H B Fuller : First Quarter 2026 Earnings Presentation

About this update from H. B. Fuller Company

H.B. Fuller First Quarter 2026 Earnings Conference Call 1200 Willow Lake Blvd, St Paul, Minnesota 55110 https://www.hbfuller.com March 26, 2026 Q1 Overview Organic Revenue decreased 6.6% YOY Positive pricing was offset by lower volume Adjusted Gross Margin increased 170 basis points to 31.3% YOY Adjusted EBITDA increased 4% year-on-year to $119 million Achieved the higher end of our Q1 guidance range Adjusted EBITDA Margin increased 90 basis points YOY to 15.4% Continued restructuring savings from Quantum Leap Positive impact from price and raw material cost actions Adjusted EPS (Diluted) increased 6% YOY to $0.57 Global Business Unit Update Engineering Adhesives Hygiene, Health, and Consumable Adhesives Building Adhesive Solutions Key Metrics Organic revenue up 3% YOY, excluding Solar; organic revenue down 2% YOY, including Solar Electronics and Aerospace market segments showed continued strength Adjusted EBITDA increased tı% YOY and EBITDA margin improved 120 basis points to 1tı.tı% Favorable net impact from pricing and raw material cost actions and restructuring savings Key Metrics Organic revenue down 10.1% YOY Experienced tighter than expected inventory management and continued shift away from premium products to lower cost alternatives and smaller package sizes Through disciplined cost management, EBITDA margin improved 120 basis points to 13.tı% Favorable impact from carryover benefit of pricing and raw material actions Key Metrics Organic revenue down 5.1% YOY , consistent with expectations Adjusted EBITDA for BAS decreased 1% YOY and EBITDA margins were flat Positive price and raw material actions along with restructuring savings were offset by volume declines Americas Regional Perspective Organic revenue decreased 4% YOY Declines in HHC were partially offset by EA, which achieved organic revenue growth of 8% YOY EIMEA Organic revenue decreased 11% YOY Driven by tighter customer inventory management in HHC, a weak construction market in BAS, and a tough comparison to the first quarter of 2025 in HHC Asia-Pacific Excluding Solar, organic revenue increased 2% YOY Driven primarily by timing of the Chinese New Year and impact from Solar Organic revenue decreased 6% YOY including Solar Middle East Developments Expecting significant, broad-based inflationary pressure and significant constraints on raw material availability Deployed the full strength of our global sourcing and supply-assurance infrastructure , leveraging long-standing strategic relationships and category management Acted swiftly with comprehensive mitigation measures - securing materials ahead of the broader market, reallocating supply across regions, and pursuing qualified substitutes Implemented a minimum 10% price increase effective April 1 , with significantly higher price adjustments for certain technologies and regions where cost escalation is more acute Q1 Financial Summary Organic revenue decreased 6.6% YOY Adjusted gross profit margin increased 170 bps YOY to 31.3% Adjusted SG&A increased 4% YOY , adjusting for the impact of acquisitions and foreign exchange, adjusted SG&A was down YOY Adjusted EBITDA increased 4% YOY to $11tıM Adjusted EPS increased 6% YOY to $0.57 Cash flow from operations increased $4tıM YOY Net-debt-to-adjusted EBITDA was 3.1X , down from 3.5X YOY 2026 Financial Guidance Update Revenue Now expect net revenue to be up mid-single digits YOY Now expect organic revenue to be up low-single digits YOY Now expect FX translation to positively impact revenue by approximately 1% to 2% Adjusted EBITDA Now expect adjusted EBITDA to be in the range of $645M to $675M Adjusted EPS Now expect adjusted EPS to be in the range of $4.55 to $4.tı0 Q2 2026 Guidance Expect net revenue to be up low-single digits Expect adjusted EBITDA to be between $175M and $185M Summary Our actions ensure we continue to serve customers reliably and differentiate ourselves from our competition Top priority is the safety and well-being of our employees and customers affected by the ongoing conflict Project Quantum Leap is progressing well and remains on track; will strengthen our long-term competitiveness and profitability Operational focus is on