Fuller(US:FUL)2026-01-15 13:01Financial 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].