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Nov 28, 2020
H.B. Fuller Q4 2020 Earnings Report
H.B. Fuller reported strong Q4 2020 results with revenue and earnings growth exceeding expectations, and cash flow enabling debt paydown target.
Key Takeaways
H.B. Fuller's Q4 2020 saw revenue and earnings growth surpass the company's guidance, driven by strong operational execution, higher sales, and restructuring efficiencies. Organic revenue increased by 5% year-over-year, with positive growth in all three global business units. Net income attributable to H.B. Fuller in the quarter was $41 million, or $0.77 per diluted share. Adjusted EPS was $1.06, up 21% versus 2019. The company exceeded its debt paydown target for the full year.
Fourth quarter revenue and earnings growth exceeded the company’s guidance.
Total organic revenue increased 5% compared with last year, with positive year-over-year growth in all three global business units (GBUs).
Adjusted EBITDA of $123 million and adjusted EPS of $1.06 increased 9% and 21%, respectively, versus last year.
Q4 cash flow from operations increased 27% versus the same period in 2019.
H.B. Fuller
H.B. Fuller
H.B. Fuller Revenue by Segment
Revenue by Segment
Engineering Adhesives Revenue
CapyFin.com Forward Guidance
H.B. Fuller is planning for on-going business recovery in 2021 and expects low to mid-single digit organic revenue growth and approximately 10% adjusted EBITDA growth for fiscal 2021.
Positive Outlook
- Base case outlook for low to mid-single digit organic revenue growth.
- Approximately 10% adjusted EBITDA growth for fiscal 2021.
- Supported by share gains.
- On-going recovery in global industrial production.
- Benefits from the company’s internal operational improvement projects.
Challenges Ahead
- On-going business recovery in 2021 in an environment that continues to be impacted by COVID-19-related restrictions.
- Corresponding recessionary impacts.
- Raw material costs are expected to rise as the year progresses driven by increasing industrial demand.
- The company’s core tax rate, excluding the impact of discrete items, is anticipated to be between 26% and 29%.
- Full year interest expense is estimated to be approximately $70 million.