H.B. Fuller Reports Second Quarter 2026 Results

About this update from H. B. Fuller Company

H.B. Fuller Company (NYSE: FUL) today reported financial results for its second quarter that ended May 30, 2026. Second Quarter 2026 Noteworthy Items: Net revenue was $950 million, up 5.8% year-on-year; organic revenue was up 2.6% year-on-year; Gross margin was 33.6%; adjusted gross margin of 34.2% increased 200 basis points year-on-year driven mainly by pricing execution and restructuring savings; Net income was $68 million; adjusted EBITDA was $181 million, up 9% versus last year; adjusted EBITDA margin was 19.1%, up 70 basis points year-on-year; Reported EPS (diluted) was $1.23; adjusted EPS (diluted) was $1.41, up 19% year-on-year, driven by higher adjusted net income; Record second quarter operating cash flow of $121 million dollars, up approximately 10% year-on-year. Summary of Second Quarter 2026 Results: The Company’s net revenue for the second quarter of fiscal 2026 was $950 million, up 5.8% versus the second quarter of fiscal 2025. Pricing increased net revenue by 3.0%, which more than offset slightly lower volume, resulting in a 2.6% organic revenue increase year-on-year. Foreign currency translation and the impact of acquisitions increased net revenue by 3.1% and 0.1%, respectively. Gross profit in the second quarter of fiscal 2026 was $320 million. Adjusted gross profit was $325 million. Adjusted gross profit margin of 34.2% increased 200 basis points year-on-year. The impact of pricing execution and restructuring savings drove the majority of the year-on-year increase in adjusted gross profit margin. Selling, general and administrative (SG&A) expense was $202 million in the second quarter of fiscal 2026 and adjusted SG&A was $196 million, up 11% year-on-year. Adjusting for the impact of foreign exchange and variable compensation related to higher projected income for the year, adjusted SG&A was up approximately 3% year-on-year. Net income attributable to H.B. Fuller for the second quarter of fiscal 2026 was $68 million. Adjusted net income attributable to H.B. Fuller for the second quarter of fiscal 2026 was $78 million. Reported EPS (diluted) was $1.23 and adjusted EPS (diluted) was $1.41, up 19% year-on-year. Adjusted EBITDA in the second quarter of fiscal 2026 was $181 million, up 9% year-on-year, driven principally by the impact of pricing execution and restructuring savings. “We executed very well in the second quarter, delivering strong year-on-year revenue, EBITDA, and EPS growth, with results above the midpoint of our EBITDA guidance range,” said Celeste Mastin, president and chief executive officer. “Our global sourcing capabilities and swift pricing actions have enabled us to maintain supply continuity and reliably serve our customers through market disruption. These efforts, combined with our Quantum Leap restructuring initiative, have strengthened our competitive position and we remain confident in our ability to deliver strong financial results.” Mastin continued, “While the external environment remains dynamic, our focus is clear: we are executing on what we can control, leveraging our competitive strengths, and continuing to build a business that is more durable and better positioned to deliver superior long-term growth.” Balance Sheet and Working Capital: Net debt at the end of the second quarter of fiscal 2026 was $1,958 million, down $58 million year-on-year. Net debt-to-adjusted EBITDA was 3.1X, down from 3.4X at the end of the second quarter of fiscal 2025. Net working capital in the second quarter of fiscal 2026 was 16.4% as a percentage of annualized net revenue and decreased 260 basis points sequentially versus the first quarter. Cash flow from operations improved to $121 million, a record second quarter, driven primarily by higher net income. As previously communicated, cash flow delivery for 2026 is expected to be weighted to the second half of the year. Fiscal 2026 Outlook: As a result of our year-to-date performance, we are updating our previously communicated financial guidance for fiscal 2026: Net revenue for fiscal 2026 is still expected to be up mid-single digits; organic revenue is still expected to be up low-single digits and the impact from foreign exchange is still expected to be positive 1% to 2%; Adjusted EBITDA for fiscal 2026 is now expected to be in the range of $650 million to $675 million; Adjusted EPS (diluted) is now expected to be in the range of $4.60 to $4.90; Cash flow from operations for fiscal 2026 is now expected to be in the range of $300 million to $325 million; Net revenue for the third quarter of 2026 is expected to be up mid-single digits; adjusted EBITDA for the third quarter of 2026 is expected to be in the range of $180 million to $190 million. Conference Call: The Company will hold a conference call on June 25, 2026, at 9:30 a.m. CT (10:30 a.m. ET) to discuss its results. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the Company’s website at https://investors.hbfuller.com . Participants must register prior to accessing the webcast using this link and should do so at least 10 minutes prior to the start of the call to install and test any necessary software and audio connections. A telephone replay of the conference call will be available from 12:30 p.m. CT on June 25, 2026, to 10:59 p.m. CT on July 1, 2026. To access the telephone replay dial 1-800-770-2030 (toll free) or 1-609-800-9909 and enter the Conference ID: 6370505. Regulation G: The information presented in this earnings release regarding consolidated and segment organic revenue growth, operating income, adjusted gross profit, adjusted gross profit margin, adjusted selling, general and administrative expense, adjusted income before income taxes and income from equity investments, adjusted income taxes, adjusted effective tax rate, adjusted net income, adjusted diluted earnings per share, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA margin, net debt, net debt-to-adjusted EBITDA, trailing twelve months adjusted EBITDA, net working capital, annualized net revenue and net working capital as a percentage of annualized net revenue does not conform to U.S. generally accepted accounting principles (U.S. GAAP) and should not be construed as an alternative to the reported results determined in accordance with U.S. GAAP. Management has included this non-GAAP information to assist in understanding the operating performance of the company and its operating segments as well as the comparability of results to the results of other companies. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported U.S. GAAP results in the “Regulation G Reconciliation” tables in this press release with the exception of our forward-looking non-GAAP measures contained above in our Fiscal 2026 Outlook, which the company cannot reconcile to forward-looking GAAP results without unreasonable effort. About H.B. Fuller: As the largest pureplay adhesives company in the world, H.B. Fuller’s (NYSE: FUL) innovative, functional coatings, adhesives and sealants enhance the quality, safety and performance of products people use every day. Founded in 1887, with 2025 revenue of $3.5 billion, our mission to Connect What Matters is brought to life by more than 7,100 global team members who collaborate with customers across more than 30 market segments in 150 countries to develop highly specified solutions that enable customers to bring world-changing innovations to their end markets. Learn more at www.hbfuller.com Safe Harbor for Forward-Looking Statements: Certain statements in this press release are 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 statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases. These statements are subject to various risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including but not limited to the following: the availability and pricing of raw materials; the impact of potential cybersecurity attacks and security breaches; failures in our information technology systems; the impact on the supply chain, raw material costs and pricing of our products due to military conflict, including between Russia and Ukraine; the impact on our margins and product demand due to inflationary pressures; the substantial amount of debt we have incurred to finance our acquisition of Royal, our ability to repay or refinance our debt or to incur additional debt in the future, our need for a significant amount of cash to service and repay the debt and to pay dividends on our common stock, and the effect of debt covenants that limit the discretion of management in operating the business or in paying dividends; our ability to pay dividends and to pursue growth opportunities if we continue to pay dividends according to our current dividend policy; our ability to effectively manage and realize expected benefits from completed and future mergers, acquisitions, and divestitures; our ability to achieve expected synergies, cost savings and operating efficiencies from our restructuring initiatives and operational improvement projects within the expected time frames or at all; our ability to effectively implement Project ONE; uncertain political and economic conditions; fluctuations in product demand; competing products and pricing; our geographic and product mix; disruptions to our relationships with our major customers and suppliers; regulatory compliance across our global footprint; trade policies and economic sanctions impacting our markets; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and investigations, including for product liability and environmental matters; impairment charges on our goodwill or long-lived assets; the consequences of catastrophic events on our operations and financial results; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Additional information about these various risks and uncertainties can be found in the “Risk Factors” section of our Form 10-K filings, and any updates to the risk factors in our Form 10-Q and 8-K filings with the SEC, but there may be other risks and uncertainties that we are unable to identify at this time or that we do not currently expect to have a material impact on the business. