H.B. Fuller Company (FUL) Q2 2025 earnings summary

Executive summary

• Achieved 5% year-over-year growth in adjusted EBITDA and adjusted EPS for Q2 2025, with gross margin up 110 bps to 32.2% due to cost savings, acquisitions/divestitures, and pricing actions.

• Net revenue for Q2 2025 decreased 2.1% year-over-year, primarily due to negative currency effects and divestitures, partially offset by pricing gains.

• Operating cash flow rose $29M year-over-year to $111M; net-debt-to-EBITDA improved sequentially from 3.5x to 3.4x.

• Raised full-year outlook for adjusted EBITDA and EPS due to robust execution, margin expansion, and successful portfolio transformation toward higher growth, higher margin markets.

• Recognized as one of the World's Greenest Companies 2025 by Newsweek and continued focus on innovation, sustainability, and operational excellence.

Financial highlights

• Q2 2025 net revenue was $898.1M, down 2.1% year-over-year; adjusting for divestitures, net revenue up 2.8%.

• Adjusted EBITDA reached $166M, up 5% year-over-year; adjusted EBITDA margin expanded to 18.4%.

• Adjusted EPS was $1.18, up 5% from Q2 2024; operating cash flow for Q2 was $111M, up $29M year-over-year.

• Adjusted gross profit margin improved to 32.2%, up 110 bps year-over-year.

• Net debt to adjusted EBITDA improved to 3.4x from 3.5x sequentially.

Outlook and guidance

• FY2025 net revenue expected to decline 2%-3% year-over-year; organic revenue flat to up 2%.

• Adjusted EBITDA guidance raised to $615M-$630M (4%-6% growth); adjusted EPS $4.10-$4.30 (7%-12% growth).

• Full-year operating cash flow expected between $300M-$325M; Q3 EBITDA guidance $165M-$175M.

• Management expects restructuring costs to total $70–$75M pre-tax, with completion by fiscal 2026.

• Anticipates continued margin expansion and profit growth in the second half, despite volume constraints.