Financial Data and Key Metrics Changes - In Q4 2025, net revenue decreased by 3.1% year-on-year, with organic growth down 1.3% and volume down 2.5%, while pricing increased by 1.2% [5][11] - Adjusted EBITDA for Q4 was $170 million, up 15% year-on-year, with an EBITDA margin of 19%, reflecting a 290 basis point increase year-on-year [6][12] - Adjusted earnings per share (EPS) rose by 39% to $1.28 compared to Q4 2024, driven by higher operating income and share repurchases [12] Business Line Data and Key Metrics Changes - In the HHC segment, organic revenue decreased by 1.8% year-on-year, with EBITDA up almost 30% and EBITDA margin improving by 380 basis points to 17.5% [7] - Engineering adhesives (EA) saw organic revenue growth of 2.2%, with adjusted EBITDA increasing by 17% and EBITDA margin rising by 260 basis points to 23.5% [8] - BAS experienced a 4.8% decline in organic sales, with EBITDA decreasing by 7% due to lower volume despite pricing gains [9] Market Data and Key Metrics Changes - Americas organic revenue was flat year-on-year, with growth in EA offset by weaker results in packaging and construction-related markets [9] - EIMEA region saw a 6% decline in organic revenue, driven by lower volume in packaging and construction [9] - Asia-Pacific reported a 3% increase in organic revenue, with a 10% increase when excluding solar revenue [9] Company Strategy and Development Direction - The company aims to achieve greater than 20% EBITDA margin and is focused on transforming into a higher-growth, higher-margin entity [4] - Strategic actions include portfolio repositioning, focusing on higher-margin markets, and launching the Quantum Leap initiative for cost structure improvement [10][16] - M&A remains a key part of the growth strategy, with several acquisitions in medical adhesives and fastener coating systems to enhance market position [16][18] Management's Comments on Operating Environment and Future Outlook - The management anticipates a challenging economic environment in 2026, similar to 2025, with geopolitical tensions and inflation impacting manufacturing investment [10] - Despite these challenges, the company expects profit growth and margin expansion in 2026, supported by proactive pricing and raw material cost management [10][14] - The management highlighted the importance of maintaining a strong operational focus and executing global initiatives with discipline [20] Other Important Information - The company reported a net debt to adjusted EBITDA ratio of 3.1 times, down from 3.3 times in Q3 2025, indicating progress in reducing leverage [12] - Cash flow from operations for Q4 was $107 million, up 25% year-on-year, driven by higher net income [12] Q&A Session Summary Question: Q1 guidance and revenue decline - Management indicated that the primary reason for the low single-digit revenue decline in Q1 is the timing of Chinese New Year, which will shift some revenue from Q1 to Q2 [24][27] Question: Raw materials and pricing outlook for 2026 - The company expects a carryover benefit of around $25 million from pricing and raw material actions into 2026, with an overall benefit increasing to about $35 million [30] Question: BAS segment performance and government shutdown impact - Management clarified that the BAS segment faced a tough comparison due to a strong performance in Q4 2024, but the government shutdown did not significantly impact their operations [41] Question: Packaging market trends and competitive intensity - The management acknowledged ongoing weakness in the packaging market, particularly in North America, but noted growth in EIMEA and Asia-Pacific regions [44][92] Question: Free cash flow outlook for 2026 - The company expects operating cash flow to be slightly muted due to higher working capital associated with the Quantum Leap initiative, with a goal to reduce working capital below 15% in the long term [75] Question: Geographic market demand growth - Management highlighted a bounce back in China as a significant positive, with expectations for continued growth in the automotive and electronics sectors [99]

