H.B. Fuller
First Quarter 2026Earnings 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 millionAchieved 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 UpdateEngineering 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 PerspectiveOrganic 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 SummaryOrganic 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 UpdateRevenue
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
SummaryOur 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 costs1 | 931 | 9,828 |
Organizational realignment2 | 10,022 | 8,774 |
Project One3 | 3,053 | 3,064 |
Other | (95) | - |
Discrete tax items4 | 98 | 992 |
Income tax effect on adjustments5 | (3,539) | (5,909) |
Adjusted net income attributable to H.B. Fuller6 | 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 expense7 | 46,023 | 42,567 |
Adjusted EBITDA6 | 118,704 | 114,356 |
Diluted Shares | 55,513 | 56,029 |
Adjusted diluted income per common share attributable to H.B. Fuller6 | $ 0.57 | $ 0.54 |
Revenue | $ 770,844 | $ 788,663 |
Adjusted EBITDA margin6 | 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 EBITDA6 | ||
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 Margin6 | ||
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 costs1 | 931 | 9,82 | |
Organizational realignment2 | 10,022 | 8,77 | |
Project One3 | 3,053 | 3,06 | |
Other | (95) | ||
Adjusted income before income taxes and income from equity method investments8 | $ 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 costs1 | (236) | (2,680) |
Organizational realignment2 | (2,550) | (2,393) |
Project One3 | (777) | (836) |
Other | 25 | - |
Discrete tax items4 | 98 | 992 |
Adjusted income taxes9 | $ (10,862) | $ (10,862) |
Adjusted income before income taxes and income from equity method investments | $ 1,460 | $ 40,378 |
Adjusted effective income tax rate9 | 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 costs1 | - | 607 |
Organizational realignment2 | 4,938 | 5,456 |
Project One3 | - | 94 |
Other | 1 | - |
Adjusted gross profit10 | $ 240,987 | $ 233,232 |
Adjusted gross profit margin10
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 costs1 | 437 | 7,706 |
Organizational realignment2 | 3,888 | 1,296 |
Project One3 | 3,053 | 2,970 |
Other | 1,401 | - |
Adjusted selling, general and administrative expenses11 | $ (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 costs1 | $ 31,484 - | $ 32,237 - | $ 8,061 - | $ 71,782 - | $ (50,737) 931 | $ 21,045 931 | |
Organizational realignment2 | - | - | - | - | 10,022 | 10,022 | |
Project One3 | - | - | - | - | 3,053 | 3,053 | |
Other | - | - | - | - | (95) | (95) | |
Discrete tax items4 | - | - | - | - | 98 | 98 | |
Income tax effect on adjustments5 | - | - | - | - | (3,539) | (3,539) | |
Adjusted net income attributable to H.B. Fuller6 | 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 expense7 | 16,553 | 15,922 | 13,548 | 46,023 | - | 46,023 | |
Adjusted EBITDA6 | $ 48,037 | $ 48,159 | $ 21,609 | $ 117,805 | $ 899 $ | 118,704 | |
Revenue | $ 346,527 | $ 242,448 | $ 181,869 | $ 770,844 | - $ | 770,844 | |
Adjusted EBITDA Margin6 | 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 costs1 | - | - | - | - | 9,828 | 9,828 |
Organizational realignment2 | - | - | - | - | 8,774 | 8,774 |
Project One3 | - | - | - | - | 3,064 | 3,064 |
Other | - | - | - | - | - | - |
Discrete tax items4 | - | - | - | - | 992 | 992 |
Income tax effect on adjustments5 | - | - | - | - | (5,909) | (5,909) |
Adjusted net income attributable to H.B. Fuller6 | 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 expense7 | 14,731 | 15,165 | 12,671 | 42,567 | - | 42,567 |
Adjusted EBITDA6 | $ 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 Margin6 | 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 Growth12(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
Growth12
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 Months13
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 costs1 | 3,602 | 518 | 1,465 | 931 | 6,516 | |||||
Organizational realignment2 | 6,635 | 4,620 | 11,396 | 10,022 | 32,673 | |||||
Project One3 | 2,581 | 2,499 | 2,091 | 3,053 | 10,224 | |||||
Other | 44 | 1,711 | 37,400 | (95) | 39,060 | |||||
Discrete tax items14 | 13,961 | (3,742) | (3,743) | 98 | 6,574 | |||||
Income tax effect on adjustments5 | (3,999) | (3,402) | (7,745) | (3,539) | (18,685) | |||||
Adjusted net income attributable to H.B. Fuller6 | 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 expense15 | 44,613 | 45,298 | 45,246 | 46,023 | 181,180 | |||||
Adjusted EBITDA6 | $ | 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 debt16 | $ 1,968,185 | $ 1,909,724 | $ 2,074,254 | ||
Trailing twelve months13/ Year ended Adjusted EBITDA | $ 625,009 | $ 620,660 | $ 585,194 | ||
Net Debt-to-Adjusted EBITDA16 | 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 capital17 | $ 585,921 | $ 566,170 | $ 543,418 |
Net revenue three months ended | $ 770,844 | $ 894,788 | $ 788,663 |
Annualized net revenue17 | 3,083,376 | 3,579,151 | 3,154,652 |
Net working capital as a percentage of annualized revenue17 | 19.0% | 15,8% | 17.2 % |
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