RPM International Inc. | North America: Model & PT Update

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RPM International Inc. | North America: Model & PT Update

orical Stock Performance Current Stock Price Price Target Risk Reward Themes

Self-help: PositiveSource: Refinitiv, Morgan Stanley Research, Morgan Stanley Institutional Equities Division. The probabilities of our Bull,

Base, and Bear case scenarios playing out were estimated with implied volatility data from the options market as of 22 View descriptions of Risk Rewards Themes here

Jul 2026. All figures are approximate risk-neutral probabilities of the stock reaching beyond the scenario price in either

three-months’ or one-years’ time. View explanation of Options Probabilities methodology here

BULL CASE $145.00 BASE CASE $117.00 BEAR CASE $85.00

~14.5x F2027e EBITDA Bull Case ~13x F2027e EBITDA based on SOTP ~11x F2027e EBITDA Bear Case

Geopolitical/tariff risk abates: lower inflation Volume tepid in a difficult macro: high rates Twin effects of extended geopolitical

allows for rate cuts and demand and geopolitical/tariff uncertainty balance conflict and recession with Consumer

acceleration, particularly for DIY. Price-cost RPM-specific initiatives. Higher pricing to weakening further and delays to large

increasingly favorable with price holding as offset raws inflation, with price-cost dollar infrastructure/re-shoring capex for

raws revert meaningfully in F2H. neutral in F1H before improving in F2H. CPG/PCG. Price-cost unfavorable with

Commercial initiatives drive market Strong execution on remaining MAP 2025 elasticity at retail and pressure from

outperformance. Resulting FCF generation savings plus $75M of SG&A optimization - tariffs/raws inflation continuing through

accelerates share repurchase activity. P&L leverage to improve with volume. "MAP F2H. Continued unfavorable fixed cost