Core Viewpoint - H. B. Fuller (FUL) is identified as a strong value stock, currently undervalued compared to its industry peers, with favorable financial metrics indicating potential for growth [4][9]. Financial Metrics - FUL has a Forward P/E ratio of 12.56, significantly lower than the industry average of 22.85, indicating it may be undervalued [4]. - The company holds a PEG ratio of 0.79, compared to the industry average of 2.26, suggesting strong earnings growth potential relative to its price [5]. - FUL's P/B ratio stands at 1.66, while the industry average is 3.10, further supporting the notion of undervaluation [6]. - The P/S ratio for FUL is 0.87, compared to the industry's average of 1.48, indicating a favorable valuation based on sales [7]. - FUL has a P/CF ratio of 10.67, lower than the industry average of 13.60, which highlights its strong cash flow outlook [8]. Investment Outlook - The combination of these metrics positions H. B. Fuller as one of the market's strongest value stocks, appealing to value investors seeking undervalued opportunities [9].

Core Insights - The article compares H. B. Fuller (FUL) and PPG Industries (PPG) to determine which stock offers better value opportunities for investors [1] Valuation Metrics - H. B. Fuller has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while PPG Industries has a Zacks Rank of 3 (Hold) [3] - FUL's forward P/E ratio is 13.32, compared to PPG's forward P/E of 14.04, suggesting FUL may be undervalued [5] - FUL has a PEG ratio of 0.84, indicating better value relative to its expected earnings growth, while PPG's PEG ratio is 2.50 [5] - FUL's P/B ratio is 1.64, significantly lower than PPG's P/B of 3.53, further indicating FUL's relative undervaluation [6] - Based on these metrics, FUL holds a Value grade of B, while PPG has a Value grade of C [6] Earnings Outlook - FUL is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Group 1 - The article highlights multiple investment opportunities arising from the tariff and trade pullback, including companies that have not been previously considered for investment [1] - The author expresses a beneficial long position in the shares of specific companies, indicating a personal investment interest [1] Group 2 - The article emphasizes the importance of conducting due diligence and research before making any investment decisions, particularly for investors with limited capital or experience [2] - It notes that investing in European and non-US stocks carries specific withholding tax risks that should be considered [2]

Financial Data and Key Metrics Changes - In Q1 2025, organic revenue increased by 1.9% year on year, primarily driven by positive volume trends [9][18] - EBITDA for the quarter was $114 million, which was at the high end of guidance but declined year on year as expected, with an EBITDA margin of 14.5% [9][20] - Adjusted earnings per share (EPS) was $0.54, down compared to the same quarter in 2024 due to lower operating income [20] - Cash flow from operations decreased year on year, driven by higher working capital needs associated with revenue growth [21] Business Line Data and Key Metrics Changes - In the Hygiene, Health and Consumables (HHC) segment, organic revenue increased by 4% year on year, supported by solid volume growth and positive pricing [11] - Engineering Adhesives (EA) saw a 2% decline in organic revenue, but EBITDA increased by 16% with an EBITDA margin of 18.7% [13][14] - Building Adhesive Solutions (BAS) experienced a 2% increase in organic sales, with EBITDA also increasing by 2% year on year [15] Market Data and Key Metrics Changes - In the Americas, organic revenue decreased by 1% year on year, primarily due to declines in HHC and EA, while BAS achieved over 8% organic revenue growth [16] - In EIMIA, organic revenue increased by 4%, driven by double-digit growth in HHC [16] - Asia Pacific saw a 7% increase in organic revenue, largely attributed to strength in China [17] Company Strategy and Development Direction - The company is focused on maintaining pricing discipline, driving market share gains, and managing cost structures effectively [7][8] - A long-term strategic plan aims to optimize the portfolio mix and streamline manufacturing costs to achieve a target EBITDA margin of over 20% [8] - The company is prioritizing