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law. H.B. FULLER COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)     Three Months Ended   Percent of   Three Months Ended   Percent of     May 30, 2026   Net Revenue   May 31, 2025   Net Revenue Net revenue   $ 950,271     100.0 %   $ 898,095     100.0 % Cost of sales     (630,617 )   (66.4 )%     (611,711 )   (68.1 )% Gross profit     319,654     33.6 %     286,384     31.9 %                   Selling, general and administrative expenses     (202,365 )   (21.3 )%     (186,340 )   (20.7 )%                   Other income, net     5,627     0.6 %     7,141     0.8 % Interest expense     (32,756 )   (3.4 )%     (34,865 )   (3.9 )% Interest income     1,961     0.2 %     854     0.1 % Income before income taxes and income from equity method investments     92,121     9.7 %     73,174     8.1 %                   Income taxes     (25,584 )   (2.7 )%     (32,726 )   (3.6 )%                   Income from equity method investments     1,268     0.1 %     1,397     0.2 % Net income including non-controlling interest     67,805     7.1 %     41,845     4.7 %                   Net income attributable to non-controlling interest     -     0.0 %     (17 )   (0.0 )% Net income attributable to H.B. Fuller   $ 67,805     7.1 %   $ 41,828     4.7 %                   Basic income per common share attributable to H.B. Fuller   $ 1.25         $ 0.77       Diluted income per common share attributable to H.B. Fuller   $ 1.23         $ 0.76                         Weighted-average common shares outstanding:                 Basic     54,430           54,443       Diluted     55,069           54,952                         H.B. FULLER COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION In thousands, except per share amounts (unaudited)     Six Months Ended   Percent of   Six Months Ended   Percent of     May 30, 2026   Net Revenue   May 31, 2025   Net Revenue Net revenue   $ 1,721,115     100.0 %   $ 1,686,758     100.0 % Cost of sales     (1,165,413 )   (67.7 )%     (1,173,299 )   (69.6 )% Gross profit     555,702     32.3 %     513,459     30.4 %                   Selling, general and administrative expenses     (386,816 )   (22.5 )%     (366,968 )   (21.8 )%                   Other income, net     12,377     0.7 %     10,347     0.6 % Interest expense     (65,627 )   (3.8 )%     (66,906 )   (4.0 )% Interest income     4,034     0.2 %     1,954     0.1 % Income before income taxes and income from equity method investments     119,670     7.0 %     91,886     5.4 %                   Income taxes     (33,006 )   (1.9 )%     (38,671 )   (2.3 )%                   Income from equity method investments     2,186     0.1 %     1,894     0.1 % Net income including non-controlling interest     88,850     5.2 %     55,109     3.3 %                   Net income attributable to non-controlling interest     -     0.0 %     (33 )   (0.0 )% Net income attributable to H.B. Fuller   $ 88,850     5.2 %   $ 55,076     3.3 %                                     Basic income per common share attributable to H.B. Fuller   $ 1.63         $ 1.01       Diluted income per common share attributable to H.B. Fuller   $ 1.61         $ 0.99                         Weighted-average common shares outstanding:                 Basic     54,580           54,721       Diluted     55,291           55,490                         H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited)     Three Months Ended   Six Months Ended     May 30,   May 31,   May 30,   May 31,     2026   2025   2026   2025                   Net income attributable to H.B. Fuller   $ 67,805     $ 41,828     $ 88,850     $ 55,076                     Adjustments:                 Acquisition project costs 1     1,395       3,602       2,325       13,430   Organizational realignment 2     4,413       6,635       14,435       15,409   Project One 3     2,387       2,581       5,440       5,646   Other 4     3,024       44       2,929       44   Discrete tax items 5     356       13,961       454       14,952   Income tax effect on adjustments 6     (1,848 )     (3,999 )     (5,386 )     (9,907 ) Adjusted net income attributable to H.B. Fuller 7     77,532       64,652       109,047       94,650                     Add:                 Interest expense     32,584       34,484       64,957       66,514   Interest income     (1,961 )     (854 )     (4,030 )     (1,954 ) Adjusted Income taxes     27,075       22,765       37,937       33,626   Depreciation and Amortization expense 8     45,815       44,613       91,838       87,180   Adjusted EBITDA 7   $ 181,045     $ 165,660     $ 299,749     $ 280,016                     Diluted Shares     55,069       54,952       55,291       55,490   Adjusted diluted