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Q3 2026 Results October 27, 2026
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13Q 2026 Results (October 27, 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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23Q 2026 Results (October 27, 2026) Consolidated sales grew at the high end of guidance; all three reportable segments grew at or above guidance Price/mix +MSD; acquisitions, volume and FX each +LSD Gross margin was impacted by higher raw material and supply chain related costs, the dilutive impact of the Suvinil acquisition, and higher growth in lower margin reportable segments Gross margin is flat YTD excluding the dilutive impact of Suvinil SG&A as reported increased +MSD driven by incremental costs related to Suvinil and higher employee-related service costs SG&A decreased as a % of net sales; further efficiencies implemented Adjusted EPS increased 1.1% and Adjusted EBITDA increased 3.3% Net operating cash decreased in 3Q26 due to lower net income and higher use of cash for working capital. Net operating cash increased 10% YTD to $2.6 billion Returned $749 million in 3Q26 and $3 billion YTD to shareholders through share repurchases and dividends Note: All comparisons are to the third quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. (1) This is a non-GAAP financial measure. Reconciliation from Reported EPS to Adjusted EPS and Net income to EBITDA and Adjusted EBITDA provided in Appendix. ($ in millions, except per share data) 3Q 2026 3Q 2025 Change Net Sales $6,860.0 $6,358.2 7.9% Gross Profit $3,277.2 $3,125.5 4.9% Gross Margin 47.8% 49.2% -140 bps SG&A $2,069.1 $1,952.8 6.0% % of Net sales 30.2% 30.7% -50 bps Reported EPS $3.38 $3.35 0.9% Adjusted EPS (1) $3.63 $3.59 1.1% EBITDA(1) $1,390.3 $1,344.6 3.4% % of Net sales 20.3% 21.1% -80 bps Adjusted EBITDA(1) $1,403.4 $1,359.0 3.3% % of Net sales 20.5% 21.4% -90 bps Net Operating Cash $1,104.5 $1,307.6 -15.5% Capital Expenditures $128.7 $196.4 -34.5% 3Q 2026 FINANCIAL OVERVIEW
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33Q 2026 Results (October 27, 2026) Sales grew 4.7%: price/mix (+MSD) and volume (+LSD) Protective & Marine: growth driven by AI infrastructure, energy, water treatment and processing; 9th straight quarter of at least +HSD growth Commercial: new business wins driving above-market growth; outperforming soft multi-family completions Residential Repaint: growth investments driving returns; 10 of last 11 quarters of at least +MSD growth Property Maintenance: apartment turns remain choppy and CapEx projects largely remain delayed New Residential: outperformed backdrop of -HSD single-family completions in the quarter Segment profit increase driven by higher Net sales, partially offset by higher raw material and supply chain related costs and investments to support higher sales, including additional stores and reps. Announced 8% price increase effective September 1, 2026 Res Repaint New Residential Commercial Property Maintenance DIY Protective & Marine 3Q-26 sales vs. 3Q-25 sales ($ in millions) 3Q 2026 3Q 2025 % Change Net Sales $4,015.8 $3,836.8 4.7% Segment Profit $974.3 $954.3 2.1% Segment Margin 24.3% 24.9% -60 bps +MSD +Mid Teens Note: All comparisons are to the third quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. PAINT STORES GROUP (PSG) +HSD +LSD +LSD -LSD
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43Q 2026 Results (October 27, 2026) Note: All comparisons are to the third quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. (1) This is a non-GAAP financial measure. Adjusted segment profit equals Segment profit excluding the impact of adjustments management believes enhances investors’ understanding of operating performance; reconciliation from Segment profit to Adjusted segment profit provid ed in Appendix. +HSD NORTH AMERICA LATIN AMERICA EUROPE Sales grew 21.7%: acquisitions (+low 20s), price/mix (+LSD), FX (+LSD) and volume (-MSD) North America: sales growth driven by new product