H.B. FULLER COMPANY

Recommendation history

• Q1 2026HoldHOLD: H.B. Fuller delivered resilient Q1 profit despite organic revenue falling 6.6%, with adjusted EBITDA up 4% to $119 million, margin expanding 90 bps to 15.4%, and EPS rising 6% to $0.57. The FY2026 guide is higher at $645-$675 million EBITDA and $4.55-$4.90 adjusted EPS, but the thesis now depends on passing through roughly 10%+ pricing while absorbing an assumed 5% volume decline amid unprecedented raw-material disruption.
• Q4 2025HoldH.B. Fuller delivered a strong profit quarter despite weak demand: Q4 adjusted EBITDA rose 14.6% to $170 million, margin expanded 290 bps to 19%, and adjusted EPS increased 39% to $1.28, while organic revenue declined 1.3%. The 2026 outlook calls for flat to up 2% revenue and $630-$660 million EBITDA, but achieving it depends heavily on pricing, cost savings and Quantum Leap rather than volume recovery; with leverage at 3.1x and muted free-cash-flow conversion, the stock is a hold rather than a clean buy.
• Q3 2025HoldH.B. Fuller delivered solid earnings quality but not a clean growth story: Q3 adjusted EBITDA rose 3% to $171 million, margin expanded 110 bps to 19.1%, and adjusted EPS increased 12% to $1.26, while organic revenue fell 0.9% on a 1.9% volume decline. The $615 million-$625 million FY2025 EBITDA outlook and $4.10-$4.25 EPS guidance are resilient, but persistent weak volumes, $275 million-$300 million cash-flow guidance, and delayed price/cost benefits argue for waiting rather than buying aggressively.
• Q2 2025HoldHold: H.B. Fuller delivered solid Q2 execution—adjusted EBITDA rose 5% to $166 million, margin expanded 130 bps to 18.4%, and adjusted EPS increased 5% to $1.18—prompting higher FY2025 guidance of $615–$630 million EBITDA and $4.10–$4.30 EPS. However, organic volume was flat, management expects weaker second-half volumes amid tariff and construction uncertainty, and much of the margin upside depends on back-half pricing and raw-material benefits rather than demand acceleration.
• Q1 2025HoldH.B. Fuller delivered a solid but not decisive Q1: organic revenue rose 1.9%, EBITDA was $114 million at a 14.5% margin, and management reiterated FY2025 guidance of $600-$625 million EBITDA and $3.90-$4.20 adjusted EPS. Share gains in hygiene, automotive, China electronics/EVs, and roofing support the thesis, but weak end-market demand, a roughly $20 million solar EBITDA drag, 3.5x leverage, and highly back-end-loaded cash flow keep the risk/reward balanced rather than a clean buy.
• Q4 2024HoldH.B. Fuller merits a hold: Q4 adjusted EBITDA fell 14% to $148 million and margin declined to 16.1% as packaging demand weakened and raw-material inflation outran pricing. Management guides 2025 adjusted EBITDA to $600-$625 million and adjusted EPS to $3.90-$4.20, but the thesis depends on uncertain HHC pricing, a major footprint restructuring, and a recovery that has not yet appeared.
• Q3 2024HoldH.B. Fuller delivered solid Q3 execution—organic revenue rose 0.4%, volume 3%, adjusted EBITDA 6% to $165 million, and margin expanded 70 bps to 18%—but weakening demand forced a meaningful outlook reset. FY2024 EBITDA guidance fell to $610–$620 million from $610–$640 million, with organic revenue now flat; solar volumes fell more than 35% and durable-goods demand softened. The restructuring and acquisition-led margin thesis remains credible, but the near-term growth visibility is insufficient for a clean buy.