share buybacks in response to market volatility and has temporarily slowed the timing of M&A transactions [22][23] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to weak overall market demand and unpredictable geopolitical conditions but is confident in adapting and executing in the current environment [8][26] - The company expects to see improvements in pricing and raw material dynamics throughout the year, with a favorable net benefit anticipated [10][24] - Full-year guidance for 2025 includes a net revenue decline of 2% to 4% and adjusted EBITDA in the range of $600 million to $625 million [24][25] Other Important Information - The company has a long-term leverage target of less than three times net debt to EBITDA, with current leverage at 3.5 times [21][22] - The company is actively working on PFAS-free alternatives in adhesives, positioning itself as an innovator in this space [129] Q&A Session Summary Question: What is the current operating standpoint regarding customer management through volatility? - Management noted that customers are cautious and focused on innovation, with no significant prebuying observed [35][36] Question: Can you provide an update on market share and competitive environment? - The company has gained market share in multiple segments, particularly in HHC, and is repositioning away from lower-value products [41][42] Question: What is the outlook for pricing and EBITDA margin in HHC? - Management expects improving margins in HHC throughout the year, ideally reaching a 16% to 17% EBITDA margin range [49][52] Question: How is working capital impacting cash flow? - Working capital needs have increased due to revenue growth, but management is confident in achieving the cash flow target for the year [55][56] Question: What trends are being observed in China post-Lunar New Year? - The company is experiencing mid to high single-digit growth in China, with strong performance in both HHC and EA segments [73][74] Question: How is the solar business expected to perform? - The solar business is expected to remain weak in revenue but improve in margins as the company shifts focus to higher-efficiency applications [86][88] Question: What is the impact of tariffs on customer revenues? - The direct impact of tariffs is minimal, but durable goods production may be more affected, with potential indirect impacts on the company [123][125] Question: What is the company's position on PFAS in adhesives? - The company has introduced PFAS-free alternatives and is positioned to benefit from the market shift away from PFAS-containing materials [129][130]

Financial Performance - Adjusted EPS was $0.54[6], down compared to Q1 2024 due to lower operating income[14] - Adjusted EBITDA reached $114 million[6], but was negatively impacted by foreign exchange by approximately $5 million year-over-year[14] - Adjusted EBITDA margin was 14.5%[6], compared to 15.2% in the prior year[24] - Organic revenue increased by 1.9% year-over-year, driven by positive volume and pricing performance[6] - Net revenue decreased by 2.7% year-over-year[36], from $810.419 million to $788.663 million[22] Segment Performance - Hygiene, Health, and Consumable Adhesives saw organic revenue increase by 4% year-over-year[8] - Engineering Adhesives organic revenue declined by 2%[8], but adjusted EBITDA margin increased by 180 basis points year-over-year to 18.7%[8] - Building Adhesive Solutions organic sales increased by 2% year-over-year[8] Regional Performance - Americas organic revenue decreased by 1% year-over-year[12] - EIMEA (Europe, India, Middle East, and Africa) organic revenue increased by 4% year-over-year[12] - Asia-Pacific organic revenue increased by 7% year-over-year[12] 2025 Financial Guidance - The company expects net revenue to be down 2% to 4% year-over-year[16]; excluding the impact of Flooring, net revenue is expected to be up 1% to 2% year-over-year[16] - Adjusted EBITDA is expected to be in the range of $600 million to $625 million[16], representing a 1% to 5% increase year-over-year[16] - Adjusted EPS is expected to be in the range of $3.90 to $4.20[16], representing year-over-year growth of 2% to 9%[16]

