H.B. Fuller Company (FUL) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with net revenue up 2.1% year-over-year to $917 million, driven by acquisitions and 3.3% volume growth, partially offset by lower pricing and negative currency effects.

• Adjusted EBITDA rose 10% year-over-year to $157 million, with margin expanding 120 bps to 17.1%.

• Adjusted EPS increased 20% to $1.12, driven by operating income growth.

• Continued innovation, strategic acquisitions (notably ND Industries), and restructuring to optimize operations and expand in differentiated markets.

• On track to deliver adjusted EBITDA margin above 20% in the next 3–5 years.

Financial highlights

• Q2 2024 net revenue: $917.1M (+2.1% YoY); organic revenue flat as 3.3% volume growth was offset by price declines and currency headwinds.

• Adjusted gross profit margin expanded 210–220 bps year-over-year to 31.1%.

• Net income attributable to shareholders was $51.3M (+27% YoY); adjusted net income was $64M.

• Adjusted SG&A rose 9% year-over-year, driven by acquisitions and wage inflation.

• Year-to-date operating cash flow up $21M year-over-year to $129M.

Outlook and guidance

• FY2024 net revenue growth expected at 2–4%, with organic revenue flat to up 2%.

• Adjusted EBITDA guidance raised to $620–$640 million (7–10% growth year-over-year).

• Adjusted EPS forecasted at $4.20–$4.45, up 9–15% year-over-year.

• Full-year operating cash flow expected between $300–$350 million.

• Q3 adjusted EBITDA projected at $165–$175 million.