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Q2 2026 Results July 28, 2026
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12Q 2026 Results (July 28, 2026) Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of federal securities laws. These forward-looking statements are based upon management’s current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions and may relate to, among other things, anticipated future performance (including sales and earnings), expected growth, and future business plans. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as “anticipate,” “aspire,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “potential,” “project,” “seek,” “should,” “strive,” “target,” “will,” or “would” or the negative thereof or comparable terminology. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside our control, that could cause actual results to differ materially from such statements and from our historical results, performance and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions in the United States and worldwide; inflation rates, interest rates, unemployment rates, labor costs, healthcare costs, recessionary conditions, geopolitical conditions, terrorist activity, armed conflicts and wars, public health crises, pandemics, outbreaks of disease and supply chain disruptions; shifts in consumer behavior driven by economic downturns in cyclical segments of the economy; shortages and increases in the cost of raw materials and energy; catastrophic events, adverse weather conditions and natural disasters (including those that may be related to climate change); disruptions to our information technology systems, including due to digitization efforts or cybersecurity incidents; our ability to attract, retain, develop and progress a qualified global workforce; the loss of any of our largest customers; increased competition or failure to keep pace with developments in key competitive areas of our business; our ability to successfully integrate past and future acquisitions into our existing operations; risks and uncertainties associated with our expansion into and our operations in South America, Asia, Europe and other foreign markets; policy changes affecting international trade, including import/export restrictions and tariffs; our ability to achieve our strategies or expectations relating to sustainability considerations, including as a result of evolving legal, regulatory and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite suppliers, energy sources, or financing and changes in carbon markets and carbon accounting rules; damage to our business, reputation, image or brands due to negative publicity; the infringement or loss of our intellectual property rights or the theft or unauthorized use of our trade secrets or other confidential business information; a weakening of global credit markets or changes to our credit ratings; our ability to generate cash to service our indebtedness; fluctuations in foreign currency exchange rates and changing monetary policies; our ability to comply with a variety of complex U.S. and non-U.S. laws, rules and regulations; increases in tax rates, or changes in tax laws or regulations; our ability to comply with numerous, complex and increasingly stringent domestic and foreign health, safety and environmental laws, regulations and requirements; our liability related to environmental investigation and remediation activities at some of our currently- and formerly-owned sites; the nature, cost, quantity and outcome of pending and future litigation, including lead pigment and lead-based paint litigation; and the other risk factors discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and our other reports filed with the SEC. Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