income per common share attributable to H.B. Fuller 7   $ 1.41     $ 1.18     $ 1.97     $ 1.71   Revenue   $ 950,271     $ 898,095     $ 1,721,115     $ 1,686,758   Adjusted EBITDA margin 6     19.1 %     18.4 %     17.4 %     16.6 % 1 Acquisition project costs include costs related to evaluating, acquiring and integrating business acquisitions. Acquisition project costs include $1,223 and $3,708 in transaction costs (primarily consulting and professional fees) and $172 and ($106) in purchase accounting costs (primarily professional fees for valuation services, interest on holdback liabilities and inventory step-up cost) for the three months ended May 30, 2026 and May 31, 2025, respectively. Acquisition project costs include $1,509 and $12,900 in transaction costs (primarily consulting and professional fees) and $816 and $530 in purchase accounting costs (primarily professional fees for valuation services, interest on holdback liabilities and inventory step-up cost) for the six months ended May 30, 2026 and May 31, 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 $251 and $1,177 in professional fees related to legal entity and business structure changes, $3,012 and $3,320 in employee severance and other related costs, and $1,150 and $2,138 related to facility rationalization costs for the three months ended May 30, 2026 and May 31, 2025, respectively. Organizational realignment includes $611 and $3,416 in professional fees related to legal entity and business structure changes, $5,832 and $4,493 in employee severance and other related costs, and $7,992 and $7,500 related to facility rationalization costs for the six months ended May 30, 2026 and May 31, 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 Other for the three and six months ended May 30, 2026 includes acquired environmental liabilities and ongoing litigation and product claims related to a divested business. 5 Discrete tax items for the three and six months ended May 30, 2026 are related to various U.S. and foreign tax matters. Discrete tax items for the three and six 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. 6 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. 7 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. 8 Depreciation and amortization expense added back for EBITDA is adjusted for amounts already included in adjusted net income attributable to H.B. Fuller totaling ($237) and ($70) for the three months ended May 30, 2026 and May 31, 2025, respectively and ($579) and ($100) for the six months ended May 30, 2026 and May 31, 2025, respectively. H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION In thousands (unaudited)     Three Months Ended   Six Months Ended     May 30,   May 31,   May 30,   May 31,     2026   2025   2026   2025 Net Revenue:                 Hygiene, Health and Consumable Adhesives   $ 421,861     $ 397,475     $ 768,388     $ 765,700   Engineering Adhesives     283,239       276,418       525,688       513,177   Building Adhesive Solutions     245,171       224,202       427,039       407,881   Corporate unallocated     -       -       -       -   Total H.B. Fuller   $ 950,271     $ 898,095     $ 1,721,115     $ 1,686,758                     Segment Operating Income:                 Hygiene, Health and Consumable Adhesives   $ 56,370     $ 43,401     $ 85,361     $ 73,349   Engineering Adhesives     46,856       46,977       77,999       75,028   Building Adhesive Solutions     25,013       22,114       30,201       28,691   Corporate unallocated     (10,950 )     (12,448 )     (24,675 )     (30,577 ) Total H.B. Fuller   $ 117,289     $ 100,044     $ 168,886     $ 146,491                     Adjusted EBITDA 7                 Hygiene, Health and Consumable Adhesives   $ 75,564     $ 61,963     $ 123,601     $ 108,854   Engineering Adhesives     63,544       63,341       111,703       107,529   Building Adhesive Solutions     41,414       37,535       63,024       59,337   Corporate unallocated     523       2,821       1,421       4,296   Total H.B. Fuller   $ 181,045     $ 165,660     $ 299,749     $ 280,016                     Adjusted EBITDA Margin 7                 Hygiene, Health and Consumable Adhesives     17.9 %     15.6 %     16.1 %     14.2 % Engineering Adhesives     22.4 %     22.9 %     21.2 %     21.0 % Building Adhesive Solutions     16.9 %     16.7 %     14.8 %     14.5 % Corporate unallocated   NMP   NMP   NMP   NMP Total H.B. Fuller     19.1 %     18.4 %     17.4 %     16.6 %                   NMP = non-meaningful percentage                 H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited)     Three Months Ended   Six Months Ended     May 30,   May 31,   May 30,   May 31,     2026   2025   2026   2025 Income before income taxes and income from equity method investments   $ 92,121   $ 73,174   $ 119,670   $ 91,886                   Adjustments:                 Acquisition project costs 1     1,395       3,602       2,325       13,430   Organizational