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Jun 01, 2024
H.B. Fuller Q2 2024 Earnings Report
Reported strong second quarter results driven by execution and strategic focus on profitable growth segments.
Key Takeaways
H.B. Fuller reported a net revenue of $917 million, a 2.1% increase year-on-year, with a net income of $51 million. Adjusted EPS was $1.12, up 20% year-on-year, and adjusted EBITDA was $157 million, up 10% year-on-year. The company updated its full-year adjusted EBITDA guidance to the upper end of the previously provided range.
Net revenue increased by 2.1% year-on-year to $917 million, with organic revenue flat.
Adjusted EPS (diluted) increased by 20% year-on-year to $1.12, driven by strong operating income growth.
Adjusted EBITDA increased by 10% year-on-year to $157 million, with adjusted EBITDA margin expanding to 17.1%.
The company reinitiated its share repurchase program and acquired ND Industries, Inc.
Revenue by Segment
Forward Guidance
H.B. Fuller updated its fiscal 2024 financial guidance, expecting net revenue growth of 2% to 4%, organic revenue flat to up 2%, adjusted EBITDA between $620 million and $640 million, and adjusted EPS (diluted) between $4.20 to $4.45.
Positive Outlook
- Net revenue growth is expected to be in the range of up 2% to 4% year-on-year.
- Organic revenue is expected to be flat to up 2% year-on-year.
- Adjusted EBITDA is now expected to be in the range of $620 million to $640 million, equating to growth of approximately 7% to 10% year-on-year.
- Adjusted EPS (diluted) is now expected to be in the range of $4.20 to $4.45, equating to year-on-year growth of between 9% and 15%.
- Operating cash flow is still expected to be between $300 million and $350 million.
Challenges Ahead
- Strengthening US Dollar is partially offsetting the strong first half performance and recent acquisition activity.
- Net interest expense is now expected to be approximately $130 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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