H.B. Fuller Company Reports First Quarter Fiscal 2026 Financial Results
First Quarter 2026 Key Performance Highlights
H.B. Fuller Company announced its financial results for the first quarter ended February 28, 2026, reflecting a resilient performance despite a challenging global operating environment Net revenue reached $771 million, representing a 2.3% decline compared to the same period Reports in fiscal 2025 Organic revenue declined 6.6% year-on-year due to lower volumes, although pricing contributed a modest 0.6% increase Gross margin stood at 30.6%, while adjusted gross margin improved significantly to 31.3%, marking a 170 basis point increase compared to the prior year Net income for the quarter was $21 million, while adjusted EBITDA rose to $119 million, representing a 4% increase year-on-year Adjusted EBITDA margin improved to 15.4%, up 90 basis points, highlighting strong cost management and pricing discipline Reported diluted earnings per share were $0.38, while adjusted diluted EPS reached $0.57, reflecting a 6% increase driven by improved profitability and reduced share count
Revenue Trends and Market Dynamics
The company’s revenue performance during the quarter reflected mixed market conditions and strategic pricing actions While net revenue declined slightly, pricing initiatives Reports helped offset some of the volume-related challenges Foreign currency translation provided a positive impact of 3.6%, while acquisitions contributed an additional 0.7% to net revenue The decline in organic revenue was primarily attributed to softer demand across certain end markets, which impacted volumes However, H.B. Fuller continued to demonstrate resilience through its diversified portfolio and global presence, allowing it to navigateReports market fluctuations effectively
Gross Profit and Margin Expansion
Gross profit for the first quarter of fiscal 2026 was $236 million, while adjusted gross profit reached $241 million The adjusted gross margin improvement to 31.3% was driven by several key factors, including pricing actions, effective management of raw material costs, and cost savings generated through the company’s Quantum Leap restructuring initiative Additionally, acquisitions Reports contributed positively to margin expansion These combined efforts enabled H.B. Fuller to offset the impact of lower volumes and achieve meaningful improvement in profitability metrics
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the quarter totaled $184 million, with adjusted SG&A at $176 million, representing a 4% increase compared to the prior year period Reports The increase was influenced by acquisitions and foreign exchange impacts When adjusted for these factors, SG&A expenses were slightly lower year-on-year, reflecting the company’s disciplined approach to cost management H.B. Fuller’s focus on operational efficiency and expense control played a critical Reports role in supporting overall profitability during the quarter
Earnings Performance and Profitability Metrics
Net income attributable to H.B. Fuller for the first quarter was $21 million, while adjusted net income reached $32 million The company reported diluted earnings per share of $0.38, with Reports adjusted EPS of $0.57, representing a 6% increase compared to the previous year Adjusted EBITDA increased to $119 million, driven primarily by the net benefit of pricing actions and raw material cost management, as well as restructuring savings from the Quantum Leap program These results underscore the company’s ability to maintain profitability even in the face of declining volumes
Leadership Commentary and Strategic Execution
Chief Executive Officer Celeste Mastin highlighted the company’s disciplined execution and commitment to delivering on its profit objectives despite a challenging environment Reports She emphasized that H.B. Fuller successfully expanded margins by leveraging its global sourcing capabilities and maintaining a focused approach to cost and portfolio management Looking ahead, she noted that geopolitical instability in the Middle East is creating additional complexity and disruption in global supply chains The company is taking proactive measures to ensure supply continuity for customers, including implementing strategic pricing initiatives to manage rising costs and maintain competitive differentiation
Balance Sheet Strength and Cash Flow Performance
H.B. Fuller ended the first quarter of fiscal 2026 with net debt of $1,968 million, representing a reduction of $106 million compared to the prior year The company’s net debt-to-adjusted Reports EBITDA ratio stood at 3.1X, consistent with fiscal year-end 2025 and improved from 3.5X in the first quarter of fiscal 2025 Net working capital was 19.0% of annualized net revenue and increased by $20 million sequentially from the fourth quarter Cash flow from operations improved significantly by $49 million year-on-year, primarily driven by higher income levels The company expects cash flow generation for the full year to be weighted toward the second half of fiscal 2026
Fiscal 2026 Outlook and Guidance Update
Based on year-to-date performance and prevailing macroeconomic conditions, H.B. Fuller updated its financial outlook for fiscal 2026 The company now expects net revenue to grow at a Reports mid-single-digit rate, with organic revenue projected to increase at a low-single-digit pace Foreign exchange is anticipated to have a positive impact of 1% to 2% Adjusted EBITDA is expected to be in the range of $645 million to $675 million, reflecting continued margin expansion and operational efficiency Adjusted diluted earnings per share are projected to range between $4.55 and $4.90 For the second quarter of fiscal 2026, the company expects net revenue to increase at a low-single-digit rate, with adjusted EBITDA anticipated to fall between $175 million and $185 million
Conference Call and Investor Engagement
The company scheduled a conference call on March 26, 2026, at 9:30 a.m. Reports Central Time to discuss its first quarter results and provide additional insights into its performance and outlook Investors and interested parties can access the live webcast through the company’s investor relations website, where supplementary presentation materials are also available A replay of the conference call will be accessible via telephone for a limited period, ensuring stakeholders have the opportunity to review the discussion and gain a deeper understanding of the company’s financial position and strategic direction
Use of Non-GAAP Financial Measures
H.B. Fuller provided non-GAAP financial metrics in its earnings release to enhance transparency and facilitate comparison with other companies These measures include adjusted gross Reports profit, adjusted EBITDA, adjusted earnings per share, and net debt-to-adjusted EBITDA, among others While these metrics do not conform to U.S. generally accepted accounting principles, they offer valuable insights into the company’s underlying operational performance and trends Management emphasized that these measures should be considered alongside GAAP results and are reconciled in the company’s financial disclosures, except for forward-looking metrics where reconciliation is not feasible without unreasonable effort
Company Overview and Global Presence
Founded in 1887, H.B. Fuller has grown into the world’s largest pureplay adhesives company, delivering innovative solutions that enhance the quality, safety, and performance of everyday products With annual revenue of approximately $3.5 billion in 2025, the company operates across more than 30 market segments and serves customers in over 150 countries Its portfolio includes adhesives, sealants, and functional coatings that support a wide range of industries, from packaging and construction to electronics and hygiene Supported by more than 7,100 employees worldwide, H.B. Fuller continues to advance its mission of “Connect What Matters” by developing highly specialized solutions that enable customers to innovate and succeed in their respective markets
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