Revenue Performance - Net revenue for Q1 2025 was $788.7 million, a decrease of 2.7% compared to $810.4 million in Q1 2024[101]. - Organic revenue growth increased by 1.9% in Q1 2025, driven by a 4.2% increase in Hygiene, Health and Consumable Adhesives and a 2.2% increase in Building Adhesive Solutions[101]. - The Engineering Adhesives segment reported net revenue of $236.8 million in Q1 2025, a 4.0% increase from $226.0 million in Q1 2024[119]. - Net revenue for the Hygiene, Health and Consumable Adhesives segment was flat at $0.0 million in Q1 2025 compared to Q1 2024, with organic growth of 4.2% offset by a negative currency effect of (5.0)%[122]. - Engineering Adheses net revenue increased by 4.7% to $236.8 million in Q1 2025, driven by an 8.7% contribution from M&A, despite a decline in organic growth of (1.9)%[124]. - Building Adhesive Solutions reported a net revenue increase of 2.2% to $183.7 million in Q1 2025, with organic growth of 2.2% and a 2.4% contribution from M&A[125]. Profitability - Net income attributable to H.B. Fuller in Q1 2025 was $13.2 million, down 57.4% from $31.0 million in Q1 2024, with diluted earnings per share decreasing from $0.55 to $0.24[98][114]. - Gross profit margin decreased by 70 basis points to 28.8% in Q1 2025, primarily due to higher raw material and manufacturing costs[104]. - SG&A expenses increased by 4.8% to $180.6 million in Q1 2025, representing 22.9% of net revenue, up from 21.3% in Q1 2024[105]. - Segment operating income for Engineering Adhesives rose by 8.5% to $28.0 million, while segment operating margin improved by 40 basis points to 11.8%[124]. - Segment operating income for Building Adhesive Solutions decreased by 8.3% to $6.6 million, with segment operating margin declining by 40 basis points to 3.6%[125]. Cash Flow and Debt - Free cash flow for Q1 2025 was $(85.9) million, a significant decrease from $4.1 million in Q1 2024[138]. - Net cash provided by operating activities was $(52.9) million in Q1 2025, compared to $47.4 million in Q1 2024[140]. - Total cash and cash equivalents as of March 1, 2025, were $105.7 million, down from $165.2 million as of March 2, 2024[130]. - Total long and short-term debt increased to $2,180.0 million as of March 1, 2025, compared to $1,830.8 million as of March 2, 2024, resulting in a total debt to total capital ratio of 55.1%[130]. - Changes in net working capital resulted in a cash use of $27.5 million in Q1 2025, compared to a cash source of $34.3 million in Q1 2024[141]. Investment and Financing Activities - Net cash used in investing activities was $121.4 million in Q1 2025, up from $42.7 million in Q1 2024, with property, plant, and equipment purchases at $33.0 million[143]. - The company paid $162.0 million in cash for business acquisitions during Q1 2025 and received $75.8 million from the sale of NA Flooring[144]. - Net cash provided by financing activities was $111.4 million in Q1 2025, compared to a cash use of $16.9 million in Q1 2024[145]. - Borrowings on the revolving credit facility totaled $526.3 million in Q1 2025, with repayments amounting to $359.5 million[145]. - Cash dividends paid increased to $12.2 million in Q1 2025 from $11.2 million in Q1 2024, while common stock repurchases rose to $44.4 million from $6.2 million[145]. Other Financial Metrics - Other income, net decreased by 113.3% to $1.5 million in Q1 2025, compared to $3.2 million in Q1 2024[107]. - Interest expense slightly increased to $32.0 million in Q1 2025 from $31.9 million in Q1 2024[108]. - Income from equity method investments decreased by 50.0% to $0.5 million in Q1 2025, down from $1.0 million in Q1 2024[113]. - Trade receivables provided $13.9 million in cash in Q1 2025, down from $56.9 million in Q1 2024, with Days Sales Outstanding (DSO) increasing to 61 days[142]. - Inventory usage decreased to $27.1 million in Q1 2025 from $50.2 million in Q1 2024, with inventory days on hand at 79 days[142]. - Trade payables resulted in a cash use of $14.3 million in Q1 2025, compared to a cash source of $27.6 million in Q1 2024, with Days Payable Outstanding remaining at 73 days[142]. Restructuring and Market Risks - Restructuring plans are expected to incur costs of approximately $60.0 million to $65.0 million, with $61.7 million already incurred as of March 1, 2025[99]. - The company remains exposed to market risks including interest rates and foreign currency rates, with no material changes reported since November 30, 2024[149].

