FULLER H B CO SEC 10-Q Report
H.B. Fuller, a leading global adhesives provider, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both the challenges and strategic initiatives undertaken during the period.
Financial Highlights
Net Revenue: $898.1 million, a decrease of 2.1% from the second quarter of 2024. This decline was driven by a 1.3% decrease due to acquisitions/divestitures, a 1.2% decrease due to negative currency effects, and a 0.3% decrease in sales volume, partially offset by a 0.7% increase due to pricing.
Gross Profit: $286.4 million, an increase of 1.5% from the second quarter of 2024. The gross profit margin improved by 110 basis points, primarily due to the impact of acquisitions/divestitures.
Operating Income: $100.0 million, a slight decrease from $100.6 million in the second quarter of 2024, indicating stable operational performance despite revenue challenges.
Net Income Attributable to H.B. Fuller: $41.8 million, a decrease of 18.5% from $51.3 million in the second quarter of 2024. This decline was influenced by higher interest expenses and tax rates.
Diluted Earnings Per Share (EPS): $0.76, down from $0.91 in the second quarter of 2024, reflecting the decrease in net income.
Business Highlights
Revenue Segments: H.B. Fuller operates through three main segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Building Adhesive Solutions. In the second quarter of 2025, Hygiene, Health and Consumable Adhesives accounted for 44% of total revenue, Engineering Adhesives for 31%, and Building Adhesive Solutions for 25%.
Geographical Performance: The Americas region remains the largest market, contributing $473.6 million in revenue for the second quarter of 2025. The EIMEA (Europe, India, Middle East, and Africa) and Asia Pacific regions also showed strong performance, with revenues of $261.9 million and $162.6 million, respectively.
Operational Changes: At the beginning of fiscal 2025, H.B. Fuller reorganized its operating segments, selling its North American Flooring business and forming the Building Adhesive Solutions segment by combining several businesses from the Engineering Adhesives and Construction Adhesives segments.
Future Outlook: The company expects to complete its restructuring plans by fiscal year 2026, aiming to optimize operations and integrate acquired businesses. These plans are anticipated to incur costs of approximately $70.0 million to $75.0 million.
Restructuring Plans: Initiated in 2023, the restructuring plans are ongoing, with $66.3 million incurred as of May 31, 2025. These plans include organizational changes and actions to streamline operations and integrate acquisitions.
Currency Impact: H.B. Fuller experienced a negative currency impact of 1.2% in the second quarter of 2025, primarily due to weaker currencies such as the Brazilian real, Mexican peso, Egyptian pound, and Turkish lira against the U.S. dollar.
Sales Volume: Organic revenue growth was slightly positive, with a 0.4% increase in the second quarter of 2025. This growth was driven by a 0.7% increase in product pricing, offset by a 0.3% decrease in sales volume.
Acquisitions and Divestitures: The company completed several acquisitions, including ND Industries Asia, GEM S.r.l., and Medifill Limited, which are expected to enhance growth in high-margin, high-growth market segments.
SEC Filing: FULLER H B CO [ FUL ] - 10-Q - Jun. 26, 2025