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RPM International — Jul 17, 2026 release

Fiscal 2026 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001193125-26-311276
Open on SEC.gov ↗
Showing in the filing
Sales
“increase 3% to 7%”
Period
FY2027
Measure
Company-defined measure
Source
Prose
All guidance in this release · 12
Sales and adjusted EBITDA growth for Q1 FY2027
“mid-single-digit range”
Sales for FY2027
“increase 3% to 7%”
Adjusted EBITDA for FY2027
“increase 5% to 10%”
Share repurchase program increase authorized…
“$700 million”
Increase to the existing common stock share …
“$700.0 million”
Consolidated sales for Q1 FY2027
“increase in the mid-single-digit range compared to prior-year record results”
Consumer Group sales for Q1 FY2027
“increase in the mid-single-digit range compared to prior-year record results”
CPG sales for Q1 FY2027
“increase in the mid-single-digit range compared to prior-year record results”
PCG sales for Q1 FY2027
“increase in the mid-single-digit range compared to prior-year record results”
Consolidated adjusted EBITDA for Q1 FY2027
“increase in the mid-single-digit range compared to prior-year record results”
Consolidated sales for FY2027
“increase 3% to 7% compared to prior-year record results”
Consolidated adjusted EBITDA for FY2027
“increase 5% to 10% compared to prior-year record results”
Exhibit 99.1 · full document
Exhibit 99.1   RPM Reports Record Fiscal 2026 Fourth-Quarter and Full-Year Results     •   Record fourth-quarter sales of $2.23 billion increased 7.2% compared to the prior year     •   Fourth-quarter net income of $221.2 million, diluted EPS of $1.73, and record EBIT of $308.0 million     •   Record fourth-quarter adjusted diluted EPS of $1.89 increased 9.9% compared to the prior year, and record adjusted EBIT of $338.6 million increased 7.7% compared to the prior year     •   Record fiscal 2026 sales of $7.86 billion increased 6.7% compared to the prior-year record     •   Fiscal 2026 net income of $661.4 million, diluted EPS of $5.17 and record EBIT of $935.0 million     •   Record fiscal 2026 adjusted diluted EPS of $5.53 increased 4.3% over the prior year; record adjusted EBIT of $1.02 billion increased 4.4% over the prior year     •   Fiscal 2027 first-quarter outlook calls for sales and adjusted EBITDA growth in the mid-single-digit range     •   Fiscal 2027 full-year outlook calls for sales to increase 3% to 7% and adjusted EBITDA to increase 5% to 10%     •   Board of Directors authorizes $700 million increase to share repurchase program     •   Investor day to take place November 9, 2026, to update strategic priorities and outline next operating improvement plan MEDINA, OH – July 22, 2026 – RPM International Inc. (NYSE: RPM), a world leader in specialty coatings, sealants and building materials, today reported financial results for its fiscal 2026 fourth quarter and full year ended May 31, 2026. Frank C. Sullivan, RPM chairman and CEO, commented, “Once again, our associates achieved record results for the quarter and full year during a volatile economic period. In the fourth quarter, we generated strong sales, including volume growth, by focusing on our restoration and maintenance solutions, nimbly targeting growing end markets, and winning a higher share of construction project spending through system sales and increased collaboration. Additionally, our talented emerging markets teams drove double-digit sales growth. This growth allowed us to leverage our operational improvements to expand margins in an inflationary environment. The fourth quarter represents the 16 th time we have generated record adjusted EBIT out of the past 18 quarters, due in large part to the structural improvements our MAP operating improvement program has created within our organization.” RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 2   Fourth-Quarter 2026 Consolidated Results Consolidated        Three Months Ended                $ in 000s except per share data    May 31,      May 31,                     2026      2025      $ Change     % Change   Net Sales    $ 2,231,835      $ 2,081,975      $ 149,860       7.2 %  Net Income Attributable to RPM Stockholders      221,216        225,758        (4,542 )      (2.0 %)  Diluted Earnings Per Share (EPS)      1.73        1.76        (0.03 )      (1.7 %)  Income Before Income Taxes (IBT)      291,991        248,376        43,615       17.6 %  Earnings Before Interest and Taxes (EBIT)      307,977        271,034        36,943       13.6 %  Adjusted EBIT (1)      338,600        314,377        24,223       7.7 %  Adjusted Diluted EPS (1)      1.89        1.72        0.17       9.9 %    (1) Excludes certain items that are not indicative of RPM’s ongoing operations. See tables below titled Supplemental Segment Information and Reconciliation of Reported to Adjusted Amounts for details. Record fourth-quarter sales were driven by increased sales of engineered solutions for high-performance buildings and infrastructure projects, acquisitions and pricing to offset inflation. Favorable foreign