Financial Data and Key Metrics Changes - Organic revenue increased by 1.9% year on year, driven primarily by positive volume trends [6][12] - EBITDA was $114 million, which was at the high end of guidance, but declined year on year as expected, with an EBITDA margin of 14.5% [6][12] - Adjusted earnings per share (EPS) was $0.54, down compared to the same quarter in 2024, driven by lower operating income [13] - Net debt to EBITDA ratio increased to 3.5 times at the end of the first quarter, up from 3.1 times at the end of 2024 [14] Business Line Data and Key Metrics Changes - In HHC (Hygiene, Health, and Cleaning), organic revenue was up 4% year on year, with an EBITDA margin of 12.7%, down from last year due to higher raw material costs [7][8] - Engineering Adhesives saw a 2% decline in organic revenue, but EBITDA increased by 16%, with an EBITDA margin of 18.7% [9] - Building Adhesive Solutions (BAS) had a 2% increase in organic sales, with EBITDA also increasing by 2% year on year [10] Market Data and Key Metrics Changes - In the Americas, organic revenue was down 1% year on year, driven by declines in HHC and Engineering Adhesives, but BAS achieved over 8% organic revenue growth [10] - EIMEA (Europe, India, Middle East, and Africa) saw a 4% increase in organic revenue, driven by double-digit growth in HHC [11] - Asia Pacific experienced a 7% increase in organic revenue, primarily due to strength in China [11] Company Strategy and Development Direction - The company is focused on maintaining pricing discipline, driving market share gains, and managing costs effectively while optimizing its portfolio mix [5][18] - The strategic direction includes streamlining the cost structure and improving operational efficiency, with a target of achieving greater than 20% EBITDA margin [5][19] - The company is prioritizing share buybacks and has temporarily slowed the timing of M&A transactions due to market volatility [15][16] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to weak overall market demand and unpredictable geopolitical conditions [5] - The company expects to see a favorable net benefit from pricing and raw material actions for the remainder of the year [6] - Management is confident in their ability to adapt and execute in the current environment to deliver growth in organic sales and EBITDA [6][18] Other Important Information - The company is experiencing raw material cost inflation, with about 20% of the portfolio seeing increases [73] - The solar business is expected to remain weak throughout the year, but margins are anticipated to improve as the company repositions away from lower efficiency panels [70][71] Q&A Session Summary Question: What are the current operating conditions and customer management strategies? - Management noted that customers are cautious and not seeing prebuying trends, focusing instead on innovation and new product development [25][26] Question: Can you provide an update on market share and competitive environment? - Management confirmed gaining market share in multiple segments, particularly in HHC, and noted ongoing challenges in the solar market [31][32] Question: What is the outlook for pricing and EBITDA margins in HHC? - Management expects improving margins in HHC throughout the year, ideally reaching a 16% to 17% EBITDA margin range [39][41] Question: How is working capital impacting cash flow? - Management indicated that working capital needs are higher due to volume and pricing growth, but improvements are expected as the year progresses [42][44] Question: What is the outlook for the European and U.S. economies? - Management observed that the U.S. business is slowing, while the European market showed mixed results, with some segments accelerating [80][81] Question: How is the company positioned regarding tariffs and their impact? - Management stated that durable goods production will be more impacted by tariffs, but the company is well-positioned to manage costs in a low-volume environment [102] Question: Are there opportunities in the PFAS-free market? - Management confirmed that they have PFAS-free alternatives and are actively working with customers to capture market share in this area [105]

Financial Data and Key Metrics Changes - Organic revenue increased by 1.9% year on year, driven primarily by positive volume trends [7] - EBITDA was $114 million, which was at the high end of guidance, but declined year on year, with an EBITDA margin of 14.5% [8] - Adjusted earnings per share (EPS) was $0.54, down compared to the same quarter in 2024, driven by lower operating income [15] - Net debt to EBITDA ratio increased to 3.5 times at the end of the first quarter, up from 3.1 times at the end of 2024 [16] Business Line Performance Changes - In HHC, organic revenue was up 4% year on year, with EBITDA margin at 12.7%, down from last year due to higher raw material costs [10] - Engineering Adhesives saw a 2% decline in organic revenue, but EBITDA increased by 16%, with an EBITDA margin of 18.7% [11] - Building Adhesive Solutions (BAS) organic sales increased by 2% year on year, with EBITDA also increasing by 2% [12] Market Performance Changes - Americas organic revenue was down 1% year on year, driven by declines in HHC and Engineering Adhesives, but BAS achieved over 8% organic revenue growth [12] - EIMEA region saw a 4% increase in organic revenue, driven by double-digit growth in HHC [13] - Asia Pacific organic revenue increased by 7% year on year, primarily due to strength