Aug 31, 2024

H.B. Fuller Q3 2024 Earnings Report

Reported adjusted EPS of $1.13, up 7% year-on-year and net revenue of $918 million, up 1.9% year-on-year.

Key Takeaways

H.B. Fuller reported third quarter results with net revenue up 1.9% year-on-year to $918 million and adjusted EPS of $1.13, a 7% increase year-on-year. Adjusted EBITDA increased by 6% year-on-year, driven by volume growth, restructuring savings, and benefits from recent acquisitions, while adjusted EBITDA margin expanded by 70 basis points to 18.0%.

Net income was $55 million; adjusted EBITDA was $165 million, up 6% year-on-year; adjusted EBITDA margin expanded 70 basis points year-on-year to 18.0%.

Reported EPS (diluted) was $0.98; adjusted EPS (diluted) was $1.13, up 7% versus the prior year.

Net revenue was $918 million, up 1.9% year-on-year including organic volume growth of 3.0%.

Gross profit margin was 30.0%; adjusted gross profit margin was 30.4%, up 40 basis points year-on-year.

Total Revenue
$918M
Previous year: $901M
+1.9%
EPS
$1.13
Previous year: $1.06
+6.6%
Adjusted EBITDA
$165M
Previous year: $156M
+5.8%
Adjusted EBITDA Margin
18%
Previous year: 17.3%
+4.0%
Gross Profit
$276M
Previous year: $263M
+4.9%
Cash and Equivalents
$131M
Previous year: $143M
-8.0%
Free Cash Flow
$65.2M
Previous year: $81.3M
-19.8%
Total Assets
$4.98B
Previous year: $4.66B
+6.8%

H.B. Fuller

H.B. Fuller

Forward Guidance

The company is updating its previously communicated financial guidance for fiscal 2024.

Positive Outlook

  • Net revenue growth is now expected to be up approximately 2% with organic revenue flat year-on-year.
  • Adjusted EBITDA is now expected to be in the range of $610 million to $620 million, equating to year-on-year growth of between 5% and 7%.
  • Adjusted EPS (diluted) is now expected be in the range of $4.10 to $4.20, equating to year-on-year growth of between 6% and 9%.
  • Operating cash flow is now expected to be between $325 million and $350 million.