ebitda
650–675 $million
FY 2026
official guidance
| Revenue | $2.7B |
|---|---|
| Net income | $168.0M |
| Free cash flow | $41.0M |
| Net margin | 6.3% |
| Return on equity | 7.8% |
| Period | 2026 |
OpenFilings analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong operating momentum is offset by acquisition leverage, execution risk, and a cautious volume outlook.
Latest call · Q2 2026HOLD: Q2 execution was strong—organic revenue grew 2.6%, EBITDA rose 9% to $181 million, margin expanded 70 bps to 19.1%, and EPS increased 19% to $1.41—supporting higher FY2026 EBITDA guidance of $650–$675 million and EPS of $4.60–$4.90. However, the proposed £715 million AMS acquisition would lift pro forma leverage to roughly 4.0x and relies on unusually high $55 million of synergies; with second-half volumes expected to decline mid-single digits and investor pushback already driving the stock lower, the risk/reward is not yet a clean buy.
Q3 adjusted EBITDA guidance is $180–$190 million, with revenue expected to increase mid-single digits; this excludes AMS.
Pricing is expected to run at high-single-digit, approaching double-digit levels in the second half, but management still expects mid-single-digit volume declines.
Raw-material pressure remains unresolved: nearly 90% of monitored categories were higher sequentially and 52 force majeures remained in place.
Automotive and consumer-exposed HHC are the main near-term volume risks, while BAS, Aerospace, Electronics, and General Industries remain stronger.
AMS would increase Medical to roughly 10% of pro forma revenue and lift the combined medical platform from $68 million to approximately $370 million of revenue.
Management targets approximately $55 million of AMS run-rate synergies, including $20 million of commercial and $35 million of cost synergies, with about 50% expected by 2028 and full run-rate cost synergies by 2030.
The combined Medical business is targeted to exceed 30% EBITDA margin by 2030 and could add approximately 100 bps to consolidated EBITDA margin within 24 months.
Global sourcing and supply continuity are real competitive strengths during disruption, while regulatory expertise, customer qualification, and medical formulation capabilities could support a higher-quality portfolio.
Management expects to return pro forma leverage from approximately 4.0x to the 2.5x–3.0x target range within two years of closing, but this depends on cash-flow delivery, Quantum Leap savings, and successful integration.
The deal does not materially accelerate the previously stated goal of reaching a 20% EBITDA margin by 2028, limiting the immediate strategic payoff relative to the added balance-sheet risk.
Analysts highlighted investor opposition and an approximately 8% stock decline following the AMS announcement, indicating the market is not yet crediting the strategic rationale.
AMS cost synergies equal roughly 11%–12% of acquired revenue, above the 7%–8% level cited for prior deals; the figure includes approximately $14 million of Peters Surgical synergies already underway and public-company cost removal.
The acquisition is being funded with incremental debt, taking leverage to about 4.0x at closing before synergies; faster deleveraging through asset sales is possible but management acknowledged that portfolio separations can create substantial dis-synergies.
Management did not provide detailed disaggregation or timing for the approximately $21 million of non-Peters cost synergies, leaving procurement, back-office, wage-arbitrage, and manufacturing assumptions insufficiently validated.
The transaction is expected to close only by year-end 2026 and remains subject to AMS shareholder and regulatory approval.
The second-half outlook assumes weaker volumes despite Q3 order patterns remaining consistent with Q2; consumer weakness and high interest rates could challenge the pricing-volume tradeoff.
ebitda
650–675 $million
FY 2026
official guidance
adjusted eps
4.6–4.9 $per share
FY 2026
official guidance
ebitda
180–190 $million
Q3 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
H.B. FULLER COMPANY
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