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22Q 2026 Results (July 28, 2026) Consolidated and all three reportable segment sales exceeded guidance Price/mix +MSD; acquisitions, FX and volume each +LSD Gross margin slightly decreased – excluding dilutive impact of Suvinil acquisition, gross margin expanded SG&A as reported increased +MSD but decreased as a % of net sales – growth in SG&A driven by non-annualized Suvinil acquisition and higher employee service costs Adjusted EPS increased 9.5% to $3.70/share driven by better- than-expected sales Adjusted EBITDA grew 10.5% to $1.5 billion, or 21.5% of net sales Net operating cash improved by $235 million driven by strong working capital management and higher net income Free cash flow conversion (3) of 86.4% Returned $1.5 billion to shareholders through share repurchases and dividends ($ in millions, except per share data) 2Q 2026 2Q 2025 % Change Net Sales $6,789.3 $6,314.5 7.5% Gross Profit $3,338.0 $3,118.3 7.0% Gross Margin 49.2% 49.4% -20 bps SG&A $2,103.7 $2,011.6 4.6% % of Net Sales 31.0% 31.9% -90 bps Reported EPS $3.43 $3.00 14.3% Adjusted EPS (1) $3.70 $3.38 9.5% EBITDA (1) $1,434.8 $1,260.8 13.8% % of Net Sales 21.1% 20.0% +110 bps Adjusted EBITDA (1) $1,458.6 $1,319.8 10.5% % of Net Sales 21.5% 20.9% +60 bps Net Operating Cash $1,347.5 $1,112.6 21.1% Capital Expenditures (2) $108.4 $181.5 -40.2% Note: All comparisons are to the second quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. (1) This is a non-GAAP financial measure. Reconciliation from Reported EPS to Adjusted EPS and Net income to EBITDA and Adjusted EBITDA provided in Appendix. (2) Includes new building construction expenditures in 2Q 2025. (3) This is a non-GAAP financial measure. Reconciliation from Net operating cash to Free cash flow and Free cash flow conversion provided in Appendix. Free cash flow conversion defined as (Net operating cash less Capital expenditures) / EBITDA (1) 2Q 2026 FINANCIAL PERFORMANCE OVERVIEW
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32Q 2026 Results (July 28, 2026) Sales up 5.1%: positive price/mix (low end of +MSD) and volume (+LSD) Protective & Marine +mid-teens; data centers, semiconductor, energy and water-wastewater infrastructure driving growth; 8th straight quarter of at least +HSD growth Commercial +HSD; new business wins driving above-market growth Residential Repaint +MSD; continued growth investments driving above market growth; 9 of last 10 quarters of at least +MSD growth Property Maintenance +MSD; new account and share of wallet gains driving growth New Residential +LSD; new account growth offset soft single-family completions Segment profit increased driven by sales growth, partially offset by higher raw material costs and customer focused growth investments Announced 8% price increase effective September 1, 2026 Res Repaint New Residential Commercial Property Maintenance DIY Protective & Marine 2Q-26 sales vs. 2Q-25 sales ($ in millions) 2Q 2026 2Q 2025 % Change Net Sales $3,890.0 $3,702.2 5.1% Segment Profit $957.6 $916.5 4.5% Segment Margin 24.6% 24.8% -20 bps +MSD +Mid Teens Note: All comparisons are to the second quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. PAINT STORES GROUP (PSG) +HSD +MSD +LSD -LSD
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42Q 2026 Results (July 28, 2026) Note: All comparisons are to the second quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. (1) This is a non-GAAP financial measure. Adjusted segment profit equals Segment profit excluding the impact of adjustments management believes enhances investors’ understanding of operating performance; reconciliation from Segment profit to Adjusted segment profit provid ed in Appendix. +HSD NORTH AMERICA LATIN AMERICA EMEAI Sales growth driven by strong performance from Suvinil, higher sales in North America and favorable FX North America sales growth driven by new product offerings, favorable mix, and Pro-Who-Paints growth; DIY demand remains muted EMEAI