Fuller(FUL) - 2025 Q1 - Quarterly Report

Revenue Performance - Net revenue for Q1 2025 was $788.7 million, a decrease of 2.7$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$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$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$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$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$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$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$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].