H.B. Fuller Reveals Preliminary Results for Fiscal Year 2024
H.B. Fuller Company has today released its unaudited preliminary financial results for fiscal year 2024, along with a scheduled conference call for the upcoming fourth quarter earnings. These results are initial estimates and are subject to adjustments upon the completion of the company’s annual financial audit. Based on the preliminary results, H.B. Fuller now anticipates net revenues for fiscal year 2024 to reach approximately $3.57 billion, with adjusted diluted earnings per share (EPS) estimated at $3.84, and adjusted EBITDA expected to be around $594 million.
This represents a downward revision from the previous guidance issued on September 25, 2024, which projected adjusted EBITDA in the range of $610 million to $620 million. Furthermore, the company expects its cash flow from operations for the year to be approximately $300 million.
Fourth Quarter Challenges Affect Results
The weaker-than-anticipated performance in the fourth quarter has primarily been attributed to a slowdown in several key market segments, especially in consumer product goods, packaging-related end markets, and durable goods distribution. Additionally, customer order delays and shifts in order patterns had a significant impact on revenue generation, with price increases not fully materializing until fiscal year 2025.
The overall performance in the fourth quarter was also negatively affected by higher raw material costs, particularly within the Hygiene, Health, and Consumable (HHC) Adhesives segment. These factors combined to contribute to an adverse impact on adjusted EBITDA.
According to Celeste Mastin, President and Chief Executive Officer of H.B. Fuller, “Late in the fourth quarter, we saw a sharp downturn in volume, with many market segments showing slower growth compared to the previous quarter. This deceleration had a significant adverse effect on our financial performance and resulted in a disappointing shortfall relative to our expectations.”
Strategic Responses to Market Challenges
In light of these challenges, H.B. Fuller is focusing on controlling the variables within its operations that it can influence. The company is putting in place a series of new pricing actions and cost control measures aimed at improving profitability in the face of these difficult market conditions. Additionally, H.B. Fuller is continuing with its ongoing restructuring initiatives, which are designed to streamline its manufacturing footprint and reduce its overall selling, general, and administrative (SG&A) expenses. These efforts are intended to better position the company for future growth, despite the current market volatility.
Upcoming Financial Report and Investor Conference Call
H.B. Fuller is scheduled to report its final financial results for the three-month and twelve-month fiscal periods ending November 30, 2024, on January 15, 2025, following the market close. The company will then hold an investor conference call on January 16, 2025, at 9:30 a.m. CT (10:30 a.m. ET) to discuss the financial results in greater detail. The conference call will be available for live streaming via a webcast on the company’s investor relations website.
Interested parties can access the live webcast, along with a supplemental presentation, by visiting H.B. Fuller’s investor relations page. To ensure smooth access to the webcast, participants must register in advance, ideally at least 10 minutes prior to the start of the call, in order to install and test any necessary software or audio connections. The webcast will also be archived on the company’s website for later viewing.
Additionally, a telephone replay of the conference call will be available starting at 12:30 p.m. CT on January 16, 2025, and will run through 10:59 p.m. CT on January 23, 2025. To access the replay, participants should dial 1-800-770-2030 (toll-free) or 1-609-800-9909 and enter Conference ID: 6370505.
Non-GAAP Financial Measures
In this release, the company has provided information regarding adjusted net income, adjusted diluted EPS, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). These measures do not conform to U.S. Generally Accepted Accounting Principles (GAAP) and should not be considered as substitutes for the company’s GAAP results. However, management believes these non-GAAP measures are useful in evaluating.
the company’s operating performance and in comparing the company’s results with those of other companies in the same industry. The non-GAAP financial information presented in this release is reconciled to the most directly comparable GAAP measures, which are available in the accompanying tables.
In conclusion, while H.B. Fuller has faced challenges in its fourth-quarter performance due to weaker market conditions and delayed orders, the company remains committed to navigating these difficulties through strategic actions, including pricing adjustments, cost controls, and ongoing restructuring efforts. With an upcoming financial report and investor call, H.B. Fuller aims to provide greater clarity and transparency regarding its performance and the steps it is taking to adapt to the evolving market environment.