impacted by customer inventory management and difficult high-teens prior year comparison Legacy Latin America business excluding Suvinil up +LDD Adjusted segment profit and segment margin increased driven by net sales growth, timing of marketing investments and supply chain productivity, partially offset by higher raw material and Suvinil integration costs ($ in millions) 2Q 2026 2Q 2025 % Change Net Sales $983.5 $809.4 21.5% Segment Profit $212.9 $164.2 29.7% Segment Margin 21.6% 20.3% +130 bps Adjusted Segment Profit (1) $241.4 $181.4 33.1% Adjusted Segment Margin 24.5% 22.4% +210 bps 2Q-26 sales vs. 2Q-25 sales CONSUMER BRANDS GROUP (CBG) +HDD+HSD -LDD
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52Q 2026 Results (July 28, 2026) +HSD +DD +DD +DD +DD AUTO REFINISH COIL GENERAL INDUSTRIAL INDUSTRIAL WOOD PACKAGING ($ in millions) 2Q 2026 2Q 2025 % Change Net Sales $1,913.8 $1,801.1 6.3% Segment Profit $273.3 $245.1 11.5% Segment Margin 14.3% 13.6% +70 bps Adjusted Segment Profit (1) $332.0 $302.3 9.8% Adjusted Segment Margin 17.3% 16.8% +50 bps Sales up 6.3%: price/mix, volume and FX all were +LSD Sales up in all divisions and geographies, including +high-teens in Asia, +MSD in North America, +LSD in EMEAI and Latin America General Industrial +HSD driven by new business wins and strength in heavy machinery Auto Refinish delivered +HSD growth; +DD growth in new accounts partially offset by soft core business Packaging +MSD driven by continued volume growth, led by beverage can market Coil +MSD driven by volume growth and strength in Asia, EMEAI and North America Industrial Wood +MSD; new account wins offset by continued soft core markets, including furniture Segment profit increased primarily a result of higher net sales, partially offset by higher raw material costs and customer focused growth investments 2Q-26 sales vs. 2Q-25 sales +MSD PERFORMANCE COATINGS GROUP (PCG) Note: All comparisons are to the second quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. (1) This is a non-GAAP financial measure. Adjusted segment profit equals Segment profit excluding the impact of adjustments management believes enhances investors’ understanding of operating performance; reconciliation from Segment profit to Adjusted segment profit provid ed in Appendix. +HSD +MSD+MSD+HSD
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62Q 2026 Results (July 28, 2026) Operating Cash Flow ($ in millions) STRONG FINANCIAL POSITION 6/30/2026 Cash $293.5 Liquidity Total Credit Facilities $4,785.6 (Less Amount Utilized) (2,816.5) Net Credit Available $1,969.1 6/30/2026 Total Debt / TTM EBITDA (2) 2.5x Net Debt (3) / TTM EBITDA (2) 2.5x Net Debt (3) / TTM Adjusted EBITDA (2) 2.4x Near-Term Debt Maturities (1) ($ in millions) Selected Financial Ratios Cash & Liquidity Position ($ in millions) $1,112.6 $1,347.5 2Q 2025 2Q 2026 $1,500 $900 $800 $1,000 2026 2027 2028 2029 2030 (1) Full debt maturity schedule provided in Appendix. (2) This is a non-GAAP financial measure. Reconciliation from Net income to EBITDA and Adjusted EBITDA provided in Appendix. (3) Net debt equals total debt outstanding, net of Cash and cash equivalents.
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72Q 2026 Results (July 28, 2026) Third Quarter 2026 Sales Up mid to high-single digit percentage Inclusive of a low-single digit percentage from acquisitions Segments PSG: up mid-single digit percentage CBG: up mid-teens percentage PCG: up mid-single digit percentage GAAP Earnings Per Share: $10.92-$11.32 Includes acquisition-related amortization expense of $0.81 per share and severance and other restructuring expenses of $0.07 per share Adjusted earnings per share: $11.80-$12.20 Raw materials: up mid-single digit percentage vs. prior year Capital expenditures: ~$550 million total GAAP SG&A expenses: up mid-single digit percentage including a low-single digit contribution from Suvinil Incremental new building operating costs offset by non-repeating prior year building transition costs Interest expense: ~$550 million Depreciation and amortization: ~$400 million and ~$360 million, respectively Tax rate: low 20s percent (flattish year-over-year) Updated Full Year 2026 Sales Up mid to high-single digit percentage Inclusive of a low-single digit percentage from acquisitions Segments PSG: up mid-single digit percentage CBG: up low-twenties percentage PCG: up low to mid-single digit percentage GUIDANCE