realignment 2     4,413       6,635       14,435       15,409   Project One 3     2,387       2,581       5,440       5,646   Other 4     3,024       44       2,929       44   Adjusted income before income taxes and income from equity method investments 9   $ 103,340     $ 86,036     $ 144,799     $ 126,415   9 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. H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited)     Three Months Ended   Six Months Ended     May 30,   May 31,   May 30,   May 31,     2026   2025   2026   2025 Income Taxes   $ (25,584 )   $ (32,726 )   $ (33,006 )   $ (38,671 )                   Adjustments:                 Acquisition project costs 1     (230 )     (1,120 )     (466 )     (3,800 ) Organizational realignment 2     (727 )     (2,063 )     (3,276 )     (4,455 ) Project One 3     (393 )     (803 )     (1,170 )     (1,638 ) Other 4     (497 )     (14 )     (473 )     (14 ) Discrete tax items 5     356       13,961       454       14,952   Adjusted income taxes 10   $ (27,075 )   $ (22,765 )   $ (37,937 )   $ (33,626 )                   Adjusted income before income taxes and income from equity method investments   $ 103,340     $ 86,036     $ 144,799     $ 126,415   Adjusted effective income tax rate 10     26.2 %     26.5 %     26.2 %     26.6 % 10 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. H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited)     Three Months Ended   Six Months Ended     May 30,   May 31,   May 30,   May 31,     2026   2025   2026   2025                   Net revenue   $ 950,271     $ 898,095     $ 1,721,115     $ 1,686,758                     Gross profit   $ 319,654     $ 286,384     $ 555,702     $ 513,459   Gross profit margin     33.6 %     31.9 %     32.3 %     30.4 %                   Adjustments:                 Acquisition project costs 1     -       68       -       675   Organizational realignment 2     2,583       2,467       7,521       7,923   Project One 3     -       (94 )     -       1   Other 4     2,500       -       2,501       -   Adjusted gross profit 11   $ 324,737     $ 288,825     $ 565,724     $ 522,058   Adjusted gross profit margin 11     34.2 %     32.2 %     32.9 %     31.0 % 11 Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin are 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. H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited)     Three Months Ended   Six Months Ended     May 30,   May 31,   May 30,   May 31,     2026   2025   2026   2025                   Selling, general and administrative expenses   $ (202,365 )   $ (186,340 )   $ (386,816 )   $ (366,968 )                   Adjustments:                 Acquisition project costs 1     1,223       3,654       1,660       11,360   Organizational realignment 2     1,734       3,633       5,623       4,929   Project One 3     2,387       2,676       5,440       5,646   Other 4     523       44       1,925       44   Adjusted selling, general and administrative expenses 12   $ (196,498 )   $ (176,333 )   $ (372,168 )   $ (344,989 ) 12 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. H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited)   Hygiene, Health Building Three Months Ended: and Consumable Engineering Adhesive Segment Corporate H.B. Fuller May 30, 2026 Adhesives Adhesives Solutions Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 58,862   $ 47,958   $ 27,887   $ 134,707   $ (66,902 ) $ 67,805   Adjustments:             Acquisition project costs 1   -     -     -     -     1,395     1,395   Organizational realignment 2   -     -     -     -     4,413     4,413   Project One 3   -     -     -     -     2,387     2,387   Other 4   -     -     -     -     3,024     3,024   Discrete tax items 5   -     -     -     -     356     356   Income tax effect on adjustments 6   -     -     -     -     (1,848 )   (1,848 ) Adjusted net income attributable to H.B. Fuller 7   58,862     47,958     27,887     134,707     (57,175 )   77,532   Add:             Interest expense   -     -     -     -     32,584     32,584   Interest income   -     -     -     -     (1,961 )   (1,961 ) Adjusted Income taxes   -     -     -     -     27,075     27,075   Depreciation and amortization expense 8   16,702     15,586     13,527     45,815     -     45,815   Adjusted EBITDA 7 $ 75,564   $ 63,544   $ 41,414   $ 180,522   $ 523   $ 181,045   Revenue $ 421,861   $ 283,239   $ 245,171   $ 950,271     -   $ 950,271   Adjusted EBITDA Margin 7   17.9 %   22.4 %   16.9 %   19.0 % NMP   19.1 %     Hygiene, Health       Building             Six Months Ended   and Consumable   Engineering   Adhesive   Segment   Corporate   H.B. Fuller May 30, 2026 Adhesives   Adhesives   Solutions   Total   Unallocated   Consolidated Net income attributable to H.B. Fuller   $ 90,346     $ 80,195   $ 35,949   $ 206,490   $ (117,640 ) $ 88,850   Adjustments:                 Acquisition project costs 1     -       -     -     -     2,325     2,325   Organizational realignment 