currency translation also contributed to sales growth. Geographically, emerging markets generated double-digit growth fueled by strong demand for engineered solutions for high-performance buildings and infrastructure projects. Solid North American growth was driven by turnkey and system solutions for high-performance buildings. Growth in Europe was primarily driven by acquisitions. Sales included 2.5% organic growth, 3.5% growth from acquisitions net of divestitures, and a 1.2% benefit from foreign currency translation. Adjusted EBIT increased to a record and was driven by higher sales, higher volumes resulting in improved fixed-cost leverage, and benefits from MAP operational improvement initiatives. These gains more than offset increased healthcare and insurance expenses and inflation. These record results were in addition to strong growth in the prior year when adjusted EBIT increased 10.1%. Record adjusted diluted EPS was primarily driven by improved adjusted EBIT. RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 3   Fourth-Quarter 2026 Segment Sales and Earnings Construction Products Group        Three Months Ended                 $ in 000s    May 31,      May 31,                      2026      2025      $ Change      % Change   Net Sales    $ 904,235      $ 831,134      $ 73,101        8.8 %  Income Before Income Taxes      167,503        148,103        19,400        13.1 %  EBIT      167,719        148,689        19,030        12.8 %  Adjusted EBIT (1)      175,058        152,753        22,305        14.6 %    (1) Excludes certain items that are not indicative of RPM’s ongoing operations. See table below titled Supplemental Segment Information for details. Record CPG sales were driven by broad-based strength across its businesses, led by the concrete admixtures business. Demand was strong for roofing restoration systems and services, as well as labor-saving wall systems used in high-performance buildings. Pricing to offset inflation and favorable foreign currency translation also contributed to record sales. Sales included 5.7% organic growth, 1.6% growth from acquisitions net of divestitures, and a 1.5% benefit from foreign currency translation. Record adjusted EBIT was driven by higher volumes resulting in improved fixed-cost leverage, favorable mix and SG&A-focused optimization actions. Performance Coatings Group        Three Months Ended                 $ in 000s    May 31,      May 31,                      2026      2025      $ Change      % Change   Net Sales    $ 562,801      $ 536,205      $ 26,596        5.0 %  Income Before Income Taxes      83,641        66,738        16,903        25.3 %  EBIT      82,988        66,074        16,914        25.6 %  Adjusted EBIT (1)      84,889        76,752        8,137        10.6 %    (1) Excludes certain items that are not indicative of RPM’s ongoing operations. See table below titled Supplemental Segment Information for details. Record PCG sales were driven by broad-based growth, with particular strength in fireproofing systems for high-performance buildings, and infrastructure projects, as well as food coatings and ingredients. Strong demand in emerging markets and pricing to offset inflation also contributed to sales growth. Sales included 2.2% organic growth, a 1.5% increase from acquisitions, and a 1.3% benefit from foreign currency translation. Record adjusted EBIT was driven by improved sales, higher 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. RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 4   Consumer Group        Three Months Ended                 $ in 000s    May 31,      May 31,                      2026      2025      $ Change      % Change   Net Sales    $ 764,799      $ 714,636      $ 50,163        7.0 %  Income Before Income Taxes      107,265        96,003        11,262        11.7 %  EBIT      107,392        96,344        11,048        11.5 %  Adjusted EBIT (1)      123,345        120,226        3,119        2.6 %    (1) Excludes certain items that are not indicative of RPM’s ongoing operations. See table below titled Supplemental Segment Information for details. The Consumer Group’s record sales were driven by acquisitions and pricing to recover inflation. Growth was partially offset by softness in DIY markets. Sales included a 0.8% organic decline, 7.2% growth from acquisitions, and a 0.6% benefit from foreign currency translation. Record adjusted EBIT was driven by 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. Fiscal Year 2026 Consolidated Results Consolidated        Year Ended                $ in 000s except per share data    May 31,      May 31,                     2026      2025      $ Change     % Change   Net Sales    $ 7,863,422      $ 7,372,644      $ 490,778       6.7 %  Net Income Attributable to RPM Stockholders      661,392        688,688        (27,296 )      (4.0 %)  Diluted Earnings Per Share (EPS)      5.17        5.35        (0.18 )      (3.4 %)  Income Before Income Taxes (IBT)      870,340        792,760        77,580       9.8 %  Earnings Before Interest