offerings, favorable mix, and Pro-Who-Paints; DIY demand remains muted Europe: sales growth reflects new business gains Legacy Latin America business excluding Suvinil up +LSD Suvinil acquisition annualized October 1, 2026 Adjusted segment profit and segment margin decreased primarily due to higher raw material and supply chain costs, incremental SG&A expenses associated with the Suvinil acquisition, and unfavorable foreign currency transaction gains and losses, partially offset by higher Net sales. ($ in millions) 3Q 2026 3Q 2025 % Change Net Sales $937.4 $770.1 21.7% Segment Profit $146.2 $157.3 -7.1% Segment Margin 15.6% 20.4% -480 bps Adjusted Segment Profit (1) $171.4 $179.3 -4.4% Adjusted Segment Margin 18.3% 23.3% -500 bps 3Q-26 sales vs. 3Q-25 sales CONSUMER BRANDS GROUP (CBG) +HDD+LSD +MSD
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53Q 2026 Results (October 27, 2026) +HSD +DD +DD +DD +DD AUTO REFINISH COIL GENERAL INDUSTRIAL INDUSTRIAL WOOD PACKAGING ($ in millions) 3Q 2026 3Q 2025 % Change Net Sales $1,903.3 $1,750.0 8.8% Segment Profit $255.2 $240.3 6.2% Segment Margin 13.4% 13.7% -30 bps Adjusted Segment Profit (1) $308.7 $294.9 4.7% Adjusted Segment Margin 16.2% 16.9% -70 bps Sales grew 8.8% and exceeded guidance: price/mix (+MSD), volume (+LSD), and FX (+LSD). Positive in all divisions & geographies. General Industrial: growth includes robust volume led by strength in construction equipment and transportation Packaging: growth includes strong volume; 8 of last 9 quarters of at least +HSD sales growth Coil: similar volume and price/mix with strength in construction, HVAC, lighting fixtures and roof decking Industrial Wood: business wins in building products partially offset by softness in furniture and flooring Auto Refinish: higher premiums, softer claims and weak consumer confidence continue pressuring core business Sales by geography: +high-teens in Asia, +HSD in North and Latin America, and +MSD in EMEAI Segment profit increased primarily as a result of higher Net sales, partially offset by higher raw material and supply chain related costs and an increase in employee-related costs to support higher sales. 3Q-26 sales vs. 3Q-25 sales +LDD PERFORMANCE COATINGS GROUP (PCG) Note: All comparisons are to the third quarter of the prior year, unless otherwise noted. Note: LSD/MSD/HSD = low, mid or high single digit %. DD = double digit %. (1) This is a non-GAAP financial measure. Adjusted segment profit equals Segment profit excluding the impact of adjustments management believes enhances investors’ understanding of operating performance; reconciliation from Segment profit to Adjusted segment profit provid ed in Appendix. +Mid teens +LSD+LDD+LSD
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63Q 2026 Results (October 27, 2026) Operating Cash Flow ($ in millions) STRONG FINANCIAL POSITION 9/30/2026 Cash $264.2 Liquidity Total Credit Facilities $4,863.3 (Less Amount Utilized) (2,541.3) Net Credit Available $2,322.0 9/30/2026 Total Debt / TTM EBITDA (2) 2.5x Net Debt (3) / TTM EBITDA (2) 2.4x Net Debt (3) / TTM Adjusted EBITDA (2) 2.4x Near-Term Maturities of Long-Term Debt (1) ($ in millions) Selected Financial Ratios Cash & Liquidity Position ($ in millions) $1,307.6 $1,104.5 3Q 2025 3Q 2026 $1,613 $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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73Q 2026 Results (October 27, 2026) Fourth 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 to high-single digit percentage GAAP Earnings Per Share: $10.92-$11.22 Includes acquisition-related amortization expense of $0.82 per share and severance and other restructuring expenses of $0.11 per share Adjusted earnings per share: $11.85-$12.15 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 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-single digit percentage Segments PSG: up mid-single digit percentage CBG: up low-single digit percentage PCG: up mid to high-single digit percentage GUIDANCE
