n) (0.11) (0.02) Adjusted Earnings per Diluted Share**** 5.53$ 5.30$ Fiscal Year Ended May 31, ****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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24Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except percent data) (Unaudited) 2026 2025 Net Income 221,555$ 226,009$ Provision for Income Taxes 70,436 22,367 Income Before Income Taxes 291,991 248,376 Interest Expense 27,266 25,939 Investment (Income), Net (11,280) (3,281) EBIT** (non-GAAP measure) 307,977 271,034 MAP 2025 restructuring and other related expense, net (a) 2,691 13,335 2026 restructuring and other related expense, net (b) 9,972 - Goodwill and intangible asset impairments (c) - 13,080 Property, plant and equipment impairment (d) 9,721 - ERP consolidation plan (e) 2,690 3,525 Professional fees (f) 7,749 4,356 Inventory step-up costs (g) 151 3,270 (Gain) on sale of closed facilities, net (i) (1,641) - (Gain) on acquisition earn-out fair value adjustment (j) (1,710) - Legal contingency adjustment on a divested business (k) - 5,777 Environmental expense for a closed facility (l) 1,000 - Adjusted EBIT*** (non-GAAP measure) 338,600$ 314,377$ Net Sales 2,231,835$ 2,081,975$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 15.2% 15.1% Three Months Ended May 31, 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 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): RPM Consolidated: Fiscal Year ($ in thousands, except percent data) (Unaudited) 2026 2025 Net Income 662,483$ 690,327$ Provision for Income Taxes 207,857 102,433 Income Before Income Taxes 870,340 792,760 Interest Expense 111,544 96,543 Investment (Income), Net (46,889) (24,099) EBIT** (non-GAAP measure) 934,995 865,204 MAP 2025 restructuring and other related expense, net (a) 23,059 42,861 2026 restructuring and other related expense, net (b) 32,082 - Goodwill and intangible asset impairments (c) - 13,080 Property, plant and equipment impairment (d) 9,721 - ERP consolidation plan (e) 13,739 15,044 Professional fees (f) 17,320 29,994 Inventory step-up costs (g) 8,196 4,026 (Gain) on sale of assets and businesses (h) (400) (237) (Gain) on sale of closed facilities, net (i) (5,871) - (Gain) on acquisition earn-out fair value adjustments (j) (14,417) - Legal contingency adjustment on a divested business (k) - 6,059 Environmental expense for a closed facility (l) 1,000 - Adjusted EBIT*** (non-GAAP measure) 1,019,424$ 976,031$ Net Sales 7,863,422$ 7,372,644$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 13.0% 13.2% Fiscal Year Ended May 31, 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 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) 2026 2025 Income Before Income Taxes 167,503$ 148,103$ Add: Interest Expense, Net* 216 586 EBIT** (non-GAAP measure) 167,719 148,689 MAP 2025 restructuring and other related expense, net (a) 2,206 3,281 2026 restructuring and other related expense, net (b) 4,879 - ERP consolidation plan (e) - 82 Professional fees (f) 152 507 Inventory step-up costs (g) 102 194 Adjusted EBIT*** (non-GAAP measure) 175,058$ 152,753$ Net Sales 904,235$ 831,134$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 19.4% 18.4% Three Months Ended May 31, 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 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): Construction Products Segment: Fiscal Year ($ in thousands, except percent data) (Unaudited) 2026 2025 Income Before Income Taxes 448,328$ 425,111$ Add: Interest Expense, Net* 2,475 2,496 EBIT** (non-GAAP measure) 450,803 427,607 MAP 2025 restructuring and other related expense, net (a) 11,130 8,830 2026 restructuring and other related expense, net (b) 9,521 - ERP consolidation plan (e) 1,244 388 Professional fees (f) 722 1,109 Inventory step-up costs (g) 102 453 (Gain) on sale of assets and a business (h) (400) - Adjusted EBIT*** (non-GAAP measure) 473,122$ 438,387$ Net Sales 3,069,785$ 2,874,452$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 15.4% 15.3% Fiscal