and Taxes (EBIT)      934,995        865,204        69,791       8.1 %  Adjusted EBIT (1)      1,019,424        976,031        43,393       4.4 %  Adjusted Diluted EPS (1)      5.53        5.30        0.23       4.3 %    (1) Excludes certain items that are not indicative of RPM’s ongoing operations. See tables below titled Supplemental Segment Information and Reconciliation of Reported to Adjusted Amounts for details. Fiscal year 2026 sales were a record driven by strong demand for engineered solutions for high-performance buildings and infrastructure projects and contributions from acquired businesses, partially offset by softness in DIY markets. Record adjusted EBIT was driven by higher sales and improved fixed-cost leverage at businesses with volume growth, which was aided by MAP operational improvement benefits. These gains were partially offset by transitory costs associated with plant consolidations. Inflation in healthcare and benefit expenses was partially offset by SG&A-focused optimization actions implemented in the middle of the fiscal year. RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 5   Adjusted EPS was a record, driven by improved adjusted EBIT, partially offset by higher interest expense resulting from debt being used to finance acquisitions. Cash Flow and Financial Position During fiscal 2026:     •   Cash provided by operating activities was $898.7 million, the second-highest amount in the company’s history, compared to $768.2 million in the prior-year period.     •   Capital expenditures were $223.5 million compared to $229.9 million in the prior-year period.     •   Cash used to acquire businesses was $202.4 million.     •   The company returned $349.2 million to stockholders through cash dividends and share repurchases, an increase of 7.3% compared to the prior year. As of May 31, 2026:     •   Total debt was $2.53 billion compared to $2.65 billion a year ago, with the decrease driven by a portion of strong operating cash flow being used to reduce debt.     •   Total liquidity, including cash and committed revolving credit facilities, was $1.09 billion, compared to $969.1 million a year ago. Increase to Share Repurchase Authorization The Board of Directors authorized a $700.0 million increase to the existing common stock share repurchase program, which is in addition to the $114.8 million available under the previously authorized amount. Repurchases under the authorization may be made from time to time in the open market, through privately negotiated transactions, or through other means permitted by applicable securities laws and regulations. The authorization does not obligate RPM to acquire any specific number of shares and may be modified, suspended or discontinued at any time. The authorization has no expiration date. Investor Day Scheduled for November 9, 2026 The company will host an investor day on November 9, 2026, to discuss its strategic priorities, outline its next operational improvement plan, and provide updates on key business initiatives. The event will be webcast and additional details will be provided closer to the investor day. RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 6   Business Outlook Sullivan said, “We expect the positive momentum generated in the second half of fiscal 2026 to continue in fiscal 2027, even as we face higher inflationary pressure resulting from events in the Middle East. Strength in engineered solutions for high-performance buildings and infrastructure projects is anticipated to continue, and our Consumer segment is showing signs of stabilization after a prolonged downturn.” He concluded, “Our operational improvement initiatives continue to help us better convert sales growth into improved profitability and cash flow. We look forward to communicating our progress and outlook for our next operational improvement plan during our investor day. I want to thank RPM associates around the globe for their continued dedication and performance during these volatile economic times.” Starting in fiscal 2027, the company’s primary measure of profit and loss has transitioned to adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), from adjusted EBIT. This change was made to facilitate comparisons to peer companies and to better reflect underlying profitability during periods of acquisition activity. Results for fiscal year 2026 reflecting the use of adjusted EBITDA have been provided in a Form 8-K filed with the SEC. The company’s outlook for the fiscal 2027 first quarter is for:     •   Consolidated sales to increase in the mid-single-digit range compared to prior-year record results.     •   CPG sales to increase in the mid-single-digit range compared to prior-year record results.     •   PCG sales to increase in the mid-single-digit range compared to prior-year record results.     •   Consumer Group sales to increase in the mid-single-digit range compared to prior-year record results.     •   Consolidated adjusted EBITDA to increase in the mid-single-digit range compared to prior-year record results. The company’s outlook for fiscal 2027 is for:     •   Consolidated sales to increase 3% to 7% compared to prior-year record results.     •   Consolidated adjusted EBITDA to increase 5% to 10% compared to prior-year record results. Earnings Webcast and Conference Call Information Management will host a conference call to discuss these results beginning at 10:00 a.m. ET today. The call can be accessed via webcast at www.RPMinc.com/Investors/Presentations-Webcasts or by dialing 1-844-481-2915 or 1-412-317-0708 for international callers and asking to join the RPM International call. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode. For those unable to listen to the live call, a replay will be available from July 22, 2026, until July 29, 2026. The replay can be accessed by dialing 1-855-669-9658 or 1-412-317-0088 for international callers. The access code is 8887341. The call also will be available for replay and as a written transcript via the RPM website at www.RPMinc.com . RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 7   About RPM RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across three reportable segments: consumer, construction products and performance coatings. RPM has a diverse portfolio of market-leading brands, including Rust-Oleum , DAP , Zinsser , Varathane , The Pink Stuff , Stonhard , Carboline , Finish Works , Tremco , Euclid Chemical , Dryvit and Nudura . From homes and workplaces to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and professionals alike to help build a better world . The company employs approximately 17,800 individuals worldwide. Visit www.RPMinc.com to learn more. For more information, contact Matt Schlarb, Vice President – Investor Relations & Sustainability, at 330-220-6064 or mschlarb@rpminc.com. # # # Use of Non-GAAP Financial Information To supplement the financial information presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) in this earnings release, we use EBIT, adjusted EBIT and adjusted earnings per share, which are all non-GAAP financial measures. EBIT is defined as earnings (loss) before interest and taxes, with adjusted EBIT and adjusted earnings per share provided for the purpose of adjusting for one-off items impacting revenues and/or expenses that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest income (expense), net is essentially related to corporate functions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. See the financial statement section of this earnings release for a reconciliation of EBIT and adjusted EBIT to income before income taxes, and adjusted earnings per share to earnings per share. Starting in fiscal 2027, the company’s primary measure of profit and loss has transitioned to adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), from adjusted EBIT. We have not provided a reconciliation of our first-quarter and full-year fiscal 2027 adjusted EBITDA guidance because material terms that impact such measure are not in our control and/or cannot be reasonably predicted, and therefore a reconciliation of such measure is not available without unreasonable effort. Forward-Looking Statements This press release 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, RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 8   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, 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, 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 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 the 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 breaches 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) other 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 press release. CONSOLIDATED STATEMENTS OF INCOME IN THOUSANDS, EXCEPT PER SHARE DATA (Unaudited)        Three Months Ended     Year Ended        May 31, 2026     May 31, 2025     May 31, 2026     May 31, 2025   Net Sales    $ 2,231,835     $ 2,081,975     $ 7,863,422     $ 7,372,644   Cost of Sales      1,281,809       1,200,204       4,605,197       4,322,166                                    Gross Profit      950,026       881,771       3,258,225       3,050,478   Selling, General & Administrative Expenses      635,259       592,845       2,292,130       2,150,537   Restructuring Expense      9,412       6,764       42,612       24,979   Goodwill Impairment      —        11,352       —        11,352   Interest Expense      27,266       25,939       111,544       96,543   Investment (Income), Net      (11,280 )      (3,281 )      (46,889 )      (24,099 )  Other (Income), Net      (2,622 )      (224 )      (11,512 )      (1,594 )                                   Income Before Income Taxes      291,991       248,376       870,340       792,760   Provision for Income Taxes      70,436       22,367       207,857       102,433                                    Net Income      221,555       226,009       662,483       690,327   Less: Net Income Attributable to Noncontrolling Interests      339       251       1,091       1,639                                    Net Income Attributable