controlling what we can: leveraging our global sourcing advantages, maintaining commercial discipline, and executing our strategy with consistency March 26, 2026 © H.B. Fuller Company, 2026 | 9 Q&A March 26, 2026 © H.B. Fuller Company, 2026 | 10 Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION In thousands, except per share amounts (unaudited) Three Months Ended February 28, Percent of Three Months Ended Percent of 2026 Net Revenue March 1, 2025 Net Revenue Net revenue $ 770,844 100.0% $ 788,663 100.0% Cost of sales (534,796) (69.4)% (561,588) (71.2)% Gross profit 236,048 30.6% 227,075 28.8% Selling, general and administrative expenses (184,450) (23.9)% (180,628) (22.9)% Other income, net 6,749 0.9% 3,207 0.4% Interest expense (32,871) (4.3)% (32,042) (4.1)% Interest income 2,073 0.3% 1,100 0.1% Income before income taxes and income from equity method investments 27,549 3.6% 18,712 2.4% Income taxes (7,422) (1.0)% (5,945) (0.8)% Income from equity method investments 918 0.1 % 497 0.1 % Net income including non-controlling interest 21,045 2.7% 13,264 1.7% Net income attributable to non-controlling interest - 0.0% (16) (0.0)% Net income attributable to H.B. Fuller $ 21,045 2.7% $ 13,248 1.7% Basic income per common share attributable to H.B. Fuller $ 0.38 $ 0.24 Diluted income per common share attributable to H.B. Fuller $ 0.38 $ 0.24 Weighted-average common shares outstanding: Basic 54,731 54,998 Diluted 55,513 56,029 Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended February 28, March 1, 2026 2025 Net income attributable to H.B. Fuller $ 21,045 $ 13,248 Adjustments: Acquisition project costs 1 931 9,828 Organizational realignment 2 10,022 8,774 Project One 3 3,053 3,064 Other (95) - Discrete tax items 4 98 992 Income tax effect on adjustments 5 (3,539 ) (5,909 ) Adjusted net income attributable to H.B. Fuller 6 31,515 29,997 Add: Interest expense 32,373 32,030 Interest income (2,069) (1,100) Adjusted Income taxes 10,862 10,862 Depreciation and Amortization expense 7 46,023 42,567 Adjusted EBITDA 6 118,704 114,356 Diluted Shares 55,513 56,029 Adjusted diluted income per common share attributable to H.B. Fuller 6 $ 0.57 $ 0.54 Revenue $ 770,844 $ 788,663 Adjusted EBITDA margin 6 15.4% 14.5 % Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION In thousands (unaudited) Three Months Ended February 28, March 1, 2026 2025 Net Revenue: Hygiene, Health and Consumable Adhesives $ 346,527 $ 368,225 Engineering Adhesives 242,448 236,758 Building Adhesive Solutions 181,869 183,680 Corporate unallocated - - Total H.B. Fuller $ 770,844 $ 788,663 Segment Operating Income (Loss): Hygiene, Health and Consumable Adhesives $ 28,991 $ 29,949 Engineering Adhesives 31,143 28,051 Building Adhesive Solutions 5,188 6,577 Corporate unallocated (13,725) (18,130) Total H.B. Fuller $ 51,597 $ 46,447 Adjusted EBITDA 6 Hygiene, Health and Consumable Adhesives $ 48,037 $ 46,891 Engineering Adhesives 48,159 44,188 Building Adhesive Solutions 21,609 21,803 Corporate unallocated 899 1,474 Total H.B. Fuller $ 118,704 $ 114,356 Adjusted EBITDA Margin 6 Hygiene, Health and Consumable Adhesives 13.9% 12.7% Engineering Adhesives 19.9% 18.7% Building Adhesive Solutions 11.9% 11.9% Corporate unallocated NMP NMP Total H.B. Fuller 15.4% 14.5% NMP = non-meaningful percentage Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended February 28, March 1, 2026 2025 Income before income taxes and income from equity method investments $ 27,549 $ 18,71 Adjustments: Acquisition project costs 1 931 9,82 Organizational realignment 2 10,022 8,77 Project One 3 3,053 3,06 Other (95) Adjusted income before income taxes and income from equity method investments 8 $ 41,460 $ 40,37 H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended February 28, March 1, 2026 2025 Income Taxes $ (7,422) $ (5,945) Adjustments: Acquisition project costs 1 (236) (2,680) Organizational realignment 2 (2,550) (2,393) Project One 3 (777) (836) Other 25 - Discrete tax items 4 98 992 Adjusted income taxes 9 $ (10,862) $ (10,862) Adjusted income before income taxes and income from equity method investments $ 1,460 $ 40,378 Adjusted effective income tax rate 9 26.2% 26.9% Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Three Months Ended February 28, March 