H.B. Fuller reports strong third-quarter earnings with margin growth and double-digit EPS increase

St. Paul, MN — H.B. Fuller Company announced its financial results for the third quarter of fiscal 2025, ending August 30, showing resilience and strategic progress despite a challenging global economic backdrop.
The company reported net revenue of $892 million, a 2.8 percent decline compared to the same quarter last year. However, when adjusted for the divestiture of its flooring business, revenue rose 1.6 percent year-over-year. Organic revenue declined slightly by 0.9 percent, as pricing gains of 1.0 percent were offset by lower volume. Foreign currency translation contributed positively by 1.0 percent, while acquisitions and divestitures had a net negative impact of 2.9 percent.
Gross profit for the quarter was $285 million, with adjusted gross profit reaching $288 million. The adjusted gross profit margin rose to 32.3 percent, an increase of 190 basis points from the prior year. This improvement was driven by favorable pricing strategies, raw material cost actions, portfolio adjustments, and targeted cost reductions.
Selling, general and administrative expenses totaled $175 million, with adjusted SG&A at $169 million, slightly up from $164 million in the same quarter last year. When accounting for acquisitions, divestitures, foreign exchange, and variable compensation, adjusted SG&A remained flat, reflecting disciplined expense management.
Net income attributable to H.B. Fuller was $67 million, or $1.22 per diluted share. Adjusted net income was $69 million, resulting in adjusted earnings per share of $1.26, a 12 percent increase year-over-year. Adjusted EBITDA rose to $171 million, up 3 percent from the previous year, with the EBITDA margin expanding to 19.1 percent, an increase of 110 basis points.
Cash flow from operations grew 13 percent to $99 million. Net working capital rose to 17.0 percent of annualized revenue, due to slightly higher inventory levels in preparation for manufacturing footprint optimization. Net debt stood at $1.96 billion, down $58 million from the previous quarter and up $68 million year-over-year. The net debt-to-adjusted EBITDA ratio improved to 3.3x, down from 3.4x in the second quarter, supported by strong cash flow and EBITDA growth.
President and CEO Celeste Mastin said the company delivered a strong quarter, marked by margin expansion and double-digit EPS growth. She emphasized H.B. Fuller’s operational discipline, portfolio evolution, and long-term strategy aimed at achieving an EBITDA margin above 20 percent. Mastin also noted that while performance remains strong, the company is tightening its full-year guidance due to subdued global economic conditions and expects volume growth to remain elusive.
For fiscal 2025, H.B. Fuller now expects net revenue to decline between 2 and 3 percent, with organic revenue flat to up 1 percent. Adjusted EBITDA is projected to range from $615 million to $625 million, representing 4 to 5 percent growth. Adjusted EPS is expected to be between $4.10 and $4.25, reflecting 7 to 11 percent growth. Cash flow from operations is forecasted between $275 million and $300 million, with capital expenditures around $140 million. Net interest expense is anticipated to be between $125 million and $130 million, and the full-year adjusted tax rate is expected to range from 26.0 to 26.5 percent.