H.B. Fuller Company (FUL) investor relations material

Executive summary

• Achieved strong Q3 results with margin expansion and double-digit EPS growth despite a challenging macroeconomic environment, supported by operational discipline, pricing, and cost controls.

• Net revenue for Q3 2025 was $892 million, down 2.8% year-over-year, but up 1.6% when adjusted for the flooring divestiture.

• Adjusted EPS (diluted) rose 12% year-over-year to $1.26, with net income at $67 million and adjusted EBITDA up 3% to $171 million.

• Gross profit margin improved by 190–200 basis points year-over-year, driven by higher pricing, lower distribution costs, and portfolio optimization.

• Guidance range for 2025 was tightened due to subdued global economic conditions and market volatility.

Financial highlights

• Q3 2025 net revenue: $892 million (down 2.8% year-over-year); organic sales decreased 0.9% year-over-year.

• Adjusted EBITDA grew 3% year-over-year to $171 million; margin expanded 110 bps to 19.1%.

• Adjusted gross profit margin rose 190 bps to 32.3% year-over-year.

• Adjusted EPS increased 12% to $1.26 year-over-year; net income attributable to shareholders was $67 million.

• Operating cash flow up 13% year-over-year to $99 million.

Outlook and guidance

• Fiscal 2025 net revenue expected to decline 2–3% year-over-year; organic revenue flat to up 1%.

• Adjusted EBITDA guidance raised to $615–$625 million, up 4–5% year-over-year.

• Full-year adjusted diluted EPS expected at $4.10–$4.25, up 7–11% year-over-year.

• Operating cash flow guidance reduced to $275–$300 million due to higher inventory for footprint optimization; capex target at $140 million.

• Net interest expense projected at $125–$130 million; adjusted tax rate between 26.0% and 26.5%.