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H.B. Fuller
🇺🇸 NYSE:FUL
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Dec 03, 2022

H.B. Fuller Q4 2022 Earnings Report

H.B. Fuller reported fourth quarter and fiscal year 2022 results.

Key Takeaways

H.B. Fuller's Q4 2022 net revenue was $958 million, up 7% year-on-year. Reported EPS (diluted) was $0.87; adjusted EPS (diluted) was $1.04. The company expects global economic conditions to remain slow and is prepared to control expenses and expand margins.

Net revenue of $958 million, up 7% year-on-year.

Organic revenue increased 6% year-on-year.

Net Income was $48 million; adjusted EBITDA of $141 million was up 5% year-on-year.

Reported EPS (diluted) was $0.87; adjusted EPS (diluted) was $1.04.

Total Revenue
$958M
Previous year: $897M
+6.8%
EPS
$1.04
Previous year: $1.09
-4.6%
Adjusted EBITDA Margin
14.7%
Gross Profit
$248M
Previous year: $241M
+3.0%
Cash and Equivalents
$225M
Previous year: $62M
+262.2%
Free Cash Flow
$176M
Previous year: $33.3M
+428.7%
Total Assets
$4.22B
Previous year: $4.46B
-5.3%

H.B. Fuller

H.B. Fuller

H.B. Fuller Revenue by Segment

Forward Guidance

Adjusted EBITDA for fiscal 2023 is expected to be in the range of $580 million to $610 million. Revenue for 2023 is expected to be flat to down 3% versus 2022; organic revenue growth for fiscal year 2023 is expected to be in the range of 2% to 4%.

Positive Outlook

  • Adjusted EBITDA for fiscal 2023 is expected to be in the range of $580 million to $610 million, equating to growth of approximately 9% to 15% versus fiscal year 2022.
  • Organic revenue growth for fiscal year 2023 is expected to be in the range of 2% to 4%, adjusting for the impact of the extra week in fiscal year 2022.
  • Adjusted EPS in fiscal year 2023 is expected to be in the range of $4.15 to $4.55, equating to growth of between 4% to 14% year-on-year.
  • Operating cash flow in fiscal year 2023 is expected to be between $300 million and $350 million.
  • The core tax rate, excluding the impact of discrete items, is anticipated to be between 27% and 29% in fiscal year 2023

Challenges Ahead

  • Revenue for 2023 is expected to be flat to down 3% versus 2022.
  • Fiscal year 2023 will be a 52-week year compared to a 53-week year in fiscal year 2022, which will unfavorably impact year-on-year net revenue and adjusted EBITDA growth by approximately 2% in fiscal year 2023.
  • Foreign currency translation is expected to unfavorably impact net revenue growth by between 3% to 4% in fiscal year 2023.
  • Net interest expense for fiscal 2023 is expected to be between $115 million and $125 million, up from fiscal year 2022, reflecting higher interest rates.
  • Capital expenditures are expected to be $120 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View H.B. Fuller