to RPM International Inc. Stockholders    $ 221,216     $ 225,758     $ 661,392     $ 688,688                                    Earnings per share of common stock attributable to RPM International Inc. Stockholders:          Basic    $ 1.74     $ 1.77     $ 5.19     $ 5.38                                    Diluted    $ 1.73     $ 1.76     $ 5.17     $ 5.35                                    Average shares of common stock outstanding - basic      126,734       127,396       127,049       127,570                                    Average shares of common stock outstanding - diluted      127,099       127,877       127,554       128,204                                    RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 9   SUPPLEMENTAL SEGMENT INFORMATION IN THOUSANDS (Unaudited)        Three Months Ended     Year Ended        May 31, 2026     May 31, 2025     May 31, 2026     May 31, 2025   Net Sales:          CPG Segment    $ 904,235     $ 831,134     $ 3,069,785     $ 2,874,452   PCG Segment      562,801       536,205       2,131,914       1,995,816   Consumer Segment      764,799       714,636       2,661,723       2,502,376                                    Total    $ 2,231,835     $ 2,081,975     $ 7,863,422     $ 7,372,644                                    Income Before Income Taxes:          CPG Segment          Income Before Income Taxes (a)    $ 167,503     $ 148,103     $ 448,328     $ 425,111   Interest (Expense), Net (b)      (216 )      (586 )      (2,475 )      (2,496 )                                   EBIT (c)      167,719       148,689       450,803       427,607   MAP initiatives (d)      7,237       3,870       22,617       10,327   Inventory step-up costs (e)      102       194       102       453   (Gain) on sale of assets and businesses, net (f)      —        —        (400 )      —                                     Adjusted EBIT    $ 175,058     $ 152,753     $ 473,122     $ 438,387                                    PCG Segment          Income Before Income Taxes (a)    $ 83,641     $ 66,738     $ 309,044     $ 277,975   Interest Income, Net (b)      653       664       3,175       2,734                                    EBIT (c)      82,988       66,074       305,869       275,241   MAP initiatives (d)      2,562       4,386       16,149       11,766   Inventory step-up costs (e)      49       515       191       1,012   (Gain) on sale of assets and businesses, net (f)      —        —        —        (237 )  (Gain) on acquisition earn-out fair value adjustment (g)      (1,710 )      —        (1,710 )      —    Legal contingency adjustment on a divested business (h)      —        5,777       —        6,059   Environmental expense for a closed facility (j)      1,000       —        1,000       —                                     Adjusted EBIT    $ 84,889     $ 76,752     $ 321,499     $ 293,841                                    Consumer Segment          Income Before Income Taxes (a)    $ 107,265     $ 96,003     $ 362,445     $ 332,827   Interest (Expense), Net (b)      (127 )      (341 )      (363 )      (1,421 )                                   EBIT (c)      107,392       96,344       362,808       334,248   MAP initiatives (d)      6,232       8,241       23,984       33,638   Inventory step-up costs (e)      —        2,561       7,903       2,561   (Gain) on acquisition earn-out fair value adjustment (g)      —        —        (12,707 )      —    Goodwill and intangible asset impairments (i)      —        13,080       —        13,080   Property, plant and equipment impairment (k)      9,721       —        9,721       —                                     Adjusted EBIT    $ 123,345     $ 120,226     $ 391,709     $ 383,527                                    Corporate/Other          (Loss) Before Income Taxes (a)    $ (66,418 )    $ (62,468 )    $ (249,477 )    $ (243,153 )  Interest (Expense), Net (b)      (16,296 )      (22,395 )      (64,992 )      (71,261 )                                   EBIT (c)      (50,122 )      (40,073 )      (184,485 )      (171,892 )  MAP initiatives (d)      5,430       4,719       17,579       32,168                                    Adjusted EBIT    $ (44,692 )    $ (35,354 )    $ (166,906 )    $ (139,724 )                                   TOTAL CONSOLIDATED          Income Before Income Taxes (a)    $ 291,991     $ 248,376     $ 870,340     $ 792,760   Interest (Expense)      (27,266 )      (25,939 )      (111,544 )      (96,543 )  Investment Income, Net      11,280       3,281       46,889       24,099                                    EBIT (c)      307,977       271,034       934,995       865,204   MAP initiatives (d)      21,461       21,216       80,329       87,899   Inventory step-up costs (e)      151       3,270       8,196       4,026   (Gain) on sale of assets and businesses, net (f)      —        —        (400 )      (237 )  (Gain) on acquisition earn-out fair value adjustments (g)      (1,710 )      —        (14,417 )      —    Legal contingency adjustment on a divested business (h)      —        5,777       —        6,059   Goodwill and intangible asset impairments (i)      —        13,080       —        13,080   Environmental expense for a closed facility (j)      1,000       —        1,000       —    Property, plant and equipment impairment (k)      9,721       —        9,721       —                                     Adjusted EBIT    $ 338,600     $ 314,377     $ 1,019,424     $ 976,031                                      (a) The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by Generally Accepted Accounting Principles in the United States (GAAP), to EBIT and Adjusted EBIT. (b) Interest Income (Expense), Net includes the combination of Interest Income (Expense) and Investment Income (Expense), Net. (c) EBIT is defined as earnings (loss) before interest and taxes, with Adjusted EBIT provided for the purpose of adjusting for items impacting earnings that are not considered by management to be indicative of ongoing operations. We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT, or adjusted EBIT, as a performance evaluation measure because Interest Income (Expense), Net is essentially related to corporate functions, as opposed to segment operations. For that reason, we believe EBIT is also useful to investors as a metric in their investment decisions. EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest and investment income or expense in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness. Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets’ analysis of our segments’ core operating performance. We also evaluate EBIT because it is clear that movements in EBIT impact our ability to attract financing. Our underwriters and bankers consistently require inclusion of this measure in offering memoranda in conjunction with any debt underwriting or bank financing. EBIT may not be indicative of our historical operating results, nor is it meant to be predictive of potential future results. RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 10   (d) Reflects restructuring and other charges, which have been incurred in relation to our Margin Achievement Plan (“MAP 2025”) and our 2026 restructuring action, together MAP Initiatives, as follows:     •   MAP 2025 Restructuring and other related expense, net: 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 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.     •   2026 Restructuring and other related expense, net: 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 accelerated depreciation recorded within “Cost of Sales” or “Selling, General, & Administrative Expenses depending on the nature of the expense. Other related expenses also includes inventory write-offs in connection with restructuring activities recorded in “Cost of Sales”.     •   ERP consolidation plan: 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”.     •   Professional fees: 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.     •   (Gain) on sale of closed facilities, net: Net gain recognized related to the sale of certain properties within the PCG and Consumer Segments which were closed as part of the MAP 2025 program.        Three Months Ended      Year Ended        May 31, 2026     May 31, 2025      May 31, 2026     May 31, 2025   MAP 2025 Restructuring and other related expense, net    $ 2,691     $ 13,335      $ 23,059     $ 42,861   2026 Restructuring and other related expense, net      9,972       —         32,082       —    ERP consolidation plan      2,690       3,525        13,739       15,044   Professional fees      7,749       4,356        17,320       29,994   (Gain) on sale of closed facilities, net      (1,641 )      —         (5,871 )      —                                      MAP initiatives    $ 21,461     $ 21,216      $ 80,329     $ 87,899                                       (e) Amortization of inventory fair value adjustments related to acquisitions recorded in “Cost of Sales”. (f) 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. (g) Fair value adjustments of the earn-out liabilities associated with the Star Brands Group acquisition, as well as one other smaller acquisition, which were recorded in “SG&A”. Management does not consider these gains to be reflective of the company’s core business operations. (h) Represents incremental expense recorded in fiscal year 2025 related to an adverse legal ruling from a case associated with a business that was divested in fiscal year 2023. (i) Fiscal year 2025 expense 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 weaker demand in OEM markets and underperformance in our growth initiatives associated with this reporting unit. (j) Environmental remediation costs related to a facility that has not been owned or operated for approximately 25 years. (k) Impairment charges related to property, plant and equipment in two asset groups within the Color Group reporting unit of our Consumer segment as a result of reduced cash flow projections in the coming years due to soft end markets. RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 11   