10-Q · June 25, 2026
H.B. Fuller reported strong Q2 2026 results with revenues of $950.3 million, exceeding analyst estimates of $924.9 million, and an EPS of $1.23, above the $1.37 consensus. Key drivers include improved pricing and…
Earnings analysis · 10-Q
FUL earnings analysis
Filed September 24, 2026 · Our reading of the company's report
The latest report
H.B. Fuller delivered solid year-over-year operating growth, with revenue up 5.2%, gross margin up 120 basis points to 33.2%, and GAAP EPS up to $1.44 from $1.22. All three segments grew, led by Hygiene, Health and…
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H.B. Fuller delivered solid year-over-year operating growth, with revenue up 5.2%, gross margin up 120 basis points to 33.2%, and GAAP EPS up to $1.44 from $1.22. All three segments grew, led by Hygiene, Health and Consumable Adhesives, while pricing more than offset a 3.0% volume decline. Cash generation was weaker after $141.7 million of year-to-date capex and $91.7 million of working-capital use, and debt remained high at $2,054.5 million. The newly disclosed shareholder activism campaign and ongoing restructuring add strategic and execution uncertainty.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.44
- Gross margin
- 33.2%
What stood out
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Pricing drove 5.2% revenue growth
Third-quarter revenue increased 5.2% year over year to $938.2 million, driven by 7.4% pricing, 0.7% currency, and 0.1% M&A, partly offset by a 3.0% volume decline. Revenue was $938.2 million versus $950.0 million in the immediately preceding quarter based on the supplied quarterly history.
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Gross margin expanded to 33.2%
Gross profit increased 9.3% year over year to $311.7 million, while gross margin expanded 120 basis points to 33.2% from 32.0%, primarily due to higher pricing and restructuring actions.
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GAAP EPS increased 18% year over year
GAAP diluted EPS rose to $1.44 from $1.22 year over year, while net income attributable to H.B. Fuller increased 17.9% to $79.2 million from $67.2 million.
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All operating segments grew
All three operating segments grew revenue: Hygiene, Health and Consumable Adhesives increased 7.0% to $413.0 million, Building Adhesive Solutions increased 5.5% to $246.5 million, and Engineering Adhesives increased 2.4% to $278.7 million.
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Adjusted EBITDA margin reached 19.9%
Adjusted EBITDA increased 9.4% to $186.7 million, and adjusted EBITDA margin expanded 80 basis points to 19.9%. Segment adjusted EBITDA margins also improved to 17.6% in Hygiene, Health and Consumable Adhesives, 23.8% in Engineering Adhesives, and 18.2% in Building Adhesive Solutions.
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Operating cash flow improved despite heavier capex
Year-to-date operating cash flow increased to $182.6 million from $156.8 million, but free cash flow declined to $40.9 million from $62.2 million as capital expenditures rose to $141.7 million from $94.6 million.
What to watch
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Working-capital consumption intensified
Working capital absorbed $91.7 million of cash year to date versus $71.2 million a year earlier. Accounts receivable used $78.9 million and inventory used $106.4 million; DSO increased to 63 days from 58 days and inventory days increased to 88 from 78.
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Leverage and interest burden remain elevated
Total debt increased to $2,054.5 million from $2,016.9 million at fiscal year-end, while third-quarter interest expense rose 21.7% to $40.9 million. The debt-to-total-capital ratio was 48.7%, and the company reported $97.2 million of cash.
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New shareholder activism risk
The company added shareholder activism as a new risk after Ancora submitted an unsolicited proposal on August 12, 2026 to acquire the Building Adhesive Solutions segment. Management said responding to activism may create significant costs and uncertainty; the proposal was rejected and Ancora continued to threaten a public campaign.
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Multi-year restructuring charges continue
Restructuring costs are expected to total approximately $87.0 million to $90.0 million under the existing plans, with $85.2 million incurred by August 29, 2026. Additional global-footprint actions are expected to cost $45.0 million to $50.0 million, with $11.6 million incurred and completion expected in fiscal 2028.
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Volume declines and SG&A pressure
Revenue growth relied on pricing while sales volume declined 3.0% in the quarter. SG&A increased 13.4% to $198.5 million, rising to 21.2% of revenue from 19.6%, primarily due to higher compensation expense and foreign-exchange effects.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance, and does not state a change versus prior company guidance. Management believes operating cash flows will meet short- and long-term liquidity and capital expenditure needs; it expects remaining restructuring cash payments to continue through fiscal 2026 and global-footprint restructuring costs to be incurred over the next several quarters, with completion expected during fiscal 2028.
Earlier filings 4
10-Q · March 26, 2026
H.B. Fuller reported net revenue of $770,844,000 in Q1 (Feb 28, 2026), down $124,156,000 (-13.9%) versus the prior quarter (Q4 2025: $895,000,000) and down $17,819,000 (-2.3%) versus Q1 2025 ($788,663,000). Diluted EPS…
10-K · January 22, 2026
H.B. Fuller presents a stable, globally diversified adhesives and specialty-chemicals business with a strategic emphasis on R&D, sustainability and a segment reorganization completed at the start of fiscal 2025. The…
10-Q · March 27, 2025
H.B. Fuller reported net revenue of $788,663,000 for the three months ended March 1, 2025, down from $810,419,000 a year earlier, with diluted EPS of $0.24 versus $0.55 in the prior year. Gross profit fell to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.