H.B. Fuller reports second quarter 2025 results

ST. Paull, Minn. – H.B. Fuller Company reported its financial results for the second quarter of fiscal 2025, which ended on May 31. The company posted net revenue of $898 million, a 2.1% decrease compared to the same period in fiscal 2024. However, when adjusted for the divestiture of its flooring business, net revenue increased by 2.8% year-over-year.

Gross profit for the quarter was $286 million, with an adjusted gross profit of $289 million. The adjusted gross profit margin rose to 32.2%, up 110 basis points from the previous year, driven by cost-saving initiatives, the impact of acquisitions and divestitures, and strategic pricing actions.

Selling, general and administrative expenses totaled $186 million, while adjusted SG&A expenses were $176 million, slightly up from $173 million in the prior year. When accounting for acquisitions and divestitures, adjusted SG&A remained flat, reflecting effective cost management.

Net income attributable to H.B. Fuller was $42 million, or $0.76 per diluted share. Adjusted net income reached $65 million, with adjusted earnings per share of $1.18, a 5% increase from the previous year. Adjusted EBITDA rose to $166 million, also up 5% year-over-year, with the adjusted EBITDA margin expanding by 130 basis points to 18.4%.

President and CEO Celeste Mastin praised the company’s performance, stating that the results reflect disciplined execution in a challenging environment. She highlighted the company’s ability to outperform underlying markets, manage costs effectively, and adapt to geopolitical and market uncertainties. Mastin noted that the company’s focus on pricing, cost savings, and portfolio optimization contributed to the improved EBITDA margin. Based on this strong performance, H.B. Fuller raised its full-year financial outlook.

At the end of the second quarter, net debt stood at $2.016 billion, down $59 million from the first quarter but up $106 million year-over-year. The net debt-to-adjusted EBITDA ratio improved to 3.4x from 3.5x in the previous quarter, driven by stronger cash flow and EBITDA growth. Net working capital remained relatively flat year-over-year, representing 16.6% of annualized net revenue.

For fiscal 2025, H.B. Fuller now expects net revenue to decline by 2% to 3%, with organic revenue projected to be flat to up 2%. Foreign exchange is expected to negatively impact revenue by 1.0% to 1.5%. Adjusted EBITDA is forecasted to be between $615 million and $630 million, representing 4% to 6% growth. Adjusted EPS is expected to range from $4.10 to $4.30, a 7% to 12% increase year-over-year. The company anticipates having 55 to 56 million fully diluted shares outstanding. For the third quarter, adjusted EBITDA is projected to be between $165 million and $175 million.

H.B. Fuller will host a conference call on June 26, 2025, at 9:30 a.m. CT to discuss the results. A live webcast and supplemental presentation will be available on the company’s investor relations website. A telephone replay will be accessible until July 3, 2025.

The company also noted that certain financial metrics presented do not conform to U.S. GAAP and are intended to provide additional insight into operational performance. Reconciliations to GAAP results are included in the company’s earnings release.