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82Q 2026 Results (July 28, 2026) 3Q 2026 Sales Guidance UPDATED 2026 GUIDANCE ADDITIONAL DETAILS & KEY COMPONENTS Volume Price / Mix FX Acq. / Div. Total Sales Paint Stores Group +LSD +LSD to +MSD NM NM +MSD Consumer Brands Group -LSD +MSD Flat +LDD +Mid- teens Performance Coatings Group +LSD +MSD +LSD NM +MSD Consolidated +LSD +MSD +LSD +LSD +MSD to +HSD SHW Economic Assumptions Underlying Updated Full-Year Mid-Point Guidance Not modeling any Fed rate cuts and our bias is towards a fall hike to combat recent surges in oil prices, a resilient labor market, and sticky underlying inflation Oil prices expected to remain elevated and volatile given Middle East conflict, pressuring downstream raw material prices Expect the 10-year treasury yield in the +/-4.5% range, which influences a 30-year mortgage rate expected in the low-to-mid 6% range GDP trajectory anticipated to remain uncertain given tariffs and variable labor market Consumer Price Index (CPI) expected to remain above the Fed's targeted 2% range, which will keep continued pressure on rates Consumer sentiment anticipated to remain subdued suggesting continued caution in discretionary spending Existing home sales expected to remain in +LSD range as affordability and mortgage rate lock in effect remain significant challenges Single family housing starts expected to remain down -MSD to -HSD as homebuilder sentiment remains pessimistic Leading Indicator of Remodeling Activity (LIRA) forecasts very modest improvement into the first part of next year U.S. Industrial Production expected to remain weak and show no material improvement in 2026 Architectural Billings Index marks 21st consecutive month of declining billings impacting commercial building Note: NM = not meaningful, NA = not applicable Updated Full Year 2026 Sales Guidance Volume Price / Mix FX Acq. / Div. Total Sales Paint Stores Group +LSD +LSD to +MSD NM NA +MSD Consumer Brands Group +LSD +MSD -LSD +High- teens +Low-20s Performance Coatings Group -LSD +MSD -LSD NA +LSD to +MSD Consolidated +LSD +MSD -LSD +LSD +MSD to +HSD Note: NM = not meaningful
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2Q 2026 Results (July 28, 2026) 9 APPENDIX
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102Q 2026 Results (July 28, 2026) (1) Interest rate reflects the impact of a cross-currency swap which pays EUR and receives USD interest at fixed rates. (2) "Other" long-term debt is comprised of unamortized premiums, discounts and issuance costs. 77% 23% Fixed Floating Fixed vs. Floating Rate Debt Maturities of Long-Term Debt $1,000 $500 $500 $300 $650 $1,250 $550$500 $500 $1,500 $900 $800 $450 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 … 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 USD EUR DEBT SUMMARY AS OF JUNE 30, 2026 6/30/2026 $ in millions Balance Int. Rate Short-Term: Domestic: 1,960.9$ 4.10% Non-Domestic: 285.5 3.08% Total Short-Term Borrowings 2,246.4$ 3.97% Long-Term: Revolving Credit Facility Borrowings 500.0 4.21% Bonds 10-year, 3.45% notes due (1) 2027 1,500.0 2.59% 3-year, 4.55% notes due (1) 2028 400.0 4.27% 3-year, 4.30% notes due (1) 2028 500.0 3.75% 10-year, 2.95% notes due (1) 2029 800.0 2.02% 10-year, 2.30% notes due 2030 500.0 2.30% 5-year, 4.50% notes due (1) 2030 500.0 4.21% 7-year, 4.80% notes due (1) 2031 450.0 4.22% 10-year, 2.20% notes due 2032 500.0 2.20% 10-year, 5.15% notes due 2035 500.0 5.15% 30-year, 4.00% notes due 2042 300.0 4.00% 30-year, 4.40% notes due 2045 250.0 4.40% 30-year, 4.55% notes due 2045 400.0 4.55% 30-year, 4.50% notes due 2047 1,250.0 4.50% 30-year, 3.80% notes due 2049 550.0 3.80% 30-year, 3.30% notes due 2050 500.0 3.30% 30-year, 2.90% notes due 2052 500.0 2.90% Other (2) (74.3) 0.00% Total Long-Term Debt 9,825.7$ 3.53% Total Debt 12,072.1$ 3.61%
