CHARLOTTE, N.C., Aug. 25, 2025 /PRNewswire/ -- Meridian announced today that it has entered into a definitive agreement to divest its Flooring Adhesives Division—including the Taylor Adhesives, Polycom, and Frontier Products brands—to Avery Dennison, a global leader in materials science and digital identification solutions.Upon closing, the Flooring Business will be integrated into Avery Dennison's Materials Group business, positioning the brands for accelerated innovation and expanded reach."This transacti ...

Second Quarter 2025 Conference Call June 26, 2025 ® 2025 H.B. Fuller Title Slide Disclosure Safe Harbor Statement 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 subject to the kinds of risks that are enumerated in the Co ...

Financial Data and Key Metrics Changes - The company reported a 2.1% decrease in revenue year on year, but net revenue adjusted for the flooring divestiture increased by 2.8% [14] - Organic revenue was up 0.4%, with pricing growth of 0.7% and a volume decline of 0.3% year on year [15] - Adjusted EBITDA for the quarter was $166 million, reflecting a 5% year on year increase, driven by targeted pricing actions and cost savings [16] - Adjusted earnings per share (EPS) increased by 5% to $1.18 due to higher net income and lower shares outstanding [17] - Operating cash flow increased by 36% year on year to $111 million, reflecting improved net income and working capital [17] - Net debt to adjusted EBITDA decreased from 3.5 times to 3.4 times, indicating improved cash flow and lower debt balances [17] Business Line Data and Key Metrics Changes - In the HHC segment, organic revenue increased by 1.8% year on year, driven by positive volume and pricing, although EBITDA margin was down year on year due to higher raw material costs [8] - Engineering Adhesives saw a 0.4% decrease in organic revenue, with strong performance in transportation markets offset by weakness in solar [9] - Building Adhesive Solutions experienced a 0.9% decrease in organic sales year on year, but EBITDA increased by 5% with a margin expansion of 60 basis points [10] Market Data and Key Metrics Changes - In the Americas, organic revenue was up 2% year on year, driven by strength in roofing and flexible packaging [10] - EIMEA region saw a 2% decline in year-over-year organic revenue, with strong performance in hygiene offset by weak demand in construction-related markets [11] - Asia Pacific experienced slight organic revenue growth year on year, with strong performance in transportation markets but slower results in solar and electronics [11] Company Strategy and Development Direction - The company is focused on delivering positive organic revenue growth while managing costs and leveraging global sourcing to respond to market uncertainties [6] - A strategic shift towards higher growth and higher margin markets is underway, including the divestiture of lower margin businesses [6] - The company aims to achieve a greater than 20% EBITDA margin target and is optimistic about margin expansion in 2025 [26] Management's Comments on Operating Environment and Future Outlook - Management expects a challenging operating environment with high uncertainty and constrained demand, particularly in the second half of the year [12] - Despite economic uncertainties, the company is optimistic about its strong execution and expects profit growth to accelerate in the second half [12] - The company anticipates slightly weaker volume in the latter half of the year but expects continued margin expansion due to pricing actions and raw material purchasing leverage [12] Other Important Information - The company was recognized as one of the world's greenest companies in 2025 by Newsweek, highlighting its commitment to sustainability [23] - The Vice President of Investor Relations announced his retirement, with plans for a smooth transition [24][25] Q&A Session Summary Question: Can you provide more context on the strong margin performance in Engineering Adhesives? - Management noted that the acquisition of ND Industries performed better than expected and strong cost control contributed to margin expansion [32][33] Question: How did volume velocity across business units compare in fiscal Q2? - Overall volume trends were flat in Q2, with some positive momentum in automotive and flexible packaging, while residential construction markets showed softness [38][39] Question: What is the expected impact of tariffs on the business? - The company has limited direct tariff impact due to local sourcing but is prepared for potential lower volumes and is actively managing costs to mitigate impacts [86][89] Question: Can you elaborate on the capital expenditure trajectory? - The company expects to close the gap in capital spending in the second half of the year, with a full-year guidance of $150 million [61][62] Question: What was the pension income for the quarter? - Pension income for the quarter was approximately $5.7 million, up from $4 million in the previous year [67]

