Loading...
•
Aug 30
H.B. Fuller Q3 2025 Earnings Report
H.B. Fuller reported its third quarter 2025 results, showcasing continued margin expansion and double-digit EPS growth despite a challenging economic environment.
Key Takeaways
H.B. Fuller delivered a strong third quarter in fiscal 2025, with adjusted EPS up 12% year-on-year and adjusted EBITDA increasing by 3%. The company achieved significant margin expansion, driven by favorable net pricing, raw material cost actions, and cost reduction efforts, despite a slight decline in net revenue.
Net revenue for Q3 2025 was $892 million, a 2.8% decrease year-on-year, but up 1.6% when adjusted for the flooring divestiture.
Adjusted diluted EPS increased by 12% year-on-year to $1.26, driven by higher adjusted net income and fewer shares outstanding.
Adjusted EBITDA rose 3% year-on-year to $171 million, with the adjusted EBITDA margin expanding by 110 basis points to 19.1%.
Gross profit margin improved to 32.0%, and adjusted gross profit margin reached 32.3%, up 190 basis points year-on-year.
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 has tightened its fiscal 2025 guidance range, reflecting a cautious outlook due to a globally subdued economic backdrop, with expectations of flat to slight organic revenue growth and continued margin expansion.
Positive Outlook
- Adjusted EBITDA for fiscal 2025 is expected to grow 4% to 5% year-on-year, ranging from $615 million to $625 million.
- Adjusted EPS (diluted) for fiscal 2025 is projected to grow 7% to 11% year-on-year, in the range of $4.10 to $4.25.
- Cash flow from operations for fiscal 2025 is expected to be strong, ranging from $275 million to $300 million.
- The company continues to focus on enhancing its portfolio composition and driving efficiencies.
- Structural repositioning efforts are ongoing to support long-term growth and margin expansion.
Challenges Ahead
- Net revenue for fiscal 2025 is expected to be down 2% to 3%.
- Organic revenue for fiscal 2025 is now expected to be flat to up 1%, indicating limited growth.
- Foreign exchange is anticipated to adversely impact net revenue by approximately 1.0%.
- Volume growth is expected to remain elusive.
- End market conditions are projected to be challenging.
Revenue & Expenses
Visualization of income flow from segment revenue to net income