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112Q 2026 Results (July 28, 2026) (1) Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amorti zed over their remaining useful lives. Valspar acquisition-related amortization expense is adjusted due to its significance as a result of the purchase price assigned to finit e-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company ’s revenue generation, the related revenue is not excluded. Note: NM = not meaningful RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTMENTS TO SEGMENT PROFIT ($ in millions) Paint Stores Group Consumer Brands Group Performance Coatings Group Admin Consolidated Net sales 3,890.0$ 983.5$ 1,913.8$ 2.0$ 6,789.3$ Segment profit 957.6 212.9 273.3 (331.3) 1,112.5 % of Net sales 24.6% 21.6% 14.3% NM 16.4% Severance and other restructuring expenses - 12.9 8.8 2.7 24.4 Acquisition-related amortization expense (1) - 15.6 49.9 - 65.5 Adjusted Segment Profit 957.6$ 241.4$ 332.0$ (328.6)$ 1,202.4$ % of Net sales 24.6% 24.5% 17.3% NM 17.7% Three Months Ended June 30, 2026 Paint Stores Group Consumer Brands Group Performance Coatings Group Admin Consolidated 3,702.2$ 809.4$ 1,801.1$ 1.8$ 6,314.5$ 916.5 164.2 245.1 (340.1) 985.7 24.8% 20.3% 13.6% NM 15.6% - 1.7 8.2 49.1 59.0 - 15.5 49.0 - 64.5 916.5$ 181.4$ 302.3$ (291.0)$ 1,109.2$ 24.8% 22.4% 16.8% NM 17.6% Three Months Ended June 30, 2025
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122Q 2026 Results (July 28, 2026) (1) The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted. (2) Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amortized over their remaining useful lives. Valspar acquisition-related amortization expense is adjusted due to its significance as a result of the purchase price assigned to finite-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company’s revenue generation, the related revenue is not excluded. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EPS, FREE CASH FLOW, FREE CASH FLOW CONVERSION, EBITDA & ADJUSTED EBITDA Pre-Tax Tax Effect (1) After-Tax Pre-Tax Tax Effect (1) After-Tax Diluted net income per share 3.43$ 3.00$ Severance and other restructuring expenses 0.10$ 0.03$ 0.07 0.23$ 0.05$ 0.18 Acquisition-related amortization expense (2) 0.27 0.07 0.20 0.26 0.06 0.20 Adjusted diluted net income per share 3.70$ 3.38$ Three Months Ended Three Months Ended June 30, 2026 June 30, 2025 ($ in millions) Three Months Ended June 30, 2026 Three Months Ended March 31, 2026 Three Months Ended December 31, 2025 Three Months Ended September 30, 2025 Three Months Ended June 30, 2025 Net income 843.6$ 534.7$ 476.8$ 833.1$ 754.7$ Interest expense 135.9 131.6 131.6 117.2 112.4 Income taxes 268.9 145.1 162.2 227.4 231.0 Depreciation 98.5 98.3 98.3 82.8 79.3 Amortization 87.9 88.5 88.1 84.1 83.4 EBITDA 1,434.8$ 998.2$ 957.0$ 1,344.6$ 1,260.8$ Severance and other restructuring expenses 24.4 - 18.3 14.4 59.0 Depreciation included in Severence and other restructuring expenses (0.6) - - - - Trademark impairment - - 17.8 - - Adjusted EBITDA 1,458.6$ 998.2$ 993.1$ 1,359.0$ 1,319.8$ % to Net sales: EBITDA 21.1% 17.6% 17.1% 21.1% 20.0% Adjusted EBITDA 21.5% 17.6% 17.7% 21.4% 20.9% Net sales for EBITDA and Adjusted EBITDA % calculation 6,789.3$ 5,666.9$ 5,595.9$ 6,358.2$ 6,314.5$ ($ in millions) Three Months Ended June 30, 2026 Net operating cash 1,347.5$ Capital expenditures (108.4) Free cash flow 1,239.1$ EBITDA 1,434.8$ Free cash flow conversion 86.4%