1, 2026 2025 Net revenue $ 770,844 $ 788,663 Gross profit $ 236,048 $ 227,075 Gross profit margin 30.6% 28.8% Adjustments: Acquisition project costs 1 - 607 Organizational realignment 2 4,938 5,456 Project One 3 - 94 Other 1 - Adjusted gross profit 10 $ 240,987 $ 233,232 Adjusted gross profit margin 10 H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) 31.3% 29.6% Three Months Ended February 28, March 1, 2026 2025 Selling, general and administrative expenses $ (184,450) $ (180,628) Adjustments: Acquisition project costs 1 437 7,706 Organizational realignment 2 3,888 1,296 Project One 3 3,053 2,970 Other 1,401 - Adjusted selling, general and administrative expenses 11 $ (175,671) $ (168,656) Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Three Months Ended: February 28, 2026 Hygiene, Health and Consumable Adhesives Engineering Adhesives Building Adhesive Solutions Total Corporate Unallocated H.B. Fuller Consolidated Net income attributable to H.B. Fuller Adjustments: Acquisition project costs 1 $ 31,484 - $ 32,237 - $ 8,061 - $ 71,782 - $ (50,737) 931 $ 21,045 931 Organizational realignment 2 - - - - 10,022 10,022 Project One 3 - - - - 3,053 3,053 Other - - - - (95) (95) Discrete tax items 4 - - - - 98 98 Income tax effect on adjustments 5 - - - - (3,539 ) (3,539 ) Adjusted net income attributable to H.B. Fuller 6 31,484 32,237 8,061 71,782 (40,267) 31,515 Add: Interest expense - - - - 32,373 32,373 Interest income - - - - (2,069) (2,069) Adjusted Income taxes - - - - 10,862 10,862 Depreciation and amortization expense 7 16,553 15,922 13,548 46,023 - 46,023 Adjusted EBITDA 6 $ 48,037 $ 48,159 $ 21,609 $ 117,805 $ 899 $ 118,704 Revenue $ 346,527 $ 242,448 $ 181,869 $ 770,844 - $ 770,844 Adjusted EBITDA Margin 6 13.9% 19.9% 11.9% 15.3% NMP 15.4% Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Three Months Ended: March 1, 2025 Hygiene, Health and Consumable Adhesives Engineering Adhesives Building Adhesive Solutions Total Corporate Unallocated H.B. Fuller Consolidated Net income attributable to H.B. Fuller $ 32,160 $ 29,023 $ 9,132 $ 70,315 $ (57,067) $ 13,248 Adjustments: Acquisition project costs 1 - - - - 9,828 9,828 Organizational realignment 2 - - - - 8,774 8,774 Project One 3 - - - - 3,064 3,064 Other - - - - - - Discrete tax items 4 - - - - 992 992 Income tax effect on adjustments 5 - - - - (5,909 ) (5,909 ) Adjusted net income attributable to H.B. Fuller 6 32,160 29,023 9,132 70,315 (40,318) 29,997 Add: Interest expense - - - - 2,030 32,030 Interest income - - - - (1,100) (1,100) Adjusted Income taxes - - - - 10,862 10,862 Depreciation and amortization expense 7 14,731 15,165 12,671 42,567 - 42,567 Adjusted EBITDA 6 $ 46,891 $ 44,188 $ 21,803 $ 112,882 $ 1,474 $ 114,356 Revenue $ 368,225 $ 236,758 $ 183,680 $ 788,663 - $ 788,663 Adjusted EBITDA Margin 6 12.7% 18.7% 11.9% 14.3% NMP 14.5% Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION NET REVENUE GROWTH (DECLINE) (unaudited) Three Months Ended February 28, 2026 Price 0.6% Volume (7.2)% Organic Growth 12 (6.6)% M&A 0.7% Constant currency (5.9)% F/X 3.6 % Total H.B. Fuller Net Revenue (2.3)% Revenue growth versus 2025 Three Months Ended February 28, 2026 Constant Organic Net Revenue F/X Currency M&A Growth 12 Hygiene, Health and Consumable Adhesives (5.9)% 3.4% (9.3)% 0.8% (10.1)% Engineering Adhesives 2.4% 3.3% (0.9)% 1.1% (2.0)% Building Adhesive Solutions (1.0)% 4.1% (5.1)% 0.0% (5.1)% Corporate Unallocated 0.0% 0.0% 0.0% 0.0% 0.0% Total H.B. Fuller (2.3)% 3.6% (5.9)% 0.7% (6.6)% Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Trailing Months 13 Three Months Ended Ended August 30, November 29, February 28, February 28, May 31, 2025 2025 2025 2026 2026 Net income attributable to H.B. Fuller $ 41,828 $ 67,160 $ 29,732 $ 21,045 $ 159,765 Adjustments: Acquisition project costs 1 3,602 518 1,465 931 6,516 Organizational realignment 2 6,635 4,620 11,396 10,022 32,673 Project One 3 2,581 2,499 2,091 3,053 10,224 Other 44 1,711 37,400 (95) 39,060 Discrete tax items 14 13,961 (3,742) (3,743) 98 6,574 Income tax effect on adjustments 5 (3,999 ) (3,402 ) (7,745 ) (3,539 ) (18,685 ) Adjusted net income attributable to H.B. Fuller 6 64,652 69,364 70,596 31,515 236,127 Add: Interest expense 34,484 33,369 32,547 32,373 132,773 Interest