Mar 02, 2024

H.B. Fuller Q1 2024 Earnings Report

Reported a slight increase in net revenue and a significant rise in adjusted EPS, driven by margin expansion and strong operating income growth.

Key Takeaways

H.B. Fuller reported a slight increase in net revenue, driven by acquisitions, offset by a modest decrease in organic revenue due to pricing changes. Adjusted EPS increased by 22% due to strong operating income growth, and adjusted EBITDA margin expanded by 160 basis points.

Net revenue was $810 million, up slightly year-on-year.

Adjusted EPS (diluted) was $0.67, up 22% year-on-year.

Adjusted EBITDA was $123 million, up 12% year-on-year, with adjusted EBITDA margin expanding to 15.2%.

Cash flow from operations increased $42 million year-on-year to $47 million.

Total Revenue
$810M
Previous year: $809M
+0.2%
EPS
$0.67
Previous year: $0.55
+21.8%
Adjusted EBITDA Margin
15.2%
Previous year: 13.6%
+11.8%
Gross Profit
$239M
Previous year: $215M
+11.4%
Cash and Equivalents
$165M
Previous year: $125M
+31.7%
Free Cash Flow
$47.4M
Previous year: -$42.1M
-212.6%
Total Assets
$4.68B
Previous year: $4.54B
+3.2%

H.B. Fuller

H.B. Fuller

H.B. Fuller Revenue by Segment

Forward Guidance

The company reiterates its previously communicated financial guidance for fiscal year 2024.

Positive Outlook

  • Net revenue growth is expected to be in the range of up 2% to 6% with organic revenue flat to up 3% year-on-year.
  • Adjusted EBITDA is expected to be in the range of $610 million to $640 million, equating to growth of approximately 5% to 10% year-on-year.
  • Adjusted EPS (diluted) is expected to be in the range of $4.15 to $4.45, equating to year-on-year growth of between 7% and 15%.
  • Operating cash flow is expected to be between $300 million and $350 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income