Financial Data and Key Metrics Changes - Net revenue for Q4 2025 decreased by 3.1% year-on-year, with organic growth down 1.3% and volume down 2.5%, while pricing increased by 1.2% [5][11] - Adjusted EBITDA for Q4 was $170 million, up 15% year-on-year, with an EBITDA margin of 19%, an increase of 290 basis points year-on-year [5][12] - Adjusted earnings per share (EPS) for Q4 was $1.28, up 39% compared to Q4 2024 [12] Business Line Data and Key Metrics Changes - In the HHC segment, organic revenue decreased by 1.8% year-on-year, with EBITDA up almost 30% and EBITDA margin improving by 380 basis points to 17.5% [6] - Engineering adhesives (EA) saw organic revenue growth of 2.2% in Q4, with adjusted EBITDA increasing by 17% year-on-year and EBITDA margin rising by 260 basis points to 23.5% [7][8] - BAS segment experienced a 4.8% decline in organic sales, with EBITDA decreasing by 7% year-on-year [8] Market Data and Key Metrics Changes - Organic revenue in the Americas was flat year-on-year, with growth in EA offset by weaker results in packaging and construction-related markets [9] - EIMEA region saw a 6% decline in organic revenue, driven by lower volume in packaging and construction [9] - Asia-Pacific reported a 3% increase in organic revenue, with significant growth in EA and HHC, particularly in automotive and electronics [9] Company Strategy and Development Direction - The company is focused on transforming into a higher-growth, higher-margin entity, with strategic actions including portfolio repositioning and cost structure improvements through initiatives like Quantum Leap [4][10] - M&A remains a key part of the value creation strategy, with several acquisitions in medical adhesives and fastener coating systems aimed at expanding market presence [17][19] - The company aims to achieve an EBITDA margin greater than 20% and anticipates profit growth despite a challenging economic environment [10][13] Management's Comments on Operating Environment and Future Outlook - The management expects the economic environment in 2026 to remain challenging, with ongoing geopolitical tensions and inflation impacting manufacturing investment [10] - Despite these challenges, the company anticipates another year of profit growth and margin expansion, driven by proactive pricing and cost management strategies [10][13] - The management highlighted the importance of navigating through the current economic landscape with focus and resilience [20] Other Important Information - The company reported a net debt to adjusted EBITDA ratio of 3.1 times, down from 3.3 times in the previous quarter, indicating a plan to reduce leverage [12][13] - The company expects full-year net revenue for 2026 to be flat to up 2%, with organic revenue anticipated to be approximately flat [13][14] Q&A Session Summary Question: Q1 guidance and revenue decline - Management indicated that the primary reason for the expected low single-digit decline in Q1 is the timing of Chinese New Year, which will shift some revenue from Q1 to Q2, impacting revenue by $15-$20 million [25][28] Question: Raw materials and pricing outlook for 2026 - The company expects a carryover benefit of around $25 million from pricing and raw material actions into 2026, with an overall benefit increasing to about $35 million [30][32] Question: BAS segment performance and government shutdown impact - Management clarified that the BAS segment faced tough comparisons from the previous year but noted that the government shutdown did not significantly impact their performance [41][44] Question: Packaging market trends and competitive intensity - The management acknowledged ongoing weakness in the packaging market, particularly in North America, but emphasized their focus on innovation and working with the best customers [44][91] Question: Free cash flow outlook for 2026 - The company guided for cash flow from operations to be between $275 million and $300 million, with working capital expected to remain elevated due to the Quantum Leap initiative [54][74] Question: Geographic market demand growth - Management highlighted a rebound in demand in China, indicating it as a potential area of growth despite overall constraints in larger economies [96][98]

January 15, 2026 Fourth Quarter 2025 H.B. Fuller Earnings Conference Call 1200 Willow Lake Blvd, St Paul, Minnesota 55110 www.hbfuller.com January 15, 2026 Disclosure Certain matters discussed today are forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements reflect our current expectations, and actual results may differ as they are subjec ...

Financial Performance - Q4 2025 net income was $30 million, with adjusted EBITDA of $170 million, representing a 14.6% year-on-year increase[5]. - Q4 2025 adjusted EBITDA margin was 19.0%, up 290 basis points year-on-year, driven by pricing and raw material cost actions[9]. - FY 2025 net revenue was $3.47 billion, down 2.7% year-on-year; adjusting for the flooring divestiture, net revenue was up 1.8% year-on-year[5]. - Adjusted EPS for Q4 2025 was $1.28, up 39.1% year-on-year, attributed to higher operating income and lower shares outstanding[8]. - Net income attributable to H.B. Fuller for the three months ended November 29, 2025, was $29.7 million, compared to a net loss of $7.4 million in the same period of 2024[22]. - For the year ended November 29, 2025, net revenue was $3.47 billion, down 2.7% from $3.57 billion in 2024[24]. - Adjusted net income attributable to H.B. Fuller for the year ended November 29, 2025, was $70.6 million, compared to $52.0 million in 2024[26]. - Net income attributable to H.B. Fuller for the year ended November 29, 2025, was $151.967 million, with an adjusted net income of $234.608 million[47]. - The company reported a net income attributable to the company of $51.264 million for the three months ended November 30, 2025, compared to $55.361 million for the same period in 2024, reflecting a decrease of approximately 3.9%[59]. Revenue and Growth - Fiscal 2026 net revenue is expected to be flat to up 2%, with organic revenue anticipated to be approximately flat versus fiscal 2025[16]. - Total net revenue for H.B. Fuller in the three months ended November 29, 2025, was $894.8 million, a decrease of 3.9% compared to $923.3 million in the same period of the previous year[37]. - The company experienced a total net revenue decline of 3.1% for the three months ended November 29, 2025, with organic growth declining by 1.3%[53]. - The Hygiene, Health and Consumable Adhesives segment reported a net revenue growth of 0.3% for the year ended November 29, 2025, while Engineering Adhesives grew by 5.2%[55]. - The Building Adhesive Solutions segment faced a decline of 3.3% in net revenue for the year ended November 29, 2025[57]. EBITDA and Margins - Adjusted EBITDA for fiscal 2026 is projected to be in the range of $630 million to $660 million[16]. - Adjusted EBITDA for the three months ended November 29, 2025, was $170.1 million, representing a margin of 19.0%[26]. - The adjusted EBITDA margin improved to 19.0% in Q4 2025, compared to 16.1% in Q4 2024[37]. - Adjusted EBITDA for the year was $620.660 million, with an adjusted EBITDA margin of 17.9%[47]. - The adjusted EBITDA margin for the three months was 19.0%, indicating strong operational efficiency[47]. Expenses and Costs - Selling, general and administrative expenses for the three months ended November 29, 2025, were $183.6 million, accounting for 20.5% of net revenue[22]. - Interest expense for the year ended November 29, 2025, was $133.3 million, slightly up from $133.1 million in 2024[24]. - Selling, general and administrative expenses for the three months ended November 29, 2025, were $183.6 million, a slight decrease from $188.5 million in the same quarter last year[45]. - Acquisition project costs for the year amounted to $15.412 million, reflecting ongoing strategic investments[47]. - Organizational realignment costs totaled $31.424 million, aimed at enhancing operational effectiveness[47]. Debt and Cash Flow - Net debt at the end of Q4 2025 was $1,910 million, down $48 million sequentially and up $68 million year-on-year[12]. - Operating cash flow for fiscal year 2026 is expected to be between $275 million and $300 million[16]. - Total debt as of November 30, 2025, was $2.180 billion, with a net debt of $2.074 billion after accounting for cash and cash equivalents of $105.743 million[64]. - The net debt-to-adjusted EBITDA ratio improved to 3.5 as of November 30, 2025, compared to 3.3 in the previous quarter, indicating better leverage management[64]. - Net cash provided by operating activities decreased to $263,493 million in 2025 from $302,437 million in 2024, a decline of about 13%[70]. Strategic Initiatives - H.B. Fuller continues to focus on market expansion and product innovation as part of its strategic initiatives[47]. - The company is focused on strategic initiatives including acquisitions and organizational realignment to enhance operational efficiency and market presence[59].

