Loading...
•
Aug 30, 2025
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.
Revenue by Segment
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.
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
Loading earnings performance data...
Loading earnings reaction data...