H.B. Fuller reports positive third quarter

St. Paul, MN – H.B. Fuller Co. reports that its third-quarter profit and revenue increased from a year earlier, helped by higher pricing and restructuring savings, and the adhesives maker raised its full-year earnings outlook.

The St. Paul, Minnesota-based company reported net income of $79 million, or $1.44 per diluted share, for the quarter ended Aug. 29. That compares with adjusted net income of $83 million and adjusted earnings of $1.52 per share. Adjusted earnings per share rose 21% from a year earlier.

Revenue increased 5.2% to $938 million. Organic revenue, which excludes the effects of acquisitions and currency changes, rose 4.4%, with growth in each of the company’s three global business units. Pricing increased revenue by 7.4%, more than offsetting lower volume.

Adjusted EBITDA, a measure of operating profitability, rose 9% to $187 million. The adjusted EBITDA margin increased to 19.9% from 19.1% a year earlier, a record for the company.

Adjusted gross margin was 33.5%, up from 32.3% a year earlier. H.B. Fuller said pricing execution and restructuring savings accounted for most of the improvement.

“Through disciplined execution, we delivered strong revenue, EBITDA and EPS growth in the quarter and continued to improve profitability,” Celeste Mastin, H.B. Fuller’s president and CEO, said in a statement.

The company said pricing actions are offsetting higher raw material costs and that restructuring efforts are improving operating leverage. H.B. Fuller also expects to close its acquisition of AMS before the end of the year.

H.B. Fuller raised its fiscal 2026 adjusted EBITDA forecast to between $655 million and $670 million, compared with its previous outlook. It also raised its adjusted earnings-per-share forecast to $4.70 to $4.85.

The company maintained its forecast for fiscal 2026 revenue growth in the mid-single digits and organic revenue growth in the low-single digits. It expects pricing to increase in the mid-single digits and volume to decline in the low-single digits. The company now expects foreign currency translation to contribute about 2% to revenue.

H.B. Fuller maintained its forecast for operating cash flow of $300 million to $325 million, excluding items related to the AMS acquisition.

Net debt was $1.96 billion at the end of the quarter, roughly unchanged from a year earlier. The company’s net debt-to-adjusted EBITDA ratio improved to 3.0 from 3.3 a year earlier.

H.B. Fuller said it increased inventory investments to support its Quantum Leap program and maintain supply continuity amid disruptions in the Middle East. Year-to-date operating cash flow was $183 million, up 17% from a year earlier.