H.B. Fuller reported higher second-quarter revenue and earnings

St. Paul, MN – H.B. Fuller reported higher second-quarter revenue and earnings as pricing actions and cost savings helped offset softer volumes and market disruption.

The company said second-quarter net revenue for the period ended May 30 rose 5.8% to $950 million from a year earlier. Organic revenue increased 2.6%, driven by pricing gains that more than offset slightly lower volume.

Gross margin was 33.6%, while adjusted gross margin increased 200 basis points to 34.2%, primarily due to pricing execution and restructuring savings.

Net income attributable to H.B. Fuller totaled $68 million, while adjusted net income reached $78 million.

Adjusted EBITDA rose 9% year over year to $181 million. Adjusted EBITDA margin increased 70 basis points to 19.1%.

Diluted earnings per share were $1.23, while adjusted diluted EPS increased 19% to $1.41, driven by higher adjusted net income.

Operating cash flow reached a record $121 million for the second quarter, up about 10% from a year earlier.

Selling, general and administrative expenses totaled $202 million. Adjusted SG&A expenses rose 11% year over year to $196 million. Excluding the effects of foreign exchange and higher variable compensation, adjusted SG&A expenses increased about 3%.

President and Chief Executive Officer Celeste Mastin said the company benefited from pricing actions and restructuring efforts despite ongoing market volatility.

“We executed very well in the second quarter, delivering strong year-on-year revenue, EBITDA and EPS growth, with results above the midpoint of our EBITDA guidance range,” Mastin said.

At the end of the quarter, net debt stood at $1.96 billion, down $58 million from a year earlier. The company’s net debt-to-adjusted EBITDA ratio improved to 3.1 times from 3.4 times in the prior-year period.

Net working capital represented 16.4% of annualized net revenue and declined 260 basis points sequentially from the first quarter.

For fiscal 2026, H.B. Fuller maintained its expectation for net revenue growth in the mid-single-digit range and organic revenue growth in the low-single digits.

The company now expects adjusted EBITDA between $650 million and $675 million, adjusted diluted EPS between $4.60 and $4.90, and operating cash flow between $300 million and $325 million.

For the third quarter, H.B. Fuller expects net revenue growth in the mid-single digits and adjusted EBITDA between $180 million and $190 million.

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