H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q4 2024 Earnings Presentation
30 slides from H. B. Fuller's earnings presentation, Jan 16, 2025
Slide 1: Fourth Quarter 2024 Conference Call
Title Slide Fourth Quarter 2024 Conference Call January 16, 2025 ® 2025 H.B. Fuller
Slide 2: Disclosure
Disclosure Safe Harbor Statement Certain matters discussed today may be considered forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such s
Slide 3: 2024 Highlights
2024 Highlights Full-Year Adjusted EBITDA Margin Net Working Capital down Net Debt / Adjusted EBITDA Up YOY to 16.6% 160 bps YOY to 14.5% stable sequentially at 3.1x Enhanced our portfolio through several strategic acquisitions and the divestiture of our Flooring business resulting in a significant
Slide 4: Q4 Global Business Unit Update
Q4 Global Business Unit Update Hygiene, Health, and Engineering Construction Consumable Adhesives Adhesives Adhesives • Organic revenue down 2.2% • Organic revenue decreased • Organic revenue increased YOY 1.9% YOY 10.5% YOY on continued strength in roofing • Packaging related end markets • The Auto
Slide 5: Regional Perspective
Regional Perspective Americas • Organic revenue down slightly YOY • Driven by a significant deceleration in North America volume • HHC and EA organic revenue were down modestly YOY, partially offset by continued strong organic growth in CA EIMEA • Organic revenue down 0.8% YOY • HHC organic sales we
Slide 6: Finalizing Global Manufacturing Footprint Reduction
Finalizing Global Manufacturing Footprint Reduction Significantly reduce our global manufacturing footprint, streamline our North American logistics and delivery operations, and strategically improve inventory management • Reduce the number of manufacturing facilities from 82 to a target of 55 by 20
Slide 7: Strategic M&A
Strategic M&A Health, Hygiene, and Engineering Adhesives Consumable Adhesives • Italy-based provider of • Ireland-based adhesive medical adhesives and company specializing in innovative application devices formulating medical-grade cyanoacrylate adhesives • Approved and certified for over 80 interna
Slide 8: Divestiture of Flooring Market Segment
Divestiture of Flooring Market Segment Consistent with next-level portfolio management strategy • Determined it was unlikely we would achieve minimum EBITDA margin threshold of 15% • Consistent with strategy to drive our portfolio focus and capital allocation to the highest margin, fastest growing m
Slide 9: Building Adhesive Solutions (BAS)
Building Adhesive Solutions (BAS) Reorganization of building and construction segments into newly named GBU; replacing existing Construction Adhesives GBU • Combines the company’s Insulated Glass, Woodworking, and Composite segments, previously included in EA, with remaining Roofing and Building Env
Slide 10: 2023 Collection of Acquisitions
2023 Collection of Acquisitions Full year results for these six deals closed throughout 2023 • Collectively delivered approximately $37M of adjusted EBITDA in 2024, exceeding the acquisition case by 10% • Grew 2024 adjusted EBITDA nearly 90% YOY versus full-year 2023 by successfully executing our sy
Slide 11: 2024 Collection of Acquisitions
2024 Collection of Acquisitions 2024 Acquisition of ND Industries and HS Butyl • Acquired $27M of EBITDA at a purchase price of $275M and a pre-synergy multiple of 10x • Expect to convert into $47M of EBITDA by 2027, equating to a post synergy multiple of less than 6x • Plan to provide a more detail
Slide 12: Q4 Financial Summary
Q4 Financial Summary • Organic revenue declined 0.2% YOY, driven by lower pricing • Adjusted gross profit margin was 29.6%, down 170 basis points YOY, driven by delayed price realization and unfavorable raw material cost developments • Adjusted SG&A up 12% YOY, primarily driven by wage inflation, hi
Slide 13: FY 2025 Financial Guidance
FY 2025 Financial Guidance Net Revenue • Expect net revenue to be down 2% to 4% YOY; excluding impact of Flooring, net revenue up 1% to 2% YOY • Expect FX translation impact of (2%) and acquisitions and divestitures impact of (2%) • Expect organic revenue to be flat to up 2% YOY Adjusted EBITDA • Ex
Slide 14: Summary
Summary Remain committed to our portfolio improvement strategy and dedicated to our long-term strategic plan • Taking all necessary actions to manage costs appropriately, implement planned pricing initiatives, and navigate this period efficiently and effectively • Confident in ability to permanently
Slide 15: Q&A Session
Q&A Session ® 2025 H.B. Fuller
Slide 16: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION In thousands, except per share amounts (unaudited) Three Months Three Months Ended Ended November 30, Percent of Net December 2, Percent of Net 2024 Revenue 2023 Revenue Net revenue $ 923,284 100.0 %
Slide 17: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION In thousands, except per share amounts (unaudited) Year Ended Year Ended November 30, Percent of Net December 2, Percent of Net 2024 Revenue 2023 Revenue Net revenue $ 3,568,736 100.0 % $ 3,510,934 1
Slide 18: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended Year Ended November 30, December 2, November 30, December 2, 2024 2023 2024 2023 Net income attributable to H.B. Fuller $ (7,359 ) $ 44,
Slide 19: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION In thousands (unaudited) Three Months Ended Year Ended November 30 December 2 November 30, December 2 2024 2023 2024 2023 Net Revenue: Hygiene, Health and Consumable Adhesives $ 395,693 $ 411,085 $ 1,546,
Slide 20: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended Year Ended November 30, December 2, November 30, December 2, 2024 2023 2024 2023 Income before income taxes and income from equity metho
Slide 21: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended Year Ended November 30, December 2, November 30, December 2, 2024 2023 2024 2023 Net revenue $ 923,284 $ 902,879 $ 3,568,736 $ 3,510,934
Slide 22: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller November 30, 2024 Adhesives Adhesives Adhesives Total Una
Slide 23: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Hygiene, Health Year Ended and Consumable Engineering Construction Corporate H.B. Fuller November 30, 2024 Adhesives Adhesives Adhesives Total Unallocated
Slide 24: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller December 2, 2023 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net i
Slide 25: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health Year Ended and Consumable Engineering Construction Corporate H.B. Fuller December 2, 2023 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income att
Slide 26: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION NET REVENUE GROWTH (DECLINE) (unaudited) Three Months Net revenue growth versus 2023 Ended Year Ended November 30, November 30, 2024 2024 Price (1.5 )% (2.7 )% Volume 1.3 % 1.7 % Organic Growth 14 (0.2 )%
Slide 27: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Trailing Twelve Months17 Three Months Ended Ended Year Ended December 2, March 2, June 1, August 31, August 31, November 30, December 2023 2024 2024 2024 2024 2024 2, 2023 Net incom
Slide 28: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) August 31, November 30, December 2, 2024 2024 2023 Total debt $ 2,021,070 $ 2,010,640 $ 1,838,431 Less: Cash and cash equivalents 131,412 169,352 179,453 Net debt18 $ 1,889,658 $ 1,
Slide 29: Regulation G Reconciliations
Regulation G Reconciliations 1 Acquisition project costs include costs related to evaluating, acquiring and integrating business acquisitions. Acquisition project costs include $4,583 and $1,421 in transaction costs (primarily consulting and professional fees, representations and warranties insuranc
Slide 30: Regulation G Reconciliations
Regulation G Reconciliations 10 Adjusted income before income taxes and income from equity investments is a non-GAAP financial measure. Adjusted income before income taxes and income from equity investments is defined as income before income taxes and income from equity investments before the specif