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H.B. Fuller
🇺🇸 NYSE:FUL
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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.

Total Revenue
$917M
Previous year: $898M
+2.1%
EPS
$1.12
Previous year: $0.93
+20.4%
Adjusted EBITDA
$157M
Previous year: $143M
+9.8%
Adjusted EBITDA Margin
17.1%
Previous year: 15.9%
+7.5%
Gross Profit
$282M
Previous year: $257M
+9.7%
Cash and Equivalents
$126M
Previous year: $68.8M
+82.5%
Free Cash Flow
$34.7M
0
Total Assets
$4.92B
0

H.B. Fuller

H.B. Fuller

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.
  • No other specific negatives were mentioned besides the strengthening US Dollar and net interest expense.
  • The guidance is subject to various risks and uncertainties as detailed in the safe harbor statement.
  • The company cannot reconcile forward-looking non-GAAP measures to forward-looking GAAP results without unreasonable effort.

Company Overview

Full financial data and analysis

View H.B. Fuller