Rpm International Inc. · NYSE:RPM
Rpm International — Q2 2026 Earnings Presentation
28 slides from Rpm International's earnings presentation, Jan 8, 2026
Slide 1: Fiscal 2026 Second-Quarter Results
Fiscal 2026 Second-Quarter Results January 8, 2026
Slide 2: Forward-Looking Statements & Regulation G
Forward-Looking Statements & Regulation G 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 uncertai
Slide 3: Slower Sales Growth Weighs on Margins
Slower Sales Growth Weighs on Margins Demand slowed as quarter progressed, compounded by government shutdown KEY POINTS FY26 Organic Sales Growth 6% Government 5.4% shutdown begins $1.91B 3% 3.0% Q2 RECORD REVENUE +3.5% FROM PY 0% -1.5% $226.6M -3% Q2 ADJUSTED EBIT ¹ -11.2% FROM PY -6.0% -6% Q1-26 S
Slide 4: Combining Optimization Actions and Focused Growth Investments
Combining Optimization Actions and Focused Growth Investments Optimization Benefits ($s in millions) Focused Growth Investments $100 $100 High-Performance $75 Buildings $75 Turnkey solutions Enhancing systems $50 Business Intelligence $25 Targeted marketing Data-enabled insights $20 $0 $5 Product Q3
Slide 5: Fiscal 2026 Second-Quarter Financial Results | Consolidated
Fiscal 2026 Second-Quarter Financial Results | Consolidated Sales growth offset by growth investments and underabsorption ($ in millions, except Q2 Q2 KEY POINTS 2026 2025 % Change per share amounts) • Sales growth driven by acquisitions and engineered solutions for high-performance buildings, parti
Slide 6: Sales Growth in USD by Region | Q2-26
Sales Growth in USD by Region | Q2-26 KEY POINTS • Europe growth driven by M&A and EUROPE F/X NORTH AMERICA 16% of total sales • North America growth driven by 76% of total sales +13.9% M&A and high-performance building +1.9% ASIA/PACIFIC solutions, partially offset by soft 2% of total sales demand
Slide 7: Construction Products Group
Fiscal 2026 Second-Quarter Financial Results Record sales, but growth slowed as project lead times lengthened CONSTRUCTION ($ in millions, except margins) Q2 Q2 2026 2025 % Change Sales Components PRODUCTS GROUP Sales $737.4 $720.5 +2.4% • Organic +0.8% EBIT1 $95.5 $108.7 -12.2% • Acquisitions +0.5%
Slide 8: Performance Coatings Group
Fiscal 2026 Second-Quarter Financial Results Solid organic growth offset by growth investments and unfavorable mix PERFORMANCE ($ in millions, except margins) Q2 Q2 2026 2025 % Change Sales Components COATINGS GROUP Sales $533.8 $511.2 +4.4% • Organic +2.7% EBIT1 $80.8 $79.7 +1.3% • Acquisitions +1.
Slide 9: Consumer Group
Fiscal 2026 Second-Quarter Financial Results Lower volumes from soft DIY markets weighed on profitability Q2 Q2 CONSUMER GROUP ($ in millions, except margins) 2026 2025 % Change Sales Components Sales $638.7 $613.6 +4.1% • Organic -4.7% EBIT1 $100.7 $86.6 +16.3% • Acquisitions +8.7% Adjusted EBIT1 $
Slide 10: Strong Operating Cash Flow Driven by Working Capital Efficiency
Strong Operating Cash Flow Driven by Working Capital Efficiency Cash Provided by Operating Activities Q2-26 Update • Q2-26 cash flow from operations of $345.7 million, 2nd $350 $345.7 highest in company history, and up $66.3 million from prior year due to improved working capital efficiency • Reduce
Slide 11: Strong Balance Sheet Enables Strategic M&A
Strong Balance Sheet Enables Strategic M&A • Signed agreement to acquire Kalzip, a German-based leader in metal-based roofs and facades • Strengthens CPG’s building envelope systems • Aligns with CPG’s strategy to offer solutions that enhance efficiency, durability and aesthetics • Expected to close
Slide 12: Outlook Q3-26
Outlook Q3-26 Q3-26 OUTLOOK (YOY) SALES | Consolidated +MSD % Consumer growth moderately SALES | By Segment above CPG and PCG due to M&A ADJUSTED EBIT | Consolidated +MSD % to +HSD % Expected Trends in Q3-26 (+) SG&A-focused optimization actions (-) Economic uncertainty (+) High-performance building
Slide 13: Outlook Q4-26
Outlook Q4-26 Q4-26 OUTLOOK (YOY) SALES | Consolidated +MSD % range ADJUSTED EBIT | Consolidated +LSD % to +HSD% range Expected Trends in Q4-26 (+) SG&A-focused optimization actions (-) Economic uncertainty (+) Pricing to recover inflation (-) Weak consumer confidence and DIY demand (+) High-perform
Slide 14: Appendix
Appendix Reconciliation of Non-GAAP to GAAP Measures
Slide 15: Consolidated Statements of Income: Three Months
Consolidated Statements of Income: Three Months ($ in thousands, except per share and percent data) (Unaudited) Three Months Ended 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
Slide 16: Consolidated Statements of Income: Six Months
Consolidated Statements of Income: Six Months ($ in thousands, except per share and percent data) (Unaudited) Six Months Ended 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
Slide 17: Non-GAAP Financial Measures
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. Managem
Slide 18: Adjustments Detail
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, 20
Slide 19: Reconciliation of Reported to Adjusted EPS: Three Months
Reconciliation of "Reported" to "Adjusted" EPS: Three Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Three Months Ended Earnings per Diluted Share (All amounts presented after-tax): November 30, 2025 November 30, 2024 Reported Earnings per Diluted Share $ 1.26 $
Slide 20: Reconciliation of Reported to Adjusted EPS: Six Months
Reconciliation of "Reported" to "Adjusted" EPS: Six Months (Unaudited) Reconciliation of Reported Earnings per Diluted Share to Adjusted Six Months Ended Earnings per Diluted Share (All amounts presented after-tax): November 30, 2025 November 30, 2024 Reported Earnings per Diluted Share $ 3.03 $ 3.1
Slide 21: EBIT (Non-GAAP): RPM Consolidated: Three Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended 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 28,00
Slide 22: EBIT (Non-GAAP): RPM Consolidated: Six Months
EBIT** (Non-GAAP Measure): RPM Consolidated: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended 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 4
Slide 23: EBIT (Non-GAAP): Construction Products Segment: Three Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended 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 R
Slide 24: EBIT (Non-GAAP): Construction Products Segment: Six Months
EBIT** (Non-GAAP Measure): Construction Products Segment: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended 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
Slide 25: EBIT (Non-GAAP): Performance Coatings Segment: Three Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended 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
Slide 26: EBIT (Non-GAAP): Performance Coatings Segment: Six Months
EBIT** (Non-GAAP Measure): Performance Coatings Segment: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended 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
Slide 27: EBIT (Non-GAAP): Consumer Segment: Three Months
EBIT** (Non-GAAP Measure): Consumer Segment: Three Months ($ in thousands, except percent data) (Unaudited) Three Months Ended 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 a
Slide 28: EBIT (Non-GAAP): Consumer Segment: Six Months
EBIT** (Non-GAAP Measure): Consumer Segment: Six Months ($ in thousands, except percent data) (Unaudited) Six Months Ended 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 an