in China [13] Company Strategy and Industry Competition - The company is focused on maintaining pricing discipline, driving market share gains, and managing cost structures effectively [6] - The strategic plan includes optimizing the portfolio mix and streamlining manufacturing costs to achieve a greater than 20% EBITDA margin target [6] - The company is adapting to market dynamics and is confident in its ability to drive sustained growth in organic sales and EBITDA [20] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to weak overall market demand and unpredictable geopolitical conditions [6] - The company expects a favorable net benefit from pricing and raw material actions for the remainder of the year [9] - Management anticipates that the last three quarters of the year will see EBITDA margins closer to the 15% to 17% range as pricing improves [42] Other Important Information - The company repurchased 678,000 shares during the first quarter and plans to continue share buybacks opportunistically [16] - The company is temporarily slowing the timing of M&A transactions due to market volatility [17] - Full-year adjusted EBITDA is expected to be in the range of $600 million to $625 million, equating to growth of approximately 1% to 5% year on year [18] Q&A Session Summary Question: What are the current operating conditions and customer management through volatility? - Management noted that customers are cautious and not seeing pre-buying in the U.S. or globally [27] Question: Can you provide an update on market share and competitive environment? - Management confirmed gaining market share in HHC and noted ongoing challenges in the solar segment [33] Question: What is the outlook for pricing in HHC? - Management expects improving margins in HHC throughout the year, targeting a normalized EBITDA margin of 16% to 17% [40] Question: How is working capital impacting cash flow? - Management indicated that working capital needs are higher due to volume and pricing growth, but expects improvement throughout the year [44] Question: What is the outlook for demand in March and beyond? - Management observed a steady crawl of volume without significant push-outs due to trade uncertainties [52] Question: How is the company managing debt reduction versus share buybacks? - Management is prioritizing share buybacks while being cautious about M&A due to leverage concerns [56] Question: What trends are being observed in China? - Management reported mid to high single-digit growth in China, with strong performance in both HHC and Engineering Adhesives [60] Question: What is the expected impact of solar business repositioning? - Management expects continued revenue drag in the solar business but anticipates margin improvements [70] Question: How are raw material costs affecting different business segments? - Management noted that raw material costs are increasing, particularly impacting HHC, but expects to drive pricing and reallocate materials [73]

Financial Data and Key Metrics Changes - Organic revenue increased by 1.9% year-on-year, driven primarily by positive volume trends [9][18] - EBITDA for the quarter was $114 million, which was at the high end of guidance but declined year-on-year as expected, with an EBITDA margin of 14.5% [9][19] - Adjusted earnings per share decreased to 54 cents compared to the same quarter in 2024, driven by lower operating income [20] Business Line Data and Key Metrics Changes - In the HHC segment, organic revenue rose by 4% year-on-year, supported by solid volume growth and positive pricing [11] - Engineering Adhesives saw a 2% decline in organic revenue, but EBITDA increased by 16%, with an EBITDA margin of 18.7% [14] - Building Adhesive Solutions (BAS) experienced a 2% increase in organic sales, with EBITDA also increasing by 2% year-on-year [15] Market Data and Key Metrics Changes - In the Americas, organic revenue decreased by 1% year-on-year, primarily due to declines in HHC and Engineering Adhesives, while BAS achieved over 8% organic revenue growth [16] - EIMEA region saw a 4% increase in organic revenue, driven by double-digit growth in HHC [17] - Asia Pacific organic revenue increased by 7% year-on-year, with significant growth in China [17][72] Company Strategy and Development Direction - The company is focused on maintaining pricing discipline, driving market share gains, and managing cost structures effectively [7][8] - A long-term strategic plan aims to optimize the portfolio mix and streamline manufacturing costs to achieve a greater than 20% EBITDA margin target [8] - The company is adapting to market dynamics and geopolitical conditions while aiming for growth in organic sales and EBITDA [8][28] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to weak overall market demand and unpredictable geopolitical conditions [8] - The company expects to see improvements in pricing and raw material dynamics throughout the year [10][50] - Management is confident in the ability to drive sustained growth in organic sales and EBITDA through self-help initiatives [28][122] Other Important Information - The company repurchased 678,000 shares during the first quarter and plans to continue share buybacks opportunistically [22][23] - Full-year guidance for net revenue is expected to decline by 2 to 4 percent, with organic revenue flat to up 2 percent year-on-year [24] Q&A Session Summary Question: Can you provide insights on operating conditions and customer management through volatility? - Management