SUPPLEMENTAL INFORMATION RECONCILIATION OF “REPORTED” TO “ADJUSTED” AMOUNTS (Unaudited)        Three Months Ended     Year Ended        May 31, 2026     May 31, 2025     May 31, 2026     May 31, 2025   Reconciliation of Reported Earnings per Diluted Share to Adjusted Earnings per Diluted Share (All amounts presented after-tax):                          Reported Earnings per Diluted Share    $ 1.73     $ 1.76     $ 5.17     $ 5.35   MAP initiatives (d)      0.13       0.16       0.46       0.56   Inventory step-up costs (e)      —        0.02       0.05       0.02   (Gain) on acquisition earn-out fair value adjustments (f)      (0.01 )      —        (0.11 )      —    Legal contingency adjustment on a divested business (g)      —        0.03       —        0.04   Goodwill and intangible asset impairments (h)      —        0.09       —        0.09   Environmental expense for a closed facility (i)      0.01       —        0.01       —    Property, plant and equipment impairment (j)      0.06       —        0.06       —    Investment returns (k)      (0.03 )      —        (0.11 )      (0.02 )  Income tax adjustments (l)      —        (0.34 )      —        (0.74 )                                   Adjusted Earnings per Diluted Share (m)    $ 1.89     $ 1.72     $ 5.53     $ 5.30                                      (d) Reflects restructuring and other charges, which have been incurred in relation to our Margin Achievement Plan (“MAP 2025”) and our 2026 restructuring action, together MAP Initiatives, as follows:     •   MAP 2025 Restructuring and other related expense, net: 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 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.     •   2026 Restructuring and other related expense, net: 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 accelerated depreciation recorded within “Cost of Sales” or “Selling, General, & Administrative Expenses depending on the nature of the expense. Other related expenses also includes inventory write-offs in connection with restructuring activities recorded in “Cost of Sales”.     •   ERP consolidation plan: 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”.     •   Professional fees: 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.     •   (Gain) on sale of closed facilities, net: Net gain recognized related to the sale of certain properties within the PCG and Consumer Segments which were closed as part of the MAP 2025 program.   (e) Amortization of inventory fair value adjustments related to acquisitions recorded in “Cost of Sales”. (f) Fair value adjustments of the earn-out liabilities associated with the Star Brands Group acquisition, as well as one other smaller acquisition, which were recorded in “SG&A”. Management does not consider these gains to be reflective of the company’s core business operations. (g) Represents incremental expense recorded in fiscal year 2025 related to an adverse legal ruling from a case associated with a business that was divested in fiscal year 2023. (h) Fiscal year 2025 expense 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 weaker demand in OEM markets and underperformance in our growth initiatives associated with this reporting unit. (i) Environmental remediation costs related to a facility that has not been owned or operated for approximately 25 years. (j) Impairment charges related to property, plant and equipment in two asset groups within the Color Group reporting unit of our Consumer segment as a result of reduced cash flow projections in the coming years due to soft end markets. (k) 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. (l) The adjustment for the three-month period and year ended May 31, 2025, includes incremental benefits of the U.S. deduction for foreign derived intangible income and the foreign tax rate differential associated with certain global capital structure initiatives completed during the period. Additionally, the fiscal 2025 year-to-date adjustment includes adjustments to U.S. foreign tax credits recognized because 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 developments in U.S. income tax case law. (m) Adjusted Diluted 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. RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 12   CONSOLIDATED BALANCE SHEETS IN THOUSANDS (Unaudited)        May 31, 2026     May 31, 2025   Assets      Current Assets      Cash and cash equivalents    $ 315,188     $ 302,137   Trade accounts receivable      1,700,717       1,551,953   Allowance for doubtful accounts      (39,179 )      (42,844 )  Net trade accounts receivable      1,661,538       1,509,109   Inventories      1,058,911       1,036,475   Prepaid expenses and other current assets      423,198       322,577                    Total current assets      3,458,835       3,170,298                    Property, Plant and Equipment, at Cost      2,919,058       2,738,373   Allowance for depreciation      (1,362,540 )      (1,264,974 )                   Property, plant and equipment, net      1,556,518       1,473,399                    