H.B. Fuller Reports Third Quarter 2025 Results

H.B. Fuller Company, a global leader in adhesives, sealants, and functional coatings, has released its financial results for the third quarter of fiscal 2025, ending August 30, 2025. The company reported a mix of financial metrics that highlight both strengths and challenges in the current economic environment.

Financial Highlights

For the third quarter of fiscal 2025, H.B. Fuller reported:

• Reported EPS (diluted) of $1.22; Adjusted EPS (diluted) of $1.26, up 12% year-on-year.
• Net income of $67 million; Adjusted EBITDA of $171 million, up 3% year-on-year.
• Adjusted EBITDA margin of 19.1%, up 110 basis points year-on-year.
• Net revenue of $892 million, down 2.8% versus the third quarter of fiscal 2024; adjusting for the flooring divestiture, net revenue was up 1.6% year-on-year.
• Gross profit margin was 32.0%; adjusted gross profit margin was 32.3%, up 190 basis points year-on-year.
• Cash flow from operations increased 13% year-on-year to $99 million.

Business and Operational Highlights

Key operational metrics for the third quarter include:

• Gross profit in the third quarter was $285 million, with an adjusted gross profit of $288 million.
• Selling, general and administrative (SG&A) expenses were $175 million, with adjusted SG&A at $169 million.
• Net working capital increased 90 basis points year-on-year to 17.0% of annualized revenue.

Strategic Initiatives and Corporate Developments

H.B. Fuller has been actively managing its portfolio and operational efficiencies:

• Net debt at the end of the third quarter was $1,958 million, down $58 million sequentially versus the second quarter.
• Net debt-to-adjusted EBITDA decreased from 3.4X to 3.3X, driven by solid cash flow from operations and growth in adjusted EBITDA.

Management's Perspective

Celeste Mastin, President and CEO of H.B. Fuller, commented on the results: "We delivered a strong quarter, evidenced by continued margin expansion and double-digit EPS growth despite the challenging operating environment. Our continued operational discipline, strong execution, and ongoing portfolio shift keep us on track to achieve our greater than 20% EBITDA margin target. Despite our strong performance, we remain cautious and have tightened our guidance range for the year to reflect a globally subdued economic backdrop."

Future Outlook

Based on the year-to-date performance and current macroeconomic conditions, H.B. Fuller has updated its financial guidance for fiscal 2025:

• Net revenue for fiscal 2025 is expected to be down 2% to 3%; organic revenue is expected to be flat to up 1%.
• Adjusted EBITDA is expected to be in the range of $615 million to $625 million, equating to growth of 4% to 5% year-on-year.
• Adjusted EPS (diluted) is expected to be in the range of $4.10 to $4.25, equating to growth of 7% to 11% year-on-year.
• Cash flow from operations is expected to be in the range of $275 million to $300 million, with capital expenditures around $140 million for the year.
• Net interest expense for the year is expected to be approximately $125 million to $130 million, with a full-year adjusted tax rate between 26.0% and 26.5%.

SEC Filing: FULLER H B CO [ FUL ] - 8-K - Sep. 25, 2025