H.B. Fuller Earnings Top Estimates as Margin Expansion Offsets Revenue Decline

Core Viewpoint - H.B. Fuller reported fourth-quarter adjusted earnings that exceeded analyst expectations, but shares declined over 3% in pre-market trading due to revenue falling slightly short of expectations [1]. Financial Performance - The company posted adjusted earnings per share of $1.28, surpassing the consensus estimate of $1.23 [2]. - Revenue totaled $894.8 million, slightly below expectations of $902.51 million, representing a 3.1% year-over-year decline; however, excluding the impact of the flooring divestiture, revenue increased by 0.9% [2]. Profitability Metrics - Adjusted EBITDA rose 14.6% year-over-year to $170 million, with the adjusted EBITDA margin expanding to 19.0%, an increase of 290 basis points from the prior year [3]. - The margin expansion was driven by favorable pricing actions, lower raw material costs, acquisition synergies, and restructuring initiatives [3]. Future Outlook - For fiscal 2026, H.B. Fuller expects revenue to be flat to up 2% compared to 2025 [4]. - The company projected adjusted EBITDA in the range of $630 million to $660 million and guided adjusted earnings per share between $4.35 and $4.70 [4].