Year Ended May 31, 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 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except percent data) (Unaudited) 2026 2025 Income Before Income Taxes 83,641$ 66,738$ Add: Interest (Income), Net* (653) (664) EBIT** (non-GAAP measure) 82,988 66,074 MAP 2025 restructuring and other related expense, net (a) 430 3,259 2026 restructuring and other related expense, net (b) 2,617 - ERP consolidation plan (e) 548 615 Professional fees (f) 608 512 Inventory step-up costs (g) 49 515 (Gain) on sale of closed facilities, net (i) (1,641) - (Gain) on acquisition earn-out fair value adjustment (j) (1,710) - Legal contingency adjustment on a divested business (k) - 5,777 Environmental expense for a closed facility (l) 1,000 - Adjusted EBIT*** (non-GAAP measure) 84,889$ 76,752$ Net Sales 562,801$ 536,205$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 15.1% 14.3% Three Months Ended May 31, 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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29Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): Performance Coatings Segment: Fiscal Year ($ in thousands, except percent data) (Unaudited) 2026 2025 Income Before Income Taxes 309,044$ 277,975$ Add: Interest (Income), Net* (3,175) (2,734) EBIT** (non-GAAP measure) 305,869 275,241 MAP 2025 restructuring and other related expense, net (a) 6,176 7,977 2026 restructuring and other related expense, net (b) 7,348 - ERP consolidation plan (e) 2,451 2,689 Professional fees (f) 1,685 1,100 Inventory step-up costs (g) 191 1,012 (Gain) on sale of a business (h) - (237) (Gain) on sale of closed facilities, net (i) (1,511) - (Gain) on acquisition earn-out fair value adjustment (j) (1,710) - Legal contingency adjustment on a divested business (k) - 6,059 Environmental expense for a closed facility (l) 1,000 - Adjusted EBIT*** (non-GAAP measure) 321,499$ 293,841$ Net Sales 2,131,914$ 1,995,816$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 15.1% 14.7% Fiscal Year Ended May 31, 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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30Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except percent data) (Unaudited) 2026 2025 Income Before Income Taxes 107,265$ 96,003$ Add: Interest Expense, Net* 127 341 EBIT** (non-GAAP measure) 107,392 96,344 MAP 2025 restructuring and other related expense, net (a) 55 6,795 2026 restructuring and other related expense, net (b) 2,482 - Goodwill and intangible asset impairments (c) - 13,080 Property, plant and equipment impairment (d) 9,721 - ERP consolidation plan (e) 2,162 427 Professional fees (f) 1,533 1,019 Inventory step-up costs (g) - 2,561 Adjusted EBIT*** (non-GAAP measure) 123,345$ 120,226$ Net Sales 764,799$ 714,636$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 16.1% 16.8% Three Months Ended May 31, 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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31Fiscal 2026 Fourth-Quarter and Full Year Results | July 22, 2026 EBIT** (Non-GAAP Measure): Consumer Segment: Fiscal Year ($ in thousands, except percent data) (Unaudited) 2026 2025 Income Before Income Taxes 362,445$ 332,827$ Add: Interest Expense, Net* 363 1,421 EBIT** (non-GAAP measure) 362,808 334,248 MAP 2025 restructuring and other related expense, net (a) 5,753 26,054 2026 restructuring and other related expense, net (b) 11,445 - Goodwill and intangible asset impairments (c) - 13,080 Property, plant and equipment impairment (d) 9,721 - ERP consolidation plan (e) 6,640 4,820 Professional fees (f) 4,506 2,764 Inventory step-up costs (g) 7,903 2,561 (Gain) on sale of closed facilities, net (i) (4,360) - (Gain) on acquisition earn-out fair value adjustment (j) (12,707) - Adjusted EBIT*** (non-GAAP measure) 391,709$ 383,527$ Net Sales 2,661,723$ 2,502,376$ Adj EBIT*** as a % of Net Sales (non-GAAP measure) 14.7% 15.3% Fiscal Year Ended May 31, 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.