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H.B. Fuller Q1 2025 Earnings Report
H.B. Fuller reported financial results for its first quarter that ended March 1, 2025, with net revenue of $789 million, a decrease of 2.7% year-on-year, and adjusted EBITDA of $114 million, down 7% versus last year.
Key Takeaways
H.B. Fuller Company reported first quarter fiscal 2025 results with net revenue of $789 million, down 2.7% year-on-year, primarily due to unfavorable foreign currency translation and the divestiture of the flooring business. Organic revenue, however, increased by 1.9% driven by improved volume. Net income was $13 million, and adjusted EBITDA was $114 million, a 7% decrease from the prior year, attributed to higher raw material costs and variable compensation.
Net revenue for Q1 2025 was $789 million, a 2.7% decrease year-on-year.
Organic revenue increased by 1.9% year-on-year, driven by improved volume.
Adjusted EBITDA was $114 million, down 7% from the previous year, primarily due to higher raw material costs and variable compensation.
The company repurchased 678 thousand shares during the first quarter.
H.B. Fuller
H.B. Fuller
H.B. Fuller Revenue by Segment
Revenue by Segment
Hygiene, Health and Consumable Adhesives Revenue
CapyFin.comEngineering Adhesives Revenue
CapyFin.comBuilding Adhesive Solutions Revenue
CapyFin.com Forward Guidance
H.B. Fuller's full year outlook for fiscal year 2025 remains unchanged, with expectations for net revenue growth, organic revenue growth, adjusted EBITDA, adjusted EPS, and operating cash flow.
Positive Outlook
- Net revenue growth for fiscal 2025 is expected to be up 1% to 2%, adjusting for the divestiture of the Flooring business.
- Organic revenue growth is expected to be flat to up 2% versus fiscal 2024.
- Adjusted EBITDA for fiscal 2025 is expected to be in the range of $600 million to $625 million, equating to growth of approximately 1% to 5% year-on-year.
- Adjusted EPS (diluted) is expected to be in the range of $3.90 to $4.20, equating to a range of up 2% to 9% year-on-year.
- Operating cash flow in fiscal year 2025 is expected to be between $300 million and $325 million.
Challenges Ahead
- Net revenue growth for fiscal 2025 is expected to be down 2% to 4% when not adjusting for the divestiture of the Flooring business.
- The company remains cautious given weak overall market demand conditions.
- Unpredictable geopolitical conditions around the globe pose a risk.
- Cash flow delivery for 2025 is expected to be weighted to the second half of the year, implying lower cash flow in the first half.
- Adjusted EBITDA for the second quarter of 2025 is expected to be in the range of $150 million to $160 million, which is lower than the full-year average implied by the annual guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income