H.B. Fuller reports fourth quarter and fiscal year 2025 results

St. Paul, MN – H.B. Fuller Company reported mixed revenue results but stronger profitability for its fourth quarter and full fiscal year ended November 29, 2025, as pricing actions, cost controls and restructuring efforts helped offset softer demand and the impact of divestitures.

The St. Paul, Minnesota-based adhesive maker said fourth-quarter net revenue fell 3.1 percent year over year to $895 million. Excluding the company’s flooring divestiture, revenue increased 0.9 percent. Organic revenue declined 1.3 percent, as pricing gains of 1.2 percent were more than offset by a 2.5 percent drop in volume. Foreign currency translation added 1.0 percent to revenue, while acquisitions and divestitures reduced revenue by 2.8 percent.

Gross profit for the quarter totaled $282 million, with adjusted gross profit of $291 million. Adjusted gross margin rose to 32.5 percent, an increase of 290 basis points from a year earlier, driven by favorable pricing, lower raw material costs, restructuring benefits and portfolio changes. Selling, general and administrative expenses were $184 million, while adjusted SG&A declined modestly to $174 million as the company continued cost-saving initiatives and reduced variable compensation.

Net income attributable to H.B. Fuller in the fourth quarter was $30 million. On an adjusted basis, net income was $71 million, and adjusted earnings per diluted share rose 39.1 percent year over year to $1.28. Adjusted EBITDA increased 14.6 percent to $170 million, with the adjusted EBITDA margin expanding 290 basis points to 19.0 percent.

For the full fiscal year, H.B. Fuller reported net revenue of $3.47 billion, down 2.7 percent from the prior year. Adjusted for the flooring divestiture, revenue increased 1.8 percent. Organic revenue was flat, as pricing improvements of 0.8 percent were offset by a 0.8 percent decline in volume. Gross margin for the year was 31.1 percent, while adjusted gross margin improved 140 basis points to 31.7 percent.

Full-year net income was $152 million, and adjusted EBITDA rose 4.5 percent to $621 million, with the adjusted EBITDA margin expanding to 17.9 percent. Reported diluted earnings per share were $2.75, while adjusted diluted EPS increased 10.4 percent to $4.24, reflecting higher operating income and a lower share count. Operating cash flow for the year was $263 million. Net working capital increased to 15.8 percent of annualized net revenue, up 130 basis points year over year, largely due to higher inventory levels associated with manufacturing footprint optimization.

Celeste Mastin, president and chief executive officer, said the company delivered double-digit EPS growth and achieved EBITDA at the top end of its guidance range despite economic uncertainty and a challenging demand environment. She said H.B. Fuller’s ability to provide customers with flexibility, material options and reliable supply strengthened partnerships and contributed to improved profitability and margin expansion. Mastin added that the company is exiting fiscal 2025 with strong momentum and remains on track to achieve an EBITDA margin above 20 percent.

At the end of the fourth quarter, net debt stood at $1.91 billion, down $48 million from the prior quarter but up $68 million from a year earlier. Net debt to adjusted EBITDA improved to 3.1 times, down from 3.3 times in the third quarter and 3.5 times in the first quarter. Net working capital declined $41 million sequentially from the third quarter and decreased 120 basis points as a percentage of annualized net revenue.

Looking ahead, H.B. Fuller expects fiscal 2026 net revenue to be flat to up 2 percent, with organic revenue approximately flat compared with fiscal 2025. Adjusted EBITDA is projected to range between $630 million and $660 million. For the first quarter of fiscal 2026, the company anticipates low single-digit revenue declines and adjusted EBITDA between $110 million and $120 million.

The company also expects depreciation and amortization expense of about $185 million, net interest expense of approximately $120 million, and a core tax rate between 26 percent and 27 percent. Adjusted diluted EPS is forecast to range from $4.35 to $4.70, with a fully diluted average share count of 55 million to 56 million shares. Operating cash flow is expected to be between $275 million and $300 million, and capital expenditures are projected at approximately $160 million, including about $50 million related to manufacturing footprint consolidation.

H.B. Fuller will discuss its results during a conference call on January 15, 2026. The call will be webcast live through the company’s investor relations website, with a replay available by telephone through January 22, 2026.