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83Q 2026 Results (October 27, 2026) 4Q 2026 Sales Guidance UPDATED 2026 GUIDANCE ADDITIONAL DETAILS Volume Price / Mix FX Acq. / Div. Total Sales Paint Stores Group +LSD +MSD NM NM +MSD Consumer Brands Group -LSD +MSD +LSD +LDD +Mid- teens Performance Coatings Group +LSD +MSD +LSD NM +MSD to +HSD Consolidated +LSD +MSD +LSD +LSD +MSD to +HSD 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 +MSD NM NA +MSD Consumer Brands Group -LSD +LSD +LSD +LSD +LSD Performance Coatings Group +LSD +MSD +LSD NA +MSD to +HSD Consolidated +LSD +MSD +LSD NM +MSD Note: NM = not meaningful
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3Q 2026 Results (October 27, 2026) 9 APPENDIX
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103Q 2026 Results (October 27, 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. 79% 21% Fixed Floating Fixed vs. Floating Rate Debt Near Term Maturities of Long-Term Debt $1,000 $500 $500 $300 $650 $1,250 $550$500 $500 $1,613 $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 SEPTEMBER 30, 2026 9/30/2026 Balance Int. Rate Short-Term: Domestic 2,353.6 4.34% Non-Domestic: - 0.00% Total Short-Term Borrowings 2,353.6 4.34% Long-Term: Revolving Credit Facility Borrowings - 4.21% Term Loans 113.3 4.00% 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 3.47% 10-year, 2.95% notes due (1) 2029 800.0 2.02% 10-year, 2.30% notes due (1) 2030 500.0 1.93% 5-year, 4.50% notes due (1) 2030 500.0 3.95% 7-year, 4.80% notes due (1) 2031 450.0 3.81% 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% Promissory Notes Various 0.0 0.00% Other (2) (71.8) 0.00% Total Long-Term Debt 9,441.5 3.43% Total Debt 11,795.1 3.61%
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113Q 2026 Results (October 27, 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 4,015.8$ 937.4$ 1,903.3$ 3.5$ 6,860.0$ Segment profit 974.3 146.2 255.2 (312.2) 1,063.5 % of Net sales 24.3% 15.6% 13.4% NM 15.5% Severance and other restructuring expenses - 9.7 3.7 - 13.4 Acquisition-related amortization expense (1) - 15.6 49.8 - 65.3 Adjusted Segment Profit 974.3$ 171.4$ 308.7$ (312.2)$ 1,142.2$ % of Net sales 24.3% 18.3% 16.2% NM 16.7% Three Months Ended September 30, 2026 Paint Stores Group Consumer Brands Group Performance Coatings Group Admin Consolidated 3,836.8$ 770.1$ 1,750.0$ 1.3$ 6,358.2$ 954.3 157.3 240.3 (291.4) 1,060.5 24.9% 20.4% 13.7% NM 16.7% - 6.4 5.1 2.9 14.4 - 15.6 49.5 - 65.1 954.3$ 179.3$ 294.9$ (288.5)$ 1,140.0$ 24.9% 23.3% 16.9% NM 17.9% Three Months Ended September 30, 2025
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123Q 2026 Results (October 27, 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 3.38$ 3.35$ Severance and other restructuring expenses 0.06$ 0.02$ 0.04 0.06$ 0.02$ 0.04 Acquisition-related amortization expense (2) 0.27 0.06 0.21 0.26 0.06 0.20 Adjusted diluted net income per share 3.63$ 3.59$ Three Months Ended Three Months Ended September 30, 2026 September 30, 2025 ($ in millions) Three Months Ended September 30, 2026 Three Months Ended June 30, 2026 Three Months Ended March 31, 2026 Three Months Ended December 31, 2025 Three Months Ended September 30, 2025 Net income 821.0$ 843.6$ 534.7$ 476.8$ 833.1$ Interest expense 139.3 135.9 131.6 131.6 117.2 Income taxes 242.5 268.9 145.1 162.2 227.4 Depreciation 99.2 98.5 98.3 98.3 82.8 Amortization 88.3 87.9 88.5 88.1 84.1 EBITDA 1,390.3$ 1,434.8$ 998.2$ 957.0$ 1,344.6$ Severance and other restructuring expenses 13.1 24.4 - 18.3 14.4 Depreciation included in Severence and other restructuring expenses - (0.6) - - - Trademark impairment - - - 17.8 - Adjusted EBITDA 1,403.4$ 1,458.6$ 998.2$ 993.1$ 1,359.0$ % to Net sales: EBITDA 20.3% 21.1% 17.6% 17.1% 21.1% Adjusted EBITDA 20.5% 21.5% 17.6% 17.7% 21.4% Net sales for EBITDA and Adjusted EBITDA % calculation 6,860.0$ 6,789.3$ 5,666.9$ 5,595.9$ 6,358.2$ ($ in millions) Three Months Ended September 30, 2026 Net operating cash 1,104.5$ Capital expenditures (128.7) Free cash flow 975.8$ EBITDA 1,390.3$ Free cash flow conversion 70.2%