RPM International Inc.: Reworked

Research evidence excerpt

RPM International Inc.: Reworked

J P M O R G A N North America Equity Research

22 July 2026

RPM International Inc. Overweight

RPM, RPM US

Reworked Price (22 Jul 26):$107.43

Price Target (Dec-27):$115.00

RPM’s working capital management has been constructive over the past two Chemicals: Specialty, Commodity,

years. Inventories were flat y/y for F2026 despite almost 7% annual sales growth. Agricultural, and Paper & Packaging

Company commentary indicates that utilization rates were pushed lower in the Jeffrey J. Zekauskas AC

Consumer Products division in F2026 to prioritize cash flow generation. 2026 (1-212) 622-6644

year-end inventories of $1.06b are actually lower in absolute terms than they were jeffrey.zekauskas@jpmorgan.com

in 2023 by about (7%) despite sales being almost 8.5% higher. RPM has made Silke Kueck

progress in payables as well. Days payable have trended higher for F2025 and (1-212) 622-6503

F2026: 9 days in 2025 and an additional 4 in F2026. The benefit to the cash flow silke.x.kueck@jpmorgan.com

statement was $68m in F2026 and $84m in F2025. We note that balance sheet Katie Zhang

(1-212) 622-3262

payables increased about ($180m) sequentially in 4Q:26 versus a more typical katie.zhang@jpmchase.com

$100m sequential increase. Notably, RPM believes that it can increase its days

Lydia Huang

payables from F2026 levels, despite the recent sharp increase. RPM also (1-212) 622-0086

experienced higher y/y pre-paid and other assets, which penalized its F2026 cash lydia.huang@jpmorgan.com

flow by ($85.6m): we think there is room to make progress on this number. Cash J.P. Morgan Securities LLC

flow from operations was 63% of adjusted EBITDA in F2025 and 73% of adjusted

EBITDA in F2026.

Key Changes (FYE May)