H.B. Fuller Company (FUL) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net revenue reached $3.57 billion, up 1.6% year-over-year, with organic revenue down 1.0% due to unfavorable pricing offset by higher volume; full-year adjusted EBITDA margin rose to 16.6% and net working capital declined to 14.5% of revenue.

• Strategic actions included the divestiture of the Flooring segment, acquisitions in Medical Adhesive Technology, and a major global manufacturing and logistics footprint reduction plan targeting $75 million in annualized cost savings by 2030.

• Fourth quarter performance was weaker than expected due to broad volume deceleration, especially in consumer product goods and durable goods channels, with Q4 organic sales down 0.2% and pricing down 1.5%.

• Adjusted EBITDA for the year was $594 million, up 2.2% year-over-year, with Q4 adjusted EBITDA at $148 million, down 14% year-over-year; Q4 net loss included a $38 million non-cash after-tax impact from the Flooring divestiture.

• Portfolio optimization and acquisitions in 2023 and 2024 exceeded synergy targets, driving margin improvement and supporting a focus on higher-margin, faster-growing segments.

Financial highlights

• Fiscal 2024 net revenue was $3.57 billion, up from $3.51 billion in 2023; adjusted EBITDA for the year was $594 million, up from $581 million in 2023.

• Q4 organic sales declined 0.2% year-over-year, with volume up 1.3% and pricing down 1.5%; adjusted EBITDA for Q4 was $148 million, margin at 16.1%.

• Adjusted gross profit margin for Q4 was 29.6%, down 170 basis points year-over-year; full-year adjusted gross margin rose 90 bps to 30.3%.

• Adjusted EPS for Q4 was $0.92, down from the prior year; full-year adjusted EPS was $3.84, flat year-over-year.

• Full-year cash flow from operations was $301 million, with improved working capital efficiency.

Outlook and guidance

• Fiscal 2025 net revenue expected to decline 2–4%, but up 1–2% when adjusted for the Flooring divestiture; organic revenue projected flat to up 2%.

• Adjusted EBITDA guidance for 2025 is $600–$625 million, up 1–5% year-over-year; adjusted EPS expected in the range of $3.90–$4.20, up 2–9%.

• Operating cash flow for 2025 forecasted at $300–$325 million before $160 million in capital expenditures, including $40 million for footprint consolidation.

• Q1 2025 revenue expected to be down low to mid-single digits, with adjusted EBITDA of $105–$115 million.