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May 28, 2022
H.B. Fuller Q2 2022 Earnings Report
Reported record quarterly revenue driven by year-over-year organic growth.
Key Takeaways
H.B. Fuller reported strong second-quarter results with record quarterly revenue of $993 million, driven by a 22% year-over-year increase in organic revenue. Adjusted EPS increased by 18% year over year, and adjusted EBITDA increased by 14% year over year.
Strong operational execution delivered record quarterly revenue of $993 million.
Net revenue increased 20% and organic revenue increased 22% versus last year.
All three Global Business Units (GBUs) delivered mid-teens percentage or higher organic revenue growth compared with the prior year.
Higher volumes, pricing gains and cost efficiencies resulted in net income of $47 million and adjusted EBITDA of $139 million, which increased 14% year over year.
Forward Guidance
H.B. Fuller anticipates continued raw material and delivery cost increases and has implemented price adjustments to offset these increases. Adjusted EBITDA is expected to be in the range of $530 to $550 million, and adjusted EPS is expected to be in the range of $4.10 to $4.35.
Positive Outlook
- Annualized price adjustments of approximately $330 million implemented in the first half of 2022.
- Additional annualized increases of over $175 million planned in the third quarter.
- Total pricing actions are anticipated to more than offset raw material and delivery cost increases.
- Adjusted EBITDA is expected to be in the range of $530 to $550 million, an increase of approximately 14% to 18% versus fiscal 2021.
- Adjusted EPS is expected to be in the range of $4.10 to $4.35, an increase of between 18% and 25% versus fiscal year 2021.
Challenges Ahead
- Raw material and delivery costs are expected to continue to rise.
- Anticipates an increase of more than 20% for the full year versus the fourth quarter 2021 exit rate.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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