H.B. Fuller Company
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsH.B. Fuller is a global formulator and manufacturer of industrial adhesives, sealants, and specialty chemicals serving diverse end markets across 34 countries.
What they do
The company operates through three reportable segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Building Adhesive Solutions. It produces adhesives for consumer and industrial goods including packaging, hygiene products, electronics, automotive, and construction applications. Sales are global, with regional operations producing the vast majority of products sold within their region.
Revenue drivers
- Hygiene, Health and Consumable Adhesives — Supplies adhesives for assembly, packaging, converting, nonwoven, hygiene, health and beauty, flexible packaging, graphic arts, and envelope markets.
- Engineering Adhesives — Provides high-performance adhesives to transportation, electronics, clean energy, aerospace and defense, textile, appliance, and heavy machinery markets.
- Building Adhesive Solutions — Manufactures specialty adhesives, sealants, tapes, and application devices for commercial roofing, infrastructure, road/highway applications, telecom/5G utilities, HVAC, woodworking, and insulating glass.
Recent performance
In fiscal 2025, net revenue was $3.47 billion, down 2.7% from 2024, with gross margin improving to 31.1% from 29.8%. Net income attributable to H.B. Fuller rose to $152.0 million from $130.3 million, and diluted EPS was $2.75 versus $2.30. In the second quarter of 2026, net revenue increased 5.8% year-on-year to $950.3 million, with organic revenue up 2.6%; reported diluted EPS was $1.23 and adjusted EPS was $1.41, up 19%.
Strategy
Management is executing a restructuring initiative ('Quantum Leap') to optimize operations, integrate acquisitions, and reduce costs. The company is focused on pricing execution, global sourcing, and restructuring savings to expand margins. They are also managing portfolio changes, such as selling the North America Flooring business and forming the Building Adhesive Solutions segment, to align with internal performance assessment.
Risks
- Raw material cost volatility — Approximately 75% of cost of sales is raw materials, largely petroleum/natural gas derivatives, making results sensitive to price and supply changes.
- Economic cyclicality — Revenues from durable goods and construction-related customers fluctuate with economic activity, housing starts, and discretionary spending.
- Foreign exchange translation — Currency movements, particularly Euro, pound, Turkish lira, Brazilian real, Mexican peso, and Chinese renminbi, can negatively impact reported revenue and earnings; 2025 saw a $20.1 million negative impact.
- Integration and restructuring execution — Restructuring plans carry execution risk, including higher-than-expected costs or delays; costs of $84.4 million have been incurred under the 2023 Plans as of May 2026.
Outlook
For fiscal 2026, management expects net revenue to be up mid-single digits, with organic revenue up low-single digits and foreign exchange positive 1% to 2%. They raised the midpoint of full-year adjusted EBITDA and adjusted EPS guidance. Cash flow delivery is expected to be weighted to the second half of the year.