2     -       -     -     -     14,435     14,435   Project One 3     -       -     -     -     5,440     5,440   Other 4     -       -     -     -     2,929     2,929   Discrete tax items 5     -       -     -     -     454     454   Income tax effect on adjustments 6     -       -     -     -     (5,386 )   (5,386 ) Adjusted net income attributable to H.B. Fuller 7     90,346       80,195     35,949     206,490     (97,443 )   109,047   Add:                 Interest expense     -       -     -     -     64,957     64,957   Interest income     -       -     -     -     (4,030 )   (4,030 ) Adjusted Income taxes     -       -     -     -     37,937     37,937   Depreciation and amortization expense 8     33,255       31,508     27,075     91,838     -     91,838   Adjusted EBITDA 7   $ 123,601     $ 111,703   $ 63,024   $ 298,328   $ 1,421   $ 299,749   Revenue     768,388       525,688     427,039     1,721,115     -     1,721,115   Adjusted EBITDA Margin 7     16.1 %     21.2 %   14.8 %   17.3 % NMP   17.4 % Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. NMP = Non-meaningful percentage H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited)   Hygiene, Health       Building               Three Months Ended: and Consumable   Engineering   Adhesive   Segment   Corporate   H.B. Fuller May 31, 2025 Adhesives   Adhesives   Solutions   Total   Unallocated   Consolidated Net income attributable to H.B. Fuller $ 45,610   $ 47,948     $ 24,668     $ 118,226     $ (76,398 )   $ 41,828   Adjustments:                     Acquisition project costs 1   -     -       -       -       3,602       3,602   Organizational realignment 2   -     -       -       -       6,635       6,635   Project One 3   -     -       -       -       2,581       2,581   Other 4   -     -       -       -       44       44   Discrete tax items 5   -     -       -       -       13,961       13,961   Income tax effect on adjustments 6   -     -       -       -       (3,999 )     (3,999 ) Adjusted net income attributable to H.B. Fuller 7   45,610     47,948       24,668       118,226       (53,574 )     64,652   Add:                     Interest expense   -     -       -       -       34,484       34,484   Interest income   -     -       -       -       (854 )     (854 ) Adjusted Income taxes   -     -       -       -       22,765       22,765   Depreciation and amortization expense 8   16,353     15,393       12,867       44,613       -       44,613   Adjusted EBITDA 7 $ 61,963   $ 63,341     $ 37,535     $ 162,839     $ 2,821     $ 165,660   Revenue $ 397,475   $ 276,418     $ 224,202     $ 898,095       -     $ 898,095   Adjusted EBITDA Margin 7   15.6 %   22.9 %     16.7 %     18.1 %   NMP     18.4 %     Hygiene, Health       Building               Six Months Ended and Consumable   Engineering   Adhesive   Segment   Corporate     H.B. Fuller May 31, 2025 Adhesives   Adhesives   Solutions   Total   Unallocated     Consolidated Net income attributable to H.B. Fuller $ 77,771     $ 76,970     $ 33,799     $ 188,540     $ (133,464 )   $ 55,076   Adjustments:                       Acquisition project costs 1   -       -       -       -       13,430       13,430   Organizational realignment 2   -       -       -       -       15,409       15,409   Project One 3   -       -       -       -       5,646       5,646   Other 4   -       -       -       -       44       44   Discrete tax items 5   -       -       -       -       14,952       14,952   Income tax effect on adjustments 6   -       -       -       -       (9,907 )     (9,907 ) Adjusted net income attributable to H.B. Fuller 7   77,771       76,970       33,799       188,540       (93,890 )     94,650   Add:                       Interest expense   -       -       -       -       66,514       66,514   Interest income   -       -       -       -       (1,954 )     (1,954 ) Adjusted Income taxes   -       -       -       -       33,626       33,626   Depreciation and amortization expense 8   31,083       30,559       25,538       87,180       -       87,180   Adjusted EBITDA 7 $ 108,854     $ 107,529     $ 59,337     $ 275,720     $ 4,296     $ 280,016   Revenue $ 765,700     $ 513,177     $ 407,881     $ 1,686,758       -     $ 1,686,758   Adjusted EBITDA Margin 7   14.2 %     21.0 %     14.5 %     16.3 %   NMP     16.6 % Note: Adjusted EBITDA is a non-GAAP financial measure. The table above provides a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. NMP = Non-meaningful percentage H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION NET REVENUE GROWTH (DECLINE) (unaudited)     Three Months Ended   Six Months Ended     May 30, 2026   May 30, 2026 Price     3.0 %     1.8 % Volume     (0.4 )%     (3.5 )% Organic Growth 13     2.6 %     (1.7 )% M&A     0.1 %     0.4 % Constant currency     2.7 %     (1.3 )% F/X     3.1 %     3.3 % Total H.B. Fuller Net Revenue     5.8 %     2.0 % Revenue growth versus 2025   Three Months Ended     May 30, 2026                                     