income (854) (1,110) (1,756) (2,069) (5,789) Adjusted Income taxes 22,765 23,671 23,420 10,862 80,718 Depreciation and Amortization expense 15 44,613 45,298 45,246 46,023 181,180 Adjusted EBITDA 6 $ 165,660 $ 170,592 $ 170,053 $ 118,704 $ 625,009 Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) February 28, 2026 November 29, 2025 March 1, 2025 Total debt $ 2,076,062 $ 2,016,937 $ 2,179,997 Less: Cash and cash equivalents 107,877 107,213 105,743 Net debt 16 $ 1,968,185 $ 1,909,724 $ 2,074,254 Trailing twelve months 13 / Year ended Adjusted EBITDA $ 625,009 $ 620,660 $ 585,194 Net Debt-to-Adjusted EBITDA 16 3.1 3.1 3.5 H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) February 28, 2026 November 29, 2025 March 1, 2025 Trade receivables, net $ 532,180 $ 564,339 $ 525,496 Inventory 506,776 471,963 468,323 Trade payables 453,035 470,132 450,401 Net working capital 17 $ 585,921 $ 566,170 $ 543,418 Net revenue three months ended $ 770,844 $ 894,788 $ 788,663 Annualized net revenue 17 3,083,376 3,579,151 3,154,652 Net working capital as a percentage of annualized revenue 17 19.0% 15,8% 17.2 % Regulation G Reconciliations 1 Acquisition project costs include costs related to evaluating, acquiring and integrating business acquisitions. Acquisition project costs include $287 and $9,192 in transaction costs (primarily consulting and professional fees, representations and warranties insurance premiums) and $644 and $636 in purchase accounting costs (primarily professional fees for valuation services, inventory step-up cost and the impact of changes to contingent consideration liabilities after the completion of the purchase price allocation) for the three months ended February 28, 2026 and March 1, 2025, respectively. 2 Organizational realignment includes costs incurred as a direct result of the organizational realignment program, including professional fees related to legal entity and business structure changes, employee retention and severance costs, and facility rationalization costs related to the closure of production facilities and consolidation of business activities. Facility rationalization costs include plant closure costs and the impact of accelerated depreciation. Organizational realignment includes $360 and $2,240 in professional fees related to legal entity and business structure changes, $2,820 and $1,172 in employee severance and other related costs, and $6,842 and $5,362 related to facility rationalization costs for the three months ended February 28, 2026 and March 1, 2025, respectively. 3 Project One includes non-capitalizable project costs related to implementing our global Enterprise Resource Planning system, including upgrading to SAP S/4HANA®, which has upgraded and standardized our information system. 4 Discrete tax items for the three months ended February 28, 2026 and the three months ended March 1, 2025 are related to various U.S. and foreign tax matters. 5 The income tax effect on adjustments represents the difference between income taxes on net income before income taxes and income from equity method investments reported in accordance with U.S. GAAP and adjusted net income before income taxes and income from equity method investments. 6 Adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Adjusted net income attributable to H.B. Fuller is defined as net income before the specific adjustments shown above. Adjusted diluted income per common share is defined as adjusted net income attributable to H.B. Fuller divided by the number of diluted common shares. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation, amortization and the specific adjustments shown above. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue. The table above provides a reconciliation of adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. 7 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller totaling ($342) and ($30) for the three months ended February 28, 2026 and March 1, 2025, respectively. 8 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 specific adjustments shown above. The table above provides a reconciliation of adjusted income before income taxes and income from equity investments to income before income taxes and income from equity investments, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. 