noted that there has not been significant pre-buying observed, and customers remain cautious but focused on innovation [35][36] Question: What is the outlook for pricing in the HHC segment? - Management expects improving margins in HHC throughout the year, targeting a normalized EBITDA margin range of 16% to 17% [49][51] Question: How is the company managing working capital and cash flow expectations? - Management indicated that working capital needs have increased due to revenue growth, but improvements are expected as the year progresses [56][58] Question: What trends are being observed in China post-Lunar New Year? - Management reported mid to high single-digit growth in China, with strong performance in both HHC and Engineering Adhesives [72][73] Question: How is the solar business expected to perform moving forward? - The solar business is anticipated to remain weak in revenue but improve in margins as the company repositions away from lower efficiency panels [85] Question: What is the impact of tariffs on customer revenues and operations? - Management indicated that durable goods production will be more impacted by tariffs, but the indirect impact on the company is hard to quantify [121][122]

Financial Performance - Net revenue for Q1 2025 was $789 million, a decrease of 2.7% year-on-year; organic revenue increased by 1.9% driven by a 1.7% volume increase[5]. - Adjusted EBITDA for Q1 2025 was $114 million, down 7% year-on-year, primarily due to higher raw material costs and variable compensation[9]. - Adjusted EPS (diluted) for Q1 2025 was $0.54, compared to $0.55 in Q1 2024, reflecting a decrease in net income attributable to H.B. Fuller of $13 million[9]. - The gross margin for Q1 2025 was 28.8%, with an adjusted gross margin of 29.6%, down 50 basis points year-on-year due to increased raw material costs[7]. - Net income attributable to H.B. Fuller for the three months ended March 1, 2025, was $13,248, compared to $30,991 for the same period in 2024, representing a decline of 57.3%[26]. - Adjusted net income attributable to H.B. Fuller decreased to $29,997 from $37,692 year-over-year, a reduction of 20.5%[26]. - Revenue for the three months ended March 1, 2025, was $788,663, down from $810,419 in the prior year, reflecting a decrease of 2.5%[32]. - Adjusted EBITDA for the same period was $114,356, compared to $123,018 in 2024, indicating a decline of 7.1%[32]. - The adjusted EBITDA margin decreased to 14.5% from 15.2% year-over-year[32]. - H.B. Fuller reported a net income attributable to the company of $70,315,000 for the three months ended March 1, 2025, compared to $84,331,000 for the same period in 2024, reflecting a decrease of approximately 16.6%[44]. - The total revenue for H.B. Fuller was $788,663,000 for the three months ended March 1, 2025, a decline of 2.7% compared to the previous year[50]. - Organic growth for H.B. Fuller was reported at 1.9%, while the impact of foreign exchange (F/X) was a decline of 3.4%[50]. - The Hygiene, Health and Consumable Adhesives segment experienced a revenue growth of 4.2% on an organic basis, while Engineering Adhesives saw a decline of 1.9%[50]. Shareholder Returns - The company repurchased 678 thousand shares during the quarter, reflecting a commitment to returning value to shareholders[6]. Future Projections - For fiscal 2025, net revenue growth is expected to decline by 2% to 4%, while organic revenue growth is projected to be flat to up 2%[16]. - Adjusted EBITDA for fiscal 2025 is anticipated to be in the range of $600 million to $625 million, representing a year-on-year growth of approximately 1% to 5%[16]. Debt and Cash Flow - Net debt at the end of Q1 2025 was $2,074 million, an increase of $233 million sequentially and $409 million year-on-year, primarily driven by acquisitions[11]. - Cash flow from operations is expected to be weighted towards the second half of 2025 due to higher working capital needs associated with revenue growth[13]. - Total debt as of March 1, 2025, is $2,179,997, an increase from $2,010,639 as of November 30, 2024[60]. - Net debt as of March 1, 2025, is $2,074,254, compared to $1,841,287 as of November 30, 2024, reflecting a significant increase[60]. - Cash and cash equivalents decreased to $105,743 as of March 1, 2025, from $169,352 as of November 30, 2024[64]. - Net cash used in operating activities for the three months ended March 1, 2025, is $(52,907), compared to $47,351 for the same period in 2024[66]. Operational Costs - Acquisition project costs for the quarter amounted to $9,828,000, and organizational realignment costs were $8,774,000[44]. - The company incurred interest expenses of $32,030,000 during the quarter, contributing to the overall financial adjustments[44]. Segment Performance - Segment revenue for Hygiene, Health and Consumable Adhesives was $368,225, slightly up from $368,078, while Engineering Adhesives increased to $236,758 from $226,075[32]. - Total segment operating income decreased to $46,447 from $66,875, a decline of 30.6%[32]. - The gross profit margin for the three months ended March 1, 2025, was 28.8%, down from 29.5% in the prior year[39]. - Adjusted gross profit margin decreased to 29.6% from 30.1% year-over-year[39]. - The revenue for the Building Adhesive Solutions segment was $179,666,000, with an adjusted EBITDA of $21,410,000[47]. Investments - The company has made significant investments, with $162,032 used for purchased businesses in the three months ended March 1, 2025[66].