Net Revenue   F/X   Constant Currency   M&A   Organic Growth 13 Hygiene, Health and Consumable Adhesives     6.1 %     3.1 %     3.0 %     0.0 %     3.0 % Engineering Adhesives     2.5 %     3.2 %     (0.7 )%     0.3 %     (1.0 )% Building Adhesive Solutions     9.4 %     3.2 %     6.2 %     0.0 %     6.2 % Corporate Unallocated     0.0 %     0.0 %     0.0 %     0.0 %     0.0 % Total H.B. Fuller     5.8 %     3.1 %     2.7 %     0.1 %     2.6 % Revenue growth versus 2025   Six Months Ended     May 30, 2026                                     Net Revenue   F/X   Constant Currency   M&A   Organic Growth 13 Hygiene, Health and Consumable Adhesives     0.4 %     3.2 %     (2.8 )%     0.4 %     (3.2 )% Engineering Adhesives     2.4 %     3.2 %     (0.8 )%     0.6 %     (1.4 )% Building Adhesive Solutions     4.7 %     3.6 %     1.1 %     0.0 %     1.1 % Corporate Unallocated     0.0 %     0.0 %     0.0 %     0.0 %     0.0 % Total H.B. Fuller     2.0 %     3.3 %     (1.3 )%     0.4 %     (1.7 )% 13 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. H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited)     Three Months Ended Trailing 12 Months 14 Ended     August 30, 2025   November 29, 2025   February 28, 2026   May 30, 2026   May 30, 2026                       Net income attributable to H.B. Fuller   $ 67,160     $ 29,732     $ 21,045     $ 67,805     $ 185,742                         Adjustments:                     Acquisition project costs 1     518       1,465       931       1,395       4,309   Organizational realignment 2     4,620       11,396       10,022       4,413       30,451   Project One 3     2,499       2,091       3,053       2,387       10,030   Other 15     1,711       37,400       (95 )     3,024       42,040   Discrete tax items 16     (3,742 )     (3,743 )     98       356       (7,031 ) Income tax effect on adjustments 6     (3,402 )     (7,745 )     (3,539 )     (1,848 )     (16,534 ) Adjusted net income attributable to H.B. Fuller 7     69,364       70,596       31,515       77,532       249,007                         Add:                     Interest expense     33,369       32,547       32,373       32,584       130,873   Interest income     (1,110 )     (1,756 )     (2,069 )     (1,961 )     (6,896 ) Adjusted Income taxes     23,671       23,420       10,862       27,075       85,028   Depreciation and Amortization expense 17     45,298       45,246       46,023       45,815       182,382   Adjusted EBITDA 7   $ 170,592     $ 170,053     $ 118,704     $ 181,045     $ 640,394   14 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. 15 Other for the three months ended November 29, 2025 includes losses associated with ongoing litigation and product claims related to a divested business and costs associated with the exit of a product line. Other for the three months ended May 30, 2026 includes acquired environmental liabilities and ongoing litigation and product claims related to a divested business. 16 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 three months ended November 29, 2025 relate to 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. Discrete tax items for the three months ended May 30, 2026 are related to various U.S. and foreign tax matters. 17 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 ($261) for the three months ended August 30, 2025, ($234) for the three months ended November 29, 2025, ($342) for the three months ended February 28, 2026 and ($237) for the three months ended May 30, 2026. H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited)     May 30, 2026   November 29, 2025   May 31, 2025 Total debt   $ 2,072,151   $ 2,016,937   $ 2,112,428 Less: Cash and cash equivalents     114,102       107,213       96,785   Net debt 18   $ 1,958,049     $ 1,909,724     $ 2,015,643                 Trailing twelve months 14 / Year ended Adjusted EBITDA   $ 640,394     $ 620,660     $ 593,604   Net Debt-to-Adjusted EBITDA 18     3.1       3.1       3.4   18 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. H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited)     May 30, 2026   February 28, 2026   May 31, 2025 Accounts receivable, net   $ 622,745     $ 532,180     $ 584,026   Inventories     526,737       506,776       495,588   Accounts payable     (526,321 )     (453,035 )     (481,957 ) Net working capital 19   $ 623,161     $ 585,921     $ 597,657                 Net revenue three months ended   $ 950,271     $ 770,844     $ 898,095   Annualized net revenue 19     3,801,084       3,083,376       3,592,379                 Net working capital as a percentage of annualized revenue 19     16.4 %     19.0 %     16.6 % 19 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. CONSOLIDATED BALANCE SHEETS H.B. Fuller Company and Subsidiaries (In thousands, except share and per share amounts)     May 30,   November 29,     2026   2025 Assets         Current assets:         Cash and cash equivalents   $ 114,102     $ 107,213   Accounts