9 Adjusted income taxes and adjusted effective income tax rate are non-GAAP financial measures. Adjusted income taxes is defined as income taxes before the specific adjustments shown above. Adjusted effective income tax rate is defined as income taxes divided by adjusted income before income taxes and income from equity method investments. The table above provides a reconciliation of adjusted income taxes and adjusted effective income tax rate to income taxes, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. Regulation G Reconciliations 10 Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin is defined as gross profit and gross profit margin excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted gross profit and gross profit margin to gross profit and gross profit margin, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. 11 Adjusted selling, general and administrative expenses is a non-GAAP financial measure. Adjusted selling, general and administrative expenses is defined as selling, general and administrative expenses excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted selling, general and administrative expenses to selling, general and administrative expenses, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. 12 We use the term "organic revenue" to refer to net revenue, excluding the effect of foreign currency changes and acquisitions and divestitures. Organic growth reflects adjustments for the impact of period-over-period changes in foreign currency exchange rates on revenues and the revenues associated with acquisitions and divestitures. 13 Trailing twelve months adjusted EBITDA is a non-GAAP financial measure and is defined as adjusted EBITDA for the twelve-month period ended on the date presented. The table above provides a reconciliation of trailing twelve month adjusted EBITDA to net income attributable to H.B. Fuller for the trailing twelve-month period presented, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. 14 Discrete tax items for the three months ended May 31, 2025 are primarily related to the impact of withholding tax recorded on earnings that are no longer permanently reinvested, as well as other various U.S. and foreign tax matters. Discrete tax items for the three months ended August 30, 2025 are related to various U.S. and foreign tax matters. Discrete tax items for the year ended November 30, 2025 primarily relate to the impact of withholding tax recorded on earnings that are no longer permanently reinvested, offset by various U.S. and foreign tax matters. Discrete tax items for the three months ended February 28, 2026 are related to various U.S. and foreign tax matters. 15 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller. Depreciation and amortization expense added back was ($70) for the three months ended May 31, 2025, ($261) for the three months ended August 30, 2025, ($234) for the three months ended November 29, 2025 and ($342) for the three months ended February 28, 2026. 16 Net debt and net debt-to-adjusted EBITDA are non-GAAP financial measures. Net debt is defined as total debt less cash and cash equivalents. Net debt-to-adjusted EBITDA is defined as net debt divided by trailing twelve months adjusted EBITDA. The calculations of these non-GAAP financial measures are shown in the table above. The table above provides a reconciliation of each of these non-GAAP financial measures to total debt, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP 17 Net working capital, annualized net revenue and net working capital as a percentage of annualized net revenue are non-GAAP financial measures. Net working capital is defined as trade receivables, net plus inventory less trade payables. Annualized net revenue is defined as net revenue for the three months ended on the date presented multiplied by four. Net working capital as a percentage of annualized net revenue is net working capital divided by annualized net revenue. The calculations of these non-GAAP financial measures are shown in the table above. The table above provides a reconciliation of each of these non-GAAP financial measures to the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

View stock analysis, news, and events for H. B. Fuller Company