Financial Data and Key Metrics Changes - The company reported a 2.1% decrease in revenue year on year, but net revenue adjusted for the flooring divestiture increased by 2.8% [15] - Organic revenue was up 0.4%, with pricing up 0.7% and volume down 0.3% year on year [16] - Adjusted EBITDA for the quarter was $166 million, reflecting a 5% year on year increase [17] - Adjusted earnings per share (EPS) was $1.18, up 5% compared to the second quarter of 2024 [17] - Operating cash flow increased by 36% year on year to $111 million [17] - Net debt to adjusted EBITDA decreased from 3.5 times to 3.4 times [17] Business Line Data and Key Metrics Changes - In HHC, organic revenue increased by 1.8% year on year, driven by positive volume and pricing, although EBITDA margin was down year on year due to higher raw material costs [8] - Engineering Adhesives saw a 0.4% decrease in organic revenue, but EBITDA increased by 24% with EBITDA margin rising to 22.9% [10] - Building Adhesive Solutions experienced a 0.9% decrease in organic sales, while EBITDA increased by 5% and EBITDA margin expanded to 16.7% [11] Market Data and Key Metrics Changes - In the Americas, organic revenue was up 2% year on year, driven by strength in roofing and flexible packaging [11] - EIMEA region saw a 2% decline in year-over-year organic revenue, with strong performance in hygiene offset by weak demand in construction-related markets [12] - Asia Pacific organic revenue was slightly up year on year, with strong performance in transportation-related markets but slower results in solar and electronics [12] Company Strategy and Development Direction - The company is focused on delivering positive organic revenue growth while managing costs and leveraging global sourcing to respond to market uncertainties [6] - A strategic shift towards higher growth, higher margin markets is underway, including the divestiture of lower margin businesses [6] - The company aims to achieve a greater than 20% EBITDA margin target and is optimistic about margin expansion in 2025 [26] Management's Comments on Operating Environment and Future Outlook - Management expects a challenging operating environment with constrained demand and high uncertainty, particularly in the second half of the year [12] - Despite economic uncertainties, the company is optimistic about its strong execution and expects profit growth to accelerate in the second half [13] - The company is prepared for potential lower volumes due to tariffs and is actively managing costs to mitigate impacts [89] Other Important Information - The company was recognized as one of the world's greenest companies in 2025 by Newsweek, highlighting its commitment to sustainability [23] - The Vice President of Investor Relations announced retirement, with a transition plan in place [24] Q&A Session Summary Question: Can you provide more context on the strong margin performance in Engineering Adhesives? - The strong margin performance was attributed to better-than-expected performance from the ND Industries acquisition and strong cost control measures [34] Question: How did volume velocity compare across business units in fiscal Q2? - Overall volume trends were flat in Q2, with some positive momentum in automotive and flexible packaging, while residential construction showed softness [39] Question: What is the outlook for the electronics market, particularly in China? - There was a temporary pause in electronics exports from China, but the company expects recovery in the second half due to new business opportunities [48] Question: How should we think about the progression of price cost and margin profile in HHC? - The company anticipates significant margin expansion in HHC due to raw material cost reductions and strong pricing actions [50] Question: What is the expected capital expenditure trajectory for the remainder of the year? - The company expects to close the gap in capital spending in the second half of the year, with a total guidance of $150 million for the full year [61] Question: What is the impact of tariffs on the company's operations? - The direct impact of tariffs is limited due to local sourcing, but the company is prepared for potential volume impacts and is actively managing costs [89]

Core Insights - Analysts project H. B. Fuller (FUL) will report quarterly earnings of $1.10 per share, reflecting a year-over-year decline of 1.8% [1] - Revenue is expected to reach $898.25 million, down 2.1% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment by covering analysts [1] Revenue Projections - 'Net Revenue- Hygiene, Health and Consumable Adhesives' is forecasted to be $394.59 million, showing a change of +0.4% from the prior-year quarter [4] - 'Net Revenue- Construction Adhesives' is expected to reach $232.15 million, indicating a significant increase of +54.3% from the prior-year quarter [4] - 'Net Revenue- Engineering Adhesives' is estimated at $272.46 million, reflecting a decline of -27.1% from the year-ago quarter [5] EBITDA Estimates - 'Adjusted EBITDA- Engineering Adhesives' is projected to be $56.36 million, down from $68.82 million reported in the same quarter last year [5] - 'Adjusted EBITDA- Construction Adhesives' is expected to reach $37.82 million, compared to $22.63 million in the previous year [6] - 'Adjusted EBITDA- Hygiene, Health and Consumable Adhesives' is forecasted at $60.93 million, down from $65.22 million reported in the same quarter last year [6] Stock Performance - H. B. Fuller shares have experienced a -1% change in the past month, contrasting with a +0.6% move of the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [6]

Market Overview - The China automotive adhesives market is projected to grow from USD 574.03 million in 2024 to USD 737.4 million by 2030, at a CAGR of 4.2% [1][3][14] - The market plays a significant role in the broader adhesives market in China, with a notable contribution to overall growth [3] Key Market Drivers - Increasing vehicle production and the adoption of lightweight materials are primary drivers of market growth, as automakers seek to improve fuel efficiency and reduce emissions [4][7] - Government initiatives promoting domestic production and technological innovation are enhancing the competitiveness of Chinese automakers [5][6] Market Trends - There is a growing emphasis on lightweighting in the automotive industry, leading to increased demand for high-performance adhesives that can bond lightweight materials [11][12] - The shift towards lightweight vehicles is driven by sustainability goals and the need for reduced carbon emissions [11][12] Key Market Players - Major players in the market include Henkel, H.B. Fuller, 3M China, and Sika China, among others [1][16] Market Challenges - The complexities associated with high performance and durability requirements for automotive adhesives present challenges, as they must withstand harsh operating conditions [10]