receivable (net of allowances of $12,712 and $11,922, as of May 30, 2026 and November 29, 2025, respectively)     622,745       564,339   Inventories     526,737       471,963   Other current assets     135,836       119,750   Total current assets     1,399,420       1,263,265             Property, plant and equipment     2,034,140       1,956,209   Accumulated depreciation     (1,066,347 )     (1,020,948 ) Property, plant and equipment, net     967,793       935,261             Goodwill     1,693,481       1,680,059   Other intangibles, net     766,626       805,867   Other assets     501,473       498,254   Total assets   $ 5,328,793     $ 5,182,706             Liabilities, non-controlling interest and total equity         Current liabilities:         Accounts payable   $ 526,321     $ 470,132   Accrued compensation     95,728       114,302   Income taxes payable     19,909       25,018   Other accrued expenses     137,103       133,907   Total current liabilities     779,061       743,359             Long-term debt     2,072,151       2,016,937   Accrued pension liabilities     51,281       51,317   Other liabilities     343,836       367,899   Total liabilities   $ 3,246,329     $ 3,179,512             Commitments and contingencies                   Equity         H.B. Fuller stockholders' equity:         Preferred stock (no shares outstanding) shares authorized – 10,045,900     -       -   Common stock, par value $1.00 per share, shares authorized – 160,000,000, shares issued and outstanding – 53,785,879 and 54,174,963 as of May 30, 2026 and November 29, 2025, respectively   $ 53,786     $ 54,175   Additional paid-in capital     275,507       298,017   Retained earnings     2,088,749       2,026,071   Accumulated other comprehensive loss     (335,578 )     (375,045 ) Total H.B. Fuller stockholders' equity     2,082,464       2,003,218   Non-controlling interest     -       (24 ) Total equity     2,082,464       2,003,194   Total liabilities, non-controlling interest and total equity   $ 5,328,793     $ 5,182,706   CONSOLIDATED STATEMENTS of CASH FLOWS H.B. Fuller Company and Subsidiaries (In thousands)     Six Months Ended     May 30, 2026   May 31, 2025 Cash flows from operating activities:         Net income including non-controlling interest   $ 88,850     $ 55,109   Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:         Depreciation     48,772       44,837   Amortization     43,646       42,443   Deferred income taxes     (9,098 )     (14,068 ) Income from equity method investments, net of dividends received     (2,186 )     (1,894 ) Loss on the sale of business     -       1,515   Loss on impairment of intangible asset     -       478   Gain on sale or disposal of assets     (833 )     (101 ) Share-based compensation     12,580       12,003   Pension and other post-retirement plan benefit     (12,239 )     (11,039 ) Change in assets and liabilities, net of effects of acquisitions:         Accounts receivable, net     (53,893 )     (28,942 ) Inventories     (51,313 )     (40,182 ) Other assets     (9,291 )     2,364   Accounts payable     80,473       11,602   Accrued compensation     (19,643 )     (23,494 ) Other accrued expenses     13,522       1,097   Income taxes payable     (10,287 )     (10,587 ) Pension plan assets and liabilities     698       76   Other liabilities     (6,052 )     24,804   Foreign currency remeasurement     3,463       (8,252 ) Net cash provided by operating activities     117,169       57,769             Cash flows from investing activities:         Purchased property, plant and equipment     (104,380 )     (64,534 ) Proceeds from sale of property, plant and equipment     4,408       1,438   Payment of holdback on acquisitions     (11,627 )     -   Purchased businesses, net of cash acquired     -       (162,032 ) Purchase of cost method investment     -       (2,549 ) Proceeds from the sale of a business     -       75,727   Net cash used in investing activities     (111,599 )     (151,950 )           Cash flows from financing activities:         Proceeds from issuance of long-term debt     627,000       784,900   Repayment of long-term debt     (571,683 )     (687,751 ) Payment of debt issuance costs     -       (1,047 ) Net payment of notes payable     -       (588 ) Dividends paid     (25,970 )     (24,864 ) Proceeds from stock options exercised     10,266       2,475   Repurchases of common stock     (48,771 )     (60,664 ) Net cash (used in) provided by financing activities     (9,158 )     12,461             Effect of exchange rate changes on cash and cash equivalents     10,477       9,153   Net change in cash and cash equivalents     6,889       (72,567 ) Cash and cash equivalents at beginning of period     107,213       169,352   Cash and cash equivalents at end of period   $ 114,102     $ 96,785     View source version on businesswire.com: https://www.businesswire.com/news/home/20260624915807/en/

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