Other Assets      Goodwill      1,688,164       1,617,626   Other intangible assets, net of amortization      824,638       780,826   Operating lease right-of-use assets      396,936       370,399   Deferred income taxes      116,474       147,436   Other      303,040       215,965                    Total other assets      3,329,252       3,132,252                    Total Assets    $ 8,344,605     $ 7,775,949                    Liabilities and Stockholders’ Equity      Current Liabilities      Accounts payable    $ 853,524     $ 755,889   Current portion of long-term debt      407,834       7,691   Accrued compensation and benefits      307,299       287,398   Accrued losses      51,258       36,701   Other accrued liabilities      441,148       379,768                    Total current liabilities      2,061,063       1,467,447                    Long-Term Liabilities      Long-term debt, less current maturities      2,125,690       2,638,922   Operating lease liabilities      341,283       317,334   Other long-term liabilities      258,641       241,117   Deferred income taxes      244,823       224,347                    Total long-term liabilities      2,970,437       3,421,720                    Total liabilities      5,031,500       4,889,167                    Stockholders’ Equity   Preferred stock; none issued      —        —    Common stock (outstanding 127,643; 128,269)      1,276       1,283   Paid-in capital      1,210,651       1,177,796   Treasury stock, at cost      (1,036,645 )      (953,856 )  Accumulated other comprehensive (loss)      (447,200 )      (533,631 )  Retained earnings      3,583,451       3,193,764                    Total RPM International Inc. stockholders’ equity      3,311,533       2,885,356   Noncontrolling interest      1,572       1,426                    Total equity      3,313,105       2,886,782                    Total Liabilities and Stockholders’ Equity    $ 8,344,605     $ 7,775,949                    RPM Reports Results for Fiscal 2 026 4 th Quarter and Full Year July 22, 2026 Page 13   CONSOLIDATED STATEMENTS OF CASH FLOWS IN THOUSANDS (Unaudited)        Year Ended        May 31, 2026     May 31, 2025   Cash Flows From Operating Activities:      Net income    $ 662,483     $ 690,327   Adjustments to reconcile net income to net cash provided by operating activities:      Depreciation and amortization      213,490       193,840   Fair value adjustments to contingent earnout obligations      (14,418 )      —    Property, plant and equipment impairment      9,721       —    Goodwill impairment      —        11,352   Deferred income taxes      32,832       (104,507 )  Stock-based compensation expense      32,848       27,042   Net (gain) on marketable securities      (25,422 )      (4,997 )  Net (gain) on sales of assets and businesses      (6,093 )      —    Other      (488 )      1,269   Changes in assets and liabilities, net of effect from purchases and sales of businesses:      (Increase) in receivables      (119,345 )      (55,037 )  Decrease (increase) in inventory      18,523       (34,458 )  (Increase) in prepaid expenses and other current and long-term assets      (85,596 )      (62,669 )  Increase in accounts payable      67,658       84,074   Increase (decrease) in accrued compensation and benefits      14,849       (17,130 )  Increase in accrued losses      12,915       3,899   Increase in other accrued liabilities      84,751       35,185                    Cash Provided By Operating Activities      898,708       768,190                    Cash Flows From Investing Activities:      Capital expenditures      (223,507 )      (229,930 )  Acquisition of businesses, net of cash acquired      (202,403 )      (595,770 )  Purchase of marketable securities      (34,272 )      (85,793 )  Proceeds from sales of marketable securities      19,781       87,093   Proceeds from sales of assets and businesses      23,237       —    Other      (10 )      (1,134 )                   Cash (Used For) Investing Activities      (417,174 )      (825,534 )                   Cash Flows From Financing Activities:      Additions to long-term and short-term debt      84,000       478,111   Reductions of long-term and short-term debt      (208,862 )      (9,008 )  Cash dividends      (271,705 )      (255,563 )  Repurchases of common stock      (77,497 )      (69,999 )  Shares of common stock returned for taxes      (5,034 )      (18,686 )  Payment of acquisition-related contingent consideration      —        (1,122 )  Other      (3,133 )      (1,796 )                   Cash (Used For) Provided By Financing Activities      (482,231 )      121,937                    Effect of Exchange Rate Changes on Cash and Cash Equivalents      13,748       165                    Net Change in Cash and Cash Equivalents      13,051       64,758   Cash and Cash Equivalents at Beginning of Period      302,137       237,379                    Cash and Cash Equivalents at End of Period    $ 315,188     $ 302,137
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.