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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.
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 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income