Core Viewpoint - H.B. Fuller Company reported strong earnings per share (EPS) but fell short on revenue expectations, reflecting mixed financial performance in the fourth quarter of 2025 [2][3]. Financial Performance - The company announced an EPS of $1.28, surpassing the estimated $1.24, and showing a significant increase from the previous year's EPS of $0.92 [2][6]. - Reported revenue was approximately $894.8 million, which was below the estimated $901.3 million, indicating a slight decline in sales [2][6]. - The revenue of $894.8 million represents a 3.1% decline compared to the same period last year; however, when adjusted for the flooring divestiture, net revenue increased by 0.9% year-on-year [3]. Profitability Metrics - The gross margin improved to 31.5%, with an adjusted gross margin of 32.5%, driven by favorable pricing and raw material cost actions [3]. Market Valuation - The company has a price-to-earnings (P/E) ratio of approximately 30.77, indicating how the market values its earnings [4]. - The price-to-sales ratio is nearly 1, suggesting that its market capitalization is roughly equal to its total sales [4]. - The enterprise value to sales ratio stands at about 1.56 [4]. Financial Health - The debt-to-equity ratio is about 1.06, reflecting the company's use of debt financing relative to equity [5][6]. - The current ratio is approximately 1.93, indicating the company's ability to cover short-term liabilities with short-term assets [5][6].

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H.B. Fuller Company (NYSE:FUL) will release earnings results for the fourth quarter, after the closing bell on Wednesday, Jan. 14.Analysts expect the Saint Paul, Minnesota-based company to report quarterly earnings at $1.21 per share, up from 92 cents per share in the year-ago period. The consensus estimate for H.B. Fuller's quarterly revenue is $901.34 million, up from $923.28 million a year earlier, according to data from Benzinga Pro.On Oct. 8, H.B. Fuller announced the appointment of Celine Martin to it ...

H.B. Fuller Company (NYSE:FUL) will release earnings results for the fourth quarter, after the closing bell on Wednesday, Jan. 14.Analysts expect the Saint Paul, Minnesota-based company to report quarterly earnings at $1.21 per share, up from 92 cents per share in the year-ago period. The consensus estimate for H.B. Fuller's quarterly revenue is $901.34 million, up from $923.28 million a year earlier, according to data from Benzinga Pro.On Oct. 8, H.B. Fuller announced the appointment of Celine Martin to it ...

Core Viewpoint - H.B. Fuller Company plans to report its financial results for the fiscal periods ending November 29, 2025, on January 14, 2026, and will hold an investor conference call on January 15, 2026, to discuss these results [1]. Financial Reporting - The financial results will cover both the three-month and twelve-month periods ending November 29, 2025 [1]. - The press release regarding the financial results will be issued after market close on January 14, 2026 [1]. Conference Call Details - The investor conference call is scheduled for January 15, 2026, at 9:30 a.m. CT (10:30 a.m. ET) [1]. - Interested parties can access the live webcast of the conference call through the company's website, with pre-registration required [2]. - A telephone replay of the conference call will be available from January 15, 2026, at 12:30 p.m. CT until January 22, 2026, at 10:59 p.m. CT [3]. Company Overview - H.B. Fuller is the largest pureplay adhesives company globally, with a revenue of $3.6 billion in 2024 [4]. - The company was founded in 1887 and employs over 7,500 team members, serving more than 30 market segments in over 140 countries [4]. - H.B. Fuller's mission is to enhance the quality, safety, and